DECLARATION

I, Rahees. k, 3rd trimester student of Bhavan’s Royal Institute of Management

Thiruvankulam, hereby declare that this project entitled “A report on the organizational

study conducted at Keltron Component Complex Limited, Kannur” is based on the

original study conducted by me and is submitted in partial fulfillment of requirement for

the award of the Post Graduate Diploma in Management approved by AICTE.

Date: 17/05/2010 Rahees.k

Place:

1

ACKNOWLEDGEMENT

I wish to express my indebtedness and gratitude to Ms. Remya, Personnel officer,

for giving me support to do this internship training in KCCL.

I take this opportunity to express our sincere gratitude to our beloved Dean,

Prof: Dr. B. Hareendran for giving me an opportunity to do this project.

I express my gratitude to our project guide Ms. Manisha pillai, who has taken

interest in guiding us to complete the project. We also thank all the staff members.

Last but not the least; my gratitude is to the almighty for showering me with abundant

grace through the entire duration of this training. I believe that the light that God has passed on

to me shall be kept alight in all days to come.

Date: 17/05/2010 Rahees.k

Place:

TABLE OF CONTENTS2

Serial No

CONTENTS Page No.

1

2

3

4

5

6

7

Introduction

Industry Profile

Company Profile

Board of Directors

Product: Aluminum Electrolyte Capacitor

Departments

KCCL-Organization Chart

Planning Department

Marketing Department

Manufacturing Department

Plant Engineering Department

Calibration Department

Quality Assurance Department

Finance Department

Engineering And Design Department

Human Resource & Administrating Department

Research And Development

Electronic Data Processing Department

Etching & Forming Department

5-6

7-10

11-13

14

15-16

17

18-19

20-21

22-23

24-28

29-32

33-36

37-41

42-46

47-49

50-56

57-58

59-61

62

3

8

9

10

SWOT Analysis

Findings & Recommendation

Conclusion

Bibliography

63

64

65

66

4

CHAPTER 1

INTRODUCTION

This Organization Study conducted at Keltron Component Complex Limited, Kannur.

The objectives of the study is identified the function of departments in the organization.

1.1 Need and Significance of Study

Management principles can be taught in class rooms but managerial skills can be

developed in an individual only. When he is trained so. As job are rare and lots of

people are equally qualified what makes the student different is his familiarity with

corporate practices, processes and this study is also attempt to make the trainee familiar

with a public sector manufacturing company.

1.2. Objectives of the Study

To know the Organizational structure of the Company

To know the functions of various Departments such as Marketing, Finance,

Production, Human Resource Management, etc.

To gain practical knowledge about the functioning of various departments of the

organization.

To understand the works relationship with Technology and Organization by

studying work practices.

5

1.3 Scope of Study

The study is intended to provide managerial insight to a management student. If will

enable him to take up responsibilities of a manager at ease and provide him more

confidence. The scope of the study is confined to a few selected departments and their

functions. The trainee may also get a feel about how business executives operate in their

work settings.

1.4 Methodology

The Project work titled “An Organization Study” conducted at KELTRON is based on a

descriptive study. The data collection were both from primary and secondary sources

The primary source of data collection includes consultation with top management,

interviews with employees, informal talks with employees and observations. The secondary

sources of data collection were the annual reports, Departmental reports, catalogues, etc.

1.5 SCHEME OF REPORTING

This report is presented in five chapters. The first chapter introduces the study by

highlighting the need for the study, the study objectives, methodology and scheme of

reporting. The second chapter on industry profile discuss about the Aluminum Electrolyte

Capacitors industry. Third chapter describes profile of Keltron Conponent Complex Ltd..

The fourth chapter describes the detailed study of different departments in which the trainee

had under gone the training.

6

CHAPTER 2

INDUSTRY PROFILE

An electronic component is any physical entity in an electronic system used to

affect the electrons or their associated fields in a desired manner consist with the intended

function of the electronic system. Components are generally intended to be connected

together, usually by being soldered to a printed circuit board(PCB), to create an electronic

circuit with a particular function ( for example an amplifier, radio receiver, or

oscillator). Components may be packed singly or in more complex groups as integrated

circuits. Some common electronic components are capacitors, resistors, diodes, transistors etc.

"A capacitor is a device capable of storing charge in a circuit, and typically consists of two

metal plates separated by an insulator, called a dielectric. Capacitance is directly proportional to

the area of the plates and the dielectric constant of the insulator and is inversely proportional to

the distance between the plates." Capacitors can store charges from voltage sources for a wide

range of time, to be released as needed. The classification of capacitor types by material such as

paper, ceramic, or tantalum refers to the insulating dielectric. Electronic capacitors are part of a

class of electronic components called passive components. They differ from active components,

such as vacuum tubes and transistors, in that they can neither distinguish voltage polarity nor

amplify a signal.

Early capacitors were also known as condensers, a term that is still occasionally

used today. The term was first used for this purpose by Alessandro Volta in 1782, with

reference to the device’s ability to store a higher density of electric charge than a

normal isolated conductor.

7

The first capacitor was the Leyden jar, invented independently in the mid-1740s by both

Ewald Georg von Kleist and Pieter van Musschenbroek. A glass jar acted as the insulating

material. M. Bauer developed the mica capacitor in Germany in 1874.

. The tubular glass capacitor was produced in 1904 by I. Moscicki in the United Kingdom. It

was this capacitor that Guglielmo Marconi used in his early experiments with radio

communication.

World War I provided an important catalyst for technical change in electronic

communications, during which new radio tubes and circuits were developed. The interwar

years saw the rapid growth of radio, and, on the eve of World War II, millions of radios were

in use worldwide.

During the World War II years, substantial developments were made in communications

electronics, radio astronomy, xerography, and radar and computer technology, as well as in

miniaturization and the improvement of the energy efficiency of components. The harsh

conditions and importance of reliability imposed by the war led to the development of metal-

cased and metalized paper dielectric capacitors, as well as improvements in ceramic capacitors.

The tantalum capacitor was produced in 1956 by D. McLean and F. Power of the United States,

after which it became among the most widely, used capacitor types.

Among the most significant developments in electronic components in the postwar

period were the transistor and integrated circuit. Transistors are based on solid-state

technology, serving as substitutes for the older triode vacuum tube active components,

developed by Lee De Forest in 1906. In 1948, Bell Laboratories developed the transistor

(whose name derives from transferred resistor), which enabled electronic equipment to be

produced in increasingly smaller sizes. The first integrated circuit was produced by Texas

8

Instruments in 1959. This device made use of transistors and other components mounted on a

semiconductor chip to form an entire electronic circuit.

Chip capacitors are surface-mounted to circuit boards, in contrast to traditional capacitors

with wire leads. Although chip capacitors are generally higher priced than those with leads, the

price gap decreased in the 1990s. Also during this time, chip capacitors came into increasing use,

especially in equipment such as portable phones, video cameras, and electronic notebooks, items

for which space constraints were a prime consideration. Demand for surface mounting and

miniaturization continued in the late 1990s, along with higher capacitance and integrated

devices.

World Scenario

The worldwide electrical and electronics industry is experiencing phenomenal and

remarkable changes these days. The worldwide electronics industry is distinguished by fast

technological advances and has grown rapidly than most other industries over the past 30 years.

Globally, during the early 2000s, end-users of passive electronic components like

capacitors—namely original equipment manufacturers—were applying continuous pressure on

the industry to lower prices. This had a devastating impact on profitability, as many capacitor

manufacturers were forced to produce components at or below the cost of production. In

addition, the industry was forced to contend with a generally weak economic climate, heightened

competition from the likes of Asia, and downturns in leading end markets like

telecommunications equipment and computers. These negative conditions led to workforce

reductions, consolidation, plant closures, and a reduction in overall capital spending and

production capacity.

9

Factors Governing the Growth of this Industry

The key factors governing the growth of electrical and electronics industry are as follows:

Rising and continuous investments in research and development has led to increased

productivity and higher-value added electrical and electronics products.

Increased foreign investments have resulted in the accelerated growth in terms of

electronics production and exports. Foreign companies are now making huge investments

and are installing extensive production capacities in developing countries.

Extends support to several global industries namely medical, telecommunications,

industrial and automotive sectors.

Rising incomes and living standards have resulted in the increase in demand of

electronics especially consumer electronics products in the world.

This industry is highly fragmented which comprises of many small and medium size

enterprises.

Rapid pace of innovation in electronics technology is resulting in a consistent demand for

newer and faster products and applications.

INDIAN ELECTRONIC INDUSTRY

The electronic industry in India constitutes just 0.7 % of the global electronic industry.

Hence it is miniscule by international comparison. However the demand in the Indian market is

growing rapidly and investments are flowing in to augment manufacturing capacity. India

however remains a major importer of electronic materials, components and finished equipment

amounting to over US$26 Billion in 2009. This is not a desirable situation and local

manufacturing has to keep pace with growing local demand.

10

CHAPTER 3

COMPANY PROFILE

Introduction

Keltron was established as a subsidiary company of Kerala State Electronic Development

Corporation Ltd on 8th October 1974 by shri. K.P.P. Nambiar, who is the founder of the

Organization. Later, on 19th August 1978, the companies started commercialize its production. It

was an experiment by Government of Kerala to transform the laid-back, picturesque Kerala

State known for its spices, natural beauty, Kathakali and the Onam boat races, to arena for

industrial and technological development. That was how Keltron born.

Keltron Component Complex Limited (KCCL) is a Government of Kerala undertaking

promoted by Kerala State Electronics Development Corporation Limited. The company is

located in the district of Kannur in Kerala. It commenced its commercial production of

Aluminum Electrolyte Capacitors in August 1978 in technical collaboration with N. V

Sprague Electromag, Belgium a subsidiary of the world famous Sprague Electric Company of

USA.

KCCL markets its products under the brand name ‘KELTRON’. It has a good manufacturing

facility with sophisticated machines import from Japan and Europe. It has a capability to

produce all types of Aluminum Electrolytic Capacitors, which confirm to national and

international standards. The manufacturing technologies is upgraded with R&D center of

the company has the recognition of the Department of Scientific and Industrial Research,

Ministry of Science and Technology, Government of India. The state Pollution Control Board

has certified the company’s ecofriendly facility at Kannur. M/S KPMG, USA, have conferred the

company’s quality system with the ISO-9001 accreditation.

11

Earlier Keltron had four units operating in different parts of India. On January 2010 they

amalgamated, Keltron Crystals Ltd, Keltron Magnetics Ltd, and Keltron Resistor Ltd in to one

single unit known as Keltron Component Complex Ltd.

APPLICATION/CUSTOMERS

Electrolyte capacitors are widely used in TV sets, VCR, Radios, Tape recorders, Telephone

instruments, Motors, Electronic exchanges, Communication equipments, Defense

equipments etc.

The present customers include major Indian companies like BEL, ITI, C-DOT, HCI,

Tata Telecom, Onida, Sharp India, Videocon, Crompton Greaves, Kirloskar and other

small OEMS serviced through dealer network.

MISSION

“ We aim at maximum satisfaction to our customers by providing goods which meet

the requirements. We are committed to achieve our goal with the involvement of employer at

all levels”.

VISION

“To re-build Keltron into Rs1000 crores company in five years time –frame and make it a NAVRATNA of the

country”

12

AWARDS/RECOGNITIONS

National Productivity Award for 1988-89 under large scale electronic components

from National Productivity Council, New Delhi.

ELCINA Award 1993 for excellence in Research and Development for work done

in the field of forming technology.

Department of Scientific and Industrial Research and Ministry of Science and

Technology, Government of India approval for in-house Research and

Development.

ISO-9001 – 2000 Certification from M/S Intertek - UK

BOARD OF DIRECTORS

13

1. Mr.T.Balakrishnan, IAS Chairman

2. Captain O P Dua Managing Director

3. Dr. Inder Jit Sigh, IAS Director

4. Mr. T O Sooraj, IAS Director

5. Mr. Radhakrishnan Nair Director

6. Mr. CA. Suresh Kumar Director

7. Mr. Rajan T Joseph Director

8. Mr. T R Chidambaram Director

9. Mrs S.Roopakala Jagath Director

PRODUCT

Aluminum Electrolytic Capacitor

An electrolytic capacitor is a type of capacitor that uses an ionic conducting liquid as one of its

plates with a larger capacitance per unit volume than other types. They are valuable in relatively

high-current and low-frequency electrical circuits. This is especially the case in power-supply

filters, where they store charge needed to moderate output voltage and current fluctuations

in rectifier output. They are also widely used as coupling capacitors in circuits where AC should

be conducted but DC should not.

14

Aluminum Electrolyte Capacitor, basically consists of anode foil, cathode foil and condenser

tissue paper interleaved and rolled to form cylindrical capacitor section.

The anode and cathode foils are interleaved with paper and wound into a cylinder. During the

winding process, aluminum tabs are attached to each foil to provide electrical contract

The complete winding is then impregnated with an electrolyte, before being housed in a

suitable container, usually aluminum can, and sealed. Before being sleeved and packed,

capacitors are first aged. The purpose of this stage is to repair any damage in the oxide layer,

and thus reduce the leakage current to very low levels. Damage to the oxide layer can occur due

to slitting of the anode foil after forming, attaching the tabs to the anode foils, or minor

mechanical damage caused during winding. Normally carried out at the rated top temperature to

the capacitor, agencies apply voltage to the device through a current limited supply, process that

may take several hours to complete.

Anode foil used in Aluminum Electrolyte capacitors is of high purity 99.98%. The foil is etched

to increase the surface area and formed to the required voltage based on the working voltage.

Cathode foil is etched for increasing purity of Aluminum foil. The thickness of foil ranges from

20 microns to 110 microns based on the type of foil (anode or cathode)

Products

15

The company started with manufacturing of axial, radial, can type DC component.

Subsequently products were added with in-house development. At present the company

manufactures a wide range of Aluminum electrolyte AC and DC capacitors, Motor start

capacitors and Motor run capacitors.

KELTRON COMPONENT

COMPLEX LIMITED

16

DEPARTMENTS

KELTRON-ORGANIZATION CHART

17

PLNG

MRKG

MFG-1

MFG-2

MFG-3

PLNG : PLANNING

MRKG: MARKETING

MFG-1 : MANUFACTURING 1

MFG-2 : MANUFACTURING 2

MFG-3 : MANUFACTURING 3

MFG-4 : MANUFACTURING 4

PE : PLANT ENGINEERING

18

MD

MFG-4

PE

CAL

QA

E & D

HRD

R & D

E & F

FN

EDP

CAL : CALIBRATION

QA : QUALITY ASSURANCE

FN : FINANCE

E & D : ENGINEERING & DESIGN

HRD : HUMAN RESOURCE DEPARTMENT

R & D : RESEARCH & DEVELOPMENT

EDP : ELECTRONIC DATA PROCESSING

E & F : ETCHING & FORMING

PLANNING DEPARTMENT

In Keltron planning is done in all department on the annual intend from top

management, marketing department and planning department will prepare an annual budget

based on the marketing trend, demand and price existing in the market. After getting

the approval of Managing Director the Annual Budget is send to the marketing

department and other proposed departments other than preparing the annual budget the

planning department is also engaged in preparing a quarterly and monthly budgets to

meet market requirements. They arrange short-list; in which non-availability of material

is listed initiative taken by the purchase department is highlighted. Purchase department

makes arrangement for providing materials and after receiving materials work order is

19

issued to production department. After inspecting the Raw Material’s they are given to

stores which would be then put in production.

PLANNING DEPARTMENT- ORGANIZATION CHART

DUTIES

Planning department has to look after the rework of capacitors, standardization of

work and even tool room fabrication. The primary duty of planning department is to

reduce wastage from each department, wastage including time, material, finance, motion

etc. reducing the congestion in stores by using FIFO method is also taken into

consideration. It keeps production control that is according to the plan and sees to it that

cost can be reduced in manufacturing. It also takes into consideration whether men and

material are running in full capacity.

20

HOD

OIC

TYPIST ASSISTANT ASSISTANT TYPIST

SCOPE

Manufacturing of Aluminum electrolyte capacitors and related production activities.

Forming of aluminum foil.

Job work for sub-contracted items.

Rework of capacitors.

Tool room fabrication and miscellaneous job work.

MARKETING DEPARTMENT

Marketing is one of the most important operative functions of management. Marketing is a

human activity directed at satisfying needs and wants through exchange process. It includes all

resources and selling activities necessary to direct and facilitate the flow of goods and services

from producers to consumers in the process of distribution. The success of a company depends

on the acceptability of its products in the market.

21

MARKETING DEPARTMENT ORGANIZATION CHART

OBJECTIVES

To fulfill customers needs

To increase sales

4 P’S OF MARKETING MIX

As Marketing Department n of every other organization here also they focus on the

marketing mix i.e.; 4P’s which are this;

22

MARKETING MANAGER

SENIOR OFFICER SENIOR OFFICER

SECTION ASSISTANT

SECTION ASSISTANT

SECTION ASSISTANT

SECTION ASSISTANT

1. Product

2. Price

3. Place

4. Promotion

Product

The product of KCCL is the electrolyte capacitors. These are industrial oriented product

which is a component of electronic goods like TV, Refrigerator, and Computers etc.

Price

The price of capacitors are fixed in such a way that is not too high, that customers

cannot afford it nor too low that they cannot incur the cost of production. Comparatively

the price of capacitors of KCCL high but even then they are able to withstand in the

market because of the good quality. Price is fixed on the basis of the cost, demand and

competition.

Place

KCCL carries out their sales through

Authorized Dealers

Direct Sales

All over India KCCL have dealers network. It has branches in cities namely;

Ahmadabad, Bangalore, Calcutta, Delhi, Chennai, Hyderabad, Trivandrum.

The company sells the product to authorized dealers who sell it to the retailers which

are sold by them to ultimate customers. Dealers are given discounts and the company

offers additional discounts in case of quick payment and to regular customers.

23

Company fixes target sales for the dealers and if they succeed in meeting the fixed

target they are offered commission at the end of the year. Some of their customers are

given discounts on the basis of the turnover which is termed as Turnover discount.

KCCL is also engaged in direct sales to the customers in case it’s a bulk order.

Promotion

The product of KCCL is a component which is an industrial product and therefore

they need not use any form of advertisement. But they do take part in exhibitions and

conduct seminars to promote their product. Thus they do not require huge investment for

sales promotion.

MANUFACTURING DEPARTMENT

KCCL is the biggest manufacture of Aluminum Electrolyte Capacitors in India. It has

state of the art manufacturing facility equipped with latest automatic and semiautomatic

production machinery and test equipments. It has also the capability to design and

develop different types of Aluminum Electrolyte Capacitors meeting national or

international customer specifications. The company has, for the first time in India,

developed the technology for forming of high and low voltage foils in its in-house

forming plant. In fact, KCCL is the only company for manufacturing all types of

capacitors like radial, axial capacitors etc. Etched and formed Aluminum foil is a major

24

raw material for the production of electrolytic capacitors. Manufactures are importing this

type of Aluminum foils, since the technology for etching and forming of aluminum not

available in India. So they import this material from Korea, Taiwan, China and Singapore

MANUFACTURING PROCESS OF ELECTROLYTE CAPACITORS

25

STICHING AND ROLLING

SEALING

SLEAVING & HOT SHRINKING

IMPREGNATION

Manufacturing process

The manufacturing process of KCCL starts with etching and forming of aluminum

foil. In KCCL, automatic machines are used. The manufacturing process of KCCL is given

below:

Stitching and Winding

Aluminum foil of 40m-110m has both anode and cathode foil. Here aluminum oxide is

sent for etching and forming. The etched and formed aluminum foil is wound either

with cello tape or glue. Every process is done automatically. Both aluminum and paper are

26

SLEAVING & HOT SHRINKING

STORE

wound together. This is done so that the paper can sink in the chemical and the

electrolyte is formed. The paper used here is tissue type. This is later taken into a tank

and the chemical is fitted from there. All this is done in an air conditioned room as to

avoid contamination and also to maintain the temperature level within the plant, which

is a major requirement. The foil issued here is 3mm-150mm.

Impregnation

Aluminum foil wound with paper is then fitted with a rubber bung. Then it is

put in a can and it is sealed with glue. To know electrolyte and chemical capacity it is

sealed with figures like 2.2/63 HS (smallest), 22/35 HS, 47/25 HS, etc,. The biggest

capacitor used here is initial motor start.

Ageing and Testing

Ageing is a process through which electric voltage is given to the capacitor.

Then it is tested to see whether it is working properly and has the right voltage and

there is no short. The sealed coil goes for ageing and then it is tested. If the capacitor is

good it is sent for Quality Assurance. If it is tested bad then if re-ageing is possible, then

re-ageing is done and it is tested. If it cannot be re-edged, it is rejected. Ageing and testing

can be done both automatically and manually the capacitors are put in a trolley and

loaded. Voltage is passed. Then it is tested. Sometimes capacitors are tapped. This is manually

done for computer mother boards etc; only customer requirements.

Quality control

After the testing of capacitors it is sent to the Quality Assurance department

so that it can be checked for proper functioning in order to get 100% satisfaction from

the customer.

27

Packing

Only passed items are packed into multiples of hundreds and sent to finished

goods stores. It may be packed according to customers requirements like tape packing,

bulk packing etc.

Maintenance

After putting the coil in the can it is sealed. Then the sealed capacitor is

washed with a type of acid is used to remove the stains or dirt on the can.

Stores

The finished capacitor is then sent to store, from where it is sold to dealers on

the first come first serve basis.

PLANT ENGIEERING DEPARTMENT

In KCCL, Plant engineering Department takes care of the maintenance of Keltrone.

Maintenance is that function of manufacturing management that is concerned with the

day-to-day problem of keeping the physical plant in good operating condition. The main

function of Plant Engineering Department is for maintenance of machines and also for

providing controlled environment for production activities, In KCCL, maintenance is

carried under 5 heads namely;

28

Mechanical maintenance

Electrical maintenance

Electronics maintenance

Preventive maintenance

Civil maintenance

MAINTANENCE DEPARTMENT – ORGANIZATION CHART

29

ELECTRICAL MAINTENANCE

MECHANICAL MAINTENANCE

1) MECHANICAL MAINTENANCE

Breakdown maintenance of equipment in case of breakdown of a predominantly

mechanical in nature.

Adjustment of production machines for ensuring continuous process capability

Operation of services equipment like air conditioning, plant air compressors etc.

Operation of water utility services, liaison with store to ensure proper inventory

control of mechanical space.

General administration of the section.

30

PLANT MANAGER

PREVENTIVE MAINTENANCE

ELECTRONICS MAINTENANCE

CIVIL MAINTENANCE

Ensure that proper procedures/instructions are communicated to him and see that

such procedures instructions are followed.

Any other responsibility supplementary or complementary to those mentioned above.

Officiate a department head in the absence of HOD

2) ELECTRICAL MAINTENANCE

Breakdown maintenance of equipment in case of breakdown of predominantly

electrical in nature.

Adjustment of production machine of a personality electrical in nature.

Operation and maintenance of electrical utility services.

Liaison with stores to ensure proper inventory control of spares electrical.

3) ELECTRONIC MAINTENANCE

Breakdown maintenance of equipment in case of breakdown of a predominantly

electronics in nature.

Adjustment of production machines of a personality electronic in nature.

Breakdown maintenance or repair of electronic utility equipment, assessing and

testing instruments and calibration of equipments.

Liaison with stores to ensure proper inventory control of spares electronics.

4) PREVENTIVE MAINTENANCE

Making preventive maintenance plan and schedule.

Carry out preventive maintenance of all equipment under the schedule.

Commissioning equipment’s.

5) CIVIL MAINTENANCE

31

Planning and arranging maintenance of civil structure, buildings, roads and such other

facility.

Preparation of plan and estimates for civil work.

Supervision of civil work.

Keeping records pertaining to each work including measurement book.

Any other work complementary or supplementary to those mentioned above is

specifically assigned by the departmental head.

CALIBRATION DEPARTMENT

Measurement are made using a of instrumental ranging from very simple to

extremely sophisticated. We must have confidence that all those measuring instruments are

giving us valid useful data that confidence is provided by Calibration.

Calibration is the set of operation of determining the values of errors of measuring devices to traceable standard. The set of operation which establish under specific condition, the relationship between values of represented by a material measure or a reference material and the corresponding values by the standards.

32

CALIBRATION DEPARTMENT- ORGANIZATION CHART

TECHNICIAN

OBJECTIVES

To control calibrate at prescribed intervals and maintain inspection measuring test

equipments used by Manufacturing Department and Quality Assurance Department so

that required measurement capabilities is maintained.

Maintain calibrate records for complete set of instrument.

Evaluation of external sources of calibration for adequate facility and also for

traceability to National/International standards.

ELEMEMENTS OF CALIBRATION

33

HEAD OF DEPARTMENT

OFFICER IN CHARGE

TECHNICIAN TECHNICIAN

Adequacy of standards

Calibration

Traceability

Recall system

Calibration records

Labeling practice

Calibration intervals and adjustment techniques

Environmental controls

Outside calibration source.

CALIBRATION PROCESS

Calibration makes sure reading that correct. Various steps make up the whole calibration

process for the company.

Calibration is used word wide the Head office of the calibration is at Paris. In India the

Main Branch is at Delhi. All other calibration departments in companies are said to be the

branches of calibration.

In Keltron, the calibration process starts with External calibration. All the meters of

Keltron are being calibrated using the different calibration devices. These calibration

devices are first calibrated externally from Fluid Control Research Institute, Palakkad and

Electronic Regional Test Laboratory (South), Trivandrum. Then all the meters of Keltron

are checked with these devices and they give a guarantee period for each meter so that

all these meters are recalibrated within this period. In short, they make sure that each meter

gives the accurate readings. The firm makes sure that all the equipments in the company

are calibrated before the guarantee period of the calibrating devices.

At the beginning of every year all the department gives a list of equipments to be

calibrated. Based on this list the calibration department prepares a scheduled of when to

calibrate the listed equipments are calibrated on the schedule.

34

Every calibrated meter is labeled to make aware the workers about the reading status

of the meter.

The meters are labeled as follows:

Green- Valid calibration i.e.; cleared for all use.

Yellow- cleared for limited use.

RED-instruments cannot be used for measurement

BLUE – calibration not required.

They maintain record of all the labeled equipments and give the copy of it to the

concerned department so that the workers can know what all measurements can be

obtained accurately in case the equipments has got a yellow label.

Thus calibration department strives to improve product quality which in turn will

help to improve the business results.

QUALITY ASSURANCE DEPARTMENT

The Quality Assurance Department (QAD) function includes central examination and

administration, which has to be within an Organization.

It certifies automatically and free from the influence of production that has been

performed in accordance with specific procedure and material or components to meet the

preceded specification. KCCL has got a well dominated and implemented quality system.

35

Organization chart- Quality Assurance Department

36

Head of Department

OIC/SIC IN PROCESS INSPECTION, FINAL INSPECTION & LIFE TEST OF MB/MS

OIC/SIC RECEVING INSPECTION

OIC/SIC FINAL INSPECTION. RADIAL/AXIAL

FUNCTIONS

This department is primarily concerned with ensuring quality of the quality of the

product by way of inspection, which may be categorized as follows:

1. Raw Material Inspection

2. Patrol Inspection

3. Final Inspection

37

IN PROCESS INSPECTION

LIFE TEST FINAL INSPECTION

FINAL INSPECTION RADIAL/AXIAL

FOIL TESTRAW MATERIAL COMPOUNDS

INSPECTORSINSPECTORS INSPECTORSINSPECTORS

Raw Material Inspection

The materials which are imported for production are being inspected and the

quality is assured. Some materials require 100% conformance as specified. Those materials

that do not give 100% conformance are not accepted because it may adversely affect the

quality of the finished products. It is accepted on deviation confirming to the standard

fixed by the quality department. After the raw materials are imported it will be checked

with the company’s own standard, if there is major deviation, then at the same time if it

can be Utilized under certain conditions without affecting the end requirements, the

materials is cleared as acceptance on condition and is called conditional clearance.

RAW MATERIAL INSPECTION

38

PASSED [100% CONFIRMING TO SPECIFICATION]

PASSED [100% CONFIRMING TO SPECIFICATION]

PASSED [100% CONFIRMING TO SPECIFICATION]

In Process or Patrol Inspection

In KCCL, Quality Assurance continues when material are in Process. Here the inspector

goes to the inspection is done to check whether the product after each process satisfies

the confirmed promoters. If there is any critical problem, it will be reported the HOD and

action will be taken depending upon depending upon the nature of the defect noticed.

Outgoing Inspection

It is carried out for the finished goods. Here the inspection starts ageing and testing machine.

KCCL produce 500k-600k capacitors per day – quality controller checks the output by a

sample of particular units which is under the hire standards 10673. This is a standards

which is issued by the Government of India for all electronic equipments. The products

that fulfill the quality level specified are selected for sales. The defects are expressed in

percentage level, it will be withdrawn and further rework will be made. In case of

capacitors the parameters which is 100% vested by ageing and testing other promoter are

checked by sub-section of manufacturing department by method of sampling.

FINAL INSPECTION/ TEST

39

MANUFACTURING

MANUFACTURING HOT TO QUALITY ASSURANCE

INSPECTION & MINOR COSTING

COLLECT SAMPLES IS 10673

HOD QA

HOD QA

MRB

FINANCE DEPARTMENT

Finance has been defined as the source of money. It studies the principle and raising,

administering and controlling of funds in business. The nature of financial management

refers to its functions, scope and objectives. The scope and coverage of financial

management have undergone fundamental changes. In the early year of its evolution it was

regarded as a branch of economics relating to the raising of funds. But now, in current

literatures pertaining to this growing discipline the scope has changed tremendously so

as to include in addition to the raising of funds, the efficient use of available resources.

This concept is now universally accepted and recognized.

40

FINISHED GOOD STORE

PASSED

PRIMARY PACKING

DISPOSAL STORES

RECEIPT

ACCEPTED IS IN

ACCEPTED ON DEVIATION

Financial management is concerned with planning, organizing, directing and controlling

financial activities of an organization. It is concerned with sources and uses of the fund. It is

related with proper management of fund. The financial functions are:-

Investment or long term asset mix- decision

Financial or capital mix decision

Dividend or profit allocation decision

Liquidity of short-term asset mix decision

ORGANIZATION CHART-FINANCE DEPARTMENT

41

FINANCE MANGER

PERSONAL SECRETARY

GENERAL ACCOUNTANTSGENERAL ACCOUNTANTS GENERAL ACCOUNTANTS

7

OFFICER IN CHARGE OFFICER IN CHARGE(Production)

CASHIER

ACCOUNTANTS ASSISTANTS

HELPER

OFFICER IN CHARGE

ACCOUNTANTS ASSISTANTSACCOUNTANTS

ASSISTANTS

WORK ASSISTANTS

TYPIST

PROCEDURES

Setting various financial performance standards, modifying these time to time.

42

Preparation of master control budget based on department wise budget,

forward by Head of Departments.

Monitoring of key financial ratios.

Planning and implanting the growth strategy of the organization.

Maintenance account, preparation of annual account, annual reports etc.

Cost study and output.

WORKING CAPITAL MANAGEMENT

Managing funds are required for providing resources like material, man,

machine etc to sustain the operation of the company on a day to day basis. In

addition to owns funds, if the company requires additional working capital, the

terms are negotiated with the lending institutions. Agreement is also made with

bankers for non-fund assistance like establishment and letter of credit in finance

of overseas suppliers, banks guarantee etc.

DIVIDEND

The company has regularly paid dividend to its shareholders since 1985-86. The last

time it paid a dividend of 10% in year 1993-1994.

AUDIT

43

The company has efficient external auditors. Moreover there is efficient internal check

system also. Besides this statutory auditors appointed by the company law board

audit the accounts, records of the company. After completing the audit, copy of the

report is sent to the accountant and also presented before the shareholders. If there

are any comments from the auditors, shareholders, the company should provide

sufficient explanation to these comments. In addition to this ISO audit is also carried

out.

ACCOUNTING POLICIES

Cash payment

Cash receipt

Bank payment voucher

Bank receipt

Journal voucher

Purchase journal

Sales journal

General ledger

Control

Office cash

KEEPING ACCOUNTING RECORDS

44

Files maintained in the finance and accounts department are kept unlocked

shelves. Current ledgers, books, subsidiary registers, salary sheets are under the

custody of concerned personnel the asset register is kept with the HOD. Rank cash

books, journal books, salary records, purchase journal, sales day book and other

subsidiary register of previous years are kept in the record room adjacent to the

accounts departments. Vouchers pertaining to 8 years are kept in boxes mentioning

names of the vouchers and year on the boxes in the record room.

REVENUE ACCOUNTING POLICIES

The accounts are prepared under the historical cost of accounting and evaluated

on a going concern basis with revenues recognized and expenses accounted. Some

of the revenue accounting policies is:

Fixed assets and depreciation

Inventories

Foreign currency transaction

Deferred tax

ENGINEERING AND DESIGN DEPARTMENT

45

For modern products it is useful to document and analyze the design logic. This

means starting with the desired product factors and then identifying the necessary

characteristics for Raw Material and Process steps, such as engineering.

In KCCL, the Engineering and Design Department is concerned with preparing bills of

materials, altering materials, giving technical support to the manufactured and making

design, according to the order to suit the customer requirements.

ENGINEERING AND DESIGN – ORGANIZATION CHART

46

OIC : OFFICER -IN- CHARGE

SIC : SECTION-IN-CHARGE

OBJECTIVES

To bring down the product cost by 5% through Engineering and Design.

To meet the customers requirement for utmost satisfaction of the customers.

47

HEAD OF DEPARTMENT (ENGINEERING & DESIGN)

OIC/SIC (ENGINEERING & DESIGN) SIC (LIBRARY)

CONFICATION LIBRARY (TECHNICAL)

DESIGN ENGINEERING

RESPONSIBILITIES

Preparation of bill of materials and design specification for electrolyte capacitors.

Preparation of engineering, drawing and design specification and new product

introduction.

Prepare cost data.

HUMAN RESOURCE AND ADMINISTRATION

48

The basic job of management of any business is the effective utilization of available

human resource for the achievement of business objectives. The human resource in an

organization should be motivated and managed with utmost care to inspire, encourage

and impel them to contribute their maximum for the achieve of organizational objectives.

They are considered to be the valuable asset because it is people which make other

assets move.

In Keltron there is a specialized department known as personnel and administration,

which sees to both personnel and administrative functions. The employees experience range

from 12 to 25 years. The company has a Human Resource Development program whereby

training classes on the job is given. Key technical personnel are trained by collaborators

of suppliers of machinery to oversee on the processing of the capacitor and maintenance

of machinery.

ORGANIZATIONAL CHART – HRD

49

RECRUITMENT AND PLACEMENT

50

GENERAL MANAGER (PERSONNEL & ADMINISTRATION)

MANAGER (PERSONNEL & ADMINISTRATION)

PERSONNEL OFFICER

ADMINISTRATIVE OFFICER

CLERICAL STAFF

ESTATE SECURITYTRANSPORT

Recruitment is the process of searching for the prospective candidates for the

employment and motivating them to apply for the same . This process of searching is

known as recruitment.

In Keltron, policy of recruitment is an ideal one. In Keltroe the source of recruitment is

external. Being a public sector company, as and when a vacancy arise the Personnel

Department determines the number of employees and notifies the employment exchange

and appropriate candidates are given by the exchange.

Once an offer to an employee has been extended, accepted then the final stage of

procurement function is conducted. This is called as placement. After selection the employee

is put on a six-month probation period. Only after this probation period his employments

will be regularized. Here, Personnel Department also checks the performance of employees.

TRAINING

When a person joins the organization he/she will be given induction training for a minimum

period of one month. After induction training, the person will be given on-the-job training for a

period of one year. Various other training programs are also arranged on the basis of need

criteria.

PERFORMANCE APPRAISAL

Performance of each executive and employees is evaluated through annual appraisal

forms. In case of non-executives performance appraisal forms are to be filled at the time of

promotion of workman. Promotion is given on the basis of the scores of the appraisal

forms.

WAGES AND SALARY

51

Keltron arrived at memorandum of settlement on 15 April 1996; in respect of wages,

allowances and fringe benefits; based on the approval of Government of Kerala, KSEDC

and Trade Unions. In MOS, the terms and conditions are applicable only for workman. It also

contains the rate of fixed DA. For other staff employees there are other MOS.

ADMINISTRATION OF STANDING ORDERS

In Keltron, Standing Orders Act 1946 is applicable to workmen in the industrial employment.

This Standing Order defines company management, workmen, trainee, leave, salary etc. It is

divided into different chapters namely service, workmen classification address and other

particulars, probation, seniority, temporary appointment, transfer, recognition, promotion,

salary, increment, leave etc.

ALLOWANCES AND BENEFITS

Variable Dearness Allowances

It is the allowances given to the ordinary workers every month. It varies every three

months. It is fixed as per All India Consumer Price Index, 1960 series. According to

cost of living index VDA is given at 1% Basic Pay

House Rent Allowances

This is an allowance given to an employee by his employer in order to

compensate the high rates prevailing in big cities. Keltron provides 10% of Basic

Pay.

Conveyance Allowance

It is the allowances used to meet conveyance for performing office duties.

Workmen get Rs.25 as CA.

52

Shift Allowances

The general shift is from 8:30am-4:30pm, and other three shifts are from

7:00am- 3:00pm, 3:00pm-11:00pm, and 11:00pm-7:00am the employees who are

in the other three shifts apart from general shift are given compensation known

as shift allowances being Rs.5, Rs.10, and Rs.25.

Food Subsistence Allowance

There is reduction in the price of food by the company to the employees. The

employees should give only one-fourth of the cost of the food. Daily a cup of tea

is free to all employees.

Medical Reimbursement

All employees are eligible for medical reimbursement scheme.

This scheme also includes family members. The amount of benefit is given on the

term of service of the employees.

PROVIDENT FUND

It is the fund that is provided in the future. The fund is credited by a part of the

amount deducted from the salary of employees every month at ascertain rate. When the

retires from the company, he/she receives this amount as lumsum along with interest on

it. In Keltron 12% of the salary is given as PF. The salary being inclusive of allowances.

53

BONUS

Yearly bonus is given to employees at a minimum rate of 8.35% on salary up to

Rs.3500/month. In this case salary includes Basic pay and Dearness Allowance. Festival

Allowances should be given to employees at the time of festivals. Marriage Allowances, Home

loan, Vehicle Loan are also provided. Salary is either given directly to employees or

deposited in bank as per employee’s instructions.

BLOOD DONATION FORUM

Keltron is having blood donation forum with assistance from employees for donating

the blood to the needy people. The IT Department helps in checking out blood group. The

management has also decided to allow one day leave for the blood donor.

HOSPITALIZATION LEAVE

Workmen not coming under the preview of ESI scheme will be permitted

hospitalization leave to an extant of 30 days/ 3 years in case of government hospital.

TIME KEEPING

Every employee is given a separate card with a specific number having four digits. The

workers, employees, supervisors and executives have different numbers. A Muster Role is kept

by the organization. Electronic Punching System is used in Keltron to record the time of

entry and exit of each employee. In second half late coming is not allowed. Attendance is

made an important element of employee performance. An employee who is absent foe more

than a fixed number of days, is alerted and if required necessary action is taken.

54

WELEFARE MEASURES

Housing loans

Reading Room

Facility for sitting

First aid equipment

Canteen

Library

GRIEVANCE FACILITY

When there is a grievance on the employee he/she has to inform his immediate

verbally. If the grievance is not redressed he/she can submit the grievance in writing to

the Head of the Department. If he/she grievance is not settled the matter can be taken

to the Managing Director whose decision will be final.

55

RESEARCH & DEVELOPMENT DEPARTMENT

The department of Scientific and Industrial Research, Ministry of Science and

Technology, Government of India has approved the in-house research and development

activities of the company.

RESEARCH AND DEVELOPMENT – ORGANIZATION CHART

SIC: SECTION- IN- CHARGE

Sr. : SENIOR

56

HEAD OF DEPARTMENT

SIC ELECTROLYTE DEVELOPMENT

TECHNICAL APPRENTICE

SIC PRODUCTION DEVELOPMENT

TECHNICAL APPRENTICE

Sr. TYPIST

FUNCTIONS

The main functions of Research and Department are as below:

Developing high, medium and low voltage forming

Developing technology for editing high voltage Aluminum foil

Updating the manufacturing technology of electrolytic capacitors

Developing electrolyte required for the manufacturing of electrolyte capacitors.

Research and Development plays a crucial role in electronic industry. Innovation and

quality limited are major concerns of this department. If the company has to survive in

the present highly competitive market R&D has to come out with innovative product

and constant up gradation of technology. KCCL allocates 0.5% to 1% turnover for R&D

purpose. Research is going on the development of technology for the manufacturing

of electrolyte indigenously. The R&D is trying for the up gradation of technology by

reducing the size of the component par with the Japanese product. The department is

trying for the vertical integration of the manufacturing process.

57

ELECTRONIC DATA PROCESSING DEPARTMENT

Computer has become an essential part of organizational proceeding because of the

technology and the data to be processed. Information processing is a major societal activity.

Data Electronic Data Processing helps in inter-organizational electronic exchange of

business documents in a standard format. Computer data processing has prevailed data like

Finance, Personnel, Marketing etc.

ELECTRONIC DATA PROCESSING- ORGANIZATION CHART

58

EDP ASSISTANT MANAGER

EDP STAFF

EDP STAFF

In KCCL, the EDP department was started on 1988 with self centered computer. In

1994, the company installed Local Area Network(LAN) with 15 terminals. This department

can process various types of information such as-

Materials requirement

Pay-roll

Personnel information system

Raw Material inventory

Finance

Finished goods and dispatch

The scope of EDP in an organization is limited but the data that is obtained, the

cost of procuring, processing and storing the data and value of information to the users.

The management plan is to install a separate system to each department by

connecting it to central EDP unit. Through EDP department the company has achieved

lots of new facilities and saving time with the help of new methods, keeping goods in

stores and so on.

RESPONSIBILITY OF HOD

Entering the data

Develop program for various application required by other department head.

Compile and present the data to various departments for analysis and control in

prescribed format.

59

OPERATING SYSTEM

FOX PRO

FOX BASE

FUNCTIONS OF EDP

Data acquisition

Data processing

MIS interface which helps to generate a lot of information based on data.

ETCHING AND FORMING DEPARTMENT

60

Keltron is also into etching and forming of aluminum foil as part of

diversification, modernization and expansion plant.

FORMING OF ALUMINUM FOIL

Etching and formed aluminum foils are the major raw materials for the production

of electrolytic capacitors. The manufactures of electrolytic capacitors have been importing

this item since the technology for etching and forming of aluminum foil is not available

in India. The company for the first time in India developed the technology for forming

of high voltage and low voltage foil in its in-house forming plant. The plant was

designed and developed by the engineer of the company and forming machine is

fabricated locally.

ETCHING PROJECT

Etching technology for etching of aluminum foil is yet to establish in India. The

DOE approved the research project for 3 years costing Rs 40 lakhs for development of

high voltage etching technology in the company in-house plant. The company has already

developed indigenously the technology for the etching of low and medium gain

capacitors.

SWOT ANALYSIS

61

The strength of Keltron is a team of experienced technocrats with smart supporting staffs. It is

the only manufacturer of capacitors in Kerala and its quality is known worldwide.

The weakness is the irregular performance of the organization due to the periodical

changes in government policies especially the imports policy. In public sector

organizations diversification is very slow unlike the private sector, which is also a

weakness. Also the machines are getting obsolete. Also in government organizations recruitment

is a problem.

The opportunities are as the industry is in the electronic field diversification of

products opens ample opportunities for the organization.

The threats are, globalization witnesses dumping of cheap electronic products in

India, which is a threat of Keltron as it is producing capacitors of a higher value.

CHAPTER 4

62

FINDINGS AND RECOMMENDATIONS

FINDINGS

Keltron produces high quality products but at a comparatively higher price than its

competitors.

As keltron imports Raw material, import cost is high leading to a loss as the sales price is

not able to cover the loss.

Globalization has had a bad effect on the company.

Government control has also a bad effect on the company, being there has been no

recruitment since many years.

Even though Keltron has short comings, being an electronic goods manufacturer it has

every chance to improve.

RECOMMENDATIONS

The company should try to use its production capacity to the maximum.

The company should try to sell it product at competitive price.

Reduction of cost is a must for the company to survive.

There is a vast scope if the company focus on the IC capacitors since the present demand

is high and is expected to be so in the coming years.

CHAPTER 5

63

CONCLUSIONS

A nation’s future and its ability to compute in the global market depend greatly

on how it generates new ideas and innovations in science and technology. Keltron has

initiated steps to create a knowledge center that would catalyze the process of knowledge

assimilation as well its dispensation. Keltron is one of the leading capacitors

manufacturing companies in Kerala. It is an ISO 9001 certified functioning company. It has

always been able to provide high quality products. It also has a super Research and Design

section that help in providing capacitors according to the needs of the customers.

It has a committed set of technocrats who work tirelessly for the accomplishment

of the goals of the company. The company provides employment for the handicapped

people giving them high respect. It has a very eco-friendly surrounding helping its

employees to keep a cool atmosphere.

Keltron after its bad play has found a stage where it can make profits. As an

electronic goods manufacturer, it has a bright future ahead, a future belonging to

innovation and simplicity of electronics.

BIBLIOGRAPHY

64

Production and Operation Management

K.Aswathappa and k. Shridhara Bhat

Marketing Management

Philip Kotler

Human Resource Management

P.Subba rao

Financial Management

I.M.Pandey

Catalogues, Brochures, Annual Reports of Keltrone

Websites

www.keltrone .org.com

www.wikipedia.com

www.google.com

Balance Sheet

65

Particulars Amount in Lakhs

Liabilities 2004 2005 2006 2007 2008

Share capital 242.45 242.5 553.45 553.45 553.45

Secured loan 960.73 950.7 990.36 876.26 991.74

Unsecured loan 1257.02 1351.81 1063.87 1105.77 1116.42

Current liability 837.85 679.48 729.44 791.54 737.53

Provision 252.83 299.19 340.15 369.07 392.29

Total 3550.88 3523.63 3677.27 3696.09 3791.43

Assets 2004 2005 2006 2007 2008

Fixed Assets 307.34 257.6 254.76 225.88 200.99

WIPC 2.99 1.34 - 0.71 1.15

Development

expenses

55.69 21.37 21.37 21.37 21.37

Inventories 1536.39 1481.44 1404.53 1288.73 1371.79

Debtors 981.88 714.24 649.92 599.2 552.03

Cash and Bank 125.72 110.4 125.89 82.67 280.14

Balance

Loan and

advances

332.69 307.38 290.1 296.4 294.32

Profit and loss

Account

232.17 706.13 1014.95 1263.4 1314.78

Total 3574.87 3617.9 3761.52 3778.36 4036.57

66