AIN-PLANT REPORT

ON

KLAUS UNION ENGINEERING PVT.LTD

SUBMITED BY

AMILKANTHWAR SANTOSH DIGAMBARRAO

UNDER THE GUINDENCE OF

Prof. SACHIN PATIL

B. G. P. S. TRUST

RAJARSHI SHAHU INSTITUTE OF MANAGEMENT

2009-2010

RAJARSHI SHAHU INSTITUTE OF MANAGEMENT

CERTIFICATEThis to certify that Mr. SANTOSH D. AMILKANTHWAR

student of MBA second year has successfully completed has

in plant training at “KLAUS UNION ENGINEERING

PVT.LTD” He has immense ability to do his work.

GUIDED BY DIRECTOR

Prof. SACHIN PATIL Prof. EJAZ QURESHI

ACKNOWLEDGEMENTACKNOWLEDGEMENT

I express my special thanks to Mr. Ejaz Qureshi (director)

Rajarshi shahu institute of management, Aurangabad for valuable

guidance.

It is our pleasure to place on record our sincere gratitude

towards our guide Mr. - MR.PARIKH (HR Dept.) KLAUS UNION

ENGINEERING PVT.LTDKLAUS UNION ENGINEERING PVT.LTD

who spent his precious time providing continuous ideas and expert

guidance to our Report work, it was his direction and encouragement

at every moment and step that motivated us to steer the research

work confidently and successfully.

My special thanks to Prof. Sachin Patil is in plant guide for

their valuable guidance during the project report.

We are indebted to our respected parents because of whose

blessing we have been able to carry out this work successfully.

Mr. Santosh D. Amilkanthwar

DECLERATION

I hereby declare that this project report submitted by me in my

partial fulfillment of Master of Business Administration is a

genuine work of mine.

It has not been submitted either fully or partly to this or any other

institute prior, in any other connection.

Mr. Santosh D. Amilkanthwar

M.B.A. (3rd SEM) (Finance)

KLAUS UNION ENGINEERINGPRIVATE LIMITED

M/s KLAUS UNION ENGINEERING PVT.LTD. were promoted by

KLAUS UNION (UK) LTD as private limited company and the company

was incorporated on 31st May 1999. The promoters M/s KLAUS UNION are

from Germany having business all over the world and are pioneers in the

field of manufacturing magnetic coupled seal less pumps and valves.

The company due to availability of skilled human resources and

casting industries in India, as compared to Europe has established its own

engineering centre in Pirangut, near Pune, India. The another reason of

setting up plant in India is lower production cost, required lower wages to

the workers as compared to the Europe. The company is sourcing rough

castings are machined and exported to parent company in Germany.

“WHERE PERFECTION IS THE HALLMARKFINESSE IS THE LIFELINE”

This is the punch line of the company. The mission of the company is

“The global leadership in manufacturing specialized components, which

meet international standard, is what Klaus Union Engineering Pvt. Ltd.

Strives for and these are attained by understanding the changing needs and

expectations of customers.

KLAUS UNION ENGG. PVT. LTD. GERMANY :-

Klaus Union Germany was established in 1946 and since then gained

much acclaimed as a world wide manufacturer of Magnet Drive Sealless

Pumps and valves . The Company houses a culture of dynamism and

growth. Out and out futuristic , revolutionary and keeping with the times, the

company has curved for itself a unique place in its niche market.

Klaus Union has contributed tremendously in enhancing performance

and safety in industries dealing with aggressive, toxic and explosive fluids.

The finest tribute to the company is the lasting veneration which the growing

number of clients have lavished upon this marque. This lasting and growing

success is not a matter of chance but rather an obvious result of tenacity,

dedication and philosophy of adherence to stringent international quality

norms. Add to this an approach of environment consciousness and

epitomized customer care and we are talking not of just of a business house

but rather a conglomerate with a vision.

KLAUS UNION ENGG. PVT. LTD. INDIA :-

Established in the year 2001, Klaus Union Engineering Pvt. Ltd.

Embodies

and lives by the philosophy of the parent company in every sphere of

operation. The modus operandi is one where finesse and perfection are the

hallmark.

It is well equipped with a wide range of reputed CNC machines like

Mazak, twin spindle multiflex and single spindle Turning Centers and

Mazak and Hedelius machining centers.

Klaus Union Engineering Pvt. Ltd. Has a team of excellent technical

personnel who have vast experience, in not only their own area of work but

also in other equally challenging fields. All CNC operators are qualified

engineers and well trained to undertake high precision jobs. Technical

support for preventive and breakdown maintenance as well as maintenance

strategy, can be jointly worked out for production facilities and set-up.

The unit is located at village Pirangut, Taluka Mulshi, District Pune,

with an investment of about Rs. 500 lacs (0.91 Euro Million).

Indian arm commenced its operations in Feb. 2000 and over the years

the production has increased in leaps and bounds. As per the terms of

collaboration agreement, the parent company has supplied its used

machinery to Indian Company free of cost. Some Machines are procured

locally.

Since the commencement of commercial production, the export

turnover of the company is increasing every year.

YEAR AMOUNT IN RS.2001-2002 Rs. 14 Million2002-2003 Rs. 30 Million2003-2004 Rs. 44 Million2004-2005 Rs. 57 Million2005-2006 Rs. 60 Million2006-2007 Rs. 72 Million2007-2008 Rs. 102 Million

The company is expected to achieve a turnover of around Rs. 115

Million for the year 2008-2009.

Recently the unit has made its expansion (Phase II) and plans to

manufacture mechanical pumps for Indian market, which so far has catered

by Germany directly.

HUMAN RESOURCE DEPARTMENT

In the Klaus Union Engineering Pvt. Ltd. The Human Resource Manager

Ms. Afreen Shaikh manage the Human Resource department. There are

various functions of this department is as follows.

1) Selection and Recruitment Process

2) Manpower planning

3) Salary and Wage Administration

4) Record of the Employees

5) Motivation to the Employees

6) Performance Appraisal

7) Maintenance of Discipline

8) Welfare of Workers

9) Security Section

1) SELECTION AND RECRUITMENT PROCESS :- The Selection and Recruitment process is the

important process of Human Resource Department. This process is very

essential to fulfill the vacancies. In Klaus Union Engineering Pvt. Ltd. The

recruitment process carried out in the following manner.

a) IDENTIFICATION OF VACCANCIES :- HOW ? :-

- In case of resignation

- In case of workload

- In case of Departmental program

- Introduction of new system

The above four ways suggest that how to find

out vacancy in the company.

WHO ? :-The vacancy can be find out by the department head or the Human

Resource Department. There are various departments in the company like

Finance, Planning, Marketing etc. The vacancy can be find out by a

particular department head as a particular department head as they required.

All the head of departments are connected with the Human Resource

department.

HELP :-After this process of identification of vacancies the Human Resource

Department gives advertisement in the newspaper for the vacancies in the

company for job. There is another way to fill up the vacancy through the

placement consultants. They also fill up the vacancy through employee

recommendations.

b) RECEIVE CV’S :-After giving advertisement in newspaper the vacancies and also to

placement consultants the Human Resource Department receives the CV’s

of applicants.

c) SHORTLIST CV’S :-The concern department head and Human Resource department

choose the appropriate candidate with the help of CV’s for the particular

vacancies. They go through all the CV’s but choose applicable candidates.

d) CALL FOR INTERVIEW :-After receiving CV’s that are short listed. The short listed CV’s

(candidate) get a call for interview . This is the important process of Human

Resource Department to select a good candidate for a specific job.

1) FIRST ROUND :-The interviews are in three steps. The first round will be carried

out by the Human resource department means the personnel

manager or head of human resource department will take the

interview.

2) SECOND ROUND :-This round will be carried out by the department head. In this

round the head of a particular department will take the interview to

select appropriate candidate for his department. This round is also

called as technical round in which the technical questions are asked

for checking his technical abilities.

3) THIRD ROUND :-In this round the managing director take the interview . It is also

called management round.

4) FINAL ROUND / HR ROUND :-If the candidate pass all the three rounds then there is another

Human Resource round for the negotiation in the salary and for the

offer letter.

2) MANPOWER PLANNING:-

This is also called human resource planning which is the most

important work of the Human resource department. The personnel

manager plans manpower required for the work according to the

quality of the work required. Period for the completion of the work

and talent required for the completion of the work.

In the Klaus Union Engineering Pvt. Ltd. Identify a new

position or vacancy due to introduction of new system. To handle this

new system the qualified persons are required. In the company

recently introduce a software named DEO. To handle this software the

Human Resource department plan for the new position.

In production department there is requirement of new workers in

case of work load. This company sets the target of production on this

basis manpower planning will be done. In this company manpower

planning done in case of profit maximization and workload. Growth

of the company is also important factor for which manpower planning

is required. The Human Resource Department play an important role

in case of manpower planning.

3) MOTIVATION TO THE EMPLOYEES:-The Human Resource Department is always trying to motivate

the workers as well as the employees for the growth of the company

and employees. They arrange picnics, target achievement parties for

get together. Because of this get together the employee will attract

towards company. There is six monthly or annual get together parties.

The company send employees for training for skill up

gradation, in case introduction of new system or technology. Training

is very essential motivational factor. The company pay performance

pay or incentives on achievement of targets. The company declares

yearly bonus to the employees in case of earning more profit.

3) SALARY AND WAGE ADMINISTRATION :-The salary and wage are paid to the employees as per rules and

regulation maid by the main company which is in Germany. And all

other procedure done by this company. The personnel manager

maintains record of the number of workers employed in each

department or section.

At the end of each month the Human Resource department

calculates the number of days worked by each employee by the help

of cards and muster rolls. This information is filled up in the pay slip

sheet and his net salary is calculated along with deduction of

provident fund. This information is supplied to accounts department.

The deduction mainly consists of the following things –

i. Employee State Insurance (ESI)

ii. Professional Tax

iii. Provident Fund

4) RECORD OF THE EMPLOYEE :-

The human resource department keeps record of all the

employees of the company. The human resource department maintain

the attendance register, leave record of the employees. The attendance

register is useful for the wage/ salary determination.

6) PERFORMANCE APPRAISAL :-

Performance appraisal is the important work of Human

Resource department. The performance appraisal is also a motivation

for the employees. According to the work or performance the

employee get the promotion. The Human Resource department

closely check the performance of the employees.

7) MAINTANANCE OF DICIPLINE :-The Human Resource department maintaining discipline in all

the departments of the company including the security section.

Because of maintaining discipline in a proper way. It is very important

function the Human Resource manager play an important role.

8) WELFARE OF WORKERS :- The Human Resource department take care of welfare of the

employees. The company provides med claim group insurance bonus,

cantine facility, proper working conditions.

9) SECURITY SECTION :- In this company the security is under the Human Resource

department. The Human Resource department gives the security

related information to the security guard. There are six security guards

in this company and these guards are working in shift wise which is

declare by the Human Resource department. All the security related

rules and regulation make by Human Resource department.

PRODUCTION DEPARTMENTIn the Klaus Union engineering private limited the production manager

Prakash Mane manage the production department. There are more the 150

employees in production department. Some employees are on roll employees

and others are on contract basis. In production department there are

production of shaft, casting of pumps and valves. The assembling will be

done in the Germany. These parts are of the chemicals pumps. The

production department receives the raw materials from the store department.

For the production process machines plays an very important role. These

machines are :-

1) Band saw cutting machine

2) CNC machine

3) VMC

1) BANDSAW MACHINE :-This machine is used for cutting of bars. Bars which is used for

making shafts, shafts are used. This process is done manually. Cutting

with the help of attached blades in chemical pumps. This machine is

called as special purpose machine. In this process first adjust the length

of bars to prepare the shafts of particular length and width. After cutting

the bars, these bars are sent forward for the next process or machine

process. Machining process done in CNC machine or VMC machines.

2) CNC MACHINE :-

In this machines gives shape to the cut bars to proper the shafts. This

machine is done the work with the help of computer numerical program.

This machine operate on the instruction which is given by the computer.

Firstly they prepare the program for giving instructions to the machine for

the roughing process. After this program for the adjusting the length , width

etc. This machine is also called a turning center. In this machine the first

done the process of roughing of cut bars, casting as required to the shape.

The roughing is done half side first and then finish other side by using coo

lent oil. The coo lent oil continuously flows when roughing process is done.

If the finished part of the product having any drilling, slotting then it will

go through another machine.

3) VMC MASHINE:-

This machine is called as vertical machining centre. In this machine

the remaining work of drilling and slotting is done by using milling cutter,

end mill cutter, carbide drill, HSS drill. This machine is multipurpose

machine. After completion of the roughing process in CNC machine the

remaining work of unfinished products will be done in VMC machine like

drilling, slotting, etc.

This machine works with the help of computer programming. Firstly

they have to prepare programming for the particular job and implement that

programming in to the machine through computer. That programming means

instruction to the machines for doing their work. Only one skilled employee

or worker required for operating this machine.

The above machines required to produce following parts of chemical

pumps and valves.

1) Shaft

2) Pump castings

3) Valve castings

4) Spalto flansh

5) Lantern

6) Gehaeuse Deckel

7) Impeller

After all the machining process like roughing, drilling, tapping, etc, the next

process are

a) DEBBURING

b) CLEANING

After raw material came from store department the in charge of raw

material receiving person make process sheet of every raw material which

will go through the every process.

PROCESS SHEET

ID No. - Item Name - Machining Revision No.- Model No. - M/C Drawing No. - Model Revision No. -Material Code - Model Drawing No. - Finished Weight - Shape - Category -

OperationNumber

Operation Desk Set Up

Time

OperationTime

OperationDesk

NextOperation

1

2345

678910

Inward Inspection of incoming materialFinish turn section sideRough turn second sideDP testingMilling, Drilling on rotor axisDelivery side serration Finish turn second sideAir leakage testing Debburing, CleaningFinal Inspection

VALVE CASTINGS

SHOP FLOOR

=

STORE DEPARTMENT

In every company store department is an essential to make production

continuously. In the company Klaus Union Engineering Private Limited the

store manager Mr. Mahesh Pimple and the six workers are manage the store

department. The inward of stores department as well as the outward Mr.

Pimple look out all the procedure of store department.

First received material at security gate. First security inward the

material in register. Store personnel inform to security allow vehicle to store

department. Workers from the stores unload the material and give

acknowledgement in supplier challan. Stores inward the material in

respective category of material like raw material, consumable, packing, job

work. Stores prepare good receipt note and write the quantity actual

received. Stores then forward the G.R.N. (goods receipt note) to Q.C.

(quality checking) for approval of material. Quality control person check the

material as per the specification and write the accepted quantity and rejected

quantity on G.R.N. and forward to stores. Stores enter the accepted or

rejected quantity in stock register.

If production required the material for material for machining then

production gives material requisition slip to stores. Stores issue the material

as per the requisition slip to production department. Sometimes production

department gives material forwarding note to stores for sending material to

subcontractor for processing purpose. Store department then sent material on

delivery challan on returnable basis for job work purpose to subcontractor.

After the processing from subcontractor material return to stores again.

Stores inward the material and prepare G.R.N.. When material gets rejected

in work in progress (WIP production) after machining of castings the quality

control gives the rejected castings material back to stores along with the non

conformity report (NCR).

Stores along with the Non Conformity report, report send material

return back to concern supplier on non returnable delivery challan and debit

invoice. When finished goods is ready then excise department give packing

list to stores for sending finished goods to Germany. Stores sent finished

goods on non returnable delivery challan. Some castings or parts are get

rejected in production which are not going to repair or rework and not faulty

from supplier, that material is quality control declare as scrap material. Scrap

material is also return to stores along with non conformity report.

MATERIAL LYING IN STORES

1) OK – Raw material (Including castings and bars M.S. and S.S.)

2) Rejected – Raw material (as castings) W/O Machining

3) Scrap castings or parts

4) Consumables Like – Cutting Oil, Hydraulic oil, Thinner paints,

Antirust oil, Bar cutting blades.

RAW MATERIAL1) Pump castings

2) Valve body

3) Zwschenlanterne

4) Impellers

5) Zwischen Flange

6) Yoke

7) Shafts

8) Lager Deckel

9) Forged Bars

10) late Materials

.

CONSUMABLES

1) Oil

2) Hydraulic Oil

3) Thinner

4) Welding electrodes

5) Paints

6) Antirust Oil

7) Bar cutting blades etc.

PURCHASE DEPARTMENT

In the Klaus Union engineering pvt ltd . The purchase Manager Mr.

A.G.DESHPANDE and assistant Manager Mr S.D.GIDDE manage the

purchase department . There are 10 employees in the purchase department

including manager and assistant manager .Quality of raw material checked

by purchase department itself.

All the raw material purchase from India .All the purchase order made

by Mr A.G.DESHPANDE who is the head of the department. Mr Deshpande

made negotiation

In the price of raw material and as well as they check the quality of

the raw material .

Purchase department mention on the purchase order that the required

material for the production is of which quality . After getting the raw

material the purchase department check the quality of the raw material is

same as mentioned on the purchase order .

If the quality of the raw material is not same as mentioned on the purchase

order , that raw material resend to supplier. All the raw material purchase

from India, places Sangli, Jungad , Nagpur etc.

SUPPLIER DETAIL

1) Shaha precicast – Sangli (MAHARASTRA)

2) Castek foundries -Junagad (gujrat)

3) Unideritend –thane (MAHA.)

4) Sunflag-nagpur

5) Chanden steel –Murbad(Mumbai)

All supplier are certified supplier

QUALITY CONTROL DEPARTMENT

The Head of the quality control department is Mr. A.G. Deshpande

and assistant manager Mr. S.D. Gidde. There are six people in quality

control department. Quality checking in terms of dimensions, material grade

etc.. The quality control department do the receipt inspection. Receipt

inspection means material on receipt and actual received material is same or

not. They check the received material is of right dimension, right length,

right length, right width also check the grade of that material which is

mentioned on the purchase order.

Klaus Union Engineering Private Limited believes in maximum

quality assurance for the manufacturing of all products, which is attained by

strict compliance to quality norms. It is dedicated to produce fine quality

products the efficiency of which can be proved by the use of these parts in

process pumps and Industrial valves which handle extremely critical fluids.

All material is repeatedly inspected for conformity on receipt, in process and

before dispatch. Klaus Union is one of the leading manufacturers of pumps

and valves specially designed for the chemical industrial market. The

professional production capability acquired over more than 50 years, a

sophisticated and state-of-the art fabrication process provide an excellent

basis for findings optimum solutions to any special problems, versatile

response to any specific requirement imposed by the user. Pump and Valve

units supplied by Klaus Union are of superior quality and come up to the

highest standard. They contribute to appreciably enhance both performance

and safety of your installation and, besides, they cut pollution to the benefit

of environment and mankind.

It is the policy of Klaus Union to achieve adequate quality assurance

for the manufacture of all products to ensure they comply with contractual

requirements. All sub suppliers are totally committed to assure and achieve

the contractual requirements through vigorous implementation of the quality

assurance program. All purchased materials is repeatedly inspected for

conformity on receipt and after assembly. The quality assurance system

established according to latest state-of-the art principles fully complies with

the requirements specified in international codes and regulation. A quality

assurance system that has been verified and certified warrents that the

requirements imposed by you are fully complied.

The company has its own quality policy. Klaus Union Engineering

Private Limited is committed to achieve customer satisfaction through

1) Continual improvement in quality service and timely deliveries to

exceed customer expectation.

2) Planned and efficient utilization of technology and material resources.

3) Devotion, involvement, dedication and co-operation of all people at

every stage.

4) Training employees to improve their skills and knowledge.

SAFETY DEPARTMENTThe head of department is Mr.Prakash Mane.

Total employees working under safety dept. are five.

In Klaus union engineering Pvt. Ltd. Safety workers is the main

priority. There are 5 workers working under the head of department Mr.

Prakash Mane. For the safety of workers. They continuously check all the

workers are using the safety instruments or not. They also in touch with

mechanical engineers for the purpose of safety of workers . mechanical

engineers daily check all the machineries are working proper or not.

The safety dept. provides safe shoes, gloves, goggle for welding

purpose. they also provides safety belts while the workers working on lifts

the safety dept. always giving training to all the employees of this dept.

Safety has always have a great important because the employees are the

asset of the company

The safety dept. arranges the fire fighting training camp yearly for the

workers. Also the work seminar on safety management

High safety demands are put on pumps delivering highly dangerous

fluids. In addition to their normal application, the pumps must prove their

safe and reliable operation even under adverse and extreme conditions, all

by maintaining the perfectly sealed condition for a very long period of time.

Is this a stringent requirement? Pumps and valves manufactured and

supplied by Klaus Union under the trade name SEALEX incorporate this

safety. The pumps come without stuffing box, instead they are equipped

with the permanent magnetic drive system thus insuring leakage-free

pumping of all fluids with their exceptional operational performance and

reliability safely maintained. The SEALEX system eliminates the need for

shaft passages since the motor torque is transmitted to the perfectly sealed

volutes in the absence of any mechanical contact. This advances technology

involves the central coupling where the permanent magnet with the same

even number of poles are alternating thus ensuring a perfect rotational

symmetry. The concentric design of the coupling safely prevents any

undesired radial and axial forces from acting on the mechanical bearings.

Adoption of the torque to any required operational mode is made by varying

the system diameter and its heights. Full rotation of the coupling will not

affect the condition of the magnets. After de-energizing the drive,

synchronization of both coupling halves is restored automatically.

ENVIRONMENT DEPARTMENT

Environment department of the company handle by Miss. Afreen

Shaikh. This is manufacturing unit so at the time of production the generated

scrap stored at the defined location and disposed on weekly basis. It is sale

to the certified agency. The generated scrap is iron fillings. The generated

iron fillings purchased by certified agencies. There also the oil waste and it

also sale to certified agency. In the company there is a canteen facility for

the workers and for the food waste pit created for making manure.

PACKING DEPARTMENTThe Klaus Union Engineering Private Limited company is 100% export

oriented unit so packing is very important department.

The head of department is Mr. Shivkumar Peddawad.

Total employees working under safety dept. are ten.

Mr. Shivkumar manage the packing department very well because all

the finished goods exported to Germany. Required material for the packing

of finished goods is of high quality. Mr. Shivkumar made purchase order for

required packing material. He also check the quality of that material.

Material required for packing

1) Wooden boxes are required for packing of castings such as pump

casting, valve castings etc.

2) Wooden palettes are also required for the same.

3) For packing of small parts they required the corrugated boxes.

4) For packing these small parts it required plastic caps.

They pack M.S. casting different and S.S. castings differently, because

for M.S. castings required hydraulic oil preventing rust. Before putting these

M.S. castings in the wooden boxes put these M.S. castings in VCI bags with

hydraulic oil.

There is no requirement of hydraulic oil for S.S. castings. It requires two

ply-papers for the packing and after that it will put in to the wooden boxes.

RESEARCH AND DEVELOPMENT

This department is with main company which is in Germany.

Research and Development work continually made by Klaus Union

focusing at an advanced technology of environmental compatibility has

resulted in a product range that warrants safe and reliable operation in

compliance with virtually all and any requirements.

In addition to the products listed, Klaus Union can assist you in

resolving any of your special problems. Research and Development

department of the company trying to develop a new concepts in the chemical

pumps and valves.

MARKETING DEPARTMENTThe company Klaus Union Engineering Private Limited don’t have

marketing department India. The company is 100% export oriented unit. All

the finished goods exported to Germany. In the finished goods all are the

parts of chemical pumps and valves. The main company which is in

Germany have marketing department itself. Because in India requirement of

chemical pumps and valves is lower.

Recently the unit is planning for its expansion (phase II) and plans to

manufacture mechanical pumps for Indian market, which so far has catered

by Germany directly.

PLANNING DEPARTMENT

The head of department is Mr. Vilas Kudalkar and Assistant manager

is Mr. Nitin Sawant.

The company’s planning is done in the Germany which is main

branch. The planning department plans for the daily production and sends to

the unit which is in India. The Indian branch follow the plans and does

appropriate production as they send. The plant which is in Germany

sends.The designs of parts & planning department head Mr. Vilas Kudalkar

prepares a program for such designs & that part will be produced through

the machining center. And all other planning like requirement of extra

worker , designing production plan etc is done by Mr.Vilas Kudalkar with

the help of management.

FINANCE DEPARTMENTThe head of department is Mr. Nitin Dhere and assistant executive is

Mr. Ranjeet Bonte.

Finance department is heart of the every company. Mr. Nitin Dhere is

the head of the department. There are four employees in the finance

department. The turnover of the company for the year 2008 and 2009 is Rs.

116 million. The company is financially is so sound.

The company Klaus Union Engineering Private Limited manage their

working capital itself. Company raise funds from taking term loan against

machinery. They take Cash Credit on export bills. From this money the

company purchase the required raw material. This money is also called as

working capital. This company is not listed company. They paid tax on

purchase of raw material and claim rebate, because the company only

exports their goods.