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1.1 INTRODUCTION
Management is the dynamic, life-giving element in every business. An
organization may have raw materials, machine, human resources and other factors,
but these cant produce want satisfying products unless they are efficiently managed.
Managing is an essential activity in every sphere of organized activity. Management
is concerned with internal forces i.e; objectives, plans and policies of the
organization. Management is the brain of the organization. The organizational study
provides an opportunity to management students have an in depth knowledge about
the organizational set up.
Organization study is intended to access and to acquire the knowledge
regarding the functional as well as the management aspect of the firm. The
organizational study was done in O/E/N India Ltd., Mulanthuruthy, Ernakulam. This
is one of the largest electromechanical manufacturing companies in India.
The main objective of this study is to familiarize with the working ofvarious department function and to study the organization functions as whole , so that
one can have an exposure to the practical aspects.
1.2 OBJECTIVE OF THE STUDY
To understand the organizational structure.
To analyse strength, weakness, opportunities and threat of the
organization.
To study the different departments in the organization.
To study the functioning and operation of the company
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1.3 SCOPE OF THE STUDY
The study covered the entire functional department except finance. The
command chain and organizational hierarchy were studied. The level of interaction of
different departments with each other and their positioning in relation to one another
were noted. Their markets and competitors and suppliers and their mode of
interaction was studied.
1.4 METHODOLOGY OF THE STUDY
Methods of data collection:
Primary Data:
Primary data is the data that we collect ourselves directly. Here the
primary data are collected through surveys, interviews and direct observation.
Secondary Data:
Secondary data are the data collected from external sources. Here this
secondary data are collected through internet, journals and magazines. Also project
reports of various students are already available for reference.
1.5 DURATION OF THE STUDY
The duration of study is from 3rd May 2010 to 31st May 2010
1.6 LIMITATION OF THE STUDY
The workers were busy in their work and had little time available for
interview
The major part of the study came from interview of personals working with
O/E/N India Ltd. So chances of bias cannot be totally exempted
Some data related to company was not provided due to company policy
Some departments had restricted entry due to security reasons.
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2.1 INDUSTRY PROFILE
In this fast developing world, electronics has come to stay as the most
important branch of engineering. Electronic devices are being used in almost all the
industries for quality control and automation and they are fast replacing the present
vast army of workers engaged in processing and assembling in the factories.
The rapid growth in the electronic technology offers a challenge to the
beginner who may be almost paralyzed by the mass of details. However, the mastery
of fundamentals can simplify the earning process to a great extent.
The branch of engineering which deals with current condition through a
vacuum or gas or semi conductor is known as electronics. An electronic device is that
in which current flows through a vacuum or gas or semi conductor. Such devices
have valuable properties, which enable them to function and behave as the friend of
man today.
India has a well developed electronic components industry catering to
the requirements of consumer electronics, telecommunications and defends and
information and information technology. The growth of the electronic components
market is primarily depend upon the growth of the consumer electronics market in
general and the consumer electronics sector dominates the industry because of the
massive and expanding market in India, comprising almost thirty five percent of the
total industry. The welfare attained by any country in total world is attributed to the
tremendous growth attained in the field of consumer electronics. Thus the role of the
consumer electronics in the modern life of the people all over the world is
significantly high.
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Three of the top five global contract- manufacturing firms have already
established a presence in India .To provide a boost to the overall electronic industry, a
number of policy measures have been taken by the government of India. Theelectronics industry in India, with the exception of aerospace and defence electronics,
is completely unlicensed. The trend towards digitalization, enabling convergence of
technologies is spare headed by the developments in the semi-conductor technology.
Consumer electronics industry plays a vital role in the day-to-day life of
the people. Today people all over the world is directly or indirectly associated with
consumer electronic items in their daily life. Most of the utility products, household
wares, devices for entertainments, life saving medical equipment devices and
accessories, transport, and company equipment , agriculture equipment, defence
equipments, safety and security systems, devices used for research work etc are
largely made by the consumer electronic industry.
The economic growth attained by any country in the world is
attributed to the tremendous growth attained in the field of consumer electronics.
Thus the role of the electronics in the modern life of the people all over the world is
significantly high. .
Consumer electronics in the Indian electronic industry accounts for 40%
of the total electronic hardware production and with the Indian electronic companies
global, the manufacturing base is on a steady rise. Most of the devices like TV,
picture tubes, transistors, power devices & ICs, resistors and capacitors, connectors
and switches, relays, are exposed in large quantities and used by consumer electronics
world wide.
Thus electronics industries in general and consumer electronic in
particular assume great relevance owing to its ever increasing demand in India and
especially in the densely populated area like Kerala which has attained high level of
literacy and high conscious in maintaining their educational , health and recreational
standards when compared to their counter parts in the other states.
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2.2 COMPANY PROFILE
In the electronic industry, for over 35 years , the name of O/E/N
India Ltd. (OAK ELECTRO NETICS) had been synonymous with precision, high
quality electromechanical components like Relays, Switches, potentiometers and
allied assemblies.
The main plant was set up in 1961 at Mulanthuruthy, a suburb if
Kochi, in the state of Kerala. The second plant located in Peenya, an industrial suburb
of Bangalore, in the state of Karnataka, was set up in1983. The factories at Electrogiri
and Peenya have a combined build up area of 14918 square meters. Factory infra
structure includes fabrication plant for pressed parts, plastic molded parts, andElectroplating facilities, R&D laboratory. Sophisticated tool room and quality
assurance and test labs.
Apart from regular production O/E/N offers facilities for contract
manufacturing and already exports considerable volumes. What is most striking about
O/E/N is in unique work culture oriented towards collective efforts and achievements.
The companys productivity level is highest in the country for comparable industries.
Since 1969 O/E/N have been the market leaders for all the products
O/E/N make and cater to market segments like Industrial Instrumentation and
Controls, Automotive, Communication, Strategic electronics and high end Consumer
electronics with emphasis on quality.
O/E/N have own captive tool design centre and well equipped tool
room capable of producing high precision tools and moulds. In-house pre production
facilities include a press shop for making all our pressed metal parts with allied
annealing and plating/finishing plants and moulding shop for moulded plastic parts.
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The R&D laboratory is recognized by the department of Science &
Technology, Government of India and is competent to develop high precision,
miniature, electromechanical components and allied sub-systems. The R&D team isgeared to work on acquisition and absorption of technology as well as transfer
technology to business partners.
Backed by over three decades of proven excellence O/E/N is a
continuously striving to rise above the expectations of customers and business
associates. There are plants identified under the Electronic Hardware Technology
Park (EHTP) scheme for duty-free import of inputs for export production. O/E/N
deals with several business partners from Europe who utilizes our contract
manufacturing facilities to reduce costs and become globally more competitive.
O/E/N with its vertical integrated production facility and technical
expertise can respond the custom requirements quickly. The company always
appreciates the opportunity to explore any application and provide custom solutions.
The core strength of O/E/N lies in their competence and capabilities
as the mechanical engineers to the nations electronic industry. Deep profound
expertise developed over decade of experience as market leaders in Indian relay
industry enables O/E/N to maintain their position at the cutting edge of technology in
the country.
Contemporary technological levels of our in-house R&D efforts
ensure continuous introduction of new products. A full fledged tool design equipped
with Auto CAD and PRO-E supports the sophisticated tool room to meet almost the
entire tooling needs of the company.
Today O/E/N is in the position to offer its Engineering,
Tool Design and Tool Manufacturing services on commercial terms. Customized
services are being offered to other manufacturers of electromechanical components
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with product designs, process engineering and documentations either as elements or
as complete package.
Vision:
Centre for technological excellence in electromechanical components for the
electronics industry
Market leadership
To attain a respected presence in the industry
To become a center for technological excellence
To build progressive relationship
To fine tune competitive advantage
To undertake customizing of products
To market leadership in electromechanical components.
Business Mission:
Attain leadership position
Create wealth
Be the best in the business
Business Goals:
To attain a respected position in the industry
To build progressive relationships
To improve organizational strengths
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To fine tune competitive advantage
Major customers:
American Power Conversion (APC)
TATA
JCB India
ITI India
Ford India Pvt. Ltd
Hyundai
O/E/N Health, Environment and Safety Policy:
O/E/N India Ltd. an environment friendly organization is committed to:
Carry out all the operations by rising towards
prevention of pollution and achievement of zero accidents.
Reduce progressively the consumption of natural
resources like raw materials, water fuel and energy and recycle, when ever
possible
Import eco- awareness to all the employees, sub
contractors, supplier and community at large.
Comply with applicable legal and other requirements.
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Upgrade all the operation to minimize and eliminate
source of pollution and occupational health and safety by continually improving
the process parameters and performance.
2.3 PRODUCT PROFILE
In the Indian Electronic Industry, for over 35 years the name of O/E/N
India Ltd. was synonymous with precision, high quality electromechanical
components like relays, Switches, Potentiometers and allied assemblies.
Since 1969 O/E/N has been the market leaders for all products they
make and cater to market segments like industrial instrumentation and controls,
automotive, communication, and strategy electronics with emphasis on quality.
The quality management system of the company is approved by ISO
9001 with the automotive production line being additionally approved to ISO/TS
16949. The environment systems of the company are approved to ISO 14001. The
individual products are covered by approvals from Defiance or Telescopes
Authorities or by UL, CSA or VDE.
Relays
Relays are mechanical devices that are used in to mobiles, electrical
and electronic equipments. The types of relays manufactured are;
R-type relays, W-type relays, Auto relays, Cradle relays, PC relays, flat rack relays,
Ream type relays, Miniature PCB relays, electromechanical power relays,
telecommunication relays, Reed relays.
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Some of the important relays introduced by O/E/N are as follows:
series 31 series 33
Series 37 Series 38 Series 72
Switches
Switches are electro mechanical devices that are used in various
electric and electronic equipments. The types of switches manufactured are:
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AM switches, J switches, OM switches, HM switches, Lever switches, Toggle
switches, Sniper switches, Rotary switches, Keyboard switches, Rocker switches,
Micro switches, DIP switches.
A variety of switches introduced by O/E/N are:
Series 11am Series 13
Series 15 Series 16 Series 25
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Series 27 Series 22
Potentiometer
O/E/N manufactures wire wound type and ceramic type potentiometers
.They are mainly used in microprocessors, computer chips and other electronic items.
The potentiometers manufactured are:
s
Wire wound trimming potentiometers
Non wire wounded trimming potentiometers.
Most of the companys product are covered by relevant industrial,
defence telecommunications approvals and are manufactured to the relevant
international standards. O/E/N also undertakes manufacture of assembly of
components or even complete modules on sub contract basis.
They manufacture products according to consumer specification. They
had earned specification for quality products and services have helped the company to
enhance consumer base. Clients choice O/E/N and stay with them because they
provide world class technical and reliable support. Customer satisfaction is the part
and parcel of their work culture. Their continuous innovation, team work, employee
involvement and stay focused on customer needs. In fact O/E/N is the virtual supplier
of electromechanical components.
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Markets:
Automotive industries both Indian and abroad
People who are quality conscious
Consumer electronic
AWARDS AND ACHIEVEMENTS
Sl.No Award Year
1 ELCINA- Membership Certificate 1969
2 KSPC- Production Award 1983
3 Indian Institute of Material Management 1984
4 FACT-M.K.K Nair Memorial Productivity Award 1987-88
5 National Productivity Council(best productivity
performance)
1987-88
6 KSPC Production Award 1987-88
7 Indian Institute of Materials Management(best store
management)
1989
8 KSPC-Production Award 1989-90
9 FACT-M.K.K Nair Memorial Productivity Award by
KSPC
1991
10 National Institute of Quality and Reliability(quality
leadership award)
1991
11 ELCINA-Award of Excellence in export 1991-92
12 Indian Institute of Materials Management(store
cleanliness)
1995
13 KSID-Award for Excellence 1999
14 National Safety Award 2004
15 ISO/TS 16949:2002 2004
16 ISO 9001:200 2004
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17 Indian Institute of Material Management 2005
18 National Safety Award 2005
19 National Safety Council of India(Industrial Safety Award) 2006
20 ISO 14001:1996 2007
21 ISO 18001:1991 2007
22 National Safety Council of India 2007
2.4 ORGANIZATIONAL CHART
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3.1 HUMAN RESOURCE DEPARTMENT
Human resource is the heart and soul of every organization. All
functions of human resource come under human resource manager. Human resourcemanager will co-ordinate the manpower in the organization. In O/E/N the human
resource manager performs a variety of tasks. His main functions are:
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GM (Engg
Resource)
Ass. GM HRM
House
keeping
ManagerWelfare
First aid
Drivers Watchers Workers
Canteen
Contractor
HRD Office
Staffs
Security
Officer
Workers
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1. Recruitment
Find out the base to the recruited candidate as per recruitment of theuser department through personal contracts, companys data bank, campus selection
and external agencies for all executives, non executives, trainees and apprentices. At
O/E/N advertisement for a job vacancy is rarely put in the newspapers or in any such
media. Application from shareholders, friends/relatives of the employees is given
prior preference.
2. Selection
Select a suitable candidate. Invite the prospective candidate to attend
for the preliminary interview/test/through telephone/letter/telegram. Based on the
interview rank the candidate and short list a few and call them for a kind interview.
Co-ordinate with the department and arrange date and time of performance and
prepare selection list and get MDs approval.
3 . Placement and appointment
Prepare appointment orders and sends it to the candidate, get it signed
by the candidate arranges medical exams. Re-verifications of certificates cover the
nee in PF, ESI, health and insurance by filling up requisite forms and getting
employee signed.
4 .Probation and confirmation
After all the person is confirmed, he will be given a probation period
of 6 months in the case of execution and 1 year for workers.
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5 .Training and development
At O/E/N a lot of importance is given to the training anddevelopment of the employees right from the beginning. The training programs for
various categories are given below:
Executive category:
Training for diploma holders and graduates:-
Fresh diploma holders are given 2 years training, after which they are
usually absorbed in the supervisory cadre. Graduates in M.B.A, C.A holders and
other post graduate holders are given 1 year training period. They are also giving half
day or one day general training in various departments.
Specific training:-
The selected persons are giving specific training in the department to
which he has been recruited.
Non- executive category:
Induction training:-
The HRD induction training programme for different categories of
new entrants in consultation with concerned department for half a day to one day. It
provides with a brief introduction about the company, its products, the management,
organizational structure, policies, each departments function, rules and regulations,
benefits, offers etc. The HRD collects the feed back reports from the trainees for
further use.
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Training for unskilled category:-
Employees belonging to this category are given, on the job training by
the immediate supervisors. The training period for unskilled category is 2 years.
Training for semi skilled category:-
The trainees are provided with on the job training on different machines,
equipment operations, products etc. The practical training will be supplemented by
classroom training. The training period for this category is 2 years.
Training for skilled category:-
A thorough planning and practical training or shop floor is given to
this category of employees. A very detailed and in depth knowledge on the operation
of aspects of the products manufactures are also in industrial psychology, house
keeping, communication and team work aspects. Duration of this training is 2 years.
Training for clerical administrative staffs:-
Training on office procedure, correspondence, maintenance of files and
records, statutory and non-statutory obligations, handling of office equipments and
computer operations are given. Duration of this training is 2 years.
Apprenticeship training:-
Practical on the job training is given for apprenticeship trainees.
Duration of this training is 2 hears. If he is having a good performance during the
training periods, he will be selected permanently.
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6. Management development programs
O/E/N provides its manager with a number of development programsin order to keep them aware of the changes occurring in the industry and in the
corporate world by large. Though some of the development programs are provided
with in the organization, majority of them are conducted by external agencies like
Kerala Management Association (KMA), Administration Staff Development of India
(Hyderabad) etc.
7. Personal records
The HRD prepares individual files comparing of original application,
interview records, copy of appointment order, reference letters, photographs, medical
reports and copy of SSLC Book showing Date of Birth and mark sheet, copy of
certificate showing qualification and any others relevant information.
8. Grievance Handling
The immediate Supervisor handles any complaint arising out of the
employees.66 If not satisfactory settles, he/she can approach the concerning HOD and
even could take it to the HR department for further consolation. HR committee has
been set up to look after the Grievance of the employees.
9. Wages of salary administration
Basic wages
Basic pay scale applications to each category grade of employees are
calculation per the long-term settlement
Dearness allowance:-
The rate of variable Dearness Allowance applications to workers is Rs
4.25 per point as per stated in the Ernakulam price Index.
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10. Leave Rules
a) Casual leave
Employees belonging to Non- Executive category will be eligible for
6 days casual leave per year and those belonging to Executive category will be
eligible for 14 days casual leave per year.
b) Stick leave
Employees are given 8 days sick leave per year.
c) Privilege leave
Privilege leave as per the following calculation:-
If the workers had worked less than 240 days a year, he will be
given 1 to
1&1/2day leave for every 20 days actually worked.
If the worker had worked more than 240 days a year, he will be
give 2 days
leave for every 10 days actually worked.
Maximum privilege leave that can be carried forward is 60 days.
Performance appraisal
Performance appraisal is annually conducted for the workers. The
immediate supervisor evaluates the employees by filling the grade based form.
Promotions, training requirements, counselling needs etc could be evolved through
performance appraisal.
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O/E/N EMPLOYEE STRENGTH AS ON 31-3-2010
Sl.No CATEGORY ELECTROGIRI MARKETING PEENYA TOTAL
1
Executives 85 21 8 114
2 Non
executives 306 6 123 435
3 Worker
trainees 2 2
4
Geo maths 3 3
5
Apprentices 551 5 5566 Contract,
security,
canteen etc
47 6 5 58
7 Casuals/daily
work
operators
27 3 4 34
TOTAL 1018 39 145 1202
Industrial welfare:
Trade unions
There are three Trade unions. They are:
O/E/N India Employees Association (INTUC)
O/E/N India Workers Union (CITU)
O/E/N India Employees Union
Works committee
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HRD committee
Shop Floor Committee
Canteen Advisory Committee
Safety Committee
Suggestions Committee
Management Welfare Committee
Agreement between the management and the trade unions
Long term settlement
Settlement for incentives
Labour and industry welfare
1. Statutory welfare measures
Subsidized canteen
Uniforms and protective clothing
Facilities for sitting
First aid appliances
Drinking water facility
Washing water facilities
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5. Children educational allowances
An amount of Rs. 650 per year is paid to the permanent workers aschildren educational allowances.
6. Welfare funds
A welfare fund operates at O/E/N that provides financial assistance
to members covered under the welfare fund scheme. It provides financial aid in the
following ways.
Death benefit (not exceeding Rs.25000)
Disablement benefit (not exceeding Rs. 20000)
Retirement benefit (Rs.1000)
Helps to natural calamities (Rs.1000)
1. Other welfare measures
Lockers
Uniform and stitching charges
Meals allowance
Vehicle allowance
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Reading room
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Social security schemes
PF
ESI
Maternity benefit
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3.2 PRODUCTION PLANNING DEPARTMENT
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GM
Production Planning
AGMProduction Planning
Deputy Chief Engg.
Production Planning
Planning AssistantsSkilled Assistants
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OBJECTIVES
Synchronize marketing requirement and production capacity through monthly
production.
To plan and organize for closing each months production
A statement (production program status) on total qualities given to M D every
month
To avoid delay in any kind of material handling
To utilize non moving material to maximum ended possible
PROCEDURE
Preparation of order contracts and production programme
Preparation of fabrication programme for shaft(draft)
Preparation of work order
Preparation of production order for piece parts and outside work orders
Follow up with Q/A fabrication/plaiting, shop and materials.
Assigning priority ,(P1,P2, andP3) to different production programmes.
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Monthly report on production is submitted to the MD.
PURPOSE AND SCOPE
It is carried out to ensure that the production in assembly and
fabrication are programmed to meet the required delivery schedule.
Processing of sales orders and programming
A monthly program is made for execution of sales
service orders based on the list of SSOs to be received from marketing
Copies of SSO program are given to the
manufacturing, marketing and QA
For parts received from outside (purchase parts)
process orders are send through production. Planning by QA, in the case
of further processing in fabrication shop production. Planning will arrange
with concern department, for further processing of parts according to the
urgency of work orders to tools room.
Based on the request from the fabrication,
Manufacturing, R&D, QA etc. Work orders are issued to tool room for
manufacturing of tools, moulds, tigs, gauges, fixture, moulding of existing
tools/moulds etc.
Against the requirements of outside parties, worst
orders are issued for manufacturing and repair of tools movement of piece
of parts.
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Movement of piece of parts from QA to plating, QA to
fabrication shop, QA to shores, plating shop to QA should be arranged by
production planning Dept.
3.3 FINANCE DEPARTMENT
O/E/N is a profit making company for the past many years in spite of
unfavourable conditions.
FUNCTION
This department is involved in the overall in charge of finance in the
organization.
Invoice
32
Marketing
Finance General Service
Sr. Manager
Asst. Sr. Manager
Sr. Accounts Officer
Executives
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Or
der
MANAGEMANT OF RECEIVABLES
Average credit period given for the customer is 50-60 days. If
O/E/N has got a good relation with a particular customer, the credit period given to
that customer would be more than this. When O/E/N deals with a new customer,
dealings will be through bank. When customer clears the payment, they can get the
products from a bank which acts as an intermediate.
MANAGEMENT OF PAYABLES
Most of the materials are imported and financial transaction take
place between banks. Credit facility is available in most of the companies and
expected to pay within 45 days on an average.
Supplier suppliers bank
O/E/N O/E/Ns bank
Figure shows the transaction between suppliers and O/E/N with the involvement of
bank.
WORKING CAPITAL MANAGEMENT
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The working of the company is arranged with the bank of India and
contusion Bank. The bank will arrange term loans for the company. As per the
contract with the company and bank, the bank cum realizes assets of the company in
case a payment is not done on time.
COSTING PRACTICES:
STANDARD COSTING
Fix a standard & then compare actual with the Std. If there is any big
radiation, then they will take adequate measures.
PROFITABLITY
12% to 16% of the turnover of the company
RESERVES & SURPLUS
An amount of Rs.1.9 crores has been transferred to general reserve
account. Together with this, the total balance in Reserves & surplus stood at
Rs.20.45crore.
DIVIDEND
Keeping in view the need to plough back resources for strengthening
companys operations further, the Board of Directors of the company has decided to
maintain a dividend of 10% for the current year also. Taking into consideration the
performance of company, the Board has recommended dividend at the rate 10% of
the equity capital.
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3.4 PROCESS ENGINEERING DEPARTMENT
This department is mainly related to the automation of various tasks
and overall control of EDP. Automation divides into two. They are:
Mechanical automation
Electronic automation
Mechanical automation designs the mechanical parts of the
machine. Electronic division makes the machine work automatically with the help of
35
Chief GM
Process Engg
Asst. GM
Process Engg.
Executives
Staffs
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micro controllers. The Process Engineering Department mainly engaged in two
activities. Automation of assembly operations and managing EDP.
Quality improvement and overall cost reduction are most viable
reason for introducing automation. In automation, labour forms a small portioncompared to material and overhead cost. Automation requires more skilled people,
people with different skills.
Objectives of Automation:
Improving working condition
Performing highly hazardous operations
Improving utilization of expensive equipments.
Reducing production cost.
Improving quality.
Quick delivery.
Improving manufacturing flexibility and response to market needs.
Electronic Data Processing (EDP)
This procedure is followed to establish a system which
maintains proper lock control and approval of software packages which effect product
quality. Even though the EDP department started functioning since 1985, being an
electronics firm, computer relater process was there from the very beginning.
Presently the whole system in the company is a UNIX based one, which runs on Intel
Pentium 4 server. The DBMS used in the present system is multi-user FOX BASE +
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+.The entire department is computerized. Back up is taken in DAT (Digital Audio
Tape) having 40GB. The EDP department is now a consultancy for all other activities
in the organization. There is a separate Internet Dial up connection provided for each
department.
Example: - dept @ oenindia.com
EDP Objectives:
Maintain/provide uninterrupted computer service.
Ensure data security.
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3.5 MARKETING DEPARTMENT
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Marketing is not simply the task of selling goods which are
produced. It is means of trying to ensure before head that the goods produced or
services offered confirm with what potential customer want and will buy.
39
Senior General
Marketing
Field ManagerAsst. GM Customer
Care
Field Engineer
Staffs
Staffs
Executives
customer care
Staffs
Asst. GM Marketing
Staffs
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Functions of Marketing Department
1) Market promotion / heading enquiry
a. Advertising in journals, magazines, display boards etc
b. Intelligence gathering by collecting competitors
c. Approach to customers over phone for orders
d. Personal visit by marketing executives for new deals
e. Follow up visits existing customers new deals
2) Payment collection
Receiving and recording payment is one of the functions of marketing
department. 80% of the payment should be realized with in 90 days and 20%
improvements per annum in the proceeding base.
3) Customer satisfaction
The customer satisfaction be done by the preparation of questioners,
mailing questioners to the field staffs, data complication and preparation of reports
and action plan.
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4) After sales service
After receiving the complaints / problems, it is forwarded to QAD or
customer care. Most of the responses sent within 1-2 days after receipt of thecomplaints. Marketing departments can call back the product in case of any
rectification on replacement counter.
Objectives
Establish and review methods of distribution
Set viable selling prices, discounts, offers and other inducements
Increase target sales
Provide an agreed level of customer satisfaction
Achieve customer acceptance by advertising, design of products etc.
Provide marketing plans and strategies.
Marketing Strategies
Because of limited resources, competition and large market, the org. is
usual able to sell with equal efficiency and success to entire market i.e., to everymarket segment. Where alternative choices about price or sales promotion are being
considered, fore case are required. The marketing strategies of O/E/N are:-
Direct marketing
In the direct marketing system, the company is dealing with the
customer in India and abroad.
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Stockiest system
Stockiest are the intermediates like wholesalers who indirectlypurchase the items from the company and stock those items in this go downs and they
supply the necessary goods to the customers. The main regional sales centre of the
stockiest includes four metropolitan cities of the country and one at Ernakulam
Kerala.
Targeting
The company is mainly targeting on original equipment manufacturers
and people who are quality conscious. Because of Chinese products people can easily
get product which is low price but he quality is not ensured. So O/E/N is able to get
customers who are quality conscious.
Positioning
The product positioning of the company is at par with global brands.
Branding
O/E/N has an experience of 38 years in the industry so their brands are
already established in the market. So they did not need branding only re enforcement
is enquired. They re enforce their brand through advertisement.
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3.6 MANUFACTURING DEPARTMENT
43
Chief GM
Technical
AGM
Sr. Manager
Fabrication
Sr. Manager
Tool Room
ExecutiveTool Room ExecutiveTool design
Executive
ToolMaintenance
ExecutiveFabrication Executive
Tool maker Tool designTool
Maintenance
OperatorOperator
Machinist
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PURPOSE AND SCOPE:
This department is the core of the company. This department is engaged
in the actual production and assembly of the devices.
The manufacturing department consist of:
3.6.1. Tool Room
In O/E/N, there is a well-equipped captive modern tool room with all
facilities. A team of expert engineers in tool design and manufacturing mans tool
room, and a group of well-trained tool makers and mechanists. A well equipped
moulding shop attached to the tool room provided facility for providing the tools and
moulds.
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Objectives
Increase the tool room output by a minimum of 30% through of betterprocessing techniques and general improvement in all fields.
Maintain supply of tools, moulds and assembly tools to fabrication and
assemblies for the uninterrupted production.
Reduce rejection, rework and wastage at material by incorporating better
control over inspection and material utilization.
Upgrade material and machines as well as technical skill of employees for
increasing quality and life of tools and moulds produced.
Tool room work in four wings:
Tool design Machining department
Tool assembly
Maintenance
Tool room contains latest machines for making tools. Most of the machines
are computer controlled. It helps to make tools with high degree of precision.
Micro Milling Machine
Charmilles wire EDM
Wick man ENC profile Grinder
WNW optical profile grinder
WMW Jig Boring Machine
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3.6.2 Fabrication Department
The main assembly is supported by comprehensive fabrication facilities with
power process for pressed piece parts, a multi slide press to produce complicated
switch contacts, plastic moulding machines and a plating plant that handles plating of
conventional as well as precious metals. This department mainly consists of 3 sub
departments. They are as follows:
1. Actual fabrication: The parts of the products are usually made in this department.
2. Electroplating : In this department the various parts of the products are
electroplated. Electroplating is done to increase the pick up of relays, to protect
against corrosion and for good appearance.
3. Moulding shops : In this department the cover for the relays are moulded.
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3.6.3 Fabrication and plating shop
This department has two major activities. Fabrication of componentsrequired for assembly and electroplating and other finishing activities on fabricated or
purchased components.
FUNCTIONS:
Fabrication of parts required for assembly.
Plating of parts required for assembly.
OBJECTIVE:
To ensure completion of production of finished products as per monthly
schedule by timely supply of parts.
To reduce process scrap to minimum.
PROCEDURE:
Components are produced against production orders and process orders
issued by production planning.
Production is based upon fabrication schedule and short list priority being
decided per shortage for the month/day.
Raw materials are drawn from stores against production orders.
Tools are drawn from stores.
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Details of raw materials, tool numbers, equipments etc as given in job
cards, which is drawn from computer against each production order.
MOULDED OR STAMPED COMPONENTS:
First samples produced after each selling is submitted for inspection.
On approval of samples, bulk production is started.
On completion of all fabrication operation, the parts are offered for
inspection. QA inspected and decided next operation (plating) or direct to QA.
Raw material found defective is returned to the stores.
Machines are checked daily by concerned operations by safety aspects.
If tools are faulty they are send to the tool room for repairs to correct
the defect and to prevent the re-occurrences. If the non-conformity is due to the rawmaterial defects, it is informed to QA for further action.
3.6.4 Assembly unit
This department is mainly related to the manufacturing and assembly
of relays, switches and potentiometers. Manufacturing department works for 24 hours
a day.
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3.7 OTHER DEPARTMENTS
The other departments in the company are as follows:
Materials department
Research and development department
Engineering service department
General service department
Quality assurance department
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3.7.1 MATERIALS DEPARTMENT
50
GM Engg.
Resource
Asst.GM
Sr. Manager
Asst. Manager
ExecutiveExecutive Office Asst.
Store Asst. ClerkStore Asst. Clerk
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Material policy
Managing the supply chain to ensure satisfaction of all our customers
by supplying quality products at optimum prices at the right time.
Functions:
This department is involved with the procurement of raw materials
for production. The purchasing dept. is probably been until very recently most under
estimated in manufacturing industries. This department is always responsible for the
major part of companys expenditure. Purchasing will discuss prices, discounts,
delivery, read times and specifications with suppliers chase date deliver and sanction
payment for deliveries. They will seek out competitive sources and maximize
quantity discount opportunities where several sources are buying from the same
supplier.
Objectives:
Eliminate shortage and supply parts well on time to production.
Create awareness among suppliers/vendors to maintain high quality standards.
Develop cordial relationship among members of the dept. other dept & vendors,
Extend assistance to vendors to get optimum results.
Maintain high degree of cleanliness and good housekeeping in work
place and stores and ensure prompt and quick disposal of paper and materials.
Help reduce core & wastage.
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ACTIVITIES INVOLVED IN PURCHASE OF MATERIALS
(A) Purchase requisition processing
Purchasing orders are originated from purchasing requisition
available online. A list of purchased requisition is taken daily for further action. For
any item, calling offers and electrical item are orders. Miscellaneous, hardware and
electrical item are ordered telephonically and regularized by formal orders on receipt.
For further supplied item a dummy purchase order is originated to raise Goods
Receipt Notes (GRN) and regularization.
(B) Purchasing order processing
Purchase order contains purchase order number, supplier reference,
past number, quantity and number of drawing, description rate, delivery schedule,
terms and conditions. The purchase order are entered and stored which will be
reviewed by executives in materials department and approved by dept head.
With enquiries, copies of drawings and documents are sent.
Purchase orders are released along with the control copy to the supplier, whenever
necessary. Whenever there is a change in drawings, control copies are obtained from
document. Control copies are forwarded to supplier, calling back the old issues.
Sample materials/parts are ordered without standard past number and part number is
assigned after its standardization.
For raw materials and crisis, suppliers are asked to send the
materials, test certificate that are forwarded to quality assurance on receipt. Whenever
marketing Dept. informs that the supplier-facilitated products are to be verified by the
customer, this is arranged by interacting with the supplier. Assessment and approval
of New Suppliers:
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Supplier Development:
2. A matter list of approved supplier based on previous three years performancerating is generated.
3. New sources are identified through publication, introducing letters, internet
etc.
4. Suppliers evaluation form, specification drawings, samples etc. as applicable
are sent to the supplier along with request for quotation.
5. On receipt and filled up supplier evaluation form, rate are compared with
existing rates and facilities are evaluated.
6. Once the rate and terms & conditions are accepted. Supplier is intimated
accordingly and a trade order is given and requested for evaluation.
7. Samples on receipt are forwarded to QA dept. for evaluation and inspected &
Inspection Report from QA is forwarded to the supplier.
8. Once the trial batch is accepted the new supplier is the approved supplier list.
Supplier Monitoring:
1) For suppliers for automotive products, the suppliers performance is monitored on
the following indicators:
a) Quality - 40%
b) Delivery - 20%
c) Price - 10%
d) Premium freight Impudence - 10%
e) Customer line description - 10%
f) Quality issues from customer - 10%
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2) For suppliers for Non-Automotive products, Suppliers performance is monitored
based on the following indicators:-
a) Quality - 40%b) Delivery - 30%
c) Price - 30%
3) Based on the rating, suppliers are classified into different grades. Suppliers with
lowest grades will be removed from approved supplier list.
4) Suppliers are re-evaluated every on their performance rating for previous 3years.
5) Suppliers removed from list re-qualified as per produced for approval for new
suppliers.
CORRECTIVE AND PREVENTIVE ACTION
1) In case of rejection of supplied items, suppliers are informed along with the
inspection and report Corrective and Preventive Action Report (CPAR) and asked
to submit counter measures and ensure implementation on the security of
problem.
2) Suppliers are instructed to take measures to present the counter measures for
major problem in a meeting of O/E/N.
3) Even after taking counter, if supplies are rejected, no order will be given to
that supplier.
Checking of Incoming Goods:
On receipt of the materials, store eaters relevant details on the
incoming goods register. The items are kept in the space provided for checking. Each
item is checked against the delivery schedule of the supplier and difference, if any is
noted and intimated. The items are kept in the space provided for inspection with
proper identification card.
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Preparation of Receiving Reports, GRN:
Details of receipts are entered in the computer and the goods receiptnote is printed. A print out of the summary is taken daily and the copies are sent to
the planning and purchase for the references. The piece parts are sent to Quality
Assurance for inspection with the GRN and identification cards. Raw materials are
inspected Quality Assurance at the raw material store. Precious materials are sent to
precious material along with GRN. Miscellaneous items along with GRN are send to
store and consigned department. Recipients of machinery/equipment/instruments are
referred to Engineering service along with GRN. Customer supplied items are also
transferred to Quality Assurance for inspection. Raw materials received, kept pending
for inspection is placed on wooden platforms in the inspection areas.
STORAGE
Piece parts, winding wires, raw materials after inspection by quality
Assurance are received in the respective stores along with the GRN Inter shop Chelan
and accepted cards as the case may be rework/stored items are received along with
the river code after acceptance by Quality Assurance. Are received along with process
orders and stop with proper identification. The details are entered in the computer and
treated as in process. The items after processing are received in the piece parts store
along with process order/inter shop Chelan and acceptance card. Times are checked
and details are entered in the computer. These are stored in the rack/space provided
with proper identification. Other items like process material, consumable tool, spare
parts and packing materials are received along with GRN and it is checked and stored
in the space provided with the identification and the details will be entered in the
computer.
Tools/moulds received along with finished materials transfer notes from
tool room after acceptance from Quality Assurance and are kept on the rackets
providing identification number and details.
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ISSUE
Piece parts and winding are issued from production based on monthlyproduction plan list to be issued are obtained from the computer as order controlled
details and bill of materials are already available in it. If excess is required parts are
issued against store requisition. The detective products are replaced against the
defective materials along with a return note authorized by QA.
For items received for the production in advance, quality issued is
entered as advance issues in the computer and regularized in subsequent issues. Parts,
which are required in exchange, are issued against to fabrication along with the
identification against path order from production planning. Materials are issued
against store requisition/inter-office means. Details are entered in the data storage.
Raw materials/piece are issued to supplier against materials requisition from
supported by delivery Chelan.
Returnable items like equipments, machines etc. are sending to
suppliers for repairs/replacement along with a delivery note. Non-confirming items
which are rejected by Quality Assurance are returned to supplier/vendor along with
Chelan/ gate pass through shipping sections whenever necessary for
replacement/reprocessing, if required.
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3.7.2 RESEARCH & DEVELOPMENT DEPARTMENT
This development is mainly involved with the design and development
of new products as well as the existing product. Research is carried out in order to
acquire and understand new knowledge and to seek and to examine opportunities for
technical improvement in products, the cost of producing the product and quality of
the product Research is conducted with the intention of identifying the areas in
which new findings can be commercially exploited.
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Chief GM Engg
Resource
Asst. GM
R&D
Assistant Manager
Executive
Production
RealizationDesigner
Executive Design
& Development
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The corporate R&D facility operates over a wide range of electronic
research and application. It is self contained centre, set up from factories, with well
equipped lab and a multi disciplinary team of professional Design Engineering. TheR&D centre is recognized by the Department of science & technology under the
Govt. of India. Today many of the companys product are the direct result of the
R&D creative and application engineering.
The set up is also geared to absorb adopt and assimilate technology
transfer from foreign collaboration with a view to rapidly indigenous products in
India through phased plans. It is also responsible for technology transfer the group to
others.
DEPARTMENTAL OBJECTIVES:
Completion of design and distribution of drawing as per schedule.
Development, validation and pilot production as per schedule.
Transfer new products with complete document action as per schedule.
Achievement of monthly targeted production of new products.
DOCUMENT CONTROL:
Records are established and maintained to provide evidence of
conformity to requirements and for the effective operation of the quality management
system.
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FUNCTIONS:
Viability study of the new products.
Design of new products .
Modification of existing products.
Developing solution to problems in case of a defect in a device.
Document control.
STEPS INVOLVED IN R&D PROJECT:
Initiation of project
Development of feasibility study
Estimation of cost
Preparations of target specification and test parameters
Preparation of development plans
Design of components
Design of FMEA (Failure Mode and Effective Analysis)
Preparation of engineering drawings
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Preparation of trial assay drawings
Design review in accordance with the requirement specification
Issue drawings for tooling and procurement of bought out components
Advice for raw material procurement
Advice for procurement of special/additional equipment
Preparation of control plan
Trial assay
Verification of product samples
Product specification
Validation of samples from pilot production
Preparation of work instruction
Design change
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3.7.3 ENGINEERING SERVICE DEPATRMENT
The main function of this department is to provide, maintain and
sustain the facility required for the smooth functioning of the company especially the
assembly and fabrication. Engineering and service department is responsible for
maintaining the overall mechanical, electronics and electrical failures of the company.
This department is divided into 3.Electrical, mechanical and electronics service
department. Maintenance online is available for informing complaints. Engineering
service department has direct communication with all other departments of O/E/N.
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General Manager
Engg Service
Executive Engg
Service
Technicians/Oper
ators Electronic
Maintenance
Technicians/Oper
ators Mech.
Maintenance
Technicians/Oper
ators Electrical
Maintenance
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DEPARTMENTAL OBJECTIVES:
Reduce number of breakdown of key machines.
Avoid accidents due to machine problems
Reduce machine hours lost due to break down
Do preventive maintenance as per schedule
FUNCTIONS:
Break down maintenance
Preventive maintenance
Productive maintenance
Machine installation and completion
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3.7.4 GENERAL SERVICE DEPARTMENT
FUNCTIONS:
Storage of the finished product
Packing
Despatch Domestic
Despatch Exports
Sales Service Order processing and despatch
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Chief GM Engg. Resource
Asst. GM General Service
Executive General Service
Staffs General Service
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According of central excise duty
Delivery Note I dentified packed goods
Export Invoice With Delivery note
Figure showing the activity in GSD
Original invoice is created by this department. Now 90% of the products are sent by
couriers as it is cheap and fast. It is the responsibility of the department to pack the
goods based on the mode of transportation used.
This department is also involved in insurance activities
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General Service Packing as
per Relevant Work
Instruction
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3.7.5 QUALITY ASSURANCE DEPARTMET
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Chief GM
Technical
Sr. Mgr. QA
Chief Engineer
QA
Executive Final
InspectorExecutive Incominggoods Inspector
Executive lab Inspector
Asst. InspectorAsst. InspectorAsst. Inspector
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Purpose and scope:
This department is responsible for the quality of the product. They
engage in the inspection of the quality on incoming products and every time a part
moves out of a department. They are also responsible for the internal auditing of other
departments.
Departmental objectives:
Assurance quality of the products through appropriate control of inputs
and outputs.
Timely completion of incoming inspection.
Timely completion of inspection of fabricated and plated parts.
Timely completion of final product inspection.
1. Incoming inspection
Inspection of first samples by incoming inspection executives offer
receiving reports/ IOM/TCN along with samples, materials certification card
according to respective drawings, relevant work instruction etc inspection of vendor
supplied parts according to the specifications.
2. Inspection of finished products
This is to ensure and verifies that the required quality is maintained
for finished products.
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Testing of products:
Random samples offered by product inspectors are subjected to
appropriate routine life tests as per work instruction for ensuring product reliability
and performance against relevant specification at regular intervals.
Product approval from external parties:
Products having LCSO approval are subjected to necessary in-house
tests as per JSS (Joint Service Specification) at appropriate time.
Custody property:
Custody properties are identified ,verified ,protected and records are
maintained.
3.Testing (QA Lab)
The QA lab is equipped with state of art testing equipments for
inspection and testing of products to joint service specification
a) Electrical Life Testing :
The objective of this test is to determine the effects on the product due to
exposure of a number of electrical operations.
b) Mechanical life testing :
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The objective of this test is determining the effects on the product due to the
exposure of a number of mechanical operations .
c) Burn in:
The objective of this test is to determine the effects on the potentiometers
due to exposure to elevated temperature with continuous load through the element for
168 hrs.
d) Impact Bump:
This is to determine the ability of the products to withstand repeated
bumps without mechanical damage or malfunctioning.
e) Damp Head Testing:
This is to determine the sustainability of product force and store under
conditions of high relative humidity. It is done in a humidity chamber.
f) Vibration:
This is to determine the ability of the product to withstand specified
vibration condition. This is done by vibration machine. It can produce vibration from
5 to 5000 Hz and a maximum displacement of 25 mm.
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4.1 SWOT ANALYSIS
Strength:
Experienced employees
Market leader in electromechanical components
Excellent manufacturing and infrastructure facility
Excellent image reputation for quality and overall business
Good working condition and environment and unique work culture
Good employee employer relationship
Weakness:
Heavy dependence of in-house product development
Out dated technology .Therefore there is a need for up gradation / exposure to
new technology.
Delays in product development and commercialization
Low level of flexibility and the need to develop multi skills
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Low volume production and high cost of inputs/ production
Constraints with market research to acquire and improve market intelligence
Opportunities:
Industry with tremendous scope for growth
Export potential for products
Contract manufacturing possibilities
Implementing new technology
Liberal policies and free market scenario
Emerging and untapped market
Access to technology
Threats:
Technological obsolescence & rapid technology changes
Severe competition from freely avail imported equivalents
Incredibly low priced offerings new entrance by new entrance, causing price
erosion
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Slow economic growth in India and abroad, fitting the top line
Heavy dependent on few products lines and few customers
5.1 FINDINGS:
Based on the organizational study done at O/E/N India Ltd. I have
derived some findings. They are:
O/E/N India Ltd. has a potential to grow and increase its market share in
domestic market with comprising quality with its cutting edge technology and
management practices.
Majority of the workers are women.
Globally the demand for electronic components has increased. This has
benefited the organization largely.
The company has been certified with ISO 9001, OSHAS 18001, ISO 14001
and ISO TS 16949.
The greatest asset of the company is the post of highly skilled employees, who
works not as employees, but as shareholders in the company, which resulted
in the increased productivity and quality of the products.
A strong relationship with the clients of the firm helped in the growth of the
firm.
The employee morale is also very high and is clearly evident as the employees
work as a team for its development and growth in the industry.
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The company has having a cordial relationship with the Trade Unions who
have supported the company to attain rapid growth in the past decade.
Majority of the employees are permanent.
Organization functions systematically and effectively.
Peaceful working condition.
Supervisors in the organization keeps the employees well informed about
whats going on the company.
Out dated machinaries are used .
Training programs are not satisfactory
There is not proper counselling facilities for employees.
No proper rewards for creative ideas.
Employees should not have awareness about first aid facilities.
There is no good recreational facilities for the employees.
.
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5.2 SUGGESTIONS:
The proper counselling for workers with regard to personal and family
problems should be provided so as to increase their efficiency of work life
By installing new sophisticated devices the company can increase its
production to a large extent in future and there by save time.
Training facilities should be improved.
Employees could be rewarded well for suggesting creative ideas and thus they
can be motivated.
Employees could be made aware of first aid facilities.
Employee should be given the right opportunities to use club and other
recreational facilities.
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CONCLUSION
O/E/N India is one of the profit making company in the
electronic industry. This can be counted as the result of the team work of the entire
employees and executives. The company is giving true negotiation of the employees
for their department. O/E/N is able to deal with the field by giving necessary training.
The company is able to create a good relationship with the public. O/E/N is able to
deal with the field by giving necessary training. The company is able to create a good
relationship with the public. O/E/N has an evitable repetition as a growing enterprise
with a consistent record of healthy financial performance as a part from being a
technologically strong market leader in the country.
As a result of my organisational study done , I was able to find
out the practical side of theories of management and I am sure that the experience will
be of great value for my career.
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BIBLIOGRAPHY
Book Resources:
Kothari C.R, Resource Methodology, New Age International Pvt Ltd
Publishers, Second Edition
Chhabra T.N, Human Resource Management, Dhanpat Rai Publication, NinthEdition
Pandey I.M, Financial Management, Vikas Publishing House Pvt Ltd, Ninth
Edition
Journals:
O/E/N Herald Issue , special issue HRM Review April 2010
Indian Management, March 2010
Annual Report of O/E/N 2009-2010
Websites:
www.google.com
www.oenindia.com
www.humancapitalonline.com
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