CHAPTER – 1

INTRODUCTION

1

1.) INTRODUCTION:

The Kerala State Electronics Development Corporation (KSEDC) popularly

known as KELTRON CONTROLS, was established in 1973 as the first

Electronics Development Corporation in India in the State Government Sector.

Kerala State Electronics Development Corporation limited and ten subsidiary

and associate companies turns out more than hundred different types of

products. These products are marketed through a strong sales and distribution

network spanning the entire country. Eight branches located at Ahmadabad,

Bangalore, Calcutta, Chennai, Delhi, Hyderabad, Mumbai and Trivandrum

ensures that the products are backed by dedicated support and service.

KELTRON CONTROLS, today, is poised to provide an entire range of

products, solutions and services to its consumers in the areas of Electronic

Components, Consumer Electronics, Control and Instrumentation, Information

technology, Cybernetics, Communications, Industrial Electronics, Strategic

Electronics and Traffic Management Systems. KELTRON CONTROLS, offers

expertise as a System House to design, engineer, configures, supply, install,

commission, and maintains large projects and provides customized solutions.

KELTRON CONTROLS, has been restructured by decentralizing its

departments to meet the changing needs. Presently KELTRON CONTROLS,

– multi-product, multi-unit organization with more than 3000 employees

spread over the entire country is reorganized as 34 independent Strategic

Business Units (SBUs) based on the product .

2

category and type of business it is engaged and each SBU is functioning as a

self generating profit entire at the root level headed by the SBU head,

KELTRON CONTROLS, a division of Kerala State Electronics Development

Corporation Limited was set up in 1979 to introduce the state-of-the art

technology in the field of control and instrumentation to the power and process

industries in the country.

KELTRON CONTROLS, commenced its operation with the signing of a

technical collaboration agreement with Control Bailey, France. The range of

products were subsequently diversified into various fields like Electronic

Pressure and Differential Pressure Transmitters, Solid State Protections,

interlock and sequence control system, Data Acquisition System, Indicators

and Records and the latest distributed control system to provide comprehensive

system solutions for thermal power plants and process industries. The rich

experience and capabilities of KELTRON CONTROLS, in the fields of

Analogue Control System, Data Acquisition and Distributed Digital Control

system remain unmatched in the country.

1.1) OBJECTIVES OF THE STUDY:

PRIMARY OBJECTIVE:

1) To study the entire organization and to understand the organizational

processes and dynamics.

SECONDARY OBJECTIVE:

3

1) To study the various departments and it’s functioning.

2)To understand the organizational structure.

1.2) METHODOLOGY OF THE STUDY:

Both primary and secondary data was collected from the organization. Primary

data was collected through interviews with employees at various levels.

Secondary data was obtained from company manuals especially quality

manuals, company web site and other magazines and newspapers. Direct

observation was used to understand the production process.

PRIMARY SOURCES OF DATA:

1)Direct personal interviews with the managers of the concerned departments,

detailed interviews with department heads and other lower level workers in the

company.

SECONDARY SOURCES OD DATA:

1) Official records.

2) Organizational manuals.

3) Official website of the company.

1.3) LIMITATIONS OF THE STUDY:

4

The employees of the company were cooperative to me, but still they could not

explain everything to me because of their tight schedule.

1) Lack of availability of confidential data.

2) Unavailability of Financial Data’s restricted me to analyze the financial

position of the company.

1.4) SCOPE OF THE STUDY

.

1) This study helps to make a comparison between the classroom knowledge

with the real situation in the organization. And also it helps to interact with the

organizational executives of the company.

2) The time span of this project was one month if more time was given more

information could have been collected.

3)This study aims at generating the practical awareness about the management.

It also helps to understand different management activities.

5

CHAPTER – 2

INDUSTRY PROFILE

6

2) INDUSTRY:

“Faster, better and cheaper” is the slogan that drives the electronic industry.

The consumers are buying goods at a faster rate than the past. The electronics

industries now follow the slogan “innovate or perish”. Thus we can see a

number of novel and modified products in the market.

In this technology-driven environment, KELTRON CONTROLS, finds the

assimilation, adoption and integration of technology in creating innovative

solutions as the very basis of survival. A number of new markets are emerging

as performance improves. The recent indigenous production is increasing day

by day leading to an increase in demand. The gap here is met by imports.

According to ISA or known as Instrumentation and Systems Automation

Society formerly known as Instrument Society of America, the official

definition of Instrumentation – is a collection of Instrument and their

application for the purpose of Observation, Measurement and Control.

An instrument is a device that measures or manipulates variables such as flow,

temperature, level, or pressure. These Instruments can be as simple as valves

and transmitters, and as complex as analyzers. Instruments often comprise of

control systems of varied processes. The control of processes is one of the main

branches of applied instrumentation. Control instrumentation includes devices

7

such as solenoids, valves, circuit breakers, and relays. These devices are able to

change a field parameter, and provide remote or automated control capabilities.

Despite having population over a billion people, India has a relatively small

electronic market being ranked twenty sixth worldwide.

KELTRON CONTROLS’s strength lies in the stable foundation and

experience built over the years, its strong human capital, its nation-wide

network and its ability to adapt itself to change. With over a 30 year long track

record as a manufacturer of sophisticated electronic devices and systems,

KELTRON CONTROLS, presents itself in the global market as a one-stop-

shop for manufacturing, system integration, and after-sales-support in India.

Strategic Vision of KELTRON CONTROLS is to be a world-class, growth-

oriented electronics corporation specialized in providing quality, market-

focused products, services and cost-effective system solutions to a large client

base.

A quarter century later, KELTRON CONTROLS, after having contributed

significantly to the state and substantially to the Industrial community of the

nation and to the exchequer, set about transforming Trivandrum, the capital

city of Kerala, into one of the major electronics hubs of the country. Today the

city is home to techno-park, the internationally known technology park, a long

cherished dream come true of the Founder Chairman & Managing Director

– Sri. KPP Nambiar - where thousands of talented men and women

participate in the development of a burgeoning information technology

industry. Thus KELTRON CONTROLS, has in effect triggered a revolution

that still keeps churning out its benefits to individuals and institutions in

8

different parts of the world, touching different walks of human life and

continuing in its quest to Innovate Products & Processes and Services that

would add further value to the livelihood areas of the country, supporting real

time industrial growth.

KELTRON CONTROLS, has an All India Sales Network in place with full-

fledged Marketing Offices in Mumbai, Delhi, Kolkata, Chennai, Bangalore,

Hyderabad, Ahmadabad, Aroor and Trivandrum to provide the quickest

possible service to customers. Since its inception in 1973, KELTRON

CONTROLS,’s forte has always been high quality manufacturing. During the

past 30 years, KELTRON CONTROLS, has churned out a whole range of

electronic products, electro-mechanical and high precision modules and sub

assemblies for different industry segments.

In terms of production, the country is ranked twenty – ninth. Some of the other

manufacturers in India are:

1)Meghalaya Industrial Development Corporation Limited.

2)Navabharth Enterprise, Hyderabad.

3)Rescon Manufacturing Private Limited, Pune.

4)Pieco Electronics and Electricals Limited, Mumbai.

5)Saab Electronics Devices, Sahidabad.

2.1) HISTORY OF ELECTRONICS INDUSTRY:

Among the manufacturing industries, the electronics industry occupies a key

position in modern science and technology. It plays vital role in the field of

9

Atomic Energy, Communication, Defense, Education, Entertainment and

Space Technology. Until 1970’s the electronics industry was the most

protected of all the Indian industries. At that point of time country’s electronics

policy strongly favored self-reliance and technology and capital imports were

strongly discouraged. This resulted in the electronics industry being highly

under developed till the late 1980’s. The industry was considered very

inefficient producing outdated and low quality models at a very high cost.

Policy reforms were initiated in the early 1990’s with the liberalization of trade

and industry sectors. With the change in the policy regimes after liberalization,

the industry experienced restructuring.

2.2) GLOBAL SCENARIO:

The worldwide electrical and electronics industry is experiencing phenomenal

and remarkable changes these days. The worldwide electronics industry is

distinguished by fast technological advances and has grown rapidly than most

other industries over the past 30 years. Globally, during the early 2000s, end-

users of passive electronic components like capacitors  namely original

equipment manufacturers were applying continuous pressure on the industry to

lower prices. This had an adverse impact on profitability, as many capacitor

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

production.

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

climate, heightened competition from the likes of Asia, and downturns in

10

leading end markets like telecommunications equipment and computers. These

negative conditions led to workforce reductions, consolidation, plant closures,

and a reduction in overall capital spending and production capacity.

2.2) INDIAN SCENARIO:

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

industry. Hence it is ,medicore by international comparison. However the

demand in the Indian market is growing rapidly and investments are flowing

in, to augment manufacturing capacity. India however remains a major

importer of electronic materials, components and finished equipment

amounting to over US $26 Billion in 2009.

This is not a desirable situation and local manufacturing has to keep pace with

growing local demand. The electronic industry in India constitutes just 0.7 %

of the global electronic industry.

2.3) FACTORS EFFECTING THE GROWTH OF THE

INDUSTRY:

The key factors governing the growth of electrical and electronics industries

are as follows:

11

1) Rising and continuous investments in research and development has led to

increased productivity and higher-value added electrical and electronics

products.

2) Increased foreign investments have resulted in the accelerated growth in

terms of electronics production and exports. Foreign companies are now

making huge investments and are installing extensive production capacities in

developing countries.

3) Extends support to several global industries namely medical,

telecommunications, industrial and automotive sectors. 

4) Rising incomes and living standards have resulted in the increase in demand

of electronics especially consumer electronics products in the world. 

5) This industry is highly fragmented which comprises of many small and

medium size enterprises.

6) Rapid pace of innovation in electronics technology is resulting in a

consistent demand for newer and faster products and applications.

12

CHAPTER-3

COMPANY PROFILE

13

3.1) HISTORY OF COMPANY

KELTRON CONTROLS,’s history is a saga innovation in electronics. From

being a pioneer in 1973, to the role of a trend-setter today, KELTRON

CONTROLS, has been the catalysis for the development of electronics

enterprise, more than a quarter century ago, read “spearheading an electronics

revolution in Kerala”.

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

picturesque Kerala State known for its spices, natural beauty, Kathakali and the

Onam boat races, to arena for industrial and technological development. That

was how KELTRON CONTROLS, was born. Within five years of its

inception, KELTRON CONTROLS, had set up a production centre in every

district of the State.

More than 5,000 people were engaged directly or indirectly by KELTRON

CONTROLS, for the manufacture of electronic goods. The model of a State-

owned electronics corporation was so successful that several other States in

India followed suit; launching their own electronics corporations.

The Control & Instrumentation division of KSEDC Ltd. and started its

operation in 1979 with a technical collaboration with Controle Bailey, France.

Operations of the Division are focused on System Design, Engineering,

14

Manufacturing, Field Erection & Communicationing and Project Management

of Process Control and Instrumentation Systems. The division’s operations

include manufacture of Panels and other C & I Systems and Instruments also.

Over the years, the division has diversified into Information Technology also

by starting the manufacture of Computers in 1999.

Subsequently, KELTRON CONTROLS, started manufacturing mechanical

products for the disabled people. Of late, the Division has diversified its

operations into Defence field in close association with NPOL, Cochin as well

as into shipping instrumentation in association with Cochin Shipyard Ltd. Also

the division is a major supplier of technical manpower to ONGC for their rig

operation & maintenance. As there is very good manufacturing infrastructure

for Electronics, Electrical and Mechanical, the division offers Contract

Manufacturing Services to clients from abroad and India. KELTRON

CONTROLS, also provides technical manpower to major organization like

ONGC and VSSC.

3.1.1) DEVELOPMENTS SINCE IT’S INCEPTION

Since its inception in 1973, KELTRON CONTROLS,’S forte has always been

high quality manufacturing. During the past 30 years, KELTRON

CONTROLS, has churned out a whole range of electronic products, electro-

mechanical and high precision modules and sub assemblies for different

industry segments. Within five years of its inception, KELTRON

CONTROLS, had set up a production centre in every district of the State.

Equipped with computer-based facility for system design & engineering, and

15

software development tools for embedded systems, KELTRON CONTROLS,

today is fully geared to offer integrated manufacturing solutions.

Currently KELTRON CONTROLS, employs a work force of 2000 of which

400 are engineers who possess extensive hands-on experience in technology

integration and adoption, high-Tech manufacturing operations and in managing

turn-key projects. Man power at space electronics section has been specially

trained at Indian space Research Organization (ISRO) in high reliability

soldering, harnessing and QC. KELTRON CONTROLS, also provides

technical man power to major organization like ONGC and VSSC and

collaborators like Hitachi Japan. Country wide sales network - KELTRON

CONTROLS, has an all India Sales network in place with full-fledged

Marketing offices in Mumbai, Delhi, Kolkata, Chennai, Bangalore, Hyderabad

and Trivandrum to provide the quickest possible service to customer

3.2) ABOUT KELTRON:

Kerala State Electronics Development Corporation Limited is a company

incorporated under the Companies Act, 1956. The company is fully owned by

Government of Kerala. KELTRON CONTROLS, Group comprises the holding

company, Kerala State Electronics Development Corporation Limited and ten

subsidiary and associate companies turning out more than hundred different

types of products.

16

These products are marketed through a strong sales and distribution network

spanning the entire country, through the seven branch offices located at

Ahmadabad, Bangalore, Calcutta, Chennai, Delhi, Hyderabad, and Mumbai, to

ensure that the products are backed by dedicated support and service.

Over the years KELTRON CONTROLS, has accomplished much more than

what is set out to achieve; to industrialize a virgin territory and to provide

employment opportunities to the teeming millions. It pioneered new concepts

in industry and management, and created many products for the first time in the

country.

KELTRON CONTROLS, has not only changed the industrial profile of the

State but has even transformed the lifestyles of its people. Trivandrum, the

corporate head-quarters of KELTRON CONTROLS, once a placid town, is

now a sophisticated city humming along with the highest in Quality of Life

Index. More than offering employment opportunities to the people, KELTRON

CONTROLS, has trained and

Nurtured many high caliber managers and technical hands who have in turn

enlarged the horizons of a developmental process that it had initiated years ago.

Today, KELTRON CONTROLS, products remain as icons of technology

brought to benefit the people. As diverse as its products and their uses are, they

are unified by its pivotal strength as a solutions provider.

It is this philosophy that has made KELTRON CONTROLS, a vital contributor

to the changing needs of the world and the community to which it belongs to,

17

during the last quarter century .From within the four walls of your drawing

room to the vast expanse of an international airport, from the deep oceans to

the realms of outer space, there is a KELTRON CONTROLS, product in the

form of an innovative solution.

Continuing in its quest to bring the benefits of frontier technology to its

customers, KELTRON CONTROLS has forged strategic alliances with world

leaders in the trade. Its focus today is in adapting technology to fulfill the needs

of its customers with a renewal mission to emerge as a provider of better

solutions for the future.

KELTRON CONTROLS, is a technology driven enterprise that manufacturers

and markets electronic components, equipment and systems for

communications, defense, industrial and home applications. Coupled with the

high-caliber technical expertise available in house, KELTRON CONTROLS

has repositioned itself as a total solutions provider in electronics. The current

capabilities of the Company include system integration, project management

and consultancy.

Nearly 4000 employees working in different part of the country are focused on

bringing the benefits of technology to the customers. In some cases, it involves

designing entirely new products. In others, adapting available technology to

evolve better solutions.

What distinguishes a customer-oriented Company like KELTRON

CONTROLS, from others is its ability to put itself in the customer’s shoes. It is

not just a matter of seeking a problem as a customer sees, but of charting a

18

course for farsighted solutions as well. Every day, technology spins out an

increasing number of options for the customers to choose from. It is only

intensive knowledge, hands on experience and technical expertise that can help

make the right choice. KELTRON CONTROL’S, strength lies in its quarter

century of experience, abundance of expertise, and a sound knowledge base, all

equipped to provide the most appropriate solutions to customers. KELTRON

CONTROLS strives for quality in whatever it does. The attention to detail

which KELTRON CONTROLS, had inherited right from the beginning has

helped it earn outstanding honors since its infancy in 1973. Quality and

reliability of KELTRON CONTROLS, products have been endorsed over and

over by the large customer base and ISO 9000.

KELTRON BRANCH OFFICES.

MUMBAI 102, Poonam

Chambers Dr.

Annie Besant

Road Worli,

Mumbai - 400 018

Phone: 22 -

24922109,

4968775,

24934094,

24935917 Fax: 22

- 24968004

kelbom@bom2.vs

nl.net.in

CALCUTTA 20, Ballygunj,

Circular Road

Calcutta - 700 019

Phone: 33 -

24765980,

24757871 Fax: 91

19

- 33 - 24765980

kelcal@cal.vsnl.n

et .in

DELHI Travancore

House, Kasturba

Gandhi Marg

Bharahtiya Vidya

Bhavan, New

Delhi - 110 001

Phone: 11 -

23388625,

23381730,

23383689 Fax 91

- 471 - 3389313

keltron@del3.vsnl

.net .in

BANGALORE No 52 , St. Johns

Road Bangalore -

560 042

Phone: 80 -

25579382,

25564228,

25544289 Fax: 91

- 80 - 5579382

kelbang@giasbg0

1.vsnl.net .in

CHENNAI Sudarshan

Buildings 86,

Chamiers Road

Phone: 044-

24341261,

24346330,

20

Chennai - 600 018 24342006 Fax 91

- 44 - 24342469,

kelmad@md2.vsnl

.net .in

HYDERABAD 1-1-300/3, Ashok

Nagar Syndicate

Bank Complex

Hyderabad - 500

020

Phone: 40 -

27634537 Fax: 91

- 40 - 27634537

Telex: 0425 -

6793

AHMEDABAD Bungalow No.18

SBI Officer's

Society Narayan

Nagar

Phone: 079-

26635688,

26604728

STRATEGIC BUSINESS UNITS:

1) Control and Instrumentation

2) Pneumatic products

3) Information technology

4) Project for physically disabled.

COMMON SERVICE GROUPS (CSGs):

1) Personnel

2) Finance

3) Materials & Planning

21

4) Quality Assurance

VISION:

KELTRON CONTROLS, management’s corporate vision as the company

enters the 21st century is:

1) To emerge as a strong and reliant business enterprise with customer focus,

profit orientation and professional outlook.

2) To fit the company as a Rs. 500 Crores company by 2012.

3) To built up KELTRON CONTROLS, as a model PSU in the sunrise

technology sector of electronics & IT.

4) To function as the backbone of electronics industry in the state and

continue to pay the role of nodal agency of government for accelerating the

growth of development of this core industry in the state.

MISSION:

The mission of KELTRON CONTROLS, is be the Navaratna Corporation of

the country. To achieve this mission, the organization has set a clearly defined

22

strategy in motion encompassing its core strengths: experienced human

resources, robust infrastructure for high quality manufacture, commitment to

quality, and continuous research and development.

POLICY:

To establish a set of standards and to provide uncompromised quality and,

keeps itself in line with current technologies in the Electronics industry.

OBJECTIVES:

1) To become the customer driven company, supplying quality products at

competitive prices at the expected time and providing excellent customer

support.

2) To achieve growth in operations commensurate with growth of electronics

industry in the country.

3) To create an organizational culture this encourages members of the

organization to pursue their full potential through continuous learning

through HRD initiative.

4) To generate inertial resources for sustaining operations.

5) To improve the market shares in the area of business by updating product

range and achieving cost reductions.

23

6) To regain the companies technological leadership in the chosen fields of

electronics through appropriate tie ups with R&D organizations in the country,

international companies etc.

COMPETITORS:

The major competitors for the company are:

For Control and Instrumentation group they have only two competitors.

1) L & T

2) INSTRUMENTATION LIMITED QUOTA (RAJASTHAN)

For Pneumatic Products group they have only one competitor that is,

INSGTRUMENTTION LIMITED, PALAKKAD.

For Information Technology group they have so many competitors they are,

1) HP,

2) ACER,

3) INTEL,

4) COMPAQ etc.

And for Project for Physically Disabled group they do not have any

competitors.

OWNERSHIP STATUS

24

KELTRON CONTROLS, is one of the major public sector companies in

Kerala. Its ownership is completely held by the State Government. KELTRON

CONTROLS, Aroor (KCA) was started as its Control and Instrumentation

division. But during the late 90s because of the globalization of Indian market

and the change of energy sector reforms the control and instrumentation

business in India became dull. In order to utilize its idle capital and

infrastructure, KELTRON CONTROLS, AROOR was restructured into self

profit generating strategic business units. The activities of SBUs are supported

by 4 Common Service Groups (CSGs) under the division head of the Strategic

Business Units (SBCs) and independently looked after by SBU heads.

BRINGING WORLD CLASS TECHNOLOGY TO INDIA

KELTRON CONTROLS, Control has entered into technical collaboration

with the world leaders in the specific fields.

1) Control Bailey, France

2)CGEE Alsthom, France

3)Brown Bovary Kent, UK

4)Hitachi, Japan

AWARDS/RECOGNITIONS

1) National productivity Award 1988-89 for large scale electronic

components from National Productivity Council, New Delhi.

25

2) ELCINA Award 1993 for excellence in Research and Development for

work done in the field of forming technology.

3) Department of Scientific and Industrial Research and Ministry of Science

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

Development

COMPLETED PROJECTS:

1) CCTV System with more than 50 CCD Cameras and associated control

equipment at Indian Parliament House, New Delhi.

2) Store and Forward Message Switching System (SFMSS) for Indian

Telecom Network at major telegraph exchanges in Southern India.

3) Message Switching System for The Indian Navy.

4) On-line issue of Voter Identity Cards for the entire electorate of over

20million voters in the state of Kerala - with immediate issue of cards at

their respective booth - using state of the art technology, being done for the

first time in the country.

6) Micro processor based Card Attendance Systems in major industrial

establishments like TELCO, and also various research institutions.

26

7) Major Defence Electronics Projects for the Indian Navy

TO ENHANCE COMPETIVENESS KELTRON CONTROLS, HAS

DRAWN ROAD MAP WHICH INCLUDES:

1) To generate resources for sustaining operations

2) To improve the market share.

4) Establishing Good Manufacturing Practices (GMP) in all its production

centers.

5) Providing an environment for continuous growth and excellence in quality

by progressively upgrading infrastructure and human resources

development on a par with global development indices.

6) Consolidating efforts and resources in the development of the corporation’s

focus areas such as power electronics, strategic electronics (for defense and

space applications), security and surveillance electronics, control

instrumentation and integrated traffic management system.

7) Establishing links with high-profile technology institutions such as

DRDO,VSSC,NPOL to keep pace with technology development and

adaptation

27

8) Giving a thrust to frontier areas of knowledge management

RESOURCE MANAGEMENT

KELTRON CONTROLS, determines and provides the resources needed to

implement and maintain the quality management system and continually

improve its effectiveness and to enhance customer the satisfaction by meeting

customer requirements. KELTRON CONTROLS, provides and maintains

the infrastructure needed to achieve conformity to  product requirements.

Infrastructure includes, as applicable mainly,

1) Buildings, workspace and associated utilities 

2) Process equipment (both hardware and software), and

3) Supportive services (such as transport, communication or information

systems)

BOARDS OF DIRECTORS

Shri T. Balakrishanan Chairman Principal Secretary

Industries Department, Govt. of Kerala

Capt. (Rtd) Om Prakash Dua Managing Director KELTRON

CONTROLS, House,

TVM

Shri Jyothilal IAS Special Secretary to Govt. IT

Department

28

Shri Ashwini Kumar Rai IAS Director Secretary

Finance Expenditure Govt. of Kerala

Shri TO Sooraj IAS Director of Industries of Commerce

Dr. K.R. Srivathsan Director,

Indian Institute of IT & Management

Shri M. Narayanan Director, KSEDC Ltd.

Shri Rajan T. Jospeh Executive Director

Development of Advance Computing

Shri S. Roopakala Jagath Deputy Secretary

Industries Department Govt of Kerala

T. R. Chidambaram Deputy Director AVN

Vikram Sarabhai Space Centre

3.3) PRODUCT PROFILE

KELTRON CONTROLS, is the only C & I package in their manufacturing

range. This ensures total control over the quality of the control and

instrumentation systems in addition to providing life long after sales support to

the customers.

The product range includes:

9020 Analogue Control System: It is built around functionally independent

modules and can be engineered to realize any control and monitoring functions.

It employs hybrid technology associating linear analogue circuits with digital

circuits.

29

Data Acquisition System: Offer centralized configuration with HIDIC 80

minicomputer or the distributed configuration with the 32-bit microcomputer

V90/25. Field input scanning and alarming, Data logging, Performance

calculation, Operator guidance, Man-machine communication, Historical

storage and retrieval as well as self-diagnostics.

Programmable Logic Controller: Highly versatile Microprocessor based and

designed to perform logic control functions for interlock protections, sequential

and programmable control for process industries and plants.

Open Loop Control of Systems: Employed in Process/Power Plant for the

safe start-up/Shutdown and smooth operation of the plant and auxiliaries, it

ensures high degree of protection for the operation of main equipments.

Annunciation System Employed to continuously monitor plant alarms. It

alerts the control room operator with audio and visual devices.

Sequential Events Recorder: A microprocessor based system for monitoring,

alarming and logging of the status of various control and safety related devices.

Gives a sequential event recorded of process disturbance. It resolves an event

within a resolution of 1m.sec.

Distributed Digital Control System: Distributed Digital Control System is

mainly used in thermal industries.

30

Hiacs-3000 DDC System: Hitachi’s integrated control system for Power

Plants provides complete man-machine communication and complex control

functions including logic control. Configurable in a distributed hierarchical

structure through its modular hardware and software architecture, if offers high

degree of noise immunity with fiber optic high way or twisted shielded cables

depending on application.

P-4000 DDC System : For Process Industries, it provides functional &

geographical separation of independent units, widening the horizons,

processing power and system configuration for the control of industrial

process. The P-4000 is provided with plant control and display system, which

offers geographical and functional distribution of small to large systems having

up to 4000 complex plant items without sacrificing the response to normal and

abnormal plant changes.

K-90 Integrated Control System: Built around powerful LSI 11/73 with

intelligent Operator Console can only be configured from standard packages to

meet the particular control, continuous control, SCADA etc.

Tank Level Gauging System: Servo-powered, most advanced microprocessor

based tank level gauging system ensures accurate level measurement.

Gas and Water Quality Analyzers: Complete range for on-line measurement

and control of pH, conductivity, dissolved oxygen, silica, flue gas oxygen, etc.

31

Electronic Transmitters: High performance micro displacement inductance

type electronic transmitters –Deltapi KELTRON CONTROLS, series in

collaboration with M/s. Kent Tieghi, Italy.

Control Drives: Double acting pneumatic Power Cylinders designed to

operate accurately in outdoors, corrosive or dusty atmosphere and meets all

control requirements.

Control Panels and Cabinets: Control desks and panels manufactured as per

customers requirement, System cabinet has been designed to house all 9020

modules and power supply.

Others:

1) Panel Instruments: FEIC series strip chart recorders including controllers

and recorders.

2) Pneumatic Actuators

3) E P converters

4)Water and environmental monitoring systems

5)Nucleonic level gauges

6)Personal computers and computer system

7) Mobility assistance devices like tricycles, wheelchairs

PRODUCT RANGE

32

The centre is presently manufacturing wheel chairs, Tricycles, Walkers.

Auxiliary crutches, Elbow crutches, Tripods, Quad I Pods and prosthetic

system for amputee based on the design know how from renowned and

prestigious institutions like DRDO. The facilities available in the centre cater

to the needs for manufactures of all the items for the rehabilitation of the

physically handicapped. The centre has earmarked a shop floor area of 5000 sq.

feet for setting up the rehabilitation centre

3.4) GROWTH PROFILE

KELTRON CONTROLS, has an arrangement with C-DAC, a research and

development organization under the Government of India, which is located in

the KELTRON CONTROLS, campus, for technology development and

adaptation. An in-house research and department facility along with a full-

fledged knowledge Centre is in the pipeline and will be implemented shortly.

Strong Infrastructure and Manufacturing Experience Since its inception in

1973, KELTRON CONTROLS,’S forte has always been high quality

manufacturing. During the past 30 years, KELTRON CONTROLS, has

churned out a whole range of electronic products, electro-mechanical and high

precision modules and sub assemblies for different industry segments.

Over the years, KELTRON CONTROLS, has built up a strong infrastructure

spread over 7, 00,000 sq. ft. of built-up area. Equipped with computer-based

facility for system design & engineering, and software development tools for

33

embedded systems, KELTRON CONTROLS, today is fully geared to offer

integrated manufacturing solutions.

3.4.1) FUTURE EXPANSIONS

KELTRON CONTROLS, Aroor is the Control & Instrumentation division of

KSEDC Ltd, and started its operation in 1979 with a technical collaboration

with Control Bailey, France. This division is now mainly focusing on

expanding in the field of Defence Electronics. The company has diversified its

operations into Defence field in close association with NPOL (Naval Physical

and Oceanographic Laboratory), Cochin, as well as into shipping

instrumentation in association with Cochin Shipyard Ltd. The company also

has strategic alliance with BEL (Bharat Electricals Ltd.) for carrying out

defense projects.

NAGAN and SONAR ARRAY are the two main defense electronics projects

the company has undertaken in alliance with BEL. Both these projects are

having great exposure in the field of defense.

KELTRON CONTROLS, is currently associating in the Process Plant

Automation project using PLC (Quantum PLC of Schneider Electric) in BABA

Atomic Research Center, Kalpakam.

34

KELTRON CONTROLS, is also paying more attention to its IT group.

Customers in the power and defense sector have retained KELTRON

CONTROLS, as the preferred partner in implementing major projects. The

company has orders worth Rs.20 crore from the Indian Navy for Processor

Based Ground Mines, Electro-Magnetic Log, Underwater Telephone, XBT

Probe, Retransmission Unit and Echo Sounder.

The State PSU has been entrusted with the mandate for issuance of National

Identity Card in Goa. The Chief Election Commission continues to use

KELTRON CONTROLS,’s ID Card Division to implement its on-line

electoral photo ID card systems. KELTRON CONTROLS, has also taken up

the voter’s ID card projects.

35

ORGANISATION STRUCTURE, (FIG 3.1)

Business Support Groups

36

Keltron ControlsComplex Aroor

Keltron Controls Keltron Tool RoomResearch & Training

Centre

QualityAssurance

MaterialsPlanning

Personnel Welfare

Purchase

Store

Planning

Plant MaintenanceFinance

Personnel

3.5) STRATEGIC BUSINESS UNITS

There are several; effective departments in the KELTRON CONTROLS,

Aroor. The company is functioning as 4 independent strategic business units

(SBU) and each (SBU) is self generating profit centre. The departments like

personnel, finance, materials and planning and quality assurance are supported

by different business groups like Control and Instrumentation Group (CIG),

Pneumatics Group, Information Technology Group, Project for Physically

Disabled (PPD). Business groups are independently functioning and these

business groups have direct connection with each department.

Materials and planning handles purchasing, storing and planning. The finance

management of these departments is handled by the finance department. These

departments supply the materials for manufacturing and after the product

manufacturing; the products are passed to the quality assurance department for

checking the quality of the finished products.

The personnel department is sustained for the welfare of the personnel in each

department and the recruitment of these departments and other common

functions of human resource area.

37

C and I group PNG Group PPD ITG

3.5.1) CONTROL AND INSTRUMENTATION GROUP

(C and I) GROUP.

Control and Instrumentation business units focus on turnkey Instrumentation

and Automation projects including Environmental Monitoring System. This

SBU has high level of expertise and acceptable customer base mainly in power

generation sector. The systems and equipments supplied by the quality of

equipments and capability of the division in the instrumentation and related

activities. The engineering experience and the software expertise acquired by

the core competence and strength of the division are in the field of process

control.

With the opening up of Indian markets to private players and the Multi

National Companies (MNC) owing to liberalization and globalization, the

monopoly enjoyed by CIG was shattered and CIG no longer enjoys the wide

customer range as before. Now the CIG work area includes servicing,

implementation and operation. CIG has got Rs.10 cores orders in hand.

MAJOR PRODUCTS UNDER EXECUTION:

1) Control system Projects for BARC, Kalpakam.

2) Environmental Monitoring System for KMML Chavara.

3) Electrical and Instrumentation works at Cochin Shipyard.

4) Maintenance Contract for ONGC, Bombay.

38

CIG HAS GOT THREE DEPARTMENTS:

1) MARKETING

2) ENGINEERING

3) ERECTION AND COMMISIONING

MARKETING

On invitation of quotation/bids by customers, the marketing department of CIG

presents techno commercial bid. Techno commercial bid includes the technical

dimensions, the various product features, project merits, designs etc.

Commercial bids include details such as conditions of supply, execution,

delivery, payment, dispatch, insurance, transportation, tax, excise duty,

warrantee etc.

After screening techno commercial bids and on approval of the same by the

customer, CIG submits price bid. Price bids contain details of pricing lump

sum pricing or price break up. Sometimes both the techno commercial bit is

submitted together and screening is based on two. On awarding the tender

from the consumer CIG System and engineering group working on product

specification with the consumer involvement

SYSTEM DESIGN AND ENGINEERING

The system engineering department carries out the engineering activities,

system design and provides necessary support to production and marketing

39

department as and when required. Presently the activities of these groups are

centered on Digital Distributed Control Systems. The Engineering Group is

also plays a key role in integration and testing.

The Engineering group is manned with experienced engineers drawn from the

various sectors of the industry such as power, steel, petrochemicals etc. having

knowledge and experience about the process. They are capable of undertaking

feasibility study, system design and project implementation of total turn-key

control and instrumentation packages for any type of industry.

The Engineering group activity will include the following.

Preparation of basic open loop schemes and sequential control schemes

for binary drives.

Preparation of closed loop scheme for modeling drives.

Preparation of input/output list of control systems.

Selection I/O modules for PLC/DCS depending on I/O count and

controller loading, preparation of bills of materials for the system.

Preparation of wiring diagram and sizing of cabinets exchange between

PLC & MMI

40

Implementation of open loop and closed loop schemes in controller logic

format using relevant standard functional blocks and ladder diagrams

available with the system chosen.

Calculation and setting of the various parameters of the functional

blocks in line with the process requirement.

Program loading and functional checking of the logics in controller.

Simulation and testing of the logics using test set up.

System Integration.

Final commissioning and fine-tuning of the system.

Integration of the control systems with various sub-system

Preparation of final documents like drawings, specifications and write-

up for the project.

Preparation and development of layout drawings for control panels/desk

covering various panel mounted instruments.

Grouping of various inputs-output signals in marshalling cabinets.

After customer approval of the product specification and the arrival of

necessary components, fully fledged production starts. Quality checks

are done at the plant as well as at the site.

41

ERECTION & COMMISSIONING

The erection and commissioning group handles the following functions

relating to a turnkey control and instrumentation contract.

Review of bid documents and preparing engineering philosophy and

pricing to assist Marketing Department at the time of bidding.

Co-ordination with project management group, customer and

consultants, regarding the planning of installation and commissioning

activities.

Preparation of installation documents and drawings required for the

project.

Establishing site offices at project sites.

Providing maintenance support.

Erection, Pre-commissioning tests, commissioning trial run operation at

site.

The E & C group is equipped with the latest engineering tools and

facilities.

42

The E & C group also provides man power support to other agencies within the

country and abroad whenever such services are called for. Now they are

providing man power supply to ONGC, Bombay. This group undertakes

annual maintenance contracts for various clients all over India and abroad.

3.5.2) PNEUMATIC GROUP (PNG)

Pneumatic group is focusing on production and sales of highly demanded

Pneumatic Actuators, which are extensively used in Power plants. Pneumatic

actuators manufactured by KELTRON CONTROLS, are in high demand

among various customers in India and abroad.

Pneumatic actuators accurately operate and position regulating devices such as

dampers, fan, and inlet vanes, Rheostats, butterfly valves etc. The actuators are

being manufactured based on proven technology in technological collaboration

with M/S Control Bailey, France. The product has been fully indigenous and is

highly reliable ensuring durable performance.

PNG have large customer base and 50% market share, the major customers for

pneumatic group are BHEL, NTPC, THERMAX Ltd., IGT, and State

Electricity Boards etc.

Pneumatic Power Cylinders manufactured by KELTRON CONTROLS, have

been installed around 25,000 locations all over India at various Thermal Power

Plants, Refineries, Petrochemicals, Steel Plants, and Paper Plants etc.

43

FUNCTIONAL AREAS UNDER PNEUMATIC GROUP ARE DIVIDED

AS :

Marketing

Application Engineering

Pneumatic Shop

PROCESS:

Marketing Manager of the Pneumatic group on receiving the enquiry from the

prospective customer transfers the same to the Application Engineering

Department. Assistant Manager in application engineering is responsible for

the preparation of data sheets according to the product specification of

prospective customer.

Marketing Manager does the pricing and after further negotiation, approval and

agreement by the customer, the order registered is channeled to the Application

Engineer where the drawings are done. Production intent is prepared with

project specification; customer details, project duration, estimated completion

period and copy of production intent are given to planning, production and

QA.

44

The Planning department co-ordinates various requirements during the course

of production as well as production at the pneumatic shops. Production intends

notifies to pneumatic shop department that a project is under way. On receiving

the work reports and necessary materials from the stores project is started.

Weekly reports are given to planning. Once the project is completed finished

goods intent is transferred to QA, where the final quality checking is done. On

their approval finished goods are dispatched.

PRODUCT: PNEUMATIC ACTUATER

TRUNION MOUNTED ACTUATER

Size 6”bore*12”stroke

STAND MOUNTED ACTUATER

Size 8”bore*16”stroke

PRICE:

TRUNION MOUNTED ACTUATER: starts from RS 100000/-

STAND MOUNTED ACTUATER: starts from RS 15000/-

PROMOTION:

Actually it is a public sector so they are not doing any advertisement

As per the order they are producing

They are like a monopoly in this area

45

PLACE:

Process industries are mainly using these products. Mainly these are applying

to the THERMAL POWER STATION process control

MAIN VENDOURS: BHEL

3.5.3) PROJECT FOR PHYSICALLY DISABLED

As part of social commitment and diversification plans. KELTRON

CONTROLS, have set up a centre for rehabilitation of the physically

challenged at the factory with the support of Kerala State Handicapped Persons

Welfare Corporation (KSHPWC). The products manufactured by the centre

cater to the needs of the physically handicapped. The products manufactured

by the centre cater to the needs of the physically handicapped. The devices

manufactured at the centre are based on the proven design from Defense

Research and Development Organization (DRDO) and stringent specification

of BIS.

PROJECT IPLEMENTATION

The project for physically handicapped is monitored and implemented by

KELTRON CONTROLS, together with its four subsidiary companies at

Trivandrum, Kuttipuram, Calicut, Alappuzha, Kottayam.

46

KELTRON CONTROLS, at Aroor manufactures the desired equipments as

well as is responsible for implementation of rehabilitation package for four

districts – Ernakulum, Thrissur, Alappuzha, Kottayam.

THE PROJECTS ARE IMPLEMENTED ON A THREE TIER BASIS

At the first stage the implementing authority i.e., Gramasabha or the concerned

local bodies including municipalities, corporations, Ministry of Welfare etc.

find out the patients in their area from their database or through other agencies

and out the actual requirement of the of the disabled.

At the second stage a Detection camp is conducted at the respective village or

taluk. The team from KELTRON CONTROLS, for the camp include member

from PPD as well as rehabilitation experts, Orthotic and prosthetic Engineers

and orthotic technicians. This group accesses the disabilities of the screened

patients and suggests the supporting devices as per the order are done at

KELTRON CONTROLS,

The third stage is the distribution of the supporting devices at the campsite

from where the orders have been taken. Distribution of products to the patients

to be arranged by the implementing authority with the support of KELTRON

CONTROLS,’s technical experts.

47

AFTER SALES SERVICE

The centre extended the after sale service till the end of the warrantee period

Gait training will be imparted to the patients, which trained them to use the

assistance devices properly.

Regular follow up and after sales service are generally done on a case-to-case

basis depending upon the need of each individual. But all of them will be

definitely called if second camp is conducted at the same centre since they may

require some minor corrections in the supplied aids. This is more so in the case

of children where their aids has to be modified once they up or show

predictable improvements

3.5.4) INFORMATION TECHNOLOGY GROUP

Information Technology Group (ITG) at KELTRON CONTROLS, is involved

in Software designing, PC Assembly, Servicing, Maintenance and Wiring.

ISO 9001-2000 certification received in November 2002 for assembly and

supply of personal computers under KELTRON CONTROLS, brand name.

Software designing: ITG group of KELTRON CONTROLS, is also

developing software for customers as per their requirement. The ITG of

KELTRON CONTROLS, has developed software called Sahakari for the

computerized banking operations in cooperative banks. It is an Oracle based

program.

48

Functional arrears of ITG involves: Order processing group and Assembly

shop. ITG is treated as separate unit; it has its own planning, marketing,

separate book keeping etc. as the ISO certifications demands.

Order Processing Group: Main marketing for the KELTRON CONTROLS,

PCs is done at the corporate office at Trivandrum. Main customers for

KELTRON CONTROLS, PCs are Government Organizations and this

necessitates that the marketing function is concentrated at the Head quarters of

Government Organizations. The channeling of marketing group of Trivandrum

and production wing at KELTRON CONTROLS, is the main function of order

processing group. The marketing department of KELTRON CONTROLS,

HOUSE at Trivandrum gets the order from the Government Organizations, the

order is then passed to ITG at different branches to execute the order. The

order – processing group of KELTRON CONTROLS, after getting the order

starts the manufacturing as per the customer specification.

CERTIFICATION BODIES:

RINA: (REGISTRO ITALIANO NAVALE INDIA PVT. LTD.)

IQNET:The association of the world’s first class certification bodies, is the

largest provider of management System and Certification in the World.

Management System Certification received from IQNET and its partner

CISQ/RINA. KELTRON CONTROLS, PC offers striking performance at

amazing price for Professional, home and office use

49

3.6)ORGANISATION DEPARTMENTS:

KELTRON CONTROLS, has different departments like every other business

organization. All these departments make this company keep moving on. The

major departments in KELTRON CONTROLS, and Aroor are:

1) Marketing Department

3) Finance Department

4) Purchase Department

5) Stores Department

6) Human Resource Department

7) Quality Assurance Department

Assembly Shop Department

50

Various Departments at KELTRON CONTROLS, FIG (3.2)

51

KE

LT

RO

N

CO

NT

RO

LS

, A

RO

OR

StoresDepartment

Human ResourceDepartment

MarketingDepartment

PurchaseDepartment

FinanceDepartment

Assembly ShopDepartment

3.6.1) MARKETING DEPARTMENT, FIG (3.3)

52

General Manager

Deputy General Manager (CIG)

Marketing (A M) Design and Engineering(AM)

Erection and Commissioning(AM)

Marketing officers Senior & Junior Engineers Senior & Junior Engineers

Workers

Quality assurance department

MARKETING MIX

4 P’S OF MARKETING MIX

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

the Marketing mix i.e.; 4P’s which are:

 

Product

Price

Place

Promotion

Product

The products of KELTRON CONTROLS, includes industrial oriented product

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

Computers etc.

53

Price

The price of the products are fixed in such a way that is not too high, that

customers cannot afford it nor too low that they cannot incur the cost of

production. Comparatively the price of capacitors of KELTRON CONTROLS,

high but even then they are able to withstand in the market because of the good

quality. Price is fixed on the basis of the cost, demand and competition.

Place

KELTRON CONTROLS, carries out their sales through Authorized Dealers,

Direct Sales All over India KELTRON CONTROLS, have dealers network. It

has branches in cities namely; Ahmadabad, Bangalore, Calcutta, Delhi,

Chennai, Hyderabad, Trivandrum.

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

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

the company offers additional discounts in case of quick payment and to

regular customers. Company fixes target sales for the dealers and if they

succeed in meeting the fixed target they are offered commission at the end of

the year.

Some of their customers are given discounts on the basis of the turnover which

is termed as Turnover discount. KELTRON CONTROLS, s also engaged in

direct sales to the customers in case it’s a bulk order.

54

Promotion

The product of KELTRON CONTROLS, is a component which is an

industrial product and therefore they need not use any form of advertisement.

But they do take part in exhibitions and conduct seminars to promote their

product. Thus they do not require huge investment for sales promotion.

55

3.6.2) MATERIALS AND PLANNING DEPARTMENT, FIG (3.4)

56

General Manager

Assistant

Deputy General Manager

Purchase Manager

Purchase officerPurchase officer

THE MATERIALS DEPARTMENT IN KELTRON IS DIVIDED INTO

1)PLANNING.

2)PURCAHSE.

3)STORES.

Planning

The materials required for production at KELTRON CONTROLS, includes

regular items as well as special items.

Minimum stock is constantly monitored by computerized system and on

reaching the recorder level; materials are recorded based on EOQ. Specific

materials are produced on receiving production intent from the concerned

department.

After getting the order from the customer the marketing department of each

SBU gives production intent to the planning department. The production intent

contains the details such as customer details, their specifications, items,

delivery date, quantity etc.

On receiving the production intent, the purchase intents are prepared as the

planning quotations are invited from suppliers.

57

Assistant

Assistant

AssistantAssistantAssistant

Purchase intent contains material code no, Material specialty, quantity

required and delivery details, suggested vendor, quantity in stock, quantity in

order etc. Procurement functions start at least 3 months prior to the desired

delivery date or requirement at shop floor.

Lowest quoted quotations together with drawings are accepted. Once the goods

reach the stores, they does an initial inspection and issue Goods Receipt

Inspection Report (GRIR). All the items received in the store are entered in

GRIR.

The received items along with the GRIR are given to QA (Quality Assurance).

Once approved by the QA materials are stored at the holding store.

Copy of GRIR is given to Planning, Purchase, Finance, and QA. If the

materials is given a non confirmation report 9NCR) by QA, but production

floor demand it urgently, or the defect pointed out is not that grave, planning

might issue a deviation concession note and get it approved by QA.

On the arrival of the material in the holding store, store requisition will be

raised by planning department for withdrawal of material from store of

production shops are contains such details such as work order no, to which

shop, item no, required quantity, description of the item etc. The work order is

raised by planning for the production of the component as per the production

intent from the marketing dept of each SBU.

Work order contains the details such as work order no, product, customer,

scheduled date for customer inspection, target date for completion. Materials

58

along with work order and production intent is given to production shop for

execution of the work.

3.6.3) PURCHASE DEPARTMENT, FIG (3.5)

59

General Manager

Deputy General Manager

Purchase Manager

Purchase officer Purchase officer

Assistant Assistant Assistant Assistant

Purchase department deal with purchase activities. Materials are procured on

request arising from different departments. The materials are purchased right

quantity, right time and right price and from right suppliers.

The main functions of purchase department are

1) Purchase of raw materials as per the requirement

2) Purchase of consumable

3) Planning of purchase activity.

4) Invitation of tenders.

5) Purchase of all equipments required by the company based on the request

from the various departments.

Evaluation of tenders.

Steps involved purchase procedure

1) After getting the production intent from the marketing department of the

SBU, the Planning raises the purchase intent to the purchase.

2) The purchase intent contains details such as material code no, material

specialty, quantity, required and delivery details suggested vendor, Quantity in

stock, quantity in order etc.

60

3) Enquiry is sent to approve vendors after cross checking with the inventory

section. If the approved vendors are not available, tenders invited through

publishing tender notice in newspapers.

4) Quotations are received and opened by a committee, which consists of a

member from purchase department, one from finance and one from audit.

5) Quotations undergo evaluation process on the basis of approved quality

delivery commitment, price, terms and conditions of transportations etc.

Quotations are tabulated and comparative statement is prepared.

61

3.6.4) STORES DEPARTMENT , FIG (3.6)

62

Deputy General Manager

Store officer

Store Assistant

Expeditors

Helpers

In the store department about 6000 items are stored which include raw

materials, chemicals, equipments, electrical goods, instrumentation-on,

consumable Items, spares etc, which are coded and entered into a database. The

various items are given a 10-digit code for easy handling. On receiving the

purchase order from the purchase department stores are intimated that materials

are on the way to be stored.

On carriage inward of materials, the recipient of materials is acknowledged and

the quantity and materials are verified against purchase order. On completion

of this initial inspection, GRIR is issued. On receipt of the GRIR, QA does the

inspection and on approval of QA; materials are stored at holding store. GRIR

is also passed to purchase, finance, and planning. GRIR contains the details

such as the item code no, description, customer quantity received, qty accepted,

qty rejected etc.

Daily receipt of materials entered into computerized stock ledger. The LAN

connection between planning and stores also helps informing the arrival of

critical items. All the items reaching the holding store are credited to stores

through credit note. Bin card is maintained for each item, which contains all

the details regarding that particular item.

63

The Issue of materials starts with the store requisition from planning. If any

complaints arise of the materials issued at the production floor, stores issue a

non confirmed store requisition (NSR) to the suppliers, Stores on the basis of

commercial agreement with suppliers either return it to the suppliers, to be

replaced or received or treat it as damage or scrap and processed for fresh

delivery.

On completion of the production issues finished goods intimation report, and

the balanced items after production are returned to stores through stores return

note.

After satisfactory quality checking by QA, the finished goods reach the

outward store. Finished goods are credited stores through finished goods credit

note

3.6.5) QUALITY ASSURANCE DEPARTMENT

High priority is assigned to Quality Assurance (QA) at KELTRON

CONTROLS, The QA department is equipped with latest electronic and

mechanical test equipments to perform comprehensive testing of components

subassemblies and systems. Every component is subsequent steps of assembly

are similarly supervised for proper quality by QA department.

A multi-prolonged action plan ensures consistently high quality standards,

by adoption of elaborate quality assurance system manuals covering all aspects

of operation.

64

Establishment of a feedback system from all areas including engineering,

erection and commissioning departments.

Joint discussions and quality studies on special problems encountered.

Stage-wise inspection and surveillance checks at vendor’s works for all

bought-out components and equipments.

Regular training programs for Quality Assurance Personnel.

The QA Department co-ordinates the activities of the various functional groups

in the organization such as to have production at the most economic level

without staking product quality and customer satisfaction.

The activities include:

1) Document Control

2) Quality of Conformance during manufacturing by the inward inspection of

incoming material.

3) In-process quality control during manufacturing.

4) Functional testing including total integrated testing of C & I Systems.

5) Control and Material handling

6) Storage & Shipping:

i) Control of non-conforming items

ii) Coordinating Customer Inspection

65

iii) Maintenance of quality Assurance records and their analysis

iv) Quality Audit

v) Control of instruments, Equipments and gauges

vi) Vendor Assessment and Approval.

In order to achieve the ultimate goal of implementing a Total Quality

Management concept in the organization, department co-ordinates the activities

for ISO-9001 certification.

QUALITY POLICY OF KELTRON CONTROLS,

QUALITY ASSURANCE PROCESS

Quality Assurance (QA) Process starts right when a quotation for components

is accepted and the information is intimated by planning to QA. QA checks the

quality of the samples provided by the suppliers. QA finally issues the

accept/reject order of quotation.

Once the supplier sends the goods to the stores; Stores on receipt of goods

issue Goods Receipt Inspection Report (GRIR) to QA. QA checks the quality

of components send and issue the accept/reject proposal. The inspection report

is send to planning as well as concerned production floor.

66

“We are committed to enhance customer satisfaction by continual improvement of our performance to deliver cost effective, reliable products & service.”

If QA rejects the component, sent a Non Conformation Report, and is send

back through the purchase A/C. supplier does necessary servicing of the parts

or the replacement of goods, But if the components has to accepted in spite of

rejection offered by QA, because of urgency in production or the concerned

part will not harm the assembly or the extra ordinary delay involved in fresh

delivery, the planning issues deviaticoncession note and gets the approval of

QA, Production, GM, and use the component in production.

67

3.6.5) HUMAN RESOURSE DEPARTMENT, FIG (3.7)

68

General Manager

Assistant Personnel Manager

Deputy Personnel officer

Junior superintended

Senior Assistant

Trainees

Personal Department manages all the employee related activities Functional

areas of personnel manager in KELTRON CONTROLS, Aroor includes:

PERSONNEL AND ADMININSTRATION ROE:

Recruitment

Selection

Performance Appraisal

Salary and wage administration

Maintenance of records.

WELFARE ROLE:

Canteen

Transport

ESI

Gratuity

Uniform Supply

INDUSTRIAL RELATIONS ROLE:

Communications between management & trade unions

69

Grievance handling

Settlement of disputes

Handling disciplinary actions

MAN POWER PLANNING

The personnel officer pr manager with the help of concerned department

managers and support of the top management does manpower planning.

RECRUITMENT

The function of recruitment procedure is to get qualified personnel for the

company. Manpower requirement are identified and the personnel department

selects the required persons.

Requirement sources for KELTRON CONTROLS, are:-

Internal sources

RI centre (Relate Instruction centre)

SDC training campus at Kalamassery

Government ITIs

Kerala Public Service Commission

Engineering college Campus placements

Direct recruitment by advertising in newspapers

SELECTION

70

After scrutinizing and screening of the applicants, the screened candidates are

called for interview, the panel consists of Assistant personnel manager,

concerned department head and request initiator.

PROMOTION POLICY

A time bound promotion policy is followed at KELTRON CONTROLS, on

completion of three years employee will get an increment and promotion.

GRIEVANCE HANDLING

Legalistic approach of disciplinary handling is carried out at KELTRON

CONTROLS, Foreman/Supervisor talks with employee and if the grievance is

not settled, the foreman channels the indiscipline action to personnel manager

who asks for an explanation within three days. If the case remains unsettled an

enquiry commission is set up and if it is still unsettled, it is taken to labor

officer.

WELFARE ACTIVITIES

Welfare activities carried out in KELTRON CONTROLS, include subsidized

food at canteen, subsidized travelling in company bus, and provide ESI

(Employees State Insurance) to the permanent employees with salary less than

10,000. [ESI is a social security scheme for organized employees in an

organization by Central government.]. Gratuity and provident fund Uniform is

supplied for factory workers.

71

PERFORMANCE APPRAISAL

The superiors of the department do annual appraisal of the employees. There is

an Annual Appraisal form and it will be given to HR department and kept in

each employee’s personnel record that contains their entire details.

INDUCTION AND TRAINING

Newly appointed are given training for one week or more in the concerned

department. Other than the induction training the personnel department identify

the training needs of the employees and conduct training programs. Personnel

department organizes the training program using internal faculty or engaging

faculty from reputed organizations. The HR department in consultation with

the concerned departmental heads conducts in house-training programs special

recruitments. When employees attending a training program conducted in

house, a feed back about the usefulness of the training is obtained and

consolidated. The company imparts both in-house and out-houses training

programs.

The training program includes the following:

Induction training

Training on change of process, technology etc.

72

Training in change of job, promotion, Transfer.

Development training for awareness for new concepts.

Health Program for general awareness of health training.

3.6.6) FINANCE DEPARTMENT, FIG (3.8)

73

Assistant Finance officer

Assistants

Cost accountingFinance Planning

Deputy General Manager

General Manager

Finance is considered as the vital part of any business organization. It is the

department, which controls the procurement and allocation of funds in the

business operations. In KELTRON CONTROLS, the finance department is

common to all the department of the organization. It is working with the deputy

general manager as the head.

FUNCTIONS:

1) Generation and utilization of funds

2) Treasury operations

3) Financial book keeping and finalization of accounts

4) Costing

5) Budgeting and financial planning

6) Working capital management

7) Preparation of wage bills

8) Invoicing

SOURCE OF FUNDS

The source of fund for KELTRON CONTROLS, Aroor is the Kerala industrial

revitalization fund (KIRFD) from the bank. The finance department of

KELTRON CONTROLS, gives an application to the cooperate office, along

74

with the project details/the order given by the customer, and the corporate

office takes the necessary steps to get the loan allotted by bank.

The loan allotted for a particular project should not be utilized for other

purposes, all the expenses related to the particular project should be met from

this loan and the full details of all expenses have to be given to the bank. All

the payment given by the customers are to be given to the bank. All the

payment given by the customers are to be given to the bank and the bank after

taking their 12% interest give back the fund remaining to the finance

department of KELTRON CONTROLS,.

PROCEDURES Setting various financial performance standards and modifying these from time

to time.

1) Preparation of master control budget based on department wise budget,

forwarded by the Head of Departments.

 

2) Monitoring of the key financial ratios.

3) Planning and implanting the growth strategy of the organization.

 

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

Cost study and output

AUDIT

75

The company has efficient external auditors. Moreover there is efficient

internal check system also. Besides this statutory auditors appointed by the

company law board audit the accounts, records of the company. After

completing the audit, copy of the report is sent to the accountant and also

presented before the shareholders. If there are any comments from the auditors,

shareholders, the company should provide sufficient explanation to these

comments. In addition to this ISO audit is also carried out.

ACCOUNTING POLICIES

Cash payment

Cash receipt

Bank payment voucher 

Bank receipt

Journal voucher 

Purchase journal

Sales journal

General ledger 

Control

Office cash

KEEPING ACCOUNTING RECORDS

Files maintained in the finance and accounts department are kept unlocked

76

Shelves. Current ledgers, books, subsidiary registers, salary sheets are under

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

Rank cash books, journal books, salary records, purchase journal, sales day

book and other subsidiary register of previous years are kept in the record room

adjacent to the accounts departments. Vouchers pertaining to 8 years are kept

in boxes mentioning the names of the vouchers and year on the boxes in the

record room.

REVENUE ACCOUNTING POLICIES

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

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

SOME OF THE REVENUE ACCOUNTING POLICIES ARE :

Fixed assets and depreciation

Inventories Foreign

currency transaction

Deferred tax

MANAGEMENT OF PAYABLES AND RECEIVABLES:

Prompt payment of payables is followed at KELTRON CONTROLS,

The division is following a very lenient credit policy. The main customer like

BHEL and BARC are provided credit period of 60 days with 10% retention

77

and 2 years with 10% retention respectively. This lenient credit nature of the

division is due to project nature of work undertaken and delay in sanctioning

the product features than the one already ordered.

Budgeting and financial planning: At the beginning the financial year the heads

of each SBU will prepare budget of their concerned department and with this

the Finance department will prepare the budget for the entire division.

The budget prepared in KELTRON CONTROLS, includes:

Order booking budget

Production budget

Sales budget

Revenue Budget

Profitability budget

Cash flow budget

Capital expenditure budget

78

Profit and loss account OF KELTRON CONTROLS, for the year ended

2012

Particulars Amount Particulars amount

INCOME EXPENDITURE

SALSE 169312988

MATERIAL

CONSUMED 94142952.8

LESS EXISE DUTY 20144052

PURCHASE TO

RESALE 7625227

NET SALES 149168936

OTHER

EXPENDITURE 86335958.1

OTHER INCOME 3817698.3

INTEREST AND

BANK

CHARGES 1785830.1

INC/DEC IN STOCK -800606 DEPRECIATION 1452121.4

SHARE OF

EXPENDITURE 9065218

CONSUMPTION

FOR CAPTIVE

PURPOSE 67991386

TOTAL 152186028.3

NET P&L FOR THE YEAR 19770107.6

PLUSS/MINUS PRIOR 570106.9

79

PERIOD ADJ.

BALNCE OF P&L CARRIED 19200000.6

TO B/S

Balance Sheet as on 31/3/2012

Liabilities Amount Asset Amount

SOURCE OF

FUND

APPLICATION

OF FUND

FIXED ASSET 11647526.6

P$L A/C 19200000.6 STOCK 26918766.9

DIVISIONAL

CONTROL A/C 199479205.9 DEBTERS 276693887.7

CREDITERS 109131206.1 CASH & BANK 26490795.4

ADVANCE

FROM

CREDITERS 5804257.7

LOANS AND

ADVANCE 25869102.7

PROVISIONS 34005409

TOTAL 367620079.3 TOTAL 367620079.3

80

3.6.7) ASSEMBLY SHOP, FIG (3.9)

81

General Manager

Chief general Manager

Workers

Older Processing Assembly shop (AM)

The sole unit at KELTRON CONTROLS that has received ISO 9000-2001

Certification is the assembly shop. The KELTRON CONTROLS, PCs are

made at assembly shop.

ORGANIZATION’S CONTRIBUTION TO THE SOCIETY

SOCIAL CONTRIBUTION:

Social contribution of the company includes the following:

1) KELTRON CONTROLS, Aroor is providing both direct and indirect

employment to the people in the nearby areas and thus, contributing to the total

growth of the society.

2) The company, by taking up Project for Physically Disabled, is providing a

support hand to physically challenged people.

ENVIRONMENTAL CONTRIBUTION:

1) Environmental contribution of the company includes the following:

2) The company yearly sells out the scrap left out after production to

contractors by inviting tender quotations, thus ensuring proper disposal of

wastes without making public nuisance.

3) Company’s pneumatic products mainly use air an energy sources, thus it

helps to avoid the successive use of other energy sources such electricity, water

etc.

82

CHAPTER-4

SWOT ANALYSIS

83

STRENGTH:

1) The long term functioning of the company can be considered as its one of

the greatest strength. It has also from these years of working gained reputation

and goodwill throughout India.

2) The strength of .KELTRON CONTROLS, is a team of experienced

technocrats with smart supporting staffs. It is the only manufacturer of

capacitors in Kerala and its quality is known worldwide. The opportunities are

plenty in the industry as diversification in electronic industry is happening at a

brisk pace.

3) Always trying to come up with new products to face competition.

KELTRON CONTROLS, have made constant efforts to come up with new

products to sustain competition

4) Wide product range, to cater to different sections of the market and to

generate more revenue.

5) KELTRON CONTROLS, has undertaken projects in almost all states and

they have fully fledged Marketing Offices in major cities across India hence

they have the benefits of wide area of operation.

6) Manufacturing capability: Four fully equipped production facilities

of over 500000 sq.ft. In area.

84

7) A regular supplier of custom products to the Departments of Defense and

Space to Government of India since 1980.

8) Fully fledged Marketing Offices in eight metropolitan cities of the country:

Mumbai, Delhi, Chennai, Kolkata, Bangalore, Hyderabad, Ahmadabad and

Thiruvananthapuram Customer Support

9) Customer support Centers in all the Districts of Kerala State and also in

eight metropolitan cities of the country : Mumbai, Delhi, Chennai,

Kolkata, Bangalore Hyderabad, Ahmadabad and Thiruvananthapuram

WEAKNESS:

1)Youngsters appoint as contract workers leaving the company after receiving

training, these youngsters lack the commitment and dedication, as they only

stick on for experience

2)High employee turnover and absenteeism.

3)In public sector organizations diversification is very slow unlike the private

sector, which is also a weakness. Also the machines are getting obsolete. Also

in government organizations recruitments a problem.

85

OPPORTUNITIES:

1) Growing market for replacement of spares and after sales service, hence

there is for revenue generation

2) The only competitor for C & I division is Instrumentation Ltd hence can

have better control over the market and there are no competitors for PPD.

THREATS:

1) Many experienced employees have been retiring for the past 2-3 years. So

there is urgent of new appointments which are not yet approved by

government. Increased levels of competition for ITG.

2) Liberalized import policy has lead to adverse effect on company’s future.

3) Due to the fast changing technologies, the life cycle of the products and

systems becoming shorter.

4) Changing Government always making adverse effect in the working of the

company.

86

FINDINGS AND SUGESTIONS

87

FINDINGS:

1) KELTRON CONTROLS, produces high quality products but at a

comparatively higher price than its competitors.

2) KELTRON CONTROLS, has a very good brand image among the public

due to the best quality television sets and other consumer products.

3) The current system is only partially automated

4) The planning purchase, store functions are carried out manually which is

tedious task that shows a gap between the process and operations.

5) The processes performed involving the retrieval of information and

identifying the goods status is time consuming. The KELTRON CONTROLS,

does the market research and receives orders from the customers. Once the

orders are received the purchase department purchases the products at an

optimum level KELTRON CONTROLS, warehouse by, the job lot storage

approach, where all the different products related to the needs of a certain type

of customer or related to the needs of a particular job are stored together. The

stock is verified on quarterly basis. At first the order is accepted by the

marketing department, planning group raises the purchase intent then the

purchase department places order to suppliers who can deliver the goods

required by the customer. On the receipt of ordered material the stock

88

department posted into the stock/bin card. The next step is to deliver the

material to the customer which also required posting to Bin Card updating

stock. The transportation is mainly done through the roadways and in some

cases through rails also. The store has to keep various registers of all the

transactions taking place. This demands an excess manpower and requires a lot

of time in the completion of the process

THE MAIN PROBLEMS FACED BY KELTRON ARE:

1) The transaction process in material management is very complex and

each process consumes a lot of time.

2) The business process is lengthy and manually done. As a result of this,

managing the goods in transit, controlling the stock lacks the 100% percentage

accuracy.

3) A lot of time is consumed in transportation since the facilities are located in

a remote area like Aroor.

5) There is limited scope for product diversification.

6) KELTRON CONTROLS, produces high quality products but at a

comparatively higher price than its competitors.

7) Proper actions and efforts are not made to extend the existing customer

base.

89

8) There has been shortage of trained personnel thereby affecting the after

sales services.

9) Uncontrolled increase in the price of raw materials

10) Lack of promotional activities.

SUGGESTIONS:

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

2) The company should try to sell its products at competitive price.

3) KELTRON CONTROLS, needs to automate its procedures to effectively

promote, maintain and satisfy customer requirements promptly. An in-house

developed ERP like software may be implemented to integrate all business

activities of KELTRON CONTROLS,

4) The setting up of an R & D department would be very helpful for identifying

innovative products for the development of the organization.

5) New marketing strategies have to be done to attract new customer

KELTRON CONTROLS, can develop and implement end-to-end solution with

in-house capability wherever possible and with strategic tie up in case

of technological gaps.

90

6) Training has to be given to the service personnel’s to make after

sales service effective.

7) Skilled workforce must be hired for the organization.

8) The past records have to be clearly and accurately maintained.

9) The goods have to be carefully maintained during their transition to the

destination.

91

CONCLUSIONS

92

CONCLUSIONS

The electronics hardware industry is the world’s most important goods-

producing sector. Not only does it employ more workers and generate greater

revenue than any other sector, its products also enhance productivity in other

activities and stimulate innovation across entire economies. Due to the global

economic changes there is a tremendous growth in the electronic industry.

India is also facing the global effects. Electronic industry is at its growing stage

in India. It faces various challenges as well as more opportunities in the

electronic, these challenges and opportunities are also useful for the

organization in the industry to take the right decision at the right time. The

various challenges faced by the Indian electronic industry in the year of 2012

are 1) lack of world-class infrastructure, lack of clear cut govt. policy for the

industry, very little expenditure in Research and development, power of

marketing not harnesses to the maximum, the opportunities for the electronic

industry are- while the electronics sector in India is currently small, there are

several offers that can be effectively leveraged to achieve higher growth under

3 heads:

1) Manpower

2) Market demand,

3) Policy and regulatory support.

India has set as Rs300 billion worth of incentives and subsidies to encourage

firms to set up electronics manufacturing units in the country. The government

also approved Rs100 billion, as financial support for the development of

93

electronic manufacturing clusters. These facilities can be used by KELTRON

CONTROLS, for its advancements. KELTRON CONTROLS, Ltd., Ardor is a

division of Kerala State Electronics Development Corporation Limited. It was

set up in 1979 to introduce the state-of-the art technology in the field of

Control and Instrumentation. KELTRON CONTROLS, today, is poised to

provide an entire range of products, solutions and services to its consumers in

the areas of Electronic Components, Consumer Electronics, Control and

Instrumentation, Instrumentation, Information technology, Cybernetics,

Communications, Industrial Electronics, Strategic Electronics and Traffic

Management Systems. KELTRON CONTROLS, offers expertise as a System

House to design, engineer, configure, supply, install, commission, and

maintains large projects and provides customized solutions.

The rich experience and capabilities of KELTRON CONTROLS, in the fields

of Analogue Control System, Data Acquisition and Distributed Digital Control

system remain unmatched in the country.

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

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

KELTRON CONTROLS, has initiated steps to create a knowledge center that

would catalyze the process of knowledge assimilation as well its dispensation.

KELTRON CONTROLS, is one of the leading e-goods manufacturing

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

always been able to provide high quality products.

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

accomplishment of the goals of the company. The company provides service

94

for the handicapped people giving high respect. It has a very eco-friendly

surrounding helping its employees to keep a cool atmosphere.

KELTRON CONTROLS, after its bad play has found a stage where it can

make profits. As an electronic goods manufacturer, it has a bright future ahead,

a future belonging to innovation and simplicity of electronics.

Predictions of economic growth for the machine tool industry are conservative,

but positive. A new spirit of cooperation exists among industry, academia, and

government to develop programs that best utilize research resources to help

industry resolve problems in the way of progress. There are even signs that

training, a long neglected issue for the machine tool industry, is getting fresh

attention. Meanwhile, pressures for lower cost, greater productivity, and

improved quality are forcing even the most conservative machine-tool users to

re-evaluate their equipment and procedures.

The organization study at KELTRON CONTROLS, Ltd., Ardor has provided

valuable information for me as a management student.

There are many other factors, which deter the growth of the company.

High fixed overhead

Lack of young blood in the executive level

Potentials are not fully utilizing

Wastage of raw materials

Conventional Machines are used in large number in the plant

Lack of Automation

95

CHAPTER-5

BIBLIOGRAPHY

96

BIBLIOGRAPHY

JOURNALS :

KELTRON CONTROLS, Annual Report

WEBSITES:

http://www.KELTRON CONTROLS, .org

http://wikipedia.com

BOOKS:

Kothari C.R.-Research Methodology-New Age Publication, New Delhi

Philip Kilter & Keller Kevin-Marketing Management-Pearson Education, India

Jain P.K. & M.Y.Khan-Financial Management- Tata Mc GrawHill, New Delhi

K. Aswathappa-Human resource Management- Tata Mc GrawHill, New Delhi

Earnest E. Adam-Production & Operations Management-PHI Publication,India

Michael Armstrong, `A Hand Book of Human Resource Management Practise,10th edition,

97