organuzational study of the ramco cements 2014

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OBSERVATION AND ANALYSIS OF CLINKERIZATION PROCESS AT THE RAMCO CEMENTS LTD Organization Study Submitted to MAHATMA GANDHI UNIVERSITY, KOTTAYAM In partial fulfilment of the requirement for the award Of MASTERS DEGREE IN BUSINESS ADMINISTRATION (2013– 2015) By SNEHAL THOMAS Reg No: 50756

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Page 1: Organuzational Study of The Ramco Cements 2014

OBSERVATION AND ANALYSIS OF CLINKERIZATION PROCESS AT THE RAMCO CEMENTS LTD

Organization Study

Submitted to

MAHATMA GANDHI UNIVERSITY, KOTTAYAM

In partial fulfilment of the requirement for the award

Of

MASTERS DEGREE IN BUSINESS ADMINISTRATION

(2013– 2015)

By

SNEHAL THOMAS

Reg No: 50756

RAJAGIRI COLLEGE OF SOCIAL SCIENCESRAJAGIRI P.O

KOCHI – 683 104

Page 2: Organuzational Study of The Ramco Cements 2014

DECLARATION

I, Snehal Thomas, hereby declare that this report is bona fide record of the project done

by me as a part of the Summer Internship during the period from April 1, 2014 to May 31, 2014

at The Ramco Cements Ltd, R R Nagar, Tamilnadu.

The study has been undertaken in partial fulfilment of Master’s Degree in Business

Administration at Rajagiri College of Social Sciences, Cochin, affiliated to Mahatma Gandhi

University, Kottayam.

I also declare that this report has not been submitted in full or part thereof, to any

university or institutions for the award of any degree or diploma.

Place: Kalamassery Snehal Thomas

Date: 21.06.2014

ACKNOWLEDGEMENT

Page 3: Organuzational Study of The Ramco Cements 2014

Gaining real time corporate knowledge at the crucial period of my MBA studies has

helped me a lot to frame my career. At the very outset of this report, I would like to express my sincere thanks to all the persons who have helped me in the summer internship. Without their active guidance and encouragement, this wouldn’t have been successful.

I take this opportunity to extend my sincere gratitude to Dr.Joseph I. Injodey, Principal, Rajagiri college of Social Sciences, for providing me the opportunity of practical learning experience at The Ramco Cements Ltd.

I express my profound gratitude to my project guide Asst. Prof Kishore Thomas John, Rajagiri College of Social Sciences, for his valuable guidance and support throughout the course of the organisation study.

I also take this opportunity to extend my profound gratitude and indebtedness to my company guide Mr. S G Ravindran, Sr. Manager - Process, The Ramco Cements Ltd, for providing me the opportunity to work in his team and also for having spared his valuable time for enabling me to learn all aspects of administration.

I am also extremely thankful to Mr. Subramaniam, Dy. Manager – Quality Control, The Ramco Cements Ltd for providing me all data and information for the completion of my routine works during the entire tenure of the project.

Last but not least, I am thankful to Lord Almighty and my family members for helping me complete my study successfully.

SNEHAL THOMAS

List of contents

Page 4: Organuzational Study of The Ramco Cements 2014

EXECUTIVE SUMMARY Page no.

Section I Profile Study of the Organization

1. Industry Analysis 1

2. Incorporation and History 9

3. Vision/Mission Statements 12

4. Corporate office/headquarters, number of units 13

5. Capital Structure 14

6. Competitors 16

7. Awards 18

8. Organization Structure 17

9. Products 25

10. Manufacturing Process 30

11. Customers 32

12. Functional Departments 33

13. Ramco ERP 35

14. Future Plans 41

15. SWOT Analysis 42

16. Conclusion 44

Section II Routine Work

1. Objective of the routine work 45

2. Achievements on completion of work 57

3. Limitations on completion of work 57

4. Learning from the work 58

5. Incorporation as part of Organizational study 58

6. Time duration in days for the work 58

BIBLIOGRAPHY

List of figures

Page 5: Organuzational Study of The Ramco Cements 2014

Figure No. Title of Figure Page no.

Fig 1 Geographic segments 1

Fig 2 Cements consumer segments 4

Fig 3 Market size 5

Fig 4 Cement plant distribution 6

Fig 5 Ramco ERP 38

Fig 6 Organization structure - Company 19

Fig 7 Organization structure – RR Nagar 20

Fig 8 Organization structure – RR Nagar 21

Fig 9 Organization structure – RR Nagar 22

Fig 10 Coal mill 1 49

Fig 11 Coal mill 2 49

Fig 12 Total mill grinding time 50

Fig 13 Transport of coal in shift A 51

Fig 14 Transport of coal in shift B 51

Fig 15 Transport of coal in shift C 52

Fig 16 Time consumption by hoppers 52

List of Tables

Table No. Title of Figure Page no.

Table 1 Ramco group 8

Table 2 Dry mix products 24

Page 6: Organuzational Study of The Ramco Cements 2014

SECTION I

PROFILE STUDY OF THE ORGANIZATION

Page 7: Organuzational Study of The Ramco Cements 2014

Executive Summary

The organization study was conducted as part of the Masters of Business Administration degree

offered by Rajagiri college of Social Sciences. It was done during the month of April and May,

2014 at The Ramco cements Ltd which is one of the leading cement manufacturers in India.

The Ramco Cements Limited (Formerly Ramco Cements Ltd) is the flagship company of the

Ramco Group, a well-known business group of South India. It is headquartered at Chennai. The

main product of the company is Portland cement, manufactured in eight state-of-the art

production facilities that includes Integrated Cement plants and Grinding units with a current

total production capacity of 16.0 MTPA. The company is the fifth largest cement producer in the

country. RAMCO SUPER GRADE is the most popular cement brand in South India. The company

also produces Ready Mix Concrete and Dry Mortar products, and operates one of the largest

wind farms in the country.

The report consists of a study on the cement industry in India, Company profile, SWOT Analysis

and a report on the Routine works done as part of the internship. The work helped me to learn

about different activities handled by the Process department and the Quality Control department

in the manufacturing sector as well as the overall functioning of a manufacturing unit.

Page 8: Organuzational Study of The Ramco Cements 2014

1. Industry Analysis

India's potential in infrastructure is vast and cement plays a vital role in the growth and

development of the nation. India is the second largest producer of cement in the world. The

cement industry has been expanding on the back of increasing infrastructure activities and

demand from housing sector over the past many years.

India's cement sector had clocked a 5.6 per cent growth in 2013–14 and projects a growth of 8–9

per cent in the next fiscal, which would be supported by an expected increase in demand from

the rural sector and tier II and tier III cities, as per India Ratings and Research report. An

investment allowance for infrastructure projects of Rs 100 crore (US$ 16.05 million) and above

has also been announced by the Government. In addition, cement production in India is expected

to touch 407 million tonnes (MT) by 2020.

The industry is split into five segments:

Fig 1

1

Page 9: Organuzational Study of The Ramco Cements 2014

Oligopolistic Industry

The cement industry is an oligopolistic industry. Some of the conductive industry forces that

support long term attractiveness are:

Entry barriers: The entry barriers are high since huge capital investments are required to

present substantial barriers to entry and achieving economies of scale.

Inter – firm rivalry: The inter firm rivalry is low since Indian cement market is oligopolistic in

nature, characterized by tacit collusion, where large players partially control supply for better

price discipline.

Substitute threat: The threat to Cement is low since practically cement has no substitutes.

Buyer’s power: The influential power of the buyer is low since Substantial market concentration

among large players ensures low bargaining power of buyers.

Supplier’s power: The influential power of the buyer is moderate since cement players have to

depend on the railways for carriage outward and local coal companies for fuel, although

diversification of freight options and fuel sources is diminishing the suppliers’ power

Major Players in the industry are:

1. Ultratech cement

2. Ambuja cement

3. ACC

4. Shree cement

5. JP associate

6. Samruddhi cement

7. Prism cement

8. India cement

9. JK cement

10. Binani cement

11. Kesoram Cements

12. ACL Limited

Page 10: Organuzational Study of The Ramco Cements 2014

13. Chettinad Cements

The demand is to drive in the near future due to the following reasons:

Housing growth

The Housing segment accounts for a major portion of the total domestic demand for cement in

India

Real estate market is expected to grow at a CAGR of 17.2 per cent over 2011–15 to

USD126 billion.

Growing urbanization, an increasing number of households and higher employment are

primarily driving the demand for housing.

Initiatives by the government are expected to provide an impetus to construction activity

in rural and semi-urban areas through large infrastructure and housing development

projects respectively.

Infrastructure growth

The government is strongly focused on infrastructure development to boost economic growth

Government plans to increase investment in infrastructure to USD1 trillion in the 12th

Five Year Plan (2012–17), compared with USD514 billion under the 11th Five Year Plan

(2007–12)

Infrastructure projects such as Dedicated Freight Corridors as well as new and upgraded

airports and ports are expected to further drive construction activity

The government intends to expand the capacity of the railways and the facilities for

handling and storage to ease the transportation of cement and reduce transportation costs

Commercial real estate growth

The demand for Commercial Real Estate segments, comprising retail space, office space and

hotels, as well as civic facilities including hospitals, multiplexes and schools, has been rising due

to the growth in economy

Page 11: Organuzational Study of The Ramco Cements 2014

The demand for office space in India is being driven by the increasing number of

multinational companies and the growth of the services sector

Strong growth in tourism, including both business and leisure travel, has boosted the

construction of hotels in the country.

Estimated demand by real estate segment between 2010 and 2014: Office (240 million sq.

ft.), Retail (55 million sq. ft.), Hospitality (78 million room nights)

Fig 2

Market Size

Cement consumption in India is expected to rise by 8–9 per cent over the next year, taking the

estimated cement consumption in 2013–14 to about 280–285 MT, from around 260 MT in the

2012–13 fiscal, as per the Cement Manufacturers Association (CMA).

Page 12: Organuzational Study of The Ramco Cements 2014

Fig 3

The cement industry may continue to witness a steady market for the better half of the year with fresh

capacity of 20 MT going on stream in 2014, taking the industry capacity to 370 MT. The cement and

gypsum products sector in India has attracted foreign direct investments (FDI) worth US$ 2,879.95

million between April 2000 to November 2013, according to data published by the Department of

Industrial Policy and Promotion (DIPP).

Andhra Pradesh is the leading state with 37 large cement plants, followed by Rajasthan and

Tamil Nadu having 21 and 19 plants, respectively.

Page 13: Organuzational Study of The Ramco Cements 2014

Fig 4

Investments

Bhutan's Dungsam Cement Corporation Ltd has made a foray into the Northeastern

market. The company is selling cement under the brand name of Dragon Cement.

ACC has inaugurated a blended cement plant at Padubidri in Udupi district in Karnataka.

The new facility has a capacity of 30,000 tonnes per month and will cater to the cement

requirements in coastal Karnataka and Kerala.

UltraTech has received the green signal from the Competition Commission of India

(CCI) for its US$ 605 million agreement with Jaypee Cement Corporation to purchase its

Gujarat-based businesses.

Page 14: Organuzational Study of The Ramco Cements 2014

Ambuja Cement has launched its first fully automatic 1 MT capacity terminal in

Mangalore, Karnataka

UltraTech Cement, an Aditya Birla group company, has announced plans to set up two

cement plants entailing investments of over Rs 5,000 crore (US$ 802.57

UltraTech Cement's plant and 75 megawatt (MW) captive power plant, with an

investment of Rs 2,500 crore (US$ 401.28 million), have received approval from the

Expert Appraisal Committee (EAC), under the Ministry of Environment. The cement

plant in the Karur and Dindigul districts of Tamil Nadu will be spread over 136.23

hectares (ha).

Government Initiatives

The housing segment accounts for a major portion of the total domestic demand for cement in

India. The Government of India (GoI) is strongly focused on infrastructure development to boost

economic growth and plans to increase investment in infrastructure to US$ 1 trillion in the 12th

Five Year Plan (2012–17). During the Plan, the industry is estimated to add a capacity of 150

MT.An EAC under the Ministry of Environment, Go I, has given its approval to India Cements

to double its capacity and set up a 40 megawatt (MW) power plant at one of its facilities in Tamil

Nadu at a cost of Rs 810 crore. The proposed expansion project will come up at Dalavoi in

Ariyalur district. Giving impetus to the market, the Goa State Pollution Control Board (GSPCB)

has signed a memorandum of understanding (MoU) with Vasavdatta Cement, a company with its

plant in Karnataka. The firm would use the plastic waste collected by the state agencies and

village panchayats from Goa as fuel for its manufacturing plant.

Industry associations

Cement Manufacturers' Association

CMATower,A-2E,Sector-24,NOIDA–201301

UttarPradesh,India

Phone:91-120-2411955,2411957,2411958

Fax:91-120-2411956

Page 15: Organuzational Study of The Ramco Cements 2014

E-mail:[email protected]

Website: www.cmaindia.org

The bodies promoting industry development are:

Indian Concrete Institute

Ocean Crest 79, Third Main Road, Gandhi Nagar, Adyar, Chennai – 600 020

Phone: 91-44-24912602

Fax: 91-44-24455148

E-mail: [email protected], [email protected], [email protected]

Website: www.indianconcreteinstitute.org

National Council for Cement and Building Materials

34th Milestone, Delhi-Mathura Road, Ballabgarh – 121 004 Haryana, India

Phone: 91-129-2242051/52/53/54/55/56; 4192222

Fax: 91-129-2242100; 2246175

E-mail: [email protected]; [email protected]

Page 16: Organuzational Study of The Ramco Cements 2014

2. Incorporation and History

Ramco Group

Table 1

Company Offerings Geographical Markets

The Ramco Cements Ltd Cement, Ready Mix

Concrete, Dry Mortar

Plasters

India

Ramco Industries Ltd

(Including Subsidiaries)

Fiber Cement Sheets,

Pressure Pipes, Cotton

Yarn, Windmills.

Japan, Korea, Hong Kong,

Thailand, Vietnam, Malaysia,

Singapore, Sri Lanka, India &

Dominican Republic

Ramco Systems Ltd

(Including Subsidiaries)

A portfolio of enterprise

software products and

services

Africa, US, Canada, Asia

Pacific, Europe, Middle East

& India

Rajapalayam Mills Ltd Cotton Yarn, Tissue

culture saplings

Japan, Korea, Malaysia,

Indonesia, Hong Kong, India

& Thailand

The Ramaraju Surgical

Cotton Mills Ltd

Absorbent Cotton Wool,

Gauze Bandage, Plaster of

Paris

India, European & Gulf

countries

Sri Vishnu Shankar Mill

Ltd

Yarn Korea, Japan, India & China

Thanjavur Spinning Mill Yarn India

Page 17: Organuzational Study of The Ramco Cements 2014

Ltd

Sandhya Spinning Mill

Ltd

Yarn India, Italian & Far East

markets

Company History

Birth of a Visionary: On April 24, 1894, when a son was born to Pusapati Chinniah Raja, there

was great jubilation in the family. Chinana Raja believed that the child was born with the

blessings of the Lord of Rameswaram, and named the child Ramasamy Raja. Little did anyone

imagine that the infant was to one day change the face of Rajapalayam, a panoramic town on the

foothills of the Western Ghats in South Tamil Nadu. Ramasamy Raja, known as PACR, was only

27 years old when his father died and all the onerous responsibilities of the family were thrust

upon his young shoulders.

Birth of the first Ramco Venture: His visited Britain and other European countries to see first-

hand the working of the mills. There, he had the chance to meet many business magnates. He

returned to India full of ideas. After returning to Rajapalayam, he put his plans into action. To

start the yarn mill, he found that he needed Rs.5 lakhs, which in 1936 was a huge sum. It was

considered a Herculean task to raise such a big capital. But the determined Raja was not deterred.

He decided to make the people "Shareholders".

Rajapalayam Mills Ltd: Thanks to his illustrious background and his own reputation, he got the

required capital ready, in next to no time. On September 05, 1938, the then State Minister for

Labor, V.V.Giri, inaugurated the mill and Rajapalayam Mills Ltd commenced operations. There

was no looking back for Ramasamy Raja after this. The Mill was a grand success. He followed

this up with other successful ventures. He started The Raimaraju Surgical Cotton Mills Ltd along

with his son-in-law Rama Raju.

Birth Of The Ramco Cements Limited (Formerly Ramco Cements Ltd): In the 1950s,

investment in Cement Industry was not attractive due to price controls and the massive

investments required. Only those entrepreneurs who were not profit-minded but cared for the

country's development came forward to invest in the Cement Industry.

Page 18: Organuzational Study of The Ramco Cements 2014

Birth of Cement Plants:  The first plant of MCL at Ramasamy Raja Nagar, near Virudhunagar

in Tamil Nadu, commenced its production in 1962 with a capacity of 200 tonnes, using wet

process. In 70s, the plant switched over to more efficient dry process. A second kiln was also

added to bring the total capacity to 15 lakh tons per annum. The second venture of MCL is its

Jayanthipuram plant near Vijayawada in A.P., set up in 1987. The 36.50 lakh ton per annum

plant employs the latest state of art technology

The third venture of MCL is at Alathiyur in TN. It was set up in 1997 and expanded by addition

of another line in 2001. The 30.50 lakh tons per annum plant is the most modern plant in the

country.Ariyalur plant started operations in 2009 with a capacity of 2 MTPA. It is well-equipped

with modern quality control systems.

Other Ventures:  In 2000, MCL acquired Gokul Cements situated in Mathod in Karnataka

whose capacity is 2.90 lakh tons per annum. Being an eco-friendly company, MCL set up the

Ramco Wind farm in 1993 at Muppandal in TN. This was followed by wind farms in Poolavadi

near Coimbatore in 1995, Oothumalai in 2005 and in Mathod - the combined capacity of the

wind farms is about 159 MW. In the year 1999, MCL commissioned the most sophisticated

Ready Mix Concrete Plant in Medavakkam in South Chennai. In 2002, a state-of-art Dry Mortar

plant was commissioned near Sriperumpudur, Tamilnadu which manufactures dry mortar,

cement based putty and tile fix compound.

Page 19: Organuzational Study of The Ramco Cements 2014

3. Vision/mission statements

Mission

• To continuously improve productivity through quality, technology renewal and customer

focused operations.

• To position ourselves in the cement business as a pace setter and grow in the same and

related business.

• To seek green field locations for growth on the basis of developed synergies of the existing

operations.

• To continuously seek quality enhancement in product, processes and responses to various

stakeholders.

• To update management practices on a continuous basis and maintain a culture of professional

management.

• To conserve, protect and enhance quality of life for our employees and community.

• To preserve the credence in our motto "our real resources are the human assets".

Core values and benefits

Customers continued satisfaction and the sensitivity to their needs is our source of strength and

security. If there is no customer, there is no business. We do not look at productivity as a game in

numbers. We try to learn from others, be committed to quality and always stay ahead in terms of

technology.

Page 20: Organuzational Study of The Ramco Cements 2014

4. Corporate office/headquarters, number of units

Headquarters

Ramco Cements Limited

Address: Auras Corporate Centre,98-A Dr. Radhakrishnan Salai, Mylapore, 7th St, Durgapuram,

Royapettah, Chennai, Tamil Nadu 600004

Integrated Cement Plants

Ramasamy Raja Nagar, Virudhunagar District, Tamil Nadu

Alathiyur, Ariyalur District, Tamil Nadu

Ariyalur, Govindapuram, Ariyalur District, Tamil Nadu

Jayanthipuram,Krishna District, Andhra Pradesh

Mathodu, Chitradurga District, Karnataka

Grinding Units

Uthiramerur, Kanchipuram District, Tamil Nadu

Valapady, Salem District, Tamil Nadu

Kolaghat, Purba Medinipur District, West Bengal

Packing Terminals

Nagercoil Packing Unit, Kumarapuram, Aralvaimozhi, Kanyakumari District, Tamil

Nadu

Hyderabad Packing Plant, Pochampally Road, Malkapur, Nalgonda District, Andhra

Pradesh

State-of-the-Art Research Centre

Ramco Research Development Centre (RRDC), Chennai

Page 21: Organuzational Study of The Ramco Cements 2014

5. Capital Structure

Period Instrument Authorized

Captial

Issued

Capital

Shares Face

value

Capital

2012– 2013 Equity shares Rs.25 crore Rs. 23.8

crore

237969380 Rs. 1 Rs. 23.8

crore

Profit for the financial year 2012-2013 was Rs.403.65 crore compared to that of

Rs.385.11 crore in 2011-12.

Business turn over during 2012-2013 was Rs.4387.87 crore and paid excise duty and cess

of Rs.557.07 crore amounting to a total of Rs.3830.80 crore. Business turn over during

2011-2012 was Rs. 3652.41 crore and paid excise duty and cess of Rs. 428.79 crore

amounting to a total of Rs. 3223.62crore

Profitability Ratio 2012 - 2013 2011 - 2012

Return On Investment 16.18 16.01

Gross profit ratio 16.20 13.60

Return on shareholders fund 17.02 18.78

Operating profit ratio 27.34 30.08

Net profit ratio 10.53 11.95

Earnings per share 16.95 16.2

Liquidity Ratio

Current ratio 0.78 0.69

Cash position ratio 0.22 0.17

Page 22: Organuzational Study of The Ramco Cements 2014

Turnover ratio

Inventory ratio 35.49 38.97

Debtor turnover ratio 25.30 31.01

Operational Highlights (as on 31 March 13)

Current Cement

Capacity: 16 MTPA

   

Sales & Other

Income: Rs.3873 Crores

     

Profit for the Year : Rs.403.65 Crores

     

Cement Plants : 5

     

Grinding Plants : 3

     

Packing Plants : 2

     

Ready Mix Concrete

Plant: 1

     

Dry Mortar Plant : 1

     

Wind Farm Capacity : 159.19 MW

     

No of Employees : 2787

     

Page 23: Organuzational Study of The Ramco Cements 2014

6. Competitors

Competitors in the cement segment are:

Based on Market Capitalization: -

1. Ultra Tech

2. Ambuja Cement

3. ACC Limited

4. Shree Cement

5. Ramco cements

6. Dalmia Cements

7. India Cement

8. Prism Cement

9. Birla Corp

Based on geography

Ramco cements compete with these companies in south India:-

14. Ultra Tech

15. ACC Limited

16. Ramco cements

17. Dalmia Cements

18. India cements

19. Kesoram Cements

20. ACL Limited

21. Chettinad Cements

Based on net profit earned during financial year 2012-2013: -

Page 24: Organuzational Study of The Ramco Cements 2014

1. UltraTechCement 2,655.43

2. Ambuja Cements 1,294.57

3. ACC 1,095.76

4. Shree Cements 1,003.97

5. Ramco Cements 403.65

6. Birla Corp 269.82

7. J. K. Cement 233.55

8. Saurastra Cem 184.04

Page 25: Organuzational Study of The Ramco Cements 2014

7. Awards

4 Leaves Award

Centre for Science and Environment

National Award for Energy Conservation

Confederation of Indian industry

Best Energy Efficient Unit

National Council for Cement and Building Materials

Corporate Performance Award

Economic Times

Best Improvement in Energy Performance

International Congress on Chemistry of Cement

The Analyst Award

The Institute of Chartered Financial Analysts of India

Best all round Industrial performance

Federation of AP Chambers of Commerce & Industries

Visvesvariah Industrial Award

All India Manufacturers Organization

Business Excellence Award

Industrial Economist

Export Performance Award

CAPEXIL

State Safety Awards

Tamil Nadu & AP Governments

Page 26: Organuzational Study of The Ramco Cements 2014

8. Organization Structure

Page 27: Organuzational Study of The Ramco Cements 2014

Fig 6

Organization Structure – R R Nagar Unit

Chairman & MD

PresidentManufacturing

Sr. VPManufacturing

VPFinance

Asst. VPHRD

Asst. VPCivil

DGM Legal

DGMLiaison

SGMMaterials

SGMIT

CompanySecretary

CEO

Page 28: Organuzational Study of The Ramco Cements 2014

Fig 7

AVPWorks

GMAdministration

GMProduction & Process

AGMProjectsDGM Legal

AGMMines

DMThermal Power Plant

Sr. ManagerMechanical (Safety)

Page 29: Organuzational Study of The Ramco Cements 2014

Fig 8

GMAdmin

DGMMaterials

DGMPersonnel

DGMAdministration & Liaison

AGMAccounts

Sr. ManagerMedical & OHS (Occupation

Health Centre)

ManagerLiaison

ManagerIT

Asst. ManagerLegal

Asst.ManagerCDS (Cement Dispatch Section)

Page 30: Organuzational Study of The Ramco Cements 2014

Fig 9

GMProduction & Process

DGMElectronics & Instrumentation

DGMMechanical

SGMQC (Quality Control)

Sr. ManagerProcess

Sr. ManagerMechanical (Management

Service)

ManagerCivil

ManagerProcess

Page 31: Organuzational Study of The Ramco Cements 2014

Ramco Cements Highlights

1. Officers can register their complaints online.

2. Grievance Redressal Mechanism: Every employee can register their complaint through a

form and their grievances will be addressed within 15 days.

3. After service scheme provides provision to extend the service of employees who are

about to retire.

Bonus Schemes

1. Total bonus amount to around Rs.1 lakh per year

2. Food subsidy (up to 70 %)

3. Accommodation to all employees

4. Minimum house rent specified by Wage Board ( Rs.165 per month)

Employee Strength as on 28.02.2014

Executives - 102

Staff - 83

Staff Trainee - 10

Staff Worker - 42

Worker - 230

Worker Trainee - 7

---------------

Total 474

Page 32: Organuzational Study of The Ramco Cements 2014

Appraisal Policy

1. Workmen: They get an appraisal at the end of every December. First the Head of the

Department (HOD) have to approve then it goes to the corporate office for approval.

2. Staff: They get an appraisal at the end of every March. First the Head of the Department

(HOD) have to approve then it goes to the corporate office for approval.

3. Officers: They get an appraisal at the end of every March. First every officers have to

assess themselves and then it goes to Head of the Department (HOD) for approval.

Promotion Policy

1. Workers: Based on qualification every worker is graded from A to E. The minimum

qualification is ITI.

2. Staff: Every staff with work experience of 3 to 5 years is eligible for promotion but it is

not compulsory.

3. Officers: Every officer with work experience of 1 to 4 years is eligible for promotion.

After completion of 4 years an officer is eligible for compulsory promotion.

Page 33: Organuzational Study of The Ramco Cements 2014

9. Products

1. Cement

2. Dry mix products

3. Concrete

Cement:

Ramco super grade is a PPC grade cement manufactured as per IS 1489 (Part 1):1991. It

is produced either by grinding together Portland cement clinker and pozzolona with

addition of gypsum or calcium sulphate, or by intimately and uniformly blending

Portland cement and fine Pozzolona. World over the cement is preferred due to its ability

to produce a durable concrete where the life of a concrete structure is given more

importance. It produces less heat of hydration and offers greater resistance to the attack

of aggressive waters than normal Portland cement. Moreover, it reduces the leaching of

calcium hydroxide liberated during the setting and hydration of cement.

Ramco Cement 43 Grade (OPC 43): Ramco Cement OPC 43 confirms to IS 8112. The

grade is based on the 28-day compressive strength of the cement mortar (tested as per IS

4031), which in this case is not less than 43 MPa.

Ramco Cement 53 grade (OPC 53): Ramco Cement OPC 53 confirms to IS 12269. The

grade is based on the 28-day compressive strength of the cement mortar (tested as per IS

4031), which in this case is not less than 53 MPa.

Ramco Sulphate Resisting Cement (SRC): Ramco SRC is manufactured as per IS 12330.

This cement is used in marine conditions where soil or water contains excess sulphates.

However SRC is weak in resisting chloride attack. Hence, wherever chlorides are present

in combination with sulphates, it is advisable to consider the usage of  after a detailed

examination. The C3A phase of SRC is maintained at lower values <5%.

Sleeper Grade Cement (53 S):This cement finds its application in the manufacture of

precast products and railway sleepers 53 S Cement is manufactured as per IS 12269

Page 34: Organuzational Study of The Ramco Cements 2014

where apart from all requirements of 53 Grade, specific requirements in terms of C3A and

C3S need to be adhered to. C3A is limited to 10% and C3S is limited to 45%.

Ramco Super-Fast: Ramco Super-Fast is a Rapid Hardening Portland Cement

manufactured as per IS 8041:1990. It is a special cement that has been customized for

manufacturing hollow blocks, solid blocks, paving blocks, fly ash bricks and other

precast items. To ensure the productivity and quality of precast blocks, a separate line

meant for manufacturing the specialized cement has been installed at our plants.

Dry mix Products

Ramco Dry Mix Division manufactures pre mixed dry mortars viz. plasters, wall putty

and tile adhesive. These premixed dry mortars are manufactured under controlled

conditions of selection and blending to suit specific application needs and has numerous

advantages over jobsite mixes. The product range for the division are:

Table 2

Page 35: Organuzational Study of The Ramco Cements 2014

Ramco Super Fine – Polymer fortified wall putty. It is pre-blended with Portland cement,

fillers and chemical admixtures to give world class finish to walls and ceilings.

Features

Compressive Strength : 7-12 MPa @ 28 days

Tensile adhesive strength > 0.80 N/mm2

Pot Life : 1 hour

Available in 3 variants ( WOPC based fine & coarse grades and OPC based)

Applications

Finishing & Decorating Exterior Walls

Finishing & Decorating Interior Walls

Can be used on concrete, rendered walls, hollow blocks , precast walls & concrete

ceilings

Benefits

No Peeling

No Flaking

No Blistering

Excellent bonding with surface

Improved life for paint finishes

Better Surface hardness

Excellent crack resistance

Improved breathability

Ramco Tile Fix - Polymer fortified tile adhesive. It is pre-blended with Portland cement, fine

aggregates and chemical admixtures to fix all type of tiles viz. ceramic tiles, porcelain tiles,

natural stones ( marble, mosaic , granite), etc. for interior / exterior floor and wall installations.

Benefits

Longer Life

Page 36: Organuzational Study of The Ramco Cements 2014

Excellent Bond Strength

No presoaking of tiles

Anti - sagging

Easy to use

Good Workability

Ramco Super Plaster - Premixed Dry Mortar with graded sand, binders and additives for

1. Internal & External Application (General Purpose Plaster),

2. External Application & bathroom walls (Water Repellant Plaster) and for

3. Ceiling and brick laying Application (Ceiling Plaster)

Features

Compressive Strength at the age of 28 Days: 12-15 Mpa

Pot life: 1 hour

Applications

Interior Walls

Exterior Walls

Ceiling Areas

Brick Joints

Benefits

Uniform and better finish

Reduction in cracks

Enhanced durability and workability

Easy application

Better pot life

Ramco Super Plaster- Plastering Compound- Non sanded product pre-blended with Portland

cement, hydrated lime and chemical admixtures for plastering and mortar applications.

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Benefits

Ease of Application

Better water retention

Cohesive Mix

Improved Adhesion

Better Strength

Ramco Concrete

Ramco Concrete - For Structural Concrete Applications: High performance Concrete based

on customers’ requirements is made in the RMC unit. Concrete with various permutations based

on concrete grades, workability and site conditions are available.

Page 38: Organuzational Study of The Ramco Cements 2014

10.Manufacturing Process

Mining

The cement manufacturing process starts from the mining of limestone, which is the main raw

material for making cement. Limestone is excavated from open cast mines after drilling and

blasting and loaded on to dumpers which transport the material and unload into hoppers of the

limestone crushers.

Crushing Stacking & Reclaiming of Limestone

The LS Crushers crush the limestone to minus 80 mm size and discharge the material onto a belt

conveyor which takes it to the stacker via the Bulk material analyser. The material is stacked in

longitudinal stockpiles. Limestone is extracted transversely from the stockpiles by the reclaimers

and conveyed to the Raw Mill hoppers for grinding of raw meal.

Crushing Stacking & Reclaiming of Coal

The process of making cement clinker requires heat. Coal is used as the fuel for providing heat.

Raw Coal received from the collieries is stored in a coal yard. Raw Coal is dropped on a belt

conveyor from a hopper and is taken to and crushed in a crusher. Crushed coal discharged from

the Coal Crusher is stored in a longitudinal stockpile from where it is reclaimed by a reclaimer

and taken to the coal mill hoppers for grinding of fine coal.

Raw Meal Drying/Grinding & Homogenisation

Reclaimed limestone along with some laterite stored in their respective hoppers is fed to the Raw

Mill for fine grinding. The hot gasses coming from the clinkerisation section are used in the raw

mill for drying and transport of the ground raw meal to the Electrostatic Precipitator / Bag

House, where it is collected and then stored and homogenised in the concrete silo. Raw Meal

extracted from the silo (now called Kiln feed) is fed to the top of the Preheater for

Pyroprocessing.

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Clinkerisation

Cement Clinker is made by pyroprocessing of Kiln feed in the preheater and the rotary kiln. Fine

coal is fired as fuel to provide the necessary heat in the kiln and the Precalciner located at the

bottom of the 5/6 stage preheater. Hot clinker discharged from the Kiln drops on the grate cooler

and gets cooled. The cooler discharges the clinker onto the pan / bucket conveyor and it is

transported to the clinker stockpiles / silos. The clinker is taken from the stockpile / silo to the

ball mill hoppers for cement grinding.

Cement Grinding & Storage

Clinker and Gypsum (for OPC) and also Pozzolana (for PPC) are extracted from their respective

hoppers and fed to the Cement Mills. These Ball Mills grind the feed to a fine powder and the

Mill discharge is fed to an elevator, which takes the material to a separator, which separates fine

product and the coarse. The latter is sent to the mill inlet for regrinding and the fine product is

stored in concrete silos.

Packing

Cement extracted from silos is conveyed to the automatic electronic packers where it is packed

in 50 Kgs. Polythene bags and dispatched in trucks.

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11 . Customers

Cement customers

VBC Solution IT Park, Chennai

Verdant Acres, Chennai

Quality Inn Sabari,Chenna

Arihant NITCO,Chennai

Dry mix customers

Encore Construction Consortium Pvt Ltd, Chennai

Seiken Properties, Kerala

Condor Builders (Pvt) Ltd, Kerala

Hoyasala Projects Pvt. Ltd, Cochin

Noel Villas and Apartments, Cochin

Ace Contracting & Engineering Corporation, Cochin

Ramco super plaster customers

VGN Developers (PVT) Ltd, Chennai

Voora Shreeram Constructions (P) Ltd, Chennai

SPR Builders, Chennai

Shree Ashwarya Foundations, Chennai

Prince Foundations Ltd, Chennai

Plaza, Chennai

Jain Housing, Chennai

Page 41: Organuzational Study of The Ramco Cements 2014

12. Functional Departments

1. Personnel department: The major function is to look after the payroll, employee

grievances, organizing various activities for different levels of employees.

2. Accounts department: Finance department carries out all the internal and external

financial transactions. They carry out the following activities:

Prepare day to day reports usage of fund

Budget preparation for every quarter

Allocate money for day to day activities

Frames the estimates for clients

Prepares salary statement

2. Mines : The duties of the department include :

Testing the raw materials in the mine

Identifying new mines in the nearby location

Reporting the availability of raw material to the company

Keeping track of raw materials delivered

4. IT: The major role of IT department is to maintain the servers, desktop, laptop, ip

phone, printer, updates the software’s, manages the router, maintains and manage the

hardware firewall.

5. Stores and Material department: The functions are:

Stocking various raw materials, machines and other equipment for the day to day

activities.

Supply of various materials to the respective departments

Receive purchase request from the departments and forwarding to the accounts

department

6. Quality control department: The functions include:

Testing of raw materials, work in progress and finished goods.

Daily production process schedule preparation.

Receive the amount of cement needed from the marketing department.

Inspecting the raw material stock by visiting the raw material yard daily.

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7. Process department: The process department controls and coordinates all production

process in the company. It includes from raw material handling to cement dispatch..

8. Engineering departments

-Electrical and Mechanical department: It deals with supply and maintenance of

all electrical and mechanical equipment.

-Civil and Power plant: The civil department is responsible for the maintenance of

the physical structure of the company especially manufacturing new silo and hoppers as

well as maintenance of drainage system.

-Instrumentation: This department is responsible for

9. Cement dispatch section: Operations of bulk loading and packing machines, bag

loading belts, auto pack machines and related equipment’s of the Dispatch Terminal to

ensure smooth and efficient packing and dispatch of cement at optimum capacity in

accordance with standard operating procedures.

10. Liaison : They are responsible for :

• Existence and awareness of a suitable and relevant health and safety policy.

• A safe workplace with 0% accident free.

• Safe plant and machinery, and safe movement, storage and use of articles and

substances.

• Adequate provision of first-aid and welfare facilities and support.

• Provision of suitable and current information and supervision concerning health and

safety policies and practices.

• Proper and timely assessment of risks to health and safety, and implementation of

measures and arrangements identified as necessary from the assessments.

Page 43: Organuzational Study of The Ramco Cements 2014

13. Ramco ERP

MCL entered the ERP era in 1994 with the Ramco Marshal ERP.Then they upgraded to

Ramco E-Applications Version 3.2 in 1999.ln September 2007. They kick started

implementation of the much advanced web-based Ramco ERP enterprise series. Version

4.2.

Currently. 300 employees use the Ramco solution at its geographically spread plant and

Marketing locations. The solution comprises modules for finance, sales. Distribution.

Logistics. Purchase and inventory. HR and payroll. Management accounting. CPP

(Continuous Process Production). Ore management systems and plant maintenance.

Customization was done wherever required. Ramco ERP has the capability to integrate

with the ‘web’.

Some of the benefits accrued from ERP are:

Production

Overall operations consistency is achieved and productivity is enhanced from 5 to

10 tonnes per hour. This implies recurring annual savings of about Rs 8.5

crore.

Power generator utilization factor has been increased by 10 per cent and power

(Electricity) consumption is reduced by 10 units per ton by continuously

monitoring factories operations using real-time data in ERP. This indicates

recurring annual savings of about Rs 16 crore.

Expected cement bag weight is achieved for 98.5 per cent of production resulting

in recurring annual savings of about Rs 8.5 crore.

On an average, variable costs decreased by Rs 275 per ton of materials.

Better prices were realized from the vendors by comparing the unit prices,

availing goods discounts and better credit periods as an integrated single

company-wide database is available.

Inventory level is reduced by monitoring materials received but not by materials

consumed within the committed time. This resulted in recurring annual savings of

approximately Rs 1.8 crore.

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Management accounting

Variable costs are analyzed on daily basis for each process Centre.

Fuel efficiency is analyzed with caloric value and the market price of the items, to

derive the economical fuel mix

Finance

Trial balances of all the factories are analyzed with greater detail.

All administrative over heads have been reduced without affecting the effective

operations. Reduction is achieved mainly by business process redesign. Similar

reduction of administrative expenses resulted in a recurring annual savings of

about Rs 1.8 crore.

100 per cent adoption was achieved for the costing system, which updates the

P&l, for the entire firm in real time upon entry of a transaction.

Sales

With the close follow up of all pending orders. Orders could be executed within

24 hours. This led to increased customer satisfaction.

Transporters freight is analyzed on daily basis. Based on this. Logistics are

derived. Stock transfers to depots are handled without any re-handling process.

Analysis of HRP data led to closing down of more than 90% of stock points,

which enabled the Company to save on stock holding, transportation and re-

handling. This resulted in a recurring annual savings of about Rs 16 crore.

Mines

Performance is analyzed on a mine, equipment and shift-wise basis. Based on this

analysis, about 60 per cent of heavy equipment were withdrawn from the

operations due to poor performance or underutilization.

Number of shifts in mines was also brought down from 3 shifts to 2 shifts.

Re-handling of materials was brought down to almost negligible from an earlier

re-handling rate of Rs 18 per metric ton. These put together, resulted in a

recurring annual savings of about Rs 3 crore.

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Innovative technology practices

Apart from the extensive ERP system, MCL is also making use of many other interesting

IT tools and technologies, to not only complement and supplement the ERP system, but

also to monitor, streamline and secure its processes and organizational data.

Making ERP accessible, while on the move:

The company has developed an in-house enterprise mobile Computing system that

facilitates the use of the business processes through PDAs (Personal Digital Assistants),

by integrating those devices with the organizations ERP system. The application is

proving to be quite useful for the mobile workforce like sales professionals. Currently,

the complete sales order booking Cycle is facilitated through this, and 80 per cent of

orders are being booked through these PDAs (HTC brand).

Tools to communicate better:

At MCL, about 30 locations are connected through video conferencing using an ISDN

(Integrated Services Digital Network) and IP (Internet Protocol) based Aethra video

conferencing system. Besides, the firm also uses the Polycom audio-conferencing system.

Internal collaboration systems are facilitated through enhanced e-mails, online meetings.

IM (Instant Messaging) tools etc. The company also has plans for a unified

communication system where all communication technologies are integrated onto one

platform.

An in-house 24X7 data Centre:

This houses about 30 servers for MCL, and some of its group companies. MCL uses

predominately HP blade servers and storage solutions.

A screen shot of the software:

Page 46: Organuzational Study of The Ramco Cements 2014

Fig 5

Page 47: Organuzational Study of The Ramco Cements 2014

Challenges Faced

Ramco Cements felt that their potential for growth was hampered by their inability to

visualize and leverage the rich data generated from Ramco Enterprise Resource Planning

(ERP) system. Information such as distributor performance comparison and location

mapping of their wagon movements were difficult to visualize.

Ramco Cements also found it difficult to understand the real issues affecting operations

and performances across the region. They needed a data visualization solution, one that

offered richer, dynamic, interactive graphics that integrated with the Ramco ERP system.

Solution

Ramco Cements chose Google Maps to integrate with its Ramco ERP system. By

superimposing its data onto Google Maps, the result was a rich data visualization tool

that facilitated idea generation and improved productivity. All across India, over 1,000

employees access reports and transactions on a daily basis from the Ramco ERP system

and integrated Google maps. Management at Ramco Cements uses Google Maps for

visual analysis – for monitoring benchmarks, identifying discrepancies and deviation.

Google Maps serves as a tool to help them develop appropriate strategies for business

growth.

Ramco Cements’ sales and marketing divisions also benefitted from Google Maps. The

field sales team now has the capability to easily view information on their mobile devices

– information ranging from competitor distribution networks in their area, to the best and

worst performing dealers. This not only enabled them to make faster sales strategies on-

the-go, it also helped management improve their market penetration strategy and

competitiveness as they could locate their cement warehouses and key customers on

Google Maps vis-à-vis critical operation information, empowering them to devise

effective supply chain strategies and enhance customer service. Google Maps helped

illustrate data at various levels of detail, for example, which regions were experiencing

strong growth, which dealers were performing best, or had the most potential for growth.

Results

Page 48: Organuzational Study of The Ramco Cements 2014

Keeping logistics costs low is a critical success factor in the cement manufacturing

industry. Google Maps, together with their in-house SMS notification system and Ramco

ERP solution, formed a solid communication infrastructure. This has helped the Ramco

Cements reduce penalties, losses and damages arising during the wagon clearance

process by up to 70%, and improved consignment clearance time by up to 40%. Google

Maps also made it easier to identify and analyze performing markets with the potential

for growth. Since implementing Google Maps, the company has successfully.

Page 49: Organuzational Study of The Ramco Cements 2014

14. Future Plans

Expanding the company portfolio to Gujarat and Madhya Pradesh where raw materials

are in abundance thereby capturing the market share

Setup a grinding unit in vizag, Andra Pradesh which is an important point in supply to the

state.

Incorporation of new packing unit near Tenkashi which cater the demands of the Kerala

market.

Setting up color sorter mechanism in mines which can be used to segregate good

limestone and avoid block stone in the lime stone

Installation of new impact crusher with screening system to increase the limestone

crushing capacity

Installation of alternate fuel feeding system, comprising of an elevator and belt conveyor

with dosing arrangement.

Page 50: Organuzational Study of The Ramco Cements 2014

15.SWOT Analysis

Strength

Dedicated IT team: A team from Ramco Systems Ltd (sister concern of the company)

that exclusively work for the company’s IT developments and solutions.

Self-developed ERP: The ERP software which is much cheaper than other similar ones.

It can be customized according to the requirement of the company.

Well established supply chain: The Company have a well-established supply chain in

south India which include packing units and grinding units thereby making the supply of

the product easier.

Brand name and quality of products: Ccertifications like ISO 9001, ISO 14001 and

ISO 18001 which makes the company distinct from others and is a symbol of quality.

Weakness

Wastage of raw materials: There is wastage of raw materials especially imported coal

and pet coke due to improper drainage system in the coal handling unit.

Highly regionalized and localized market: The market for the cement is highly

localized especially in south India.

Capacity constraints to limit sales: The capacity of the plant is limited thereby it will

restrict the sales.

Opportunities

Demand in North East India: The North-Eastern part of India, which is witnessing a

construction boom, offers attractive investment opportunities. Cement manufactured

locally is inadequate to meet the local demand for cement. The annual demand is 5.5

MTPA and the supply is only 3 MTPA.The deficit is met through cement purchased from

other parts of India. High transportation costs cause the landed costs of cement to

increase considerably.

Use of alternate fuels: Fuels such as bio energy produced by burning of coffee husk and

Page 51: Organuzational Study of The Ramco Cements 2014

cashew nut shells to fire the kiln thereby lowering production costs and emissions.

Robust infrastructure growth: The government is strongly focused on infrastructure

development to boost economic growth. It plans to increase investment in infrastructure

to USD1 trillion in the 12th Five Year Plan (2012–17).

Threats

Investment by competitors: Robust investments are being made by the existing players

to expand their capacity. This will in turn affect the market of the company.

Presence of small and mid-size cement players: The presence of small and mis-sized

players are increasing across regions is increasing, which will diminish the market

concentration of industry leaders. They have been constantly increasing their installed

capacity to cater to increasing cement demand.

Page 52: Organuzational Study of The Ramco Cements 2014

16. Observations

India has the capacity to become the world's third largest construction market by 2025 and a US$

1 trillion market, according to a study by Global Construction Perspectives and Oxford

Economics. The focus of the government on strengthening infrastructure, promotion of low-cost

affordable housing, etc., is expected to drive cement demand. With the ever-increasing industrial

activities, real estate, construction and infrastructure, in addition to the onset of various Special

Economic Zones (SEZs) being developed across the country, there is a continuous demand for

cement.

Moreover, major cement manufacturers in India are also increasingly using alternate fuels,

especially bioenergy, to fire their kilns. The step will not only help to reduce production costs of

cement companies, but is also proving effective in reducing emissions.

Currently The Ramco Cements Ltd holds the 5th position in terms of market capitalization and

net profit earned during 2102 - 2013. The projected growth of 8-9 % in the cement industry by

the fiscal year 2014 – 2015 will give ample opportunity for the company to gain market share.

Page 53: Organuzational Study of The Ramco Cements 2014

SECTION II

ROUTINE WORK

Page 54: Organuzational Study of The Ramco Cements 2014

Objective of the routine work

To coordinate the coal handling and coal grinding process handled by the Process

department of The Ramco Cements Ltd.

To conduct a study to automate the trolley operation process with the primary objective

of minimizing the number of operations in the coal handling process.

Job responsibilities:

Monitoring the transfer of different types of coal from the yard through the closed circuit

television system till it reaches the mill.

Monitor the coal mill grinding process

Receiving call from the trolley operator to start and stop the conveyor belts.

Study the problems associated within the process and to find solutions that will help to

increase the efficiency of the coal handling process thereby increasing the overall

production efficiency of the company

Daily visit to the raw material yard to take down the current stock of the raw materials

Details of the work:

1. Coordination of the coal handling process in Ramco Cements Ltd process department.

I was entrusted with the responsibility of coordinating the coal handling process of

Ramco Cements Ltd. The tasks performed included the following three functions:

i. To observe and analyze Imported coal and petcock handling process

Observed the filling of coal into the hopper in the central control room: - My task

was to observe the filling of imported coal and pet coke into the hopper from the

yard through the monitor placed in the central control room. If any wastage or

unusual thing happened I had to report the issue to the manager in charge.

Page 55: Organuzational Study of The Ramco Cements 2014

Noted down the coal mill grinding time: - Analyzed the graph from the

workstation and calculated the total time the mill was running to grind the coal in

a shift. The analysis showed which type of coal consumption was more. I also

found out how much coal was used in a shift. It is very important to note down the

daily coal consumption so as to find out the monthly consumption of coal. It helps

the department to plan for the next month usage.

Receiving call from the trolley operator: - The trolley operator makes the first call

when coal is being loaded to the yard hopper. On receiving the call my task was

to give commands in the work station to start the conveyor belts. When the

hopper is about to fill the operator calls again and commands are given to stop the

belts.

Visited the coal handling area: - Visited the coal handling area and interacted with

the trolley operator in depth about the process as well as the problems associated

with the present system. I also observed the filling process completely to

understand the trolley operation process.

ii. To observe and analyze Fly ash handling process

Observed the filling of coal into the hopper in the central control room: -

Observed the filling of ash into the hopper from the yard through the monitor

placed in the central control room. . If any wastage or unusual thing happened I

had to report the issue to the manager in charge.

Noted down the time taken to transport the ash from the hopper to the coal mill: -

Analyzed the graph from a workstation and calculated the total time the mill was

running to grind the fly ash. The analysis is used to find out the daily requirement

of ash.

Page 56: Organuzational Study of The Ramco Cements 2014

iii. To visit the raw material yard

Daily visit to the raw material yard with a field worker to take down the current

stock of the raw materials. The stock of each type of raw materials are noted in the

stock book separately.

To report the current stock to the manager on daily basis: - The collected data is

reported to the manager. Based on the availability of raw materials the department

do the production planning.

2. Conducted a study to automate the trolley operation process with the primary objective of minimizing the number of operations in the coal handling process.

Statement of the problem

A study on the automation of the trolley operation process to minimize number of

operations in the coal handling process.

Nature of the problem

The problems identified in the coal handling process were studied and identified as

elaborated below:

1. Manual operation of trolley: - The manual operation require an additional employee

to operate the trolley. The operator has to make at least seven phone calls per shift to

operate the trolley.

2. No mechanism to find out the overflow level of coal in the hoppers: - There is no

mechanism to find out the overflow level of coal in the hopper. So a manual operator

is required to check the hopper filling level.

3. More time consumption during D10 hopper filling: - D10 hopper is situated in

between D9 and D11 hopper. The construction of trolley is in such a way that only

D9 and D11 hoppers can be filled in a single stretch. Therefore to fill the D10 hopper

completely the trolley has to stop and the belt is reversed which require more number

of operations and is time consuming.

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4. Inadequate drainage system: - The drainage system is inadequate which contribute to

the loss of the raw material during transfer from hopper to mill as well as jamming of

chute due to wet coal. Also during heavy rainfall the belts has to be stopped to avoid

the jamming of chute thereby wasting a considerable amount of time.

Key Finding and Recommendations

The areas that should be improved are:

Collect imported coal in D11 hopper. Since the consumption of imported coal is more

compared pet coke and ash, it is filled more to the hopper. At present imported coal is

filled in D10 hopper. But to fill D10 completely the trolley should be stopped and must

run in the opposite direction each time which require more number of operations and is

time consuming. Instead ash can be filled in D10 which is least used.

Fig 6 and 7 shows the coal mill grinding time in hours of imported coal and pet coke

respectively in the three shifts. The chart is made based on the data collected for a

period of 30 days.

Shift A Shift B Shift C0

20

40

60

80

100

120

140

160

180

Coal Mill 1 (Imported Coal)

Hou

rs

Fig 10

Page 58: Organuzational Study of The Ramco Cements 2014

Shift A Shift B Shift C0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

Coal Mill 2 (Pet Coke and ash) H

ours

Fig 11

Fig 8 shows the total mill grinding time by each mill. From the chart it is clear that

imported coal is grinded for 80% of the time whereas pet coke is grinded only for 20% of

the time. Imported coal comes from D10 hopper and pet coke is collected from D9

hopper.

Page 59: Organuzational Study of The Ramco Cements 2014

80%

20%

Total Mill Grinding Time

CM1CM2

Fig 12

The fig 9, 10 and 11 depicts the time duration in hours taken by each hopper to transport

coal to the mill in shifts A, B and C respectively. The chart is made based on the data

collected for a period of 30 days.

Page 60: Organuzational Study of The Ramco Cements 2014

D9 D10 D110

10

20

30

40

50

60

70

80

Time Duration - Shift A

Hours

Fig 13

D9 D10 D110

10

20

30

40

50

60

70

Time Duration - Shift B

Hou

rs

Fig 14

Page 61: Organuzational Study of The Ramco Cements 2014

D9 D10 D110

10

20

30

40

50

60

Time Duration - Shift C

Hou

rs

Fig 15

The fig 12 depicts the total time taken by each hoppers for a period of 30 days. It is made

by analyzing the charts 9,10 and 11.

By analyzing the Fig 8 and fig 12 it is clear that hopper D10 is used for the longer time.

So imported coal storing hopper(D10) should be replaced by the D11.

36%

56%

8%

Time consumption by hoppers

D9D10D11

Fig 16

Page 62: Organuzational Study of The Ramco Cements 2014

Proper drainage system in the roof. The roof of the coal handling area is experiencing

severe leakage. Due to this water directly comes into the hoppers which make the coal

wet and in turn will jam the chutes. During heavy rain coal cannot be filled into the

hoppers which is a huge waste of time. Large pvc pipes can be put in the roof center to

transport the rain water to some other location.

Water repellent covering near the bottom of all three hoppers. Once proper drainage

system is implemented the bottom part of all three hoppers and left part of D9 should be

covered with water repelling sheets so that the extra water droplets would not disturb the

belts.

Implement 2 level switches in each hoppers. This will help to know when the hopper is

about to fill and the belts can be automatically stopped. The manual operation can be

replaced by automation.

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Implementing Switch

Option 1:

In this method, the coal pumping end of the trolley starts filling in position P1. When the

indicated level reaches switch S2 becomes ON and the trolley is automatically moved to

the position P3. When the overflow level reaches switch S1 becomes ON and the

conveyor belts are stopped in a continuous fashion. The trolley is moved to position P2

where the remaining coal from the belt is filled. By implementing this option the hopper

can be filled in a single stretch without stopping the trolley.

S – Switch

P – Position

Page 64: Organuzational Study of The Ramco Cements 2014

Option 2:

In this method, the coal pumping end of the trolley starts filling in position P1. When the

indicated level reaches switch S1 becomes ON and the trolley is automatically moved to

the position P3. When the overflow level reaches switch S2 becomes ON and the

conveyor belts are stopped in a continuous fashion. The trolley is moved to position P2

where the remaining coal from the belt is filled. By implementing this option the hopper

can be filled in a single stretch without stopping the trolley.

S – Switch

P – Position

Page 65: Organuzational Study of The Ramco Cements 2014

Merits of the proposed system

Fully automated operation in filling the hoppers will require less time than the previous

manual operation.

Number of phone calls can be reduced. On an average 7 calls are made by the operator to

CCR (Central Control Room) per shift. So around 21 phone calls can be reduced per day

which is a significant relief to the CCR operators.

Number of operations required in filling imported coal can be reduced. Imported coal is

filled 2 times per shift i.e. 6 times per day. So the belts are stopped 6 times and trolley

must reverse the direction each time to fill the coal into D10 completely. But when D11

is used no stoppage of trolley and belt are required. Therefore 6 operations can be

reduced per day.

Time consumption can be reduced in filling imported coal. When the trolley is reversed

the feeder is stopped and it takes 3 minutes to empty the belts.

In a shift, 2*3 = 6 minutes can be saved.

In a day, 6*3 = 18 minutes can be saved.

In a month, 18 *30=540 minutes= 9 hours can be saved.

In a year 9*12 = 108 hours can be saved.

The trolley operator can be used for other jobs. Since automation is deployed the

additional employee can be utilized to perform other important job.

No need of stoppage during rainy season. This will help for the continuous grinding of

the coal in the mill.

Wastage of raw materials can be minimized when proper drainage system is deployed.

Page 66: Organuzational Study of The Ramco Cements 2014

Achievements on completion of work

The major achievements are:

Coordinated the coal handling process of Ramco Cements Ltd with effectiveness

Worked in a challenging real time environment and gained hands on experience in the

manufacturing industry

Determined solutions to convert an existing manual operation to automation and also to

minimize the number of operation performed.

Completed entrusted responsibilities by the company in a time bound manner

Limitations on completion of work

The major limitations faced during the work were:

The software used in the central control room of Ramco Cements Limited is programmed

in such a way that it was moderately difficult for me to analyze the graph and interpret

the required data.

There is only one desktop computer in the central control room and the rest are

workstations. So at a time only one person can use the desktop and others have to wait for

some time to access the machine.

Working in a challenging real time environment made it at times difficult to gather the

required data for analytics.

Page 67: Organuzational Study of The Ramco Cements 2014

Learning from the work

The learnings from the work are:

Hands on experience in coal handling process in Ramco Cements Ltd

Understanding of the trolley operation process in the coal handling process.

Knowledge of the operations in a manufacturing plant

Knowledge about the cement industry and its operations

Learned to utilize different excel functions such as preparation of charts and other basic

functions.

Incorporation of work as part of Organizational study

Gathered knowledge of different functions and processes of the process department in Ramco

Cements Ltd.

Understanding of the key HR policies and procedures of the company

Gained valuable insights into the quality control department of the company

Time Duration for the work

36 Days