AN ORGANISATION STUDY PRESENTATION

Cochin Shipyard Ltd, Ravipuram, Kochi

Kishore RaveendranReg No 40117

SCOPE AND METHODOLOGY

• The Study in Cochin shipyard Limited was done from 1st June to 15th June, 2013. Both primary and secondary data were used for the completion of Organizational Study.

• Primary Data was mainly collected through direct conversations between AGMs and DGMs in the departments, and also staffs and trainees very much helped to build up this study.

• Secondary Data were collected from the company website (www.cochinshipyard.com), relevant books and documents such as Certified Standing Order, Settlement Of Amendment (1973-2010), Performance Appraisal Form, Annual Report 2011-2012, previous Reports etc.

• During this time there is another 3 persons from other colleges to do the same Organizational Study with me. They helped me and I also helped them.

OBJECTIVES

• To familiarize the students with a business organization

• To familiarize them with the different departments in the organization and their functioning.

• To enable the students to understand how the key business process are carried out in organizations.

• Understand how information is used in organization for decision making at various levels and

• To provide a link between theory with practice.

INTRO• Cochin Shipyard was incorporated in the year 1972 as a fully

owned Government of India company. In the last three decades the company has emerged as a forerunner in the Indian Shipbuilding & Ship repair industry. This yard can build and repair the largest vessels in India. CSL has secured shipbuilding orders from internationally renowned companies from Europe & Middle East and is nominated to build the country’s first indigenous Air Defense Ship. 

• Shipyard commenced ship repair operations in the year 1982 and has undertaken repairs of all types of ships including up gradation of ships of oil exploration industry as well as periodical layup repairs and life extension of ships of Navy, UTL, Coast Guard, Fisheries and Port Trust besides merchant ships of SCI & ONGC.

• The Shipyard also trains graduate engineers to marine engineers who later join ships both Indian and foreign as 5th Engineers. 100 are trained every year.

• It can build ships up to 1,10,000 DWT and repair ships up to 1,25,000 DWT. The yard has delivered two of India’s largest double hull Aframax tankers each of 95,000 DWT.

• “Rani Padmini” is the first vessel born from CSL on 24th July 1981.

• The only Profit making shipyard in India.

COMPANY PROFILE

• VISION

“Ours in an endeavor to emerge as an internationally competitive yard and facilitate to emergence of India as a dominant Ship Building and Ship Repair centre of the region. Cochin Shipyard promises you quality service, outstanding workmanship, timely delivery, reliable personnel and excellent coordination that do not leave you feeling at sea…”

Management Team

Cochin Shipyard Limited

• MISSION

To Build and Repair vessels to International Standards and provide value added engineering services.

• HISTORY• Cochin shipyard was conceived of in the year 1969• The yard was designed and constructed under technical

collaboration with M/s Mitsubishi Heavy Industries (MHI), Japan.• The company was legally incorporated in the year 1972.• The yard commenced the ship building operations in 1978, Ship

Repair in 1981, Marine Engineering Training in 1993 and Offshore Up gradation in 1999.

• in the last decade through augmentation of facilities, up gradation of ship design department with installation of Tribon and CAD/CAM software and adoption of Integration Hull Outfitting and Painting system (IHOP) of construction.

• COMPANY DETAILS

• Board of Directors• Cmde K Subramanyam : Chairman & Managing Director• Ravikumar Roddam : Director (Finance)• P. Vinayakumar : Director (Technical)• Capt. R. S Sunder : Director (Operations)• M.C Jauhari, IAS : Official Part Time Director,• Joint Secretary (Shipping), Ministry of

Shipping• L. N Vijayaraghavan, IAS (Retd) : Non Official Part Time Director• S. K. K Krishnan, Vice Admiral (Retd) : Non Official Part Time Director• M. Raman, IAS (Retd) : Non Official Part Time Director

  • Company Secretary• Smt V. Kala

• Auditors• M/s Menon & Ayyar• Charted Accounts, Ernakulam

 

• Management Team• Jose Mathew : Executive Director (Design)• Baby Thomas : Executive Director (Materials)• Joe Joe Peter : Chief General Manager (Planning & IQC)• Sunny Thomas : General Manager (Technical)• Paul Ranjan : General Manager (Finance- 1)• N. V suresh Babu : General Manager (Ship Repair)• Madhu S Nair : General Manager (Marketing)• Bejoy Bhaskar : General Manager (Defence Projects)• K .J Ramesh : General Manager (Human Resource)• T.N Sudhakar : General Manager (Finance- 2)• Murugaiah .M : General Manager (Hull and HE)• M.D Varughese : General Manager (Industrial Relations & Administration)• K.I Koshy : General Manager (Materials)

• Bankers• State Bank of Travancore• State Bank of India• Syndicate Bank• Union Bank of India

• Registered Office• Cochin Shipyard Limited• XXXXIX/6080, Administrative Building,• Perumanoor• Kochi- 682015, Kerala, India

• Logo

• Photos

BASIC FUNCTIONS

• SHIP BUILDING• SHIP REPAIR• MARINE ENGINEERING EDUCATION

SHIP BUILDING

• CSL has been achieved full capacity utilization in last two years. In last 3 years, the yard has delivered 6 bulk carriers, Nine fire fighting tugs and eight platform supply vessels (PSV) for various international owners.

• The company could achieve a total ship building income of Rs 1260 Crs during 11-12 as against 1320 Crs in 10-11.

• SHIP BUILDING INCOME

SHIP REPAIR

• Commenced in 1982 and till date about 1800 vessels have been repaired

• During 20007-08 , CSL diversified into the offshore and dredging market and undertook repairs to the oil rigd Sagar Bhushan of ONGC, oil rig trident for M/s Transocean, USA and Dredgers Sagar-Hansa for Vanword ACZ shipping Management, Denmark and Aquarus for Dredging Corporation of India.

• Cochin Shipyard could achieve a ship repair turnover of Rs.252.14 Crores during 2007-2008 as compared to Rs 241.53 Crores in 2006-07, i.e 5% increase.

• SHIP REPAIR INCOME

MARINE ENGINEERING EDUCATION

• Marine Engineering Education handled by Marine Engineering Training Institute (METI).

• Since inception more than 1000 trainees have passed out of Institution. The institute has been rated OUTSTANDING by Independent rating Agencies continuously for last 6 years.

• More than 1000 officers are converted from Mechanical Engineering/ Naval Architecture to Marine engineering with a 3600 approach to Marine engineering on different types of ships.

• The Apprenticeship programme is conducted as per statue (Apprenticeship Act), the NTAC (National Trade Apprenticeship Council) test is conducted for trainees.

• training are:-

Office Trainees, Electrician, Mechanist, Fitter, Painter, Instrument Mechanic, Draftsman Mechanical ,Pipe Fitter and Ship Wright Wood.• The trainees are trained in the above trades for a

period of two years. At the end of the training period all the trainees will have to undergo an all India examination and certificates are issued for the pass outs. The trainees may be taken as advanced trainees by CSL. It is usually for the period of 1 to 3 years according to the nature of trade and requirement.

METI STRUCTURE

DEPARTMENTS• Ship Repair• Ship Building• Finance• Business Development (Marketing)• Personnel and Industrial Relations (HR)• Marine Engineering Training Institute (METI)• Safety and Fire Service• Inspection and Quality Control• Information Systems• Materials (1 &2)• Vigilance• Medical Centre• Store• Project• *Official Language Implementation Cell• Air Defense and Material Planning

*Official Language Implementation Cell is not a department but it is standing as a separate cell affiliated to P&IR Dept.

Finance Department

• Management of funds including working capital and transacting business with Banks and other financial institutions, managing all transactions relating to foreign exchange etc.

• Participation in negotiations with unions/associations for finalization of proposals for revision of wages, salaries, other perquisites etc.

• Evaluation of Investment proposals, project appraisals etc, with specific reference to finance perspective and examination of all proposals for financial concurrence and giving suggestions to effect economy

• Preparation of Annual budget/MOU with Government.• Payment to suppliers, contractors, employees and

other agencies.• To report to CMD matters which have adverse impact

on the working of the company.• To organize and conduct statutory audit, internal audit,

Income Tax audit, Sales Tax audit etc.• To attend to C&AG audit queries and reviews and

related matters.• Attending to Tender Committees/negotiations.

• DIFFERENT SECTIONS • ADS Finance• Central Accounts• Financial Planning• Bills Section• Ship Repair Finance• Ship Building Sections• Establishment• Taxes & Invoice• Cash• Internal Audit

Financial Position

• Profit For the year ended 31st March 2012 =17232.69• Profit For the year ended 31st March 2011= 22752.77• Balance sheet as on 31st march 2012

Total Assets= 260238.39• Balance sheet as on 31st march 2011

Total Assets= 255659.18

The performance is creditable considering the economic recessionary conditions and the downturn in the shipping and ship building sector. The reductions in the profits and turnover during the year were owing to several factors, primarily due to the reduction in turnover from Indigenous Aircraft Carrier (IAC) and the lack of ship building subsidy.

Financial HighlightsParticulars 2010-2011 2011-2012

Turnover 1461.72 1404.85

Total Income 1589.17 1481.54

EBDIT 390.27 284.16

Depreciation and Write offs 17.06 18.07

Profit After Tax (PAT) 227.53 172.33

Equity Share Capital 113.28 113.28

Reserves & surplus 775.38 898.41

Net Worth 967.8 1050.83

Gross Fixed Assets 362.10 376.73

Net Fixed Assets 190.67 192.61

Number Of Employees 1818 1900

Earnings Per Share (EPS) 20.09 15.21

Face Value Per Share 10 10

EBDIT/ Gross Turnover (%) 26.07 20.21

Net Profit Margin (%) 15.57 12.27

Return on Net Worth (%) 23.51 16.40

Return on Capital Employed (%)

27.44 18.76

Capital Employed 829.27 918.68

Docks Size Capacity Range

1 270x45x12m 125000 DWT 2010 & 5t

2 255x43x9m 110000 DWT 150 7 50t

Facilities and Assets Details

Land 170 Acres

Cranes 71 Nos

Quay 1 for Repair 290 m

Quay 2 for Repair 208 m

Quay 3 for fitting out 460 m

Covered Shop Area 35000 Sq.m

Steel Stockyard 13000 Sq.m

CNC Plasma Cutting Machine 2 Nos

Steel Fabrication Facility 2000 Tonnes per Month

Marine Coating Shop  

BUSINESS DEVELOPMENT DEPARTMENT

 • Basic Design calculations and Drawings for ships and small crafts.• Material cost estimation for ships and small crafts.• Computer applications, data bank.• Development of Computer programmes for ship design calculations, cost

estimation etc.• Data collection for technical, details of vessels, material cost etc.• Maintain a record of Rules and regulations concerned with shipbuilding and

keep track of its amendments.• Updating the design capabilities with the latest trends in design.•  Market survey ships, small crafts and other engineering works for utilizing

the installed capacity.• Preparation of Quotations.• Preparation of Contract documents.• Negotiation with owner.

• PRODUCT MIX•  • Bulk Carrier• Oil Tanker• Aframax Tanker• Clamp-on Structures• Platform Supply Vessel• Passenger Ship• Tugs• Dredgers• Patrol Boats and Luxuary Launcher• Aircraft Carrier

• MAJOR SUPPLIERS LIST• Rolls Royce Marine, Karm, Hyndra Marine, TIS, Abas, Aker Brats Vaagwinch,

Suezer

•  CUSTOMERS LIST • Coast Guard• Cochin Port Trust• Customs• Shipping Corporation of India• Essar Shipping Company• French Navy• Indian Navy• ONGC• Fisheries Department• Clipper Group Bahamas• National Institute of Oceanography• National Petroleum Construction Company, Abudabi

PERSONNEL AND INDUTRIAL RELATIONS DEPARTMENT (HUMAN RESOURCE)

• HR VISION• Emanating from the goals and objectives enshrined in the corporate

mission statement, the strategic Human Resource Vision of Shipyard is to strive and create a unique institution that integrates creativity, innovation, technology, business and good corporate governance practices for all round improvement in the quality of work life of the yard’s workforce.

•  • HR MISSION• To provide a vibrant platform for all those working in the yard to give their

best and ensure all round growth both for the individual and organization.•  • HR POLICIES• HR Policies are oriented towards the right mix of HR, their

empowerment and enrichment so as to meet organizational targets and results.

•  

• HR OBJECTIVES• Effectively play the role of strategic team member.• Planning for pragmatic man power, induction, re-skilling,

deployments and retention of HR.• Develop and position right mix of person at the right time.• Create, maintain and nurture a healthy employer and employee

relations.• Evolve and implement best industrial practices with transparency

in approach, competitive reward and incentive system for excellence in performance.

• Provide effective and meaningful social support to the community, society around.

•  •  • Current HR Status in CSL• The total manpower of the company as on 31 March 2012 was

2017 employees.

• RECRUITMENT POLICY IN CSL • Executive Recruitment•  • The recruitment to the executive post in CSL is done on all India basis. The selection process is done on the basis of the

degree or educational qualification, followed by written test and finally interview.

 • The weight age for the above said is given as below:•  • Degree – 50%•  • Written Test – 30%•  • Interview – 20%•  • The test and the interview would be conducted on the same day itself. The results will be published on the same day itself,

after the approval of CMD of Cochin Shipyard Limited.

• The executive positions are filled by 50% recruitment from external sources and 50% by promotions. In the case of promotions to the past of an officer the eligibility to write the promotion test is as followers:-

•  • For Engineering Degree holders = 6 Years service as supervisor in CSL.• For Diploma holders = 8 Years service as supervisor in CSL.• For ITI holders = 10 Years service as supervisor in CSL.

 • Workers Recruitment•  • The Recruitment to the workers post will be done through the employment exchange. As and when there is a vacancy in

the workers post the company informs the employment exchange. As per the court order, in this regard, the vacancy notification is given in employment exchange and also an open advertisement is provided in the newspapers. This is also done in an all India basis. The procedure for selection also includes practical tests.

•  

Catagory SC ST OBC PWD Ex Servicemen/ Dependents

Women

Others

Officers 34 9 48 2 7 28 139

Supervisors

26 6 1 5 2 17 148

Workmen 142 25 169 40 17 76 881

Canteen 5 0 51 1 0 3 18

TOTAL 207 40 269 48 26 124 1186

MANPOWER Manpower Strength of the company as on 31st March 2012 was 1900, consisting officers, supervisors and workers. The complement of CSL as on

31st March 2012 is shown in the table below.

SWOT ANALYSIS SWOT analysis is an effective management technique to evaluate the business environment of an organization both internal and external to analyze the present status and future prospectus of the firm. The strength and weakness of the organization, which are internal to the firm, are identified. The opportunities and threat offered by business environment, which are external to the organization, are also analyzed. Then suitable strategy can be formulated by taking both internal and external factors of the business unit. SWOT analysis for CSL is a step in arriving at the strategy decision for the organization.

• STRENGTH• India’s Only profit Making Shipyard• Transparent and Rigid Rules Structure.• Innovation and Advanced Technology updation.• Willingness to accept and adapt to changes.• Lean work force.• Inter-Departments Coordination.• Reasonable supply chain position including sub contractors.• Expanding customer base.• Security methods still unknown to a third party. (Eg.36 CCTV Cameras active by 24x7)• Availability of Government subsidy.• Improved the No of trainees.

• WEAKNESS • Low capacity of Cranes comparing other International Shipyards.• Slow Technology adoption.• Slow decision making about Trade Union problems.• Outdated technical process.• Low productivity.• Inadequate Government support.• The growth rate is lower in the case of yard development comparing to other competitors.• Increasing of Production and equipment costs.• Interference of State Government.• No new strategy for Improving Good business.• No new innovative decisions from Ministry of Shipping

• OPPERTUNITIES• Establishing Good Customer relation• Expanding global market.• Possible shift of market to low cost countries.• Likely emergence of strong and captive domestic market and increased demand from

Navy, Coast Guard and Island territories.• Efficient Training and Development makes Employee attraction.• Increased the number of Ship repairs.• Decreased Government rigidity of process.• Awards and achievements give a positive effect on new contracts.• CSL have Highest Growth rate comparing last Decade.

 • THREATS• Withdrawal of subsidy scheme from August 2007.• Rising cost of man power and material.• Increasing Competition.• Archaic Labour laws.• Increasing Complexity of tax structure, introduction of new taxes, and instance of

administration of taxes.• Very low capacity of equipment's comparing other International Shipyards.• Increasing the No of Political Trade Unions.• Hic of Material waste• Decreasing the number of Ship customers in the world.

CONCLUSION

Cochin shipyard is presently operating at 100% capacity utilization. There is no space capacity available. Presently the yard can construct ships up to 1, 10,000 DWT. Cochin Shipyard has planned for enhancing its capacity through a larger dock up to 25000-30000 DWT. The yard also got GOI approval. The shipyard also plans to introduce Dock arms and Moveable Hydraulically Activated Platform.  Cochin Shipyard is one of the first yards and largest in India to use the Integrated Hull Outfitting and Painting (IHOP) system in construction. Under this technology the ship is constructed in modules, fully outfitted and painted before assembly. This method of construction is faster and safer compared to the traditional method of construction. Besides, the yard was also one of the first shipyards to adopt the Tribon software for ship design and introducing CAD/CAM. Not only that, presently, the Cochin Shipyard is the only one in India that has the capability to build large and modern ships. Another credit is that it is one and only profit making ship industry in India. It is important to acknowledge and appreciate the historical role played by CSL in the realm of growth of ship building in our country and has overcome some of its constraints.

LIMITATION OF THE STUDY

• Days allotted by the college is too short. We got only 13 Days .

• June is the month of half yearly financial data making. So the departments were busy at that time.

• Undisclosed information are higher than disclosed.• Department head visiting is not an easy task in

CSL.• Some Departments have negative approach to the

researcher.

Page 38