ORGANIZATIONAL STUDY

AT

O/E/N INDIA LTD.

REPORT

Submitted to Mahatma Gandhi University in partial fulfilment of the requirements for the

award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted By

ALEXY ELIZABETH CHANDY

Under the guidance of

Mrs. Shiji Paul Prof. Aggi Anand

Company Guide Faculty Guide

DEPARTMENT OF MANAGEMENT STUDIES

MAR ATHANASIOS COLLEGE FOR ADVANCED STUDIES

TIRUVALLA

CERTIFICATE

This is to certify that this report, based on the organisation study conducted by

ALEXY ELIZABETH CHANDY, second semester MBA student of our college for 20

days starting 20th May 2014 at O/E/N INDIA LTD., is a bonafide record

submitted in partial fulfilment of the requirements for the degree of Master of

Business Administration of Mahatma Gandhi University, Kottayam.

Prof. …………. Prof. ……………………………

Faculty Guide Head of Dept. of Management Studies

Rev. Fr.………………………… Signature of the External Examiner Principal

MAR ATHANASIOS COLLEGE FOR ADVANCED STUDIES

TIRUVALLA

CERTIFICATE

FROM

THE

ORGANISATION

DECLARATION

I hereby declare that this report titled “Organizational Study at O/E/N INDIA

LTD.” has been prepared by me during the academic year 2014 - 2016, under

the guidance of Prof. AGGI ANAND, Department of Management Studies,

MACFAST, Tiruvalla.

I also hereby declare that this project report has not been submitted to any

other University or institute for the award of any degree or diploma.

Place …………. ALEXY ELIZABETH CHANDY

Date…………. (Name of the student)

ACKNOWLEDGEMENT

First of all, I praise God, the almighty, for providing me this opportunity and granting

me the capability to proceed successfully. I was able to do the study only due to the

assistance and guidance of several people. I would like to offer my sincere thanks to all

of them.

At the very outset, I express my deepest sense of gratitude to Mr.Benoy Kurien, Senior

Manager HR Department at O/E/N India Ltd., for granting me the opportunity to do

this organisation study in your esteemed organisation.

I owe my gratitude to Mrs. Shiji Paul, HR Executive, O/E/N India Ltd. for proving for

your valuable guidance for completion of this study at the organisation.

I am extremely thankful and pay my gratitude to my faculty guide Mrs. Aggi Anand

for the valuable guidance and support during the whole period of the study.

Last but not the least, my parents and friends, I thank them all for their utmost support

during the study.

LIST OF TABLES

Table No. Title Page No.

1.1

1.2

2.1

2.2

3.1

3.2

4.1

4.2

4.3

LIST OF FIGURES

Fig. No. Title Page No.

1

2

3

4

ABBREVIATIONS

A A A :

A B B :

A B C :

B A A :

B A B :

B B A :

B B B :

B B C :

C A A :

C B A :

C B B :

C B C :

CONTENTS

1. CHAPTER 1: INTRODUCTION……………………………........ 9-30

1.1. Scope of the Study 2

1.2. Significance of the Study 2

1.3. Objectives of the Study 4

1.4. Methodology 5

1.5. Limitations of the Study

2. CHAPTER 2: INDUSTRY PROFILE ....................................

2.1 Industry overview

2.1.1 Historical Developments

2.1.2 Current Scenario

3. CHAPTER 3. COMPANY PROFILE 12

Organisation Structure

CHAPTER 4. PRODUCT PROFILE 17

4.1 Product 1 184.1.1 Xxxxxxx 194.1.2 Xxxxxxx 214.1.3 Etc. 234.2 Product 2 254.3 Product 3 27

CHAPTER 5. FUNCTIONAL DEPARTMENTS 29 OF THE ORGANISATION

5.1 Human Resource Department 305.2 Production/Operations Department 345.3 Finance Department 365.4 Marketing Department 385.5 Research and Development 405.6 Planning Department 425.7 Administration Department 45

5.8 Purchase Department 465.9 Store Department 485.10 Quality Department 525.11 IT Department 535.12 Commercial Department 545.13 MIS Department 565.14 Safety Department 58

6 CHAPTER 6. ANALYSIS Porter’s Five force Analysis, SWOT Analysis etc. 59

7 CHAPTER 7. FINDINGS, CONCLUSIONS AND SUGGESTIONS 65

BIBLIOGRAPHY 67

APPENDICES 68

CHAPTER 1

INTRODUCTION

11

INTRODUCTION

According to Louis A. Allen, Organisation is "the process of identification and grouping the

work to be performed, defining and delegating responsibility and authority and establishing

relationships for the purpose of enabling people to work most effectively together in

accomplishing objectives". All organizations have a management structure that determines

relationships between functions and positions, and subdivides and delegates roles,

responsibilities, and authority to carry out defined tasks. Organizations are open systems in

that they affect and are affected by the environment beyond their boundaries

Organizational study is an effort towards understanding the organization, its policies,

structure and methodology adopted. It gives us brief description of the overall functioning of

the company or organization. It examines of how individuals construct organizational

structures, processes, and practices and how these, in turn, shape social relations and create

institutions that ultimately influences people.

12

1.1 SCOPE OF THE STUDY

The scope of the study covers the organisational environment at O/E/N India Ltd. It

aims at getting accustomed to the business environment of the company for a period

of one month. The study was conducted to understand the structure, function and

process of various departments and their interdependence.

1.2 SIGNIFICANCE OF THE STUDY

The study encompasses the systematic and careful application of knowledge about

how people perform within organization. A study of this type will be useful for the

academicians in assessing the gap if any in applying the management principles in the

real organizational life situations as the managers of similar firms for taking suitable

managerial decisions. It helps the students to understand the working environment of

an organisation and the role of various departments in its performance.

1.3 OBJECTIVES OF THE STUDY

To familiarize with a business organization to relate theory with practice.

To familiarize with an organization structure and its functioning

To familiarize with the different departments in the organisation.

To enable the students to understand how the key business processes are carried out in

an organisation.

To conduct a SWOT analysis of the organization.

1.3 METHODOLOGY OF THE STUDY

Data collection Method

For carrying out the study both primary data and secondary data are required. This

method of data collection is as follows:

13

Collection of primary data:

Primary data were collected through discussion with different department heads and other

officials of different departments. Data were also collected through personal interviews with

employees and also through observation.

Collection of secondary data:

Secondary data were collected from the company records, company brochures annual reports

of O/E/N and the website of the organization.

1.5 LIMITATIONS OF THE STUDY

The inherent limitations of secondary data might have affected the findings of the study.

Entry was restricted to some areas due to security reasons.

Since O/E/N is a big company, an in depth study touching all the departments and

covering all the activities within a limited time is difficult.

Confidentiality policy of the organisation prevents them from providing some details

regarding the firm.

14

CHAPTER 2

INDUSTRY PROFILE

15

2.1 INDUSTRY OVERVIEW

2.1.1 Historical Developments

The Electronics Industry in India took off around 1965 with an orientation towards space and

defence technologies. This was rigidly controlled and initiated by the government. This was

followed by developments in consumer electronics mainly with transistor radios, Black &

White TV, Calculators and other audio products. Colour Televisions soon followed. In 1982-

a significant year in the history of television in India - the government allowed thousands of

colour TV sets to be imported into the country to coincide with the broadcast of Asian Games

in New Delhi. 1985 saw the advent of Computers and Telephone exchanges, which were

succeeded by Digital Exchanges in 1988. The period between 1984 and 1990 was the golden

period for electronics during which the industry witnessed continuous and rapid growth.

From 1991 onwards, there was first an economic crises triggered by the Gulf War which was

followed by political and economic uncertainties within the country. Pressure on the

electronics industry remained though growth and developments have continued with

digitalisation in all sectors, and more recently the trend towards convergence of technologies.

After the software boom in mid 1990s India's focus shifted to software while the hardware

sector was treated with indifference by successive governments. Moreover the steep fall in

custom tariffs made the hardware sector suddenly vulnerable to international competition. In

1997 the ITA agreement was signed at the WTO where India committed itself to total

elimination of all customs duties on IT hardware by 2005. In the subsequent years, a number

of companies turned sick and had to be closed down. At the same time companies like Moser

Baer, Samtel Colour, Celetronix etc. have made a mark globally.

2.1.2 Current Scenario

The electronics market is one of the largest in the world and is anticipated to reach

US$ 400 billion in 2022 from US$ 69.6 billion in 2012. The market is projected to

grow at a compound annual growth rate (CAGR) of 24.4 per cent during 2012-2020.

16

The electronics sector consists of consumer and industrial electronics, computers, communication and broadcasting equipment, strategic electronics and electronic components. Total production of electronics hardware goods in India is estimated to reach US$ 32.7 billion in FY13 and US$ 104 billion by 2020. The communication and broadcasting equipment segment constituted 31 per cent, which is the highest share of total production of electronic goods in India in FY13, followed by consumer electronics at 23 per cent.

The consumer electronics and durables industry is currently poised at about Rs 340 billion. India is also an exporter of a vast range of electronic components and products for the following segments

Display technologies Entertainment electronics Optical Storage devices Passive components Electromechanical components Telecom equipment Transmission & Signaling equipment Semiconductor designing Electronic Manufacturing Services (EMS)

The growth in telecom products demand has been breathtaking and India is adding 2 million mobile phone users every month! With telecom penetration of around 10 per cent, this growth is expected to continue at least over the next decade. Penetration levels in other high growth products are equally high and growth in demand for Computer/ IT products, auto electronics, medical, industrial, as well as consumer electronics is equally brisk. Combined with low penetration levels and the Indian economy growing at an impressive 7 per cent per annum, the projection of a US$150 Billion+ market is quite realistic and offers an excellent opportunity to electronics players worldwide.

17

This growth has attracted global players to India and leaders like Solectron, Flextronics, Jabil, Nokia, Elcoteq and many more have made large investments to access the Indian market. In consumer electronics Korean companies such as LG and Samsung have made commitments by establishing large manufacturing facilities and now enjoy a significant share in the growing market for products such as Televisions, CD/DVD Players, Audio equipment and other entertainment products.

The growth in telecom products demand has been breathtaking and India is adding 2 million mobile phone users every month! With telecom penetration of around 10 per cent, this growth is expected to continue at least over the next decade. Penetration levels in other high growth products are equally high and growth in demand for Computer/ IT products, auto electronics, medical, industrial, as well as consumer electronics is equally brisk. Combined with low penetration levels and the Indian economy growing at an impressive 7 per cent per annum, the projection of a US$150 Billion+ market is quite realistic and offers an excellent opportunity to electronics players worldwide.

18

CHAPTER 3

COMPANY PROFILE

19

3.1 COMPANY OVERVIEW

Established in 1968, O/E/N is the market leader for Electromechanical Components.

Manufacturing plants are located in the suburbs of Cochin and Bangalore with over 11,000

square meters of factory space. They offer a comprehensive range of products with

applications in most segments of Electronic Industry including Communications,

Automotive, Strategic Industrial Controls, Instrumentation and Consumer Electronics. The

quality management system of the company is covered by ISO 9001, ISO 14001 and OHSAS

18001 and ISO/TS 16949 Certification.

Factory infrastructures include fabrication plant for pressed parts, plastic moulded parts,

electroplating facilities, Research & Development Laboratory, sophisticated Tool Room and

Quality Assurance & Test Labs. O/E/N has their own captive tool design centre and well

equipped tool room capable of producing high precision tools and moulds, in-house

preproduction pressed metal parts with allied annealing and plating, finishing plants and

moulding shops for moulded plastic parts. One of the thrust areas of business is contract

manufacturing. O/E/N offers facilities for contract manufacturing and already exports

considerable volumes.

They are the customer link to the future. They help turn/transform customer concepts to

product applications. They create made to order products, to customer specifications. The

hard earned reputation for quality products & services has helped them enhance customer

base. Clients choose O/E/N and stay with them because they provide world class technical

and reliable support. Customer care and satisfaction is part and parcel of their work culture.

O/E/N nurture continuous innovation, team work, employee involvement and stay focused on

customer needs. They have successfully established customer loyalty by working towards

establishing lesser gap between customer wants and products/services we deliver. In fact,

O/E/N is the virtual supplier of Electromechanical Components.

Government of India, and is competent to develop high precision miniature,

electromechanical components and allied subsystems. R&D is geared to work on acquisition

of technology as to transfer technology top business partners.

20

O/E/N has got plants identified under Electronic Hardware Technology Park (EHTP) scheme

for duty free inputs for exports. There are several companies from outside India who utilize

O/E/N‟s expertise in manufacturing to produce low cost high quality products. For export

production, the Export Inspection Agency of the Government of India has delegated In

Process Quality Control (IPQC) to the company.

O/E/N India Ltd concentrates on electromechanical components like Relays; Switches etc.

contribute to only 2% of production of the company. Main focus of O/E/N India Ltd. is on

relays.

The quality management system of the company is approved to ISO 9001 with automotive

production lines being approved to ISO/TS 16949. Individual products are covered by the

relevant approvals from Defence or Telecom Authorities concerned or Industrial Agencies.

The environmental systems of the company are approved to ISO 14001. R&D laboratory of

O/E/N is recognized by the Department of science and technology, O/E/N is the market

leader in the country for relays and switches used it the electronics industry for applications

in Industrial Controls, Instrumentation Automotive, Consumer Electronics, Communications

and Strategic Electronics. The main plant was set up in 1968 at Mulanthuruthy, a suburb of

Kochi, in the state o Kerala. The second plant located in Peenya, an Industrial suburb of

Bangalore in the state of Karnataka, was set up in 1983. The factories at Electrogiri and

Peenya have combined built up area of over 14918 square metres comprising of fully air

conditioned assembly plants with some areas that are dust protected, well integrated pre

production support that is a press shop with high speed and multisided presses, a moulding

shop with injection moulding machines, sophisticated plating lines with elaborate test

facilities for functional environmental with contemporary machines capable of meeting

critical precision tooling requirement for both press tools and moulds. And a technology

driven, Govt. approved R&D set up capable of basic development and also acquisition and

absorption to technology all of which can be considered among the finest in the industry.

Most of the company’s products are covered by the relevant international standard. O/E/N

has fully fledged in house testing facilities to test for conformance to specification.

Besides exporting relay and switches either directly or through distributors O/E/N also

undertakes manufacture of assembly of components or even complete moulds or equipments

21

on subcontract basis. This would help foreign manufacturers to use O/E/N’s established

facilities and infrastructure as their production basis to take advantage of the company

relatively competitive labour cost compared with prevailing levels abroad. O/E/N engineering

and management cost are also correspondingly lower compared to other countries.

O/E/N offers a cost of optimum production base and has several successful partnerships now

for control manufacturing.

The company’s productivity level is the highest in the country for comparable industries.

3.2 HISTORY OF OEN

O/E/N India Ltd. was formed in 1968 as a joint venture with OAK/Electro/Netics

Corporation, U.S.A under the leadership of founder M.D, and Late Mr. K.A Mathew. At the

inception, 45% of the equity shares were held by OAK Industries Inc, U.S.A and 25% by

Kerala State Industrial Development Corporation and the balance primarily by the directors

and their associates. The abbreviation O/E/N was devised out of the name of the collaborator.

The OAK group was a pioneer in the field of professional grade rotary switches, keyboards,

and push button switches, miniature and power relays, miniature trimmer potentiometers,

controls and control systems serving many segments of electronic industries- appliances,

manufacturing, industrial, aerospace, military and other fields.

Until O/E/N India went into production, entire requirements of the country for these products

were being imported from the U.S and the U.K. The major customers for these products were

Indian PSUs like BHEL, HAL, ISRO, DRDO, HMT, etc.

The company started with OAK designs and eventually added new designs in due course.

The company reached its break even in 1970 and declared its first dividend in the year 1973.

In 1980, the company started a sister concern O/E/N Micro Systems to take up manufacturing

of computer peripherals and in 1984 O/E/N Connectors India Ltd. in collaboration with FCI

Connectors, France. By 1985, the company set its second manufacturing plant in Peenya,

Bangalore.

Till 1990’s the company was enjoying a monopoly in the market with no competition from

the local businesses. However with the liberalization policy of the 90’s, the company was

22

forced to face severe competition from the global brands. It took some time for the company

to react and change itself from the slow pace culture generated by the monopolistic leadership

to that of a flexible innovation culture needed in the midst of a competitive market. The

growth of the company was dampened though losses were avoided.

Unable to change with the times, O/E/N Microsystems was forced to be closed after enviable

years of growth in the start-up period and closed down in the year of 2001. The company was

subsequently merged to the parent company in 2003. FCI also increased its share in O/E/N

Connectors to 51% and then to 65% in 1996.

The company realizing the faults reinstated its position in the early 2000s entering into tie-

ups and technological transfer agreements with major global players to bridge the

technological gap. The company had invested in enriching its core competency in

electromechanical sub systems development and had entered into contract manufacturing.

The policy changes reflected more emphasis on value addition and value creation.

(Note: The initial collaborator M/S OAK Electro/Netics Corporation was subsequently

renamed as OAK industries Inc. The brand OAK is no more and the equity held by OAK was

bought back by the company in a phased manner. )

Business Mission

Attain leadership position

Create wealth

Be the best in the business

Business Vision

Centre of technological excellence

Market leader in electromechanical components in country

23

Business Goals

To attain a respected presence in the industry

To build progressive relationships

To improve organisational strengths

To fine tune competitive advantage

To offer unique services

To undertake customizing of products

Quality Policy

“Quality is our technology to attain most preferred manufacturer and supplier status through

strong commitment and continued improvement”

Material Policy

“Manage the supply chain to ensure satisfaction of all our customers by supplying quality

products at optimum prices at the right time”

Social Obligations

O/E/N believes that there are four primary social obligations of business namely:

Creation of wealth - in the form of goods and services required by the community, of good

quality and at reasonable prices.

Creation of economic activity - provide employment to those who are equipped and need

jobs, which results creating economic activity in the community.

Pay dues - Payment of various taxes such as sales tax, excise, import duty, personal and

corporate income taxes which will enable the Government to secure the borders and provide

the infrastructure necessary for the well being.

24

Create surplus: to adequately reward the risk takers (investors) and to leave sufficient

balance to ensure continued growth in the institution. To guarantee security to those who

work in the institution and to create job opportunities for the growing population.

Environment, Health & Safety Policy:

0/E/N India is an environment friendly organization. They are committed to:

• Carry out all our operations by focusing towards prevention of pollution, injury and ill

health.

• Reduce progressive the consumption of natural resources like raw materials, water, fuel and

energy and recycle such resources whenever possible.

• Provide a framework for setting and reviewing environmental, occupational, health and

safety objectives and target.

• Impart environmental, health and safety awareness to all persons working under the control

of organization, sub contraction, supplier and community at large.

• Comply with application and other legal requirements.

• Upgrade all our operations to minimize and prevent pollution, injury and ill-health by

continuously improving our process parameters and performance.

Major Customers

o American Power Conversion(APC)

o GE Medical Systems

o TATA

o M&M

o Johnson Lifts

o JCB India

o ITI Ltd

o Ford India Pvt. Ltd.

25

o Bharat Electronics Ltd.

o L&T Ltd.

o ABB India Ltd.

o Hyundai

Certifications

ISO 9001:2008 : Quality Management System

ISO/TS 16949:2002 : Automotive Relay Manufacturing

ISO 14001:2004 : Environmental Management

OHSAS 18001:2007 : Occupational Health & Safety Management

AS 9100 : Aerospace (in progress)

Other Major players in the Industry

Electrical Associates

Indian Electro Trade

Invented Electro Systems Pvt. Ltd.

Minitek

Ramesh Electronics

Power Max

Allied Controls Inc.

American Relays Inc

26

3.3 ORGANISATION STRUCTURE

27

BOARD OF DIRECTORS

MANAGING DIRECTOR

Chief Operating Officer Chief Finance Officer

Manager (Finance)

SR. General Manager (EDP & Automation)

AGM (HRD)

Manager (HRD)

Head Manufacturing

Chief Engineer

General Manager (Supply)

AGM (Materials)

GM (Technical)

Manager (R & D)

DGM (Tool Room)

DGM (QA & Engg. Services)

AGM (Marketing)

Manager (Marketing)

3.4 Organization Set Up

O/E/N India Ltd is a public limited company headed by Managing Director, Smt. Pamela

Anna Mathew.

Board of Directors

Pamela Anna Mathew (MD)

Venu Nallur

Sarah Mathew

Dr. Babu Paul D

Sunela Sarah Thomas

T. Thomas

Statutory Auditors

Varma & Varma

Legal Advisor

Menon & Pai

Bankers

Bank of India Ltd.

IDBI Bank Ltd.

Axis Bank Ltd.

Registered Office

O/E/N India Ltd.

Vytilla, P.B No 1952

28

Kochi – 682019, Kerala, India

Factories:

Electrogiri, Mulanthuruthy

Via Cochin, Kerala, India

Phase IV, Industrial Area,

Peenya, Bangalore, Karnataka, India

GAT NO, 365/2, Karabwadi, Ambetan Road,

Taluk Khed, Pune – 410501

Poonithura, Kannankulangara,

Thripunithura, via Cochin, Kerala, India

Plot No. SDF 17, 1st floor, Thrikkakkara,

Kakkanad, Kochi, Kerala, India

29

CHAPTER 4

PRODUCT PROFILE

30

In the Indian electronics industry for over 35 years the name O/E/N India Ltd. has been

synonymous with precision, high quality electromechanical components like relays, switches,

trimming potentiometers and allied assemblies.

Since 1969, O/E/N has been market leaders for all products under its manufacturing range

and caters to market segments like industrial instrumentation & controls, automotives,

strategic electronics and high end consumer electronics with emphasis on quality.

4.1 RELAYS

Relays are electro magnetically operated switches. An actuating current on a coil operates

one or more galvanically separated contacts or load circuits. The electro mechanical relay is a

remote controlled switch capable of switching multiple circuits, either individually,

simultaneously, or in sequence.

Typical applications for relays include laboratory instruments, telecommunication systems,

computer interfaces, domestic appliances, air conditioning and heating, automotive electrics,

traffic control, lighting control, building control, electric power control, business machines,

control of motors and solenoids, tooling machines, production and test equipment.

O/E/N Manufactures mainly five types of relays namely:

Industrial Relays

Telecommunication/Signal Relay

Power Relays

Automotive Relays

4.1.1 Industrial Relays

Series 31 Enclosed, Plug in Relay

Series 31 10 A Enclosed Relay

Series 31 6 A Open Relay

Series 32 2 Pole 20 A Metal Can Relay

Series 51 10 A Indicator Relay

Series 33 Industrial Relay

31

Series 37 Industrial Relay

Series 38 Industrial Relay

4.1.2 Telecommunication/Signal Relays

Cradle Relays

Series 36 1A Sensitive Relay

Series 77 1A Telecom Relay

Series 67 3/5/7A, Versapack Relay

Signal Relays

Series 34 Flat Pack Relay

Series 42 Pigmy Relay

Series 52 DIP Reed Relay

Series 56 Miniature Relay

Hermetically sealed relay

Series 30 Crystal Can Relay

4.1.3 Power Relays

Series 57 2/6 A Miniature PCB Relay

Series 58 10/16A Sealed PCB Relay

Series 59 10/16A Miniature PCB Relay

Series 61 5A Sensitive PCB Relay

Series 62 25A PCB Relay

Series 63 25A Spaded Terminal Relay

Series 81 PCB Relay

Series - 68 Miniature Power Relay

4.1.4 Automotive Relays

Series 35 Medium Power PCB Relay

Series 35 Heavy Duty PCB Relay

Series 53 35/70 A Power Relay

32

Series 73 20 A Sealed Relay

Series 74 20/30 A 1C Relay

Series 76 Mini PCB Relay

Series 78 Power Relay

4.2 SWITCHES

An electronic switch is an electronic component or device that can switch an electrical

circuit, interrupting the current or diverting it from one conductor to another. Typically,

electronic switches use solid state devices such as transistors, though vacuum tubes can be

used as well in high voltage applications.

4.2.1 Rotary Switches

Series 11 (AM) Switches

Series 12 (J/JC) Switches

Series 13 (OM) Switches

Series 14 (AML) Lever Switch

Series 15(HM) Switches

Series 16 (LORLIN CK)Switches

4.2.2 Other Switches

Series 22 Snap Action Micro Switch

Series 25 Rocker Type DIP Switch

Series 27 Slide and Piano Type DIP Switch

33

CHAPTER 5

FUNCTIONAL DEPARTMENTS OF THE ORGANISATION

34

3. FUNCTIONAL DEPARTMENTS OF O/E/N INDIA LTD.:-

1. Human Resource Department

2. Finance Department

3. Marketing Department

4. Production Planning Department

5. Production Department

6. Purchase/Materials Department

7. Research And Development Department

8. Quality Assurance Department

9. Engineering Services Department

10. General Services Department

35

Senior Manager HRD

Welfare Officer

Security officer

HRD Office (Executives)

Canteen Contractor

House Keeping Supervisor

First Aid

Drivers Watchmen

Workers Workers

5.1 HUMAN RESOURCE DEPARTMENT

Human resources are the asset of any organization. Therefore managing the human resources

are the most important functions of any organization. So it is essential for the organization to

fix a separate department for the management of human resources. O/E/N has an efficient HR

department headed by the senior manager. This department is mainly responsible for personal

functions of the company for resulting in timely action for maintaining smooth industrial

relations leading to employee’s morale and productivity. The personal department renders all

personal and establishment services to all persons.

DEPARTMENTAL STRUCTURE

36

Objectives of the HR department include:

Establishment of industrial relations, welfare, salaries and wages, recruitment etc.

To provide leadership for management of industrial relations and employees welfare

function of the company.

To provide basics for corporate strategies and polices for maintenance of industrial

peace and for work.

For evolving system of prompt attention and redressal of employees grievance and the

prevention of the same.

Administration the different committees for employees participation

Evolve and update practices for checking incoming and outgoing of materials and

persons.

Implementing the standing orders pertaining in the company.

The main functions of HR department are:

1. Personnel and administration:

1. Recruitment: The most important function of the personnel department is the recruitment of

the right person in the right place at the right time. It is the first time process by which

employment is provided to the organization by means of adequate manpower resources. It is the

positive process of searching for the prospective employees and circulating them to apply for the

jobs. The sources of recruitment can be classified as follows:

Internal sources: Internal sources include personal already on the payroll of

an organization i.e. its present employees. Another method in internal sources

is by direct recruitment of employees.

External sources: The term external sources indicate the sources outside the

enterprise. The main sources are by external agencies and Employment

Exchanges. The outside sources include:

New entrants to the labour force

The unemployed with wide range of skills

37

Retired experienced person

1.2 Selection: Invite candidates for preliminary interview /tests through phone, letter, etc.

Based on interview rank candidates, shortlist and call for final interview, check

references, coordinate with departments and arrange date and time of interviews/ tests.

1.3 Appointment

1.4 Attendance and leave marking

1.5 Pay roll management

1.6 Increments/Promotions/Transfers

1.7 PF/ESI/Gratuity/WC administration:

a) Provident fund

b) Employee State Insurance Scheme

c) Gratuity

d) Workmen compensation

1.8 Training: Training is provided to all new employees who include non executive,

executive, skilled and unskilled, clerical and administrative staff. Training is also

provided to employees when the need arises from internal and external sources, i.e.

the trainers may be from inside or outside the company. The basic policy of the

company states that at least one man-day/employee/year should be dedicated to

training.

1.9 Statutory compliance

a) Factory inspector

b) Labour office

c) Other offices

Panchayat

National Sample Survey Organisation

Employment Exchange

38

Apprenticeship advisor

Police authorities

1.10 Correspondence

Inter office correspondence

General correspondence

1.11 Personnel records

1.12 Management information records

1.13 Other functions

Casual/contract labour

Discipline

Employee related law

1.14 Industry relations

Collective bargaining

Data collection for negotiation

Platform for negotiation

Union relations

Employment involvement and empowerment

1.15 Security

2. Employee Relations and benefits:

2.1 Employee health and safety

2.2 Group health/accident insurance of employees (Electrogiri, Vytila, Outstation, Peenya)

2.3 Management of first aid

2.4 Advising and supervising

2.5 Provide facilities

39

2.6 Implement decisions

2.7 Medical reimbursement

2.8 Negotiate – negotiate, prepare or revise and execute agreements

2.9 Purchase – prepare indents to purchase department

2.10 Canteen and Guest house

2.11 Hygiene

3. Training and development:

3.1 Induction Training

3.2 Performance management

3.3 ISO 9000:2000/TS 16949

3.4 Other Functions

Value addition: ensure measure to improve value addition per employee by means of

effective counselling. Intervention strategies and by increasing productivity through

methods such as counselling, training, group activities, LTS etc.

Change management: ensure support for changes imparted by management and

encourage employees to welcome world class management practices.

Employee Education/awareness: create an atmosphere to encourage employee to

gather more knowledge and awareness

Project Work/Studies: Control and permit project work studies to university students

in consultation with management. Undertake studies related to accident, welfare,

attitude etc. for better management of human resource.

The human resource department is thus responsible for maintain a good and sustaining

relation between the management and worker and between the management and public. The

department frames various policies for the welfare and satisfaction of the employees.

40

HUMAN RESOURCE STRATEGIES:

1. Observe legal obligations related to employment and labour.

2. Directly participate or supervise the recruitment and selection of employees.

3. Participate in the corporate planning in laying down personnel policies for the company.

4. Conducts collective bargaining negotiations with unions for long term settlements.

5. Formulate personnel policies and other discussion important the same.

6. Co-ordinate training of the employer.

7. Evaluation of competent of employers based on education, experience, skill and training

8. Creating awareness among personnel regarding relevance and importance of their job

9. Supervision of security arrangements.

10. Supervision of wage and salary.

11. Administration of employees

Employee strength of O/E/N India Ltd., Electrogiri

Sl.N

o

Category Electrogiri

1 Executives/Executive trainees 127

2 Non executives/Trainees 241

3 O/E/N electrocom pvt.ltd 67

4 Apprentices 331

Total 766

Table 5.1

Daily Shifts at O/E/N

8.30 A.M -5 P.M General shift

7 A.M-3.30 P.M A shift

6 A.M- 2 P.M A1 shift

2 P.M-10 P.M B1 shift

3.30 P.M – 12 P.M B shift

12 P.M-7 A.M C shift

41

5.2 FINANCE DEPARTMENT

Finance is the life blood of the business. So in any organization the most important

department is Finance Department. Without this department no organization can work

smoothly. O/E/N also has an efficient department for Accounts and Finance. Finance

department is concerned with planning and controlling of the firm’s financial resources.

DEPARTMENTAL STRUCTURE

The important objectives of the finance department include:

Preparation of corporate plans and budgets.

Financial planning cost control and ensuring uniform and correct observation of

financial disciplines of the company

Monitoring the progress of budget achievements

42

General Manager

Assistant Manager

Senior Accounts Officer

Accounts Officer

Executives

Staff

Providing accounting services to all levels ensuring updating of systems

procedures for the same.

Advising management on funds utilization and its implementation.

Vetting of all investment proposals, certain of new assets, new posts etc. From the

point of financial feasibility

Evolve an audit manual

The finance department performs various functions very effectively .the main

functions of the department include:

To collect all sums due to the company in time as per sales, orders etc

To make timely payments to creditors, suppliers, contractors, employees,

Government statutory bodies, service providers etc

Timely dispersant of salary/wages/perks to employees as per agreement, MOU

etc

To assist all types of audit work.

To prepare MIS as required by the management

To complete all Budget works.

To manage cash proper to maintain liquidity

To assist all departments in providing financial administration of all

transactions.

To make proper entries in books of accounts and extracts reports like Trial

balance, P&L A/c , Balance Sheet on a time bound basis

Significant Accounting Polices:

Every organization has its own accounting policies. O/E/N also has its own accounting

policies. The following by the company:

43

a. Fixed Assets

Fixed Assets are started at cost of acquisition or construction less

depreciation. All costs relating to the acquisition and installation of

fixed assets are capitalized. Assets and liabilities are consistently being

recorded at historical costs of the company and therefore they are not

adjusted to reflect the change in value in the purchasing power of

money

b. Investment

All investments are valued at cost.

c. Inventories

Raw materials ,materials in progress , and stores and spares are

valued at the cost on weighted average method

Finished goods are valued at cost

Goods in transit are valued at cost

d. Sales

Sales are recognized upon delivery of products and are recorded

inclusive of excise duty but are net of trade discount, sales tax return.

e. Depreciation

Depreciation on fixed assets has been provided as per the rates

prescribed in scheduled XIV of the Companies Act of 1956. Under

written down value at any method depreciation on additions and

deletions of fixed assets is calculated on prorate basis

f. Retirement benefits

Gratuity liability is provided on the basis on the company rules

prevailing from time to time. The gratuity fund created to the company

44

has been approved by the income tax authorities. The net assets enable

the fund to be fully discharged by the company’s obligations in respect

of gratuity, payment of the employees etc.

g. Scraps

Accounting of scraps is done at the time of sales. In finance

department, several sections such as salary/wages, provident fund,

loans, over time allowances, dearness allowances, etc each section is

handled by one person or two.

h. Accounting policies

The financial statements are prepared under the historical cost

convention on an accrual basis and in accordance with the mandatory

accounting standards issued by the ICA and relevant provisions of the

Companies Act, 1956.

i. Excise duty

Excise duty has been accounted on the basis of both payments made in

respect of goods cleared as made by provisions made for finished

goods lying in the factory warehouse

j. Research and Development

Capital expenditure on Research and Development is treated as

addition to fixed assets and included in the respective heads under

fixed assets. Revenue expenditure on research and development are

charged to profit and loss account.

k. Proposed Dividend

Dividend proposed by the directors is provided for in the books of

account pending approval by the GM.

45

l. Contingent Liabilities

Contingent liabilities are not provided for, but disclosed in Notes on

Accounts forming part of accounts.

m. Deferred Taxation

Deferred tax asset has been determined taking into account the timing

difference in respect of depreciation and terminal benefits and is

recognized in the profit and loss account

n. Export Incentives

Export incentives in the form of Credit earned under Duty Entitlement

Pass Book Scheme is treated as income in the year of export at the

estimated realizable value/actual credit earned on export during the

year.

46

DGM (Mrktg)

Field Manager Asst GM (MRKTG) Asst GM (Customer Care)

Field Engineers Executives Executives

Staff Staff Staff

5.3 MARKETING DEPARTMENT

Marketing office of O/E/N India Ltd is situated at Vytilla, Cochin. Usually orders are taken

up to the 25th of every month and orders coming after the 25th are scheduled for the next

month. The minimum lead time for orders varies from six to eight weeks.

DEPARTMENTAL STRUCTURE

47

There is one corporate office and five sales offices for O/E/N, they are:

Corporate office

O/E/N India Limited 

29/1479, Vytilla

Cochin - 682 019

Kerala

New Delhi Office

O/E/N India Limited

76, First Floor ( Rear Side)

Sant Nagar, Near Nehru Place

New Delhi - 110 065

Bangalore Office

O/E/N India Limited

Ke-204 & 205, Sunrise Chambers

Ulsoor Road

Bangalore - 560 042

Chennai 

O/E/N India Ltd

Venkatanivas, 1st Floor, 63A,

Ponniyamman Koil Street

Sathyanarayanapuram, Moulivakkam,

Porur, Chennai-600116

Pune Office

OEN India Limited

B-23, Rajas Garden Housing Society,

Opp. S. B. Road, Model Colony,

Shivajinagar,

Pune - 411 016

Hyderabad Office

O/E/N India Limited

Flat # 108 , Sai srinivasa residency 

48

Road # 3, Mallikarjuna Colony

Old Bowenpally

Secunderabad -500 011

Functions of Marketing Department:

• Market promotion

• Enquiry handling

• Order management

• Managing costs and price.

• Accounts receivable management

• Preparation of future sales budget and forecasting

• Customer relation management

• Distribution channel control

• Product development

• Agency work

0/E/N undertakes agency work for the following companies:

• Bourns Inc. ,USA

• Otto Controls, USA

• Diptronics Inc, Taiwan

• Xiamen Hongfa, China

• After sales services

Reviewing customer complaints

Reviewing lack products in case of rectification

Analysis of customer complaint

Performa Challan generation

49

MARKETING STRATEGIES

Due to limited resources, competition and large markets, the organisation is not usually able

to sell with equal efficiency and success to entire market, i.e. to every market segment. It is

necessary for the sake of efficiency to select target markets where alternate choices about

price or sales promotion are being considered forecast required.

The marketing strategy of O/E/N is mainly direct marketing. In this system, the

company is dealing directly with the customers in India and abroad.

The pricing strategy: The price of the product fixed mainly based on cost.

Promotion strategy: Promotion is mainly done through technical magazines,

participation in industrial exhibition as well as the internet.

Distribution strategy: O/E/N has two factories. One is at Electrogiri,

Mulanthuruthy and other is at Peenya, Karnataka. For fast moving products, they

will always keep products in stock. They will stock orders up to 25 th of every month

and orders coming after that will be scheduled to the next month. O/E/N have tie up

with a number of intermediaries for the transport of material from abroad like Boston

and Leo logistics in USA, UTI in China etc.

Direct Marketing

In this system the company is dealing directly with the consumers in India and abroad.

Stockist System

Stockiest system are the intermediary life wholesales who directly purchase the items form

the company and stock item in their good ounces and they will supply goods to the

customers.

MARKET PLANNING

Target set for every year is 120% of sales made in the previous year. The price of the duct is

based on cost, but it is also influenced by creditability of the purchasing company as such as

the quantity ordered. The sales forecast is based on past trends, seasonal expectations, as such

as projected sales figure of clients, in tandem with data received from regional offices. This

forecast is then passed to production planning department. Colour code used to make

50

forecasts based on which product line expansion or capacity is utilized. Colour code is as

follows:

Dark blue: production in trial

Red: new product

Light green: imported

Lavender: outsourced production

Brown: Peenya production

Black: established and mature products developed at Mulanthuruthy

MARKET SEGMENTATION OF 0/E/N:

The segmentation analysis will help it marketing manager in the following ways:

• Provides various type of information that is useful in product development, market research,

evaluation of marketing activities etc

• Design the products which truly parallel the demands of the market.

• Facilitates the preparation of sand marketing programmed.

• Choose advertising media more widely and determine the proportion of amount which

should be allocated to each media.

The various market segments engaged by 0/E/N INDIA LTD. are as follows:

• Automotive

• Industrial instrumentation/Controls

• Defence

• Consumer Electronics

• Telecom (less than 5%)

TARGETING

The company is mainly targeting on organisational equipment manufactures and people who

are quality conscious. Because of Chinese products people can easily get products which are

51

of low price, but the quality is not ensured. So O/E/N is able to get customers who are quality

conscious.

The market share of 0/E/N in different segments is as follows:

• Automotive-70%

• Industrial instrumentation/controls-35%,

• Consumer electronics & Defence-5-10%

52

5.4 PRODUCTION PLANNING DEPARTMENT

This department is mainly concerned with the achievement of daily and monthly targets and

allocation of production losses. This wing also integrates production activities and works

closely with marketing, materials and production departments.

DEPARTMENTAL STRUCTURE

Objectives:

Ensure assembly line availability

Fabrication and plating production programming to meet the required delivery

schedule

Procedure:

Order controls issued by marketing department with required documents, if any, are

received through materials after authorisation.

Production copy of order controls after authorisation is sent to manufacturing units of

Electrogiri, Peenya and R&D respectively.

Work orders are issued by Planning for ERP products.

Based on draft programs received from marketing, monthly production program will

be finalized in consultation with Materials and Manufacturing departments.

53

AGM (Production Planning)

Asst. Engineer (Prod. Planning)

Asst. Engineer (Prod. Planning)

Executive Trainee (Prod. Planning)

P1,P2,P3 priorities are divided and production program copies are sent to

Manufacturing and Marketing departments.

A monthly report on production program is given to the M.D after finalization

For parts received from outside (purchased parts) process orders are raised and sent

thru Production Planning department and Quality Assurance (QA) is done for further

processing in Fabrication/ Plating shop. Production planning department will arrange

with the concerned department for further processing of parts according to urgency.

A list of priorities is given to plating shop daily for guidance.

Stores

A subsection of the Production Planning department, the store, as the name suggests, is

the place where the materials are stored. Materials purchased when approved by QA is

sent to the relevant stores for storage

Objectives:

To reduce inventory

To reduce material cost

To reduce production hold up

The store could be divided into three namely:

1. Raw Materials store: Stores all heavy metals and rods, most necessary for

fabrication and plating. It is in proximity to the fabrication and plating shop.

Whenever materials are issued they are recorded in manual register as well as in the

computer. Each lot of material contains the accepted card tag. Whenever materials

near their reorder quantity, it is immediately informed to the Production Planning

which in turn informs the Purchase department

The bin card, maintained by the store keeper follows a standardized code. Each

cubicle is marked with a distinct raw material code and description as well. For

54

example, PB 223-0020-2100 indicates bronze strip of 20 mm thickness and 21 mm

width. Similarly all materials are identified with a distinct eleven digit code.

2. Piece Parts store: Here, various vendors supplied parts as well as other components

like bobbin pins, etc. required for the assembly line are stored. It also stores silver,

used in plating shop. The components for each relay are stored in cubicles marked

with distinct code. It also contains a weighing machine for checking the gross weight

of the materials brought in before storing them. Through ERP system, they are able to

know the required issue quantity to be procured to the assembly line for scheduled

production

3. Finished Products store: In this store that comprises of the final packaging section

also, all the finished goods are taken for the assembly line and store. This storage is

much like that of the piece parts store.

Here, the goods, before final packaging is weighed and the gross mass is weighed

once again after final packing over the packed bulk the product code, date, gross

weight, net weight and customer code are labelled. A separate section is kept aside for

the outer packages, cartoons, etc.

55

5.5 PURCHASE/MATERIALS DEPARTMENT

The materials purchase department is an important department in O/E/N. The hectic

procedures concerning the purchase of materials, choosing suppliers of materials, etc are

decided by this department.

DEPARTMENTAL STRUCTURE

56

Asst. GM (Materials and Purchase) Asst. GM (Materials and Sourcing)

Manager (Materials)

Sr. Engineer SourcingSr. Engineer (Materials and Purchase)

Executive (Materials)

Store assts. / Clerks

Executive (Materials)

Office assistants

Functions and procedures of the department include

i. Approval of new suppliers: New sources are identified through various inputs like

publications, ads, introductory letters, references through internet, through

correspondence, etc. A request for quotation is sent to new sources along with

specifications, drawings, samples, supplier evaluation forms, etc, where ever

applicable. On receipt of quotations and other details, offers are evaluated. If required,

further correspondence/negotiations/request for samples is made and new suppliers

for ordering are identified. Trial order is placed with new suppliers based on terms

and conditions.

Trial order item on receipt are forwarded to QA for evaluation and inspection report is

forwarded to suppliers. Based on acceptance of trial batches, new suppliers are

included in “Approved Suppliers List”

ii. Supplier Monitoring: For suppliers, supplier performance is monitored based on the

following for automotive parts:

Quality 40%

Delivery 10%

Price 15%

Premium freight incidence 10%

Customer line description 10%

Quality issues for customers 10%

Documentation 5%

For suppliers of non-automotive parts supplier performance is monitored based on:

Quality 40%

Delivery 25%

Price 25%

Responsiveness 10%

Performance rating is done during April and September every year for suppliers made during

the previous six months. Based on rating suppliers are classified into five grades:

Grade A: Rating>=90

57

Grade B: Rating>=80 and <90

Grade C: Rating>=70 and <80

Grade D: Rating>=60 and <70

Grade E: Rating<60

Suppliers belonging to group E are removed from approved suppliers list. Suppliers are re-

evaluated every three years based on their performance rating for previous three years. Those

who have not supplied for three consecutive years are discarded from approval list. Suppliers

removed are prequalified per procedure for approval of new suppliers.

In case of rejection of supplied items suppliers are informed along with inspection

report/Corrective and Preventive Action Report (CPAR) and asked to submit counter

measures and ensure implementation of measures depending on severity of problem.

Suppliers are instructed to present the counter measures for major problems in a meeting at

O/E/N. Even after counter measures if suppliers are rejected no furthur orders would be

placed.

i. Purchase of Materials: For raw materials and precious metal parts, suppliers are

instructed to send Material Test Certificate along with supplies which are forwarded

to QA on receipt.

ii. Receipt: Material s coming to receiving stores are moved to “for checking”

iii. Storage areas are:

a. Piece parts store

b. Raw materials store

c. Consumable tools store

d. Tools and mould store

e. Air conditioned store

f. Precious material store

g. Metal scrap yard and waste material storage

58

5.6 PRODUCTION DEPARTMENT

Production or Manufacturing is the main department in any organization and the major

impetus of any company also goes into this function of manufacturing. The main fully

integrated manufacturing operations of the company are located in the suburbs of Cochin in

Kerala, India, with supporting assembly operations in another location in Cochin itself as

well as in Peenya in Bangalore. Karnataka. The two manufacturing facilities in Cochin and

the one in Peenya together cover over 18,000 sq.m. The assembly plants, which are largely

air-conditioned, have designated dust- protected areas.

DEPARTMENTAL STRUCTURE

The manufacturing department consists of:

Tool Room

Fabrication & Plating Department

Assembly Unit

59

Deputy General Manager

Executives

Operators

TOOL ROOM

STRUCTURE OF TOOL ROOM

O/E/N has a well equipped modern tool room with all facilities. The specialty is in the design and manufacture of tools and moulds for electromechanical components. Tool room is managed by a team of expert engineers in tool design and in manufacturing a group of well trained tool room makers and mechanics, a well equipped press and moulding shop attached to the tool room provide facility for providing the tool and moulds.

Tool room works in four wings:

• Tool design

• Machining

• Tool assembly

• Maintenance

60

Assistant General Manager

Manager

Exec. Planning Exec. Machining Exec. Inspection Exec. Bench Tools Exec. Bench Moulds

Shift Executive Shift Executive

Operations Operations

The Tool Room is equipped with CAD facility and a machine shop having the following

special machines in addition to conventional machine tools.

Charmilles Wire EDM

Charmilles Spark EDM

Wickman CNC Profile Grinder

WMW Optical Profile Grinder

WMW Jig Boring Machine

Mikron Milling Machine

The Tool room can accept orders for design and manufacture of the following types of tools

and moulds, for fabrication of components to customers’ design.

Press Tools – Progressive, compound and Single operation tools

Injection Moulds

Compression moulds

Operations in Tool Room Cutting

Cutting

Shaping

Milling

Micron Milling

Surface Grinding

Cylindrical Grinding

Spark Erosion

EDM

WEDM

Profile Grinding

FABRICATION ROOM

61

STRUCTURE OF FABRICATION AND PLATING UNIT

The main assembly is supported by comprehensive fabrication facilities with power press for

pressed piece parts, plating plates that handles plating of conventional as well as precious

metals Press for Pressed precious metals. This section of production department helps to

ensure completion of production of finished products as per monthly schedule by timely

supply of parts.

It has three divisions:

• Actual fabrication

• Electroplating

• Moulding shops

Actual fabrication:

The paths of the products are actually made in this department.

Electroplating:

It is done to increase electrical contact to increase the pickup of relays to protect against

corrosion and for good appearance

Moulding shop:

In this department the cover for the relays are moulded.

ASSEMBLY ROOM

62

Deputy General Manager

Executives (Fabrication) Executives (Plating)

Operators (Fabrication) Operators (Plating)

This department is mainly related to the manufacturing and assembly of relays, switches and

potentiometers. This department works 24 hours in a day as three shifts. Their main objective

is to reduce process scrap, improve group index and achieve programmed production.

A. Relays:

Relays are differentiated based on materials used, temperature and pressure withstanding

ability, electrical parameters, type of moulding, etc.

List of operations in manufacturing relays are:

Coil terminal insertion and bending

Coil winding

Coil timing and cleaning

Coil terminal straightening

Core head correction

Coil, core yoke assembly, taking

Non/NC contact terminal signalling and cleaning

Moving spring bending

Moving terminal –R/C

Armature correction

Armature/retainer/base plate assembly

Cover printing

Calibration and cover insertion

Base plate and cover stacking

Scaling, hole checking/filling and terminal cleaning

Terminal cutting

Terminal timing and cleaning

B. Switches

O/E/N manufactured switches are mainly used by the Ministry of Defence. The series 13

switches are exclusively created for a company in the U.K. Switches are differentiated based

on materials used, temperature and pressure withstanding ability, electrical parameters, type

of moulding, etc.

63

List of operations in switch manufacturing are:

Rotor blade trimming

Rotor blade splitting

Staking

Eyeleting

Shaft and star wheel assembly stacking

‘C’ washer cylindering

Ball and spring assembly

Final assembly

Mounting hardware assembly

C. Potentiometers:

As per orders, assembly of potentiometers is undertaken. Therefore the manufacturing of

these are less compared to other products. This product is used in electronic circuits for

getting desired voltage drops. All the parts of the potentiometers are imported.

Procedures inside Assembly Room:

1. Information and scheduling system:

This is to provide information on the functioning and daily targets at the assembly room.

There are mainly two types of information boards inside the assembly room:

Manually written board

Digital information boards.

Diagrammatic representation of manually written board:

Programmed QuantityDaily Target

Quantity

Achieved

Quantity

Cumulative

Target

Quantity

Cumulative

Achieved

Quantity

Process

Scrap

Percentage

Diagrammatic representation of digital information board:

Product Name

64

Table 5.2

Monthly Target

Production to date

Today’s Target

Production up to last hour

Last hour production

2. Daily meeting at work place:

A meeting between supervisor and the assembly workers happens before each shift to

discuss on previous day’s production. The discussion may go up to ten minutes.

3. Integration with production planning department:

The production department has a greater connection between production planning

department.

Daily production level = Total order / No. Of working days in a month

4. Operation control procedures:

It covers soldering and all assembly related operations such as relay pickup, cleaning

and pneumatic press, ultrasonic cleaning and winding etc.

Auxiliary Supportive Procedures Enabling Product Efficiency

1. Check Sheet

2. Daily maintenance check list

Neatness of work place

Machine condition

Felt condition

Tool status

Cavity cleanliness

Paper clamping of tools

Air pressure

Calibration status of measuring instruments

Proper safe guards

Equipment checking

65

Table 5.3

3. Inter process transfer card

4. Process control measures

Contract Manufacturing

O/E/N undertakes Contract Manufacture of branded electronic and electromechanical

components to customer design and specifications.

Value addition in the process.

Expertise in made to order products.

In built capability to make supply chain short.

Low cost, trained & experienced labour force.

Machinery includes welding machines, winding machines, riveting machines, eyeleting

machines, air screw drivers, air presses, hydraulic presses, ovens, soldering stations, potting

stations, calibration stations etc.

The assembly shops supported by a fully fledged, well equipped Fabrication shop - High

speed presses, multi slide machines, automats, moulding machines etc. constitute a part of the

big list and a well equipped tool room with special purpose machine to manufacture and

maintain all tools, moulds, jigs and fixtures required by the press and plastic shop.

Duties of Production Department:

Overall supervision.

Control every activity inside the production department.

Reporting day to day activity to the top.

Take necessary action with the permission of top order manager at correct time.

If there is any problem, report it to the respective department.

Give explanation to the top if the product is not up to expectation.

5.7 QUALITY ASSURANCE DEPARTMENT

The primary task of any organisation is to deliver quality products and services to its

customers. Quality Assurance (QA) is a way of preventing mistakes or defects in

66

manufactured products and avoiding problems when delivering solutions or services to

customers.

The QA department is involved in the inspection of parts, incoming materials and financial

products and also in the maintenance of quality records. QA lab facilities are used by other

companies too underlining the quality and standards kept by the company in maintaining its

QA department.

STRUCTURE OF THE QUALITY ASSURANCE DEPARTMENT

Major functions of this department are given below:

Incoming Inspection: Inspection of first sample is done by incoming inspection

executive after receiving reports along with samples. Inspection of vendor supplied

67

GM (Quality Assurance)

HOD (Quality Assurance)

Executive Product Quality, Product Assembly

Executive Supplier Quality Assurance

Executive Outgoing Quality, Product Testing, Calibration control

Exec. Development Asst. / Validation Testing / Training

Executive Process quantity child parts production

Inspectors Inspectors Technicians Inspectors Technicians

parts is done according to specifications. Criterion for incoming inspection is that if

five items randomly taken are qualified then the entire lot is approved and if three

items are rejected the entire lot is rejected. Following processes are done in incoming

inspection

Inspection of raw material

Inspection done during fabrication of parts, samples are tested on an interval

of one hour

Inspection of in-house processed parts

Inspection of packing boxes, mould tray

Product specification testing

Parts after plating and processing

Customer supplied parts are tested

Finished Product Inspection: This process is done to ensure and certify that the

required quality is maintained for finished products. Finished products are tested by

checking random samples offered by product inspectors by subjectual appropriate

routine life tests as per work instruction for ensuring product reliability and

performance against relevant specifications at regular intervals.

Quality Assurance (QA) Lab Tests:

1. Electrical Life

2. Mechanical Life

3. Continuous Energization at Elevated temperatures

4. Rotational Life

5. Burn In

6. Solder ability

7. Robustness of Terminations

8. Impact-Bump

9. Vibrations

10. Temperature Cycling

11. Climatic Cycling

12. Resistance to Soldering heat

13. Resistance to solvents

14. Damp Heat Test

68

15. Corrosive Atmosphere Test

16. Temperature Change of Resistance

17. Scaling(gross leak)

18. Scaling(immersion)

19. Scaling(MSLD)

20. Temperature(Dry heat)

21. Damp Heat(Cyclic)

Some of the equipments used for testing are:

1) Dry Heat Chamber

2) Solder Bath

3) Multi Meter

4) Multi Vibrator

5) Dimmer Stats

6) Temperature Probe

7) Bump Test Monitor

8) Cold Chamber

9) High Volt Tester

10) Humidity Chamber

11) Damp Heat Cyclic Chamber

12) Environmental Chamber. –65 to +180o C

13) Altitude Chamber, Altitude up to 70,000 feet.

14) Vibration Machine, 5 to 5000 Hz Max 25 mm displacement.

15) Mass spectrometer Leak Detector, Helium detector,

16) Sensitivity 6 x 10-11 cc/sec

17) Humidity Chamber: 1) Programmable, -10 to +93o C. 98%RH

2) Steady State 40oC. 90-95% RH

18) Salt Spray Chamber

19) X-Ray Plating Thickness Tester.

20) Bump Tester, Peak Acceleration 40+/- 4g, Drop height 25mm.

Visual defects to be checked for products coming into QA:

69

i. Damages like blur, etc.

ii. Tool marks

iii. Slug marks

iv. Tracks

v. Plating peel-off

vi. Discolouration of parts

vii. Finger prints(in case of copper plated products)

viii. Contact springs

ix. Scratches

x. Pit marks

xi. Dust

xii. Presence of oil/wax etc.

xiii. Presence of metallic and plastic dust

Inspection Modes:

Normal Inspection mode: This mode is carried out in early stages of quality inspection.

Normal to tightened Inspection mode: When two out of five or more consecutive lots of a

part gets rejected in normal inspection mode, there is a switch over to tightened inspection

mode.

Tightened to normal Inspection mode: When all the five consecutive lots of a part get

accepted in the tightened inspection mode, then the normal inspection mode is resorted back.

Calibration Section

This section functions within the QA but performs a distinct function. In this section, chiefly,

tools and equipments used in assembly line and QA parts are checked or calibrated.

Calibration means testing the measuring equipment, their precision as well as their

conformity. This helps to check timely decadence and wear and tear of equipment used in

product inspection. In the calibration observation sheet which is tagged along with the tool,

the observations are noted down as “P” or “F” for pass or fail. A colour label is stuck on the

equipment after calibration signifying the following:

Green- O.K

70

Red- Out of Use

Yellow- Limited Use

In case of yellow, users are to use the equipment carefully and correction in measurement is

made manually. Equipment of various departments is sent for calibration and a copy of the

calibration observation sheet is sent to the concerned department along with the calibrated

tool.

5.8 RESEARCH AND DEVELPOMENT DEPARTMENT

Research and development (R&D) department is mainly involved with the design and

development and the betterment of existing products. Thus, the major objective of R&D is to

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develop quality products based on ‘cutting-edge’ technology. The company R&D facility

operates over a wide range of electronic research and applications. The facility is a self

contained centre with well equipped laboratories and multi disciplinary team of professional

design engineers.

DEPARTMENTAL STRUCTURE

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Chief Operating Officer

Gm-Technical R&D Components/ Subsystems

Sr. Engr. Product Development

GM Product Development

Engr. Product and tooling

CGM R & D Electronic Projects

Manager Product Development

Chief Engr. Process and tooling

Tool Designers

Asst. Engineer Electronic H/w Design

Executive Product Design

Operators

Asst. Engr Mechanical Design

Designers of science and technology recognize the R & D section under the government of

India. Today many of the company’s products are the direct result of the R& D’s creative

application or innovative designs. The setup is also geared to absorb, adapt and assimilate

technology transfers from foreign collaborations. It is also responsible for transfer of

technology from the group to others.

This is one of the most important departments of the company. The starting work of a product

takes place here. The customer drawing has to be converted into an O/E/N drawing so that it

can be manufactured in the company. Samples of the product have to be made and tested

before the mass production. R&D is a document supported mandatory, sequenced, design

system. Products are manufactured based on customers' needs design, company design and

development of program design.

The R&D department is mainly concerned with designing three types of products:

a. Products provided by the customer according to their specifications

b. Existing products available in the market not

c. Existing products with additional features

The major phases of new product development are:

1. Planning and defining program or project:

This stage is the initial stage in the long process of R&D. The initial stage is

concerned with identifying what kind of product is to be made and it is feasibility in

creation (financial, conceptual, and process).

2. Product design and development:

In this stage, the department usually uses the PRO-E software to design the finished

product. Along with this the product and the tools are also designed. The

manufacturing of the tools also take place in this stage. A review on the progress of

the process is done bringing to an end the second phase of the NPD process. To know

the efficiency, they follow a system called the Design Failure Mode Effect Analysis

(DFME). Through this, they can list out all chance of failures for components at

design time. They check all parameters.

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Exec. Trainee Electronic Design

Exec. Trainee Mechanical Design

Exec. Trainee Product Design

Operators

3. Process design and development:

In this phase the process sequence, labour characteristics, room characteristics, etc.

are identified and developed.

4. Product and process validation:

The validation and testing of the products made are conducted in this phase along

with the final designing of the product. The design made up in this phase goes into the

pre-production run in the fifth stage. The relay values, dropout volts, withstand, life,

ampere, etc. are tested and validated to the benchmark. A review is conducted after

this phase.

5. Feedback, assessment and corrective action:

A preproduction run for 20,000 to 30,000 units are conducted. After this, regular

production is done. For the first three months the R&D team along with production

team would be constantly monitoring the production process and the mistakes are

taken care immediately without any delay.

The average time taken for a new product to be designed and developed is six months.

Benefits derived as a result of efforts taken by R&D are, product improvement, cost

reduction, product development, import substitution etc. As a part of development, they adopt

first step to implement six sigma methodologies and lean manufacturing concept is being

introduced.

Future plan of action

With increasing miniaturisation, company have several technological challenges to confront

in being able to offer products at competitive prices to match the price expectations of the

market. The new relays being added are all very contemporary and would therefore have a

global market. Apart from in house development of new products, emphasis is also laid to

improve processes and adapt new processes.

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General Manager

Senior Manager

Engineers

Mechanical Engineering Electrical Engineering

Operators Operators

5.9 PROCESS ENGINEERING DEPARTMENT

Working in O/E/N from 1995, the department helps others especially the assembly unit by

providing automated machines and technology integration.

DEPARTMENTAL STRUCUTRE

Objectives of automation are:

Reducing labour fatigue and time

Prevention of scrap

Improving upon quality

An automation process in progress, based on the request of a prestigious customer, Hyundai,

is the manufacturing of the series 73 relay used by the customer. A trial run has been going

on for the past one year in order to check any problems regarding assembly of parts. The

main processes that are performed here are:

Pin insertion

Coil winding

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Soldering

Resistance testing

While doing the trial run, an observation sheet is maintained by the supervisor that contains

the following data:

Starting time

Damages found

Stoppage time

Total machine hours

After trial ruin is conducted for each day, operations are stopped and executives from QA and

Process engineering are called in along with the supervisors, to rectify damages. This may

require changes in equipment and process and this is taken care off.

Enterprise Resource Planning (ERP)

All the departments are equipped with a computer with internet connectivity. Executives are

trained in using computers for report formation and e-mail communication. The company has

a website: www.oenindia.com, through which customers can view product catalogues and

send enquires. ERP is a subsection of the process engineering department. The ERP package

used by the company was offered by J.D Edward System. ERP is a system that integrates all

functional departments to work with common database and aids to plan effective utilization

of resources. ERP imparts traceability into the system. The various reasons that prompted the

company for ERP are:

Previously used system was working on UNIX and FOXBASE, which was

technologically obsolete and unable to meet the IT requirements of the company

Information integrity

Reduce data redundancy

Induce traceability and user accountability

Adopt an common standard with state of the art technology

Need for common data base

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Modules implemented in ERP are:

Personnel and Payroll Information System(PDIS)

Store Inventory and Purchase System(SIPS)

Maintenance Management System(MMS)

Integrated Cost and Finance System(ICFS)

Attendance Information System(AIS)

Even though the ERP has been implemented, it has been observed that many operations

have a parallel data entry mainly in the store and in the assembly store

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Executives

GM Engineering Services

Technicians/operators mechanical maintenance

Technicians/ operators Electrical maintenance

Technicians/ operators Electronic maintenance

5.10ENGINEERING SERVICES DEPARTMENT

The engineering service department is responsible for the monitoring of the overall

mechanical, electric and electronic failures of the company. Maintenance in this department

is majorly classified into electric, electronic and mechanical maintenance.

DEPARTMENTAL STRUCTURE

This department has direct relationship with all other departments of O/E/N. The major duties

include:

Break down maintenance

Predictive maintenance

Preventive maintenance

Assure continuous power supply to all departments

Alternate power generation on power failure

Water availability

Waste water treatment

Document submission to pollution control board

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General Manager

Assistant GM

Executives

Staff

5.11 GENERAL SERVICES DEPARTMENT

The general services department is primarily concerned with the stocking and dispatching of

products systematically.

DEPRATMENTAL STRUCTURE

The general services department is primarily concerned with the stocking and dispatching of

products systematically. Functions of this department include:

o Storage of the finished products

o Packing

o Dispatch - Domestic and Exports

o Sales service order processing and dispatch

o Accounting of central excise duty

Following a written order from the general service department and a printed copy of the sales

order, the packing and shipping section collects goods from the finished goods section, packs

it and weighs it. After this an executive of the general service department comes to the

disposal section and does the final labelling. All due forms like bill of entry, freight charges,

excise duties, postal charges are cleared by this department. Domestic dispatches are mainly

done by courier services like First Flight, Blue Dart.

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CHAPTER 6

ANALYSIS OF THE ORGANISATION

ANALYSIS OF THE ORGANISATION (SWOT ANALYSIS)

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SWOT analysis is a strategic planning tool used to evaluate the strengths, weakness,

opportunities and threats involved in a project or in a business venture. It involves specifying

the objectives of the business venture or project and identifying the internal and external

factors that are favourable and unfavourable to achieve the objectives.

STRENGTHS

Brand Name

Market leader in electromechanical components production

Excellent manufacturing and infrastructure facilities.

Market leader its domestic market

Good employee-employer relationship

Job security to employees

Quality products

Unique work culture

Offers products to global market

Spread of market segments with potential growth

Ideal location

Highly efficient management

Extensive data and knowledge on Indian market

Very low overall attrition rates

WEAKNESSES

Lack of innovative products

Highly functional departmental organization structure with limited horizontal

integration

Lack of training

Outdated technology

Overdependence on imported sources for raw materials

No lateral entry to induct skilled and specialists to top slots; only filled by promotion.

Low volume of production and high costs of inputs.

Updated technology needed for constant up-gradation

Heavy dependency on in-house product development.

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Delays in product development and commercialization.

Low level of flexibility and the need to develop multi skills.

OPPORTUNITIES

Industry with tremendous scope for growth

Economic recovery

Export potential for products

Liberal policies.

Free market scenario

Access to technology

Contract manufacturing possibilities

Emerging and untapped markets

THREATS

Technological obsolescence and rapid technology changes.

Steady Shift from Electromechanical Relays to Digital Relays.

Severe competition from freely available imported equivalents

Incredibly low priced offerings by new entrants causing price erosion

Slow economic growth in India and abroad hitting top line.

Heavy dependence on new product lines and a few customers

Imminent zero duty regime and absence of level playing field.

Decreased share of market in telecommunications which is a significant thrust area

foe growth.

Losing the leadership position due to lack of innovation and new products

Drain in market share in sensitive segments with entry of cheap Chinese brands

Stiff competition from imported relays available in grey market

Steep rise in raw material costs leading to a vertical cost increase

Attrition among new comers.

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CHAPTER 7

FINDINGS, CONCLUSIONS AND SUGGESTIONS

7.1 FINDINGS

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O/E/N India limited is an electro-mechanical components manufacturing company

which is running successfully for the past 48 years.

O/E/N India Ltd is the major player of relays and switches sector.

O/E/N highly concentrated to provide high quality products with low cost.

The working environment of the company is very well structured.

The company gives importance to safety of the employees.

The company and its premises are well maintained.

There is a good relationship existing between all the executives and the staff.

O/E/N India Ltd. is a well established and reputed company with a larger customer

base.

They have a unique organisational culture.

Employees are good performers and highly productive.

O/E/N recognizes and rewards employees when they perform well.

O/E/N has a strong work force of above 700.

Majority of the workers are women.

Most employees are permanent.

The company keep better relationship to the trade unions.

7.2 CONCLUSION

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This report gives a detailed study of the organizational system and functioning of O/E/N

India Ltd. The report covers description about various departments of the company and their

functions. It had been understood that all the departments and the interdependence between

them helps the organisation for its smooth functioning and in the achievement of its

objectives.

The labour welfare measures and job satisfaction among the employees are very good. Above

all O/E/N is managed by an efficient Board of Directors, which plans, organizes and controls

all activities in close co-operation with the other officials of the concern.

O/E/N continues to occupy an important place among the electronics manufacturing

companies in the country. With newer technology O/E/N can reduce cost of production and

will be able to regain its previous market position.

7.3 SUGGESTIONS

Install new advanced devices to increase production.

Concentrate on the aggressive marketing.

The proper counselling for the workers with regard to personal & family life be

provided, so as to increase their efficiency of work life.

Find out new markets for increasing the sales.

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BIBLIOGRAPHY

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1. Kotler Philip. Marketing Management Millennium edition

New Delhi: Prentice-Hall of India Pvt.Ltd, 1998.

2. Panneerselvam .R Production and Operations Management

Second Edition New Delhi: Prentice-Hall of India Pvt.Ltd, 2005

3. Dessler Gary Human Resource Management 7th edition

New Delhi: Prentice-Hall of India Pvt.Ltd, 2000

4. www.oenindia.com

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