ITC SUMMER INTERNSHIP

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PPG INSTITUTE OF TECHNOLOGY, COIMBATORE SUMMER INTERNSHIP PROGRAMME “A STUDY ON HUMAN RESOURCES AND MARKETING DEPARTMENTS AT ITC LTD, MUNGER” Submitted by RAVI MANDAL Register No: 098001140048 In partial fulfillment for the award of the degree of MASTER OF BUSINESS ADMINISTRATION in DEPARTMENT OF MANAGEMENT STUDIES 1 RAVI MANDAL, MBA

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PPG INSTITUTE OF TECHNOLOGY, COIMBATORESUMMER INTERNSHIP PROGRAMME “A STUDY ON HUMAN RESOURCES AND MARKETING DEPARTMENTS AT ITC LTD, MUNGER” Submitted by RAVI MANDAL Register No: 098001140048In partial fulfillment for the award of the degree of MASTER OF BUSINESS ADMINISTRATION in DEPARTMENT OF MANAGEMENT STUDIESPPG INSTITUTE OF TECHNOLOGY COIMBATORE-641 035 AUGUST-2010CONTENTS1RAVI MANDAL, MBAPPG INSTITUTE OF TECHNOLOGY, COIMBATORECHAPTER 1 CONTENTS INTRODCTION 1.1 COMPANY PROFIL

Transcript of ITC SUMMER INTERNSHIP

Page 1: ITC SUMMER INTERNSHIP

PPG INSTITUTE OF TECHNOLOGY, COIMBATORE

SUMMER INTERNSHIP PROGRAMME

“A STUDY ON HUMAN RESOURCES AND MARKETING DEPARTMENTS AT ITC LTD, MUNGER”

Submitted by

RAVI MANDAL

Register No: 098001140048

In partial fulfillment for the award of the degree

of

MASTER OF BUSINESS ADMINISTRATION

in

DEPARTMENT OF MANAGEMENT STUDIES

PPG INSTITUTE OF TECHNOLOGY

COIMBATORE-641 035

AUGUST-2010

CONTENTS

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CHAPTER CONTENTS PAGE NO

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3

4

5

6

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INTRODCTION1.1 COMPANY PROFILE1.2 PRODUCT PROFOLE

ITC Overview2.1 VISION, MISSION

ORGANISATION STRUCTURE

FUNCTIONAL DEPARTMENT4.1HUMAN RESOURCE DEPARTMENT4.2COMMERCIAL DEPARTMENT4.3PRODUCTION DEPARTMENT4.4 ENGINEERING DEPARTMENT4.5 SECURITY DEPARTMENT4.6 MANAGEMENT INFORMATION SYSTEM DEPARTMENT

SWOT ANALYSISI

FINDING

CONCLUSION

BIBLIOGRAPHY

ANNEXTURE

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1.1 COMPANY PROFILE

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MUNGER AT A GLANCE

The township

Munger city is located in idyllic surroundings on the Southern bank of Ganga

River, in the north the city is flanked by high ranges of the ‘Pirpahar’ hills and on the south

Munger is enveloped by the Kali Hill. Asia’s first Railway workshop (148 years old) is in

Jamalpur which is also on south of Munger. There is a 250 years old Gun factory at

Munger. The Yogashram at Munger is Asia’s first authorized Yoga University. People

from India and abroad come here.

Within two decades of ITC coming into existence, the city has blossomed into a

regional urban centre of over 3 lakhs people from different parts of the country, making the

city a Mini Bharath. Direct train services at all four metros are available.

Employees of ITC

Executives : 55

Non-executives :1124

The general plan of Munger city covering approximately 3224sq km provides for

about 5, 00,000 Residential units. The city has a number of company run and public

schools dispersed in various sectors of the city.

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ITC LIMITED

ITC, Munger is the first plant of ITC LTD. Established in 1907 Munger, 180 kms

from Patna, Bihar. The plant spans over 20.04 acres. On 24th August the Company was

incorporated as a Private Limited Company under the name, Imperial Tobacco Co. of India

Ltd. The Company manufactures and distributes cigarettes and smoking tobaccos and

specialty papers including cigarette tissue papers (Sole manufacturer in the country). Other

activities include tobacco leaf processing, printing and packaging, hotels, food and exports.

The Company acquired the manufacturing business of Tobacco Manufacturers (India) Ltd.

and the Complementary Lithographic printing business of Printers (India) Ltd in 1953.

COMPANY HISTORY :-

ITC limited started its business from a small manufacturing unit in Munger, Bihar from 6th June 1907.

The company was named “Imperial Tobacco Company of India Limited” and was incorporated from 24th August 1910.

In 1925, as a strategic move towards backward integration of cigarette division, ITC’s Packaging and Printing Business (PPB) was set up.

In 1953, Imperial was converted into a public limited company.

In 1971,The company set up a marine exports division.

In 1974, the ownership of ITC was Indianised and therefore the name was changed to Indian Tobacco Company.

In 1975, ILTC (Indian Leaf Tobacco Company) became a part of ITC.

In 1975, the company started its hotel business under the name of “ITC Welcome-Group Hotel Chola”.

In 1979, the company entered into Paperboards Business by promoting Bhadrachalam Paperboards Limited.

In 1985, the company set up Surya Tobacco Co. in Nepal as an Indo-Nepal-British joint venture.

In 1986, the company established ITC Hotels as a separate division.

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In 1990, the company set up an International Business Division (IBD), for export of agri-commodities.

In 1994, Mc. Kinsey was commissioned to study the business.

In 2000, ITC's unique e-Choupal initiative was launched. ITC e-Choupal, the largest Internet-based intervention in rural India, empowers over 3.5 million farmers in 35,000 villages.

In 2000, the company diversified its business further by entering into Wills Lifestyle Retailing Business with Wills Sports Range of international quality relaxed wear for men and women.

In 2000, ITC InfoTech India Limited, a wholly owned subsidiary of ITC, was set up to provide end-to-end IT solutions including e-enabled services and business process outsourcing.

In 2001, ITC formed the foods division.

In 2002, Surya Tobacco Co. became a subsidiary of ITC Limited and its name was changed to Surya Nepal Pvt. Ltd.

In 2002, ITC entered into manufacturing of safety match boxes.

In 2003, In agarbattis and in 2005, introduced Essenza Di Wills.

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ITC Limited , MUNGER

ITC Munger started its journey on 6th June,1907. The company is a premier

manufacturing center in cigarettes, apart from other three factories located in Saharanpur,

Kolkata and Bangalore. It is one of the best with state-of-the art modern technology

equipped systems in manufacturing and printing with SAP implementation.

The company was started on account of ease of procurement of raw materials,

cheap labour, transportation and electricity supply.

Raw materials- The tobacco leaves plantation was carried out in the

outskirts of Munger district, and was a major supplier of leaf tobacco to its

other divisions.

Transportation- Munger, located on the outskirts of river Ganga, was well

connected to railways, roadways (NH-81), and railways that was directly

connected to ITC.

Electricity- Munger had its own D.C. (direct current) plant in Lal Darwaza

popularly known as “Dhandaniya Company” by local people.

Cheap Labour- The labour was cheap and easily available.

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BUSINESS SEGMENTS

FMCG

Cigarettes – Cigarettes & Smoking Mixtures.

Others – Branded Packaged Foods (Staples, Biscuits,

Confectionery, Snack Foods and Ready to Eat Foods),

Garments, Educational and other Stationery, Matches,

Agarbattis and Personal Care products.

Hotels – Hoteliering

Paperboards, Paper & Packaging – Paperboards, Paper including

Specialty Paper and Packaging including flexible.

Agri Business – Agri commodities such as rice, soya, coffee and leaf

tobacco.

Other Business: - Other businesses of the companies include information

technology (IT) services, investments, golf, resorts and real estate.

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1.2 PRODUCT PROFILE

ITC Munger is producing cigarettes with filter and without filter.ITC Munger is

also preparing tobacco for the use of secondary units of Munger and Kidderpore. There is

also a printing and packaging plant which produce packet of cigarettes and others product.

PRODUCT –MIX PIECES or KG/DAY

Cigarette 36 Million Pieces

Tobacco 80000 KG

Cigarettes Packet 12 Million Pieces

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2.1. ITC: LEADING WITH A VISION, MISSION AND OBJECTIVE

VISION

Sustain ITC's position as one of India's most valuable corporations through world

class performance, creating growing value for the Indian economy and the Company’s

stakeholders.

MISSION

To enhance the wealth generating capability of the enterprise in a globalizing

environment, delivering superior and sustainable stakeholder value

OBJECTIVE

We build lasting relationships with customers based on trust and mutual benefit

We uphold highest ethical standards in conduct of our business

We create and nurture a culture that supports flexibility, learning and is proactive to

change

We chart a challenging career for employees with opportunities for advancement

and rewards

We value the opportunity and responsibility to make a meaningful difference in

people’s lives

POLICIES OF ITC

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QUALITY POLICY

We shall build and sustain a world-class organization, where quality is the hallmark

of every process and activity.

With the involvement and dedication of our human resource, we are committed to

achieve satisfaction of all our stakeholders, through innovation and continual

improvement.

SAFETY POLICY

Safety of its employees and the people associated with it including those living in

the neighborhood of its plants and units

Pursue safety efforts in a sustained and consistent way by establishing safety goals,

demanding accountability for safety performance and providing resources to make

safety programmers work

By:- National Safety Council

CBD Belapur, Navi Mumbai-400 614

Website: www.nsc.org.in

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Triangle

Safety

Green

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CORPORATE ENVIRONMENT POLICY

ITC LTD reaffirms its commitment to contributing towards a clean and sustainable

environment and continually enhancing its environmental performance as an integral part

of its business philosophy and values. Towards this commitment, we shall:

Integrate sound environmental management practices in all our activities

Conduct our operations in all environmentally responsible manners to comply with

applicable legal and other requirements related to its environmental aspects and

strive to go beyond

Progressively adopt cleaner and energy efficient technologies

Minimize waste generation and promote recovery, recycle and reuse

Increase greenery in and around our plant

Strive for continual improvement in our environmental performance by setting

challenging targets, measuring progress, taking corrective action and

communicating environmental information to all concerned

Enhance environmental awareness amongst employees working for and on behalf

of us and the general populace around plants

Encourage our business associates to adopt similar approach for environmental

protection

Corporate Social Responsibility

Apart from providing primary medical, health and educational facilities to

the people living in and around its township, ITC has been undertaking several

initiatives to promote art & culture of the country with four sports Academics under

its fold, ITC continues to promote sports as an integral part of the company’s

corporate philosophy.

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3. ORGANIZATIONAL STRUCTURE

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Classification by level and Greads

DESIGNATION GRADES LEVEL

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Branch Manager 3C

Head of Department 4D,E

Assistant Manager 5E,F

Supretendend, Executive, executive Engineering6

G(TG1,TG2,TG3)

Assistant security officer 3H(H1,H2,H3)

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4.1 HUMAN RESOURCE DEPARTMENT

Putting human energy to productive use of what personnel management is all

about. The tasks necessary to accomplish the organization’s purposes must be specified,

and broken down into workable units that can be performed by one individual. The efforts

of each individual must be co-ordinate with those of others Persons with the needed skills

and abilities to perform must be acquired. Once they must be motivated to perform. As

skills become obsolete, training in new skills must occur. Corrective actions must be taken

if work does not meet prescribed standards. Measures must be instituted to retain the

services of those who make a positive contribution.

Personnel management exists to perform these and related activities.

HIERARCHY IN HR DEPARTMENT

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FUNCTIONS

Recruitment

Procedure of recruitment:-

Internal recruitment –

Job postings are done in the company

It is displayed on the notice boards of various departments.

It is only for special posts in the company

External recruitment-

In the month of May recruitment for E1 level jobs are advertised on-

ITC’s website

ITC magazines’-News’

Employment News

Employee Services:-

It maintains the general welfare of employees on the job and assists them with

problems related to their security and personal well being.

1) Medical Services: Prevents diseases and physical ailments and cares for diseases,

ailments, and injuries incurred by employees on the job.

2) Recreation: Provides programmers and facilities for the enjoyment of employees of

the job and for making company employment more attractive and satisfying.

3) SCHOOL: ITC has a primary school for Employee’s child at ITC Park.

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4) SPORTS AND GAMES: Competition in sports and games are conducted every year

among the employees. A Golf ground is also for managers.

5) CONSUMERS CO-OPERATIVE SOCIETY: Consumers co-operative society is

available to meet the needs of the employees for supply of essential commodities.

6) CANTEEN: A pure and hygiene canteen is provided to cater the needs of the

employees. Tea, snacks lunch and dinner are providing to all employees.

7) COLONY/TOWNSHIP: The Company has well planned housing colony with 10

sectors each having about 280 quarters for various grades of employees.80 quarters for

managers at ITC Park and 200 quarters for others employees at shankarpur near from ITC.

Round the clock security arrangements are provided in the colony. And there are few guest

houses also.

8) WATER SUPPLY: Portable water is supplied from nearby Ganga River and is

supplied twice a day throughout the year. Separate water storage tanks are available for

each quarter.

9) BUS FACILITY: Different buses and cars are available for different sector employees

for going to plant. The bus runs timely for different shifts.

10) OTHER SERVICES : Every six month employees are given some gifts (rain coat and

other gifts). Holiday’s packages in which they are given total expenditure for themselves

and their family to go for holidays in any corner of India and they can stay in ITC’s hotels.

GENERAL ADMINISTRATION:-

Office general timings:

1) 7:00 am-4:00pm

2) 8:00 am- 5:00 p.m.

Shift timings:

‘Early’ shift – 06:00 am – 02:30 pm

‘Late’ shift – 02:30 pm – 11:00 pm

‘Night’ shift – 11:00 pm – 06:00 am

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The HR department aligns itself to create a proactive work environment for its

customers to enable them to perform and also act as change agents to prepare them for the

future by continual improvement and enhancement of their skills and knowledge through

motivating means.

4.2 COMMERCIAL DEPARTMENT

The complexities which exist in the management of ITC LTD, Munger has given a

distinct position to the head of the finance Department. Manager Finance He is a member

of the top management team and is entrusted with the responsibility of planning,

organizing and controlling the financial and controlling the financial affairs of the

company the finance function assumes greater importance in ITC due to its special features

like huge capital investment, longer gestation period lower profitability.

Finance Department renders specialized professional service by advising the head

of the organization as well as staff members on matters having financial implications.

HIERARCHY IN COMMERCIAL DEPARTMENT

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Stock Exchange Reuters Code Bloomberg

Functions

(a) Acceptance of cash and payment

(b) Maintenance of books on accounts completion of balance sheet and then Audit.

(c) Maintenance of stationary records like wages Act, Workmen compensation Act,

Bonus Act etc.

(d) Financial planning for adequate flow and balance of cash.

(e) Evaluation of capital project.

(f) Budgeting for the operational and capital activities

(g) Costing and pricing

(h) Working capital management for materials operating cost & getting money back

by selling to customers.

Techniques of capital Budgeting used in ITC:-

1.) Payback period method

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2.) Accounting rate of return method

3.) Net present value method

Finance department helps in efficient allocation of capital. It renders specialized

professional services by advising the head of the organization as well as staff members on

matters having financial implications.

4.3PRODUCTION DEPARTMENT

Production, Planning & Control (PPC)

Production, Planning & control are concerned with the organization and planning

of the manufacturing process. The highest efficiency in production is obtained by

manufacturing the required quantity of production, of required quality, at the required time,

by the best and most economical method.

Production, planning & control is a facilitation service to achieve this target.

Functions of PPC

1) Production, planning & control translates the market or sales forecasts into master

production plan work out the raw material & other input requirements & prepares

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the detailed departmental production schedule for different time periods (annual,

quarterly, monthly, weekly & daily).

2) It establishes the basic relationship among production capacity, inventory levels

and sales rate for some period in the future. The objective of such planning is to

achieve optimum utilization of available resources.

3) Production, planning & control also prepare alternative plans to meet emergencies.

4) After planning in the second phase, operation is to be executed in accordance with

the production plan.

5) The third phase is a monitoring phase of production management, a phase where

actual performance is observed and recorded for the purpose of recording and / or

follows up. Actual performance is compared with the planned performance and,

when required, corrective action is taken. In some cases preplanning may be

necessary in view o the change situation and to ensure the effective utilization of

men & machines.

Main units of Process Flow & Supporting units

The main units of production in ITC are:-

Manufacturing Cigarette Factory :-

Primary Manufacturing Department

Secondary Manufacturing Department

Printing & Packaging Factory :-

Some of the important supporting units are:-

1. Energy power Plant

2. Engineering

3. Slid Making

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4. warehouse

5. Logistic

PROCESS FLOW OF PMD

LAMINA STEM

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Secondary Manufacturing Department

IN Secondary cigarettes prepared in these process:-

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Tobacco comes from CTS directly to Maker machine

Maker use WMS material to make cigarettes

Final cut off goes to packer for packing

Packer packs the cigarettes to use WMS in a process

A laser printer print price of cigarettes as per packet

Finally packed cigarettes go to shipping yard

Brands being produced -

– Wills Flake Filter, Gold Flake Filter, Gold Flake Filter Premium , Capstan

Filter

– Capstan Scissors

– Capstan Std, Scissors

SECONDARY PROCCESS FLOW

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Tobacco From

CTS

Tobacco From

CTS

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Manufacturing Process of Makers

Process of LOGA MARK8 MAX

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Making Machine

‘LOGA, MAR 8 MAX’

Packing Machine

‘FOCKE’

Marshalling Yard

WMSWMS

WMSWMS

Shipping YardShipping Yard

Hopper

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LOGA

can produce 9000 cigarettes per Min

MARK 8 MAX can produce 3000 Cigarettes per Min

Manufacturing Process of Packer

Process of FOCKE

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Main Feed Drum

Hydraulic WT Control unit

Suction ChamberFinal Cut Off

Filter unit

Tipping Unit

In Feed Unit

Garniture

Cutter Area

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Capacity: - FOCKE can pack 300 packets per min.

Printing & Packaging Factory

Objective

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Feed Section/SATU

Link-up Section

Sealer Section

Shell Feed SectionHSW

J Conveyor

Parceller

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– To supply packet to Secondary manufacturing department of cigarettes with

the desired attributes

Apart from that ITC Printing factory also prepares packets for these products:-

For all ITC products

Nokia mobile

Motorola

Black Dog Wine

Mortine

Hance Undergarments

Goodnight

Process Flow of PRINTING

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PAPER BANDAL

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‘QUIS’ QUALITY CONTROL

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COLOUR BOX 1

COLOUR BOX 7

DELIVERY

COLOUR BOX 4

INFEED

CREASING COLOUR BOX 6

COLOUR BOX 2

CUTTING

EMBOSSING

COLOUR BOX 3

COLOUR BOX 5

Q 100 CAMERAS

FINAL CUT OFF

WASTAGE

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The Research and Control Labs at ITC monitor all quality parameters of inputs and

products of different shops. A well-equipped Research & Control Laboratory has been

provided for testing, inspection, research and many other control functions, ensuring that

the customers get the best quality products. The R&C Laboratory has two major wings:

1. Chemical Wing: For testing actual composition of materials before further

processing.

2. Inspection Wing: Responsible for inspecting quality of saleable products.

Parameters of Checking

PMD

Moisture content

Quality ratio (measure of particle size)

Fill value of cut tobacco

SMD

Weight of cigarettes

Circumference

Cigarette Firmness

Pressure Drop

End Stability

Pack steal

QUALITY ASSURANCE SYSTEM

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As a testimony to its commitment to excellence and enhanced customer

satisfaction, all the units of ITC Munger form PMD, SMD are accredited to the ISO

9001:2000 Quality Management Systems. In ITC Munger unwavering commitment to

environment protection, the ISO 14001:2004 Environment Management Systems is being

implemented across the plant. The Mills Zone has already been certified under these

standards, while audit has been successfully completed for Stage-1 certification of the

remaining production units. The Mills Zone has already received this certification, and the

remaining production departments have been successfully audited Stage-1 certification.

4.4 ENGINEERING DEPARTMENT

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The objective of industrial Engineering is to establish and review appropriate

methods, standards and programmers for improving production, operating and

maintenance practices in the plant.

The industrial engineering department is responsible for the following activities:-

Development and review of organization structure and manpower needs.

Methods Engineering

Development of simplest work methods and processes ensuring effective utilization

of men, material and machines.

Development of plant layout which is most economical to operate, and vet safe and

satisfying to employees.

Waste reduction.

Job evaluation, rate and norm setting.

Apply network techniques for all major repair / construction jobs to minimize cost

and time overruns.

Application of value Engineering and linear programming and other Operation

Research techniques for optimizing the use of scare resources, blending of raw

materials and determining the most economical products mix etc.

4.5 SECURITY DEPARTMENT

Functions

To Protect properties of Munger Factory

To check incoming and outgoing material / persons

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To monitor Fire System Control

Globe Intrusion Alarm System

To check and control of ITC vehicle

4.6 MANAGEMENT INFORMATION SYSTEM DEPARTMENT

Functions

Strategic planning for the organization (mission, vision, values, goals).

Resource planning for the organization (people, revenue, technologies, facilities, other,).

Revenue development (obtaining and allocating funds for major activities).

Board and employee development (recruiting, training, organizing).

Development of other resources (facilities, supplies, policies, procedures, etc.).

Supervision and teamwork.

Product and service development.

Advertising and promotions.

Processes (cross-functional).

5. SWOT ANALYSIS

STRENGTHS

Proven capability to ramp up production during divisional contingency

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New and Standardized Technology

Project Management

Cross functional alignment towards unit objectives

Responsiveness to change

WEAKNESS

Skill and Literacy levels of employees

Health and number of unallocable

Access Control

Transportation Infrastructure

Low productivity

Entry tax

OPPORTUNITIES

Long Term Agreement (LTA)

New union formation

Identified Investment plan

Launch of new Segments/Brands

Process Improvements

Multiple avenues for CSR activities

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THREATS

Unpredictable local environment

COTPA enforcement

Increasing Naxalite movement in around Munger

Municipality tax

6. FINDINGS

FINDINGS

The span of management and authority delegation is centralized.

The company is guided by ethics

Workforce is diverse

ITC maintains good industrial relations. There have been no lockouts or strikes

for a very Long period

The investment decisions of the firm are done by Payback period method,

accounting rate of return method, Net Present value method

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Productions department is trying to achieve high efficiency in manufacturing the

required quantity of product, at the required time, by the best and most economical

method

Here, the working culture supports flexibility, learning and is proactive to change

ITC imparts training to create safety consciousness and to work safely to be a key

element of safety programs

ITC is progressively adopting cleaner and energy efficient technologies.

Training programs for employees are held regularly

Modernizations of plant are done from time to time to keep pace with the latest

trends in Cigarettes making

7. CONCLUSION

ITC ltd is a profit making company. It boasts of its maximum indigenous

content in terms of equipment, materials and knows how. The continuous casting

shop, the fastest in country, is equipped with advanced level-3 automation and

control system. The fully automatic Making and Packing machine of ITC ltd

produces a wide range of products. It is the only continuous Making in India. The

machine of ITC ltd the widest in the country-produces high quality products.

Modernization of the plant is done from time to time to keep pace with the

latest trends in cigarettes’-making. ITC LTD is the largest cigarettes - maker in

India.

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8. BIBLIOGRAPHY

Sl.no Books Authors

1. Human Resources & Personal Management K. Ashwathappa

2. Production & Operation Management K. Ashwathappa

3. Company Manual

Website:-

www.itcportal.com

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