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ORGANIZATION STUDY
AT
TRAVANCORE COCHIN CHEMICALS
REPORT
Submitted to Mahatma Gandhi University in partial fulfillment of the requirements for the
award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Submitted by
SARATH P BABU
Under the guidance of
Mr.JOMMY KANDATHIL Prof. SREENISH S.R
Company Guide Faculty Guide
Sree Narayana Guru Institute of Science and Technology(SNGIST)
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DECLARATION
I hereby declare that this report titled Organization Study at
TRAVANCORE COCHIN CHEMICALS has been prepared by me during the
academic year 2012 - 2013, under the guidance of Prof.Sreenish S.R,
Department of Management Studies, Sree Narayana Guru Institute of Science
and Technology.
I also declare that this project report has not been submitted to any
other University or institute for the award of any degree or diploma.
Place THRIKKAKARA SARATH P BABU
Date 30-5-2013
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CHAPTER I
INTRODUCTION
1.1General Introduction
The main aim of the organizational study is to acquire the knowledge regarding the
functional as well as the management aspects of an organization. This project is an
organizational study at THE TRAVANCORE COCHIN CHEMICALS LIMITED,
COCHIN, KERALA. The period available for the study was 31day.
1.2 OBJECTIVES OF THE STUDY
The objective of the organization study includes the following:
To understand the organizational structure and the working of the various functional
departments.
To have an exposure to the work environment.
To understand the overall performance of the company.
To make an analysis of the organizations performance.
To study the relevance of TCC on chemical industry field in Kerala.
1.3METHODOLOGY
It is an overall operation framework, which help to collect the required data. The
methodology used in the study involves the collection data through primary and
secondary means within the given time period.
PRIMARY DATA
It refers to the first data collected from primary sources .The primary sources of
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data collection were direct personal interview with managers of concerned
department,official staff and workers of the company.
SECONDAY DATA
Data which are not originally collected but rather obtained from published or
unpublished sources includes:
1. Company records
2. Annual records
3. Official sites of the company
4. Internet
The collected primary data and secondary data were used in the
preparation of this organizational report.
1.4SCOPE OF THE STUDY
The study was to get a general awareness of the functioning of the various
departments and management of TCC Ltd. The period available for the study was
one month. Since there were many departments, it was impossible to conduct a
deep study on each department due to lack of time. There were many departments
like operation, marketing, finance, human resource development, materials,
engineering, project etc. The information from these department help to analyze the
strength, weakness, opportunities and threats of the company.
1.5REASON FOR SELECTING THE COMPANY
TCC was established in 1950 through pioneering efforts ofMessers Seshasayee
Brothers Travancore Limited. The company was originally started as Travancore of
Mettur Chemicals .It was the first mercury cell plant and hence happened to be the
first manufactures of Rayon Grade,caustic soda in the country. TCC was the biggest
NaOH manufactures in India at that time.TCC is the only caustic soda manufacturein kerala.
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1.6LIMITATIONS
The limitations of the study are the following:
TCC is a large chemical industry; as such accurate data regarding the internal
affairs of the company are not easily available.
The available data is not sufficient to get the desired result.
As a vast coverage is needed for getting the desired results time is a limiting offer.
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CHAPTER II
INDUSTRY PROFILE
2.1WORLD SCENARIO
In the international scene, the increased production of paper, aluminum, soap and
detergent naturally leads to increased requirement of caustic soda in the world
scenario. The green peace movement in seeking the phase out of chlorine
usage,especially the CFC compounds. This has resulted in closing down of some of
the chlorine industries in Europe and North American countries.With the drop in
international production, the international price of causticsoda is steadily growing up.
The caustic which was sold for 50$/ tone has grown up to the 300$/ tone now. The
international markets are opening in thecontext of demand supply prevailing from
time to time, situation of surplusand shortage are cyclical as a result of which
international prices tend to behighly volatile. Though the demand for chlorine
isgrowing fast, the demand ofcaustic soda is not so promising. Hence the units in the
gulf and western countries are selling caustic soda at a cheaper price.
MAJOR COUNTRIES PRODUCING CAUSTIC SODA
USA France
Russia China
India Germany
Canada Japan
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2.2 INDIAN SCENARIO
In India caustic soda is produced by electrolytic process. The manufacture of caustic
soda started during 1940s. The growth was rather slow during 1960s but
after that the growth picked up substantially. Today there are 38 industries
manufacturing caustic soda. Of which 40 are organized sector and the rest belong to
the unorganized sector. The total installed capacity of all these units put together
comes to about 17,50,000 tones/annum. Indian Chlor-alkali industries follow
membrane cell technology mostly. This is highly beneficial because cell membrane
echnology is more efficient when compared to mercury cell technology.India was a
net importer of chemicals in early 1990s, but has now become a net exporter due to
implementation of many large scale petrochemical plants like Reliance, ONGC etc.
and also because of tremendous growth of exports in sectors like bulk drugs and
pharmacy, pesticides, dyes and intermediates.
MAJOR SOUTH INDIAN CHLORA-ALKALI UNITS
Chemplast, Tamilnadu
Chemfab Alkalies Ltd. Pondicherry
Southern petro Chemical Industries Corp.Ltd.Chennai
Kothari Petro Chemicals Ltd. Chennai
Sree Royal Seema Alkalies & Allied Chemicals ,Andhra Pradesh
BILT, Karnataka
DCW Ltd, Metur
TCC Ltd, Kerala
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2.3STATE SCENARIO
Caustic soda is one of the basic inorganic chemicals manufactured from common
salt caustic soda; Hydrochloric acid and sodium hypochlorite are the products.In the
Kerala state, TCC is the only Chlora-Alkali industrial unit and has a production
capacityof 175 MT Caustic Soda per day. There are many small scale industries inthe state which consumes caustic soda for the production of soap, detergents etc.
Because of high transportationcost it is not possible to export caustic soda in large
volume from the state. TCC is the only one chlor alkali unit in the state and it is
employing environment friendly and energy efficient technology. Chlorine is a basic
material required for water purification and without chlorine the water workers will not
be able to supply good drinking water to the public.The Travancore Cochin
Chemicals Limited, Udyogamandal is a State Public Sector Undertaking owned by
Government of Kerala. Reflecting the quality policy of commitment and excellence.
TCC has a good track record of profitable operation and healthy industrial relations.
A heavy chemical industry engaged in the manufacture and marketing of Caustic
Soda, Chlorine and allied chemicals, TCC is accredited with ISO 9001: 2008
certification.TCC is hence a mother company. The installed capacity of TCC is 175
tons per day caustic soda and the products are used in manufacturing of soaps,
textiles, plastics etc.
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CHAPTER III
COMPANY PROFILE
3.1COMPANY PROFILE
HISTORY OF TCC LTD
The Travancore Cochin Chemicals Ltd was established in 1951 and started
commercial production in 1954 with an installed production capacity of 20 tones of
caustic soda per day. The idea of establishing the unit was conceived by M/s
Shehasayee Brothers the managing agent of FACT. This was for to supply HCL to
FACT for making Ammonium Chloride utilizing Ammonia from their newly started
plant. FACT and MCIC (mettur chemicals and Industrial Corporation) registered as a
joint venture company under the name Travancore Mettur Chemicals (TMC) in 1950.
The partnership was unable to complete the project due to shortage of finance.TMC
has taken up their problem with the Travancore Cochin state government. By that
time two other companies(Hindustan Industries Ltd.(HIL)& Indian Rare Earth
Ltd(IRE)) weresetting up their plants at Udyogamandal with a view to receive chlora
alkali products from TMC.As the stoppage of TMC could affect three major
companies the Travancore Cochin State government gave financial assistance to
TMC and the company was renamed as Travancore Cochin Chemicals (TCC) in
1951.Travancore Cochin Chemical (TCC) is the first unit in India to manufacture
Rayon grade Caustic soda. The company has implemented a number of technical
renovations to improve productivity of the plant. They now use membrane cell
Technology for their production. At present TCC has production capacity of 175 TPD
of caustic soda.
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GROWTH OF TCC
1956- A continuous caustic fusion plant with a capacity to upgrade up to 20 toness
of caustic soda per day was set up.
1958- A chlorine Liquefied plant was added mainly to meet demand from the newly
set up DDT plant of Hindustan Insecticides limited, Ernakulam
1960- Production of caustic soda was raised to 30 tons per day.
1963- The caustic soda capacity was raised to new level of 40 TPD. The company
established a new unit for the manufacture of sodium hydrosulphate with rated
capacity of 30TPD.
1967- The capacity of caustic soda plant was raised to 60TPD as per third stage of
expansion1970- A 60 TPD caustic soda CCF plant was set up along with its own
water treatment plant.
1975- As the fourth stage expansion, a 100 TPD caustic soda plant was set up.
This employed Mercury Cell Technology.
1976- The company set its own water plumbing and purification station.
1980- Export of commercial hydrochloric acid to Gulf countries
1983- Installed and indigenously developed plant to cover mercury from effluents
1987- Installed hydrogen- firing system in continuous caustic fusion plant
1990- Brine Decolonization units commissioned
1992- A Research &Development section was set up
1997- The company planned to setup a technology for the production of caustic
soda in collaboration with ASAHI GLASS of Japan, with a capacity of 100 TPD ,
using Membrane Cell technology.
2000- The company set up a Brine purification plant.
2003- The company commissioned a new continuous Caustic Fusion plant and
increased the membrane cell capacity to 125 TPD.
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2005- The company commissioned a new caustic soda plant with a plant capacity of
25 TPD- M/s UHDE (I)2006- The company commissioned a new caustic soda plant
with a plant capacity of 25 TPD.
2012- Joint ventur with ISRO- installed sodium sulphate plant.
MANAGEMENT
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3.2OBJECTIVES OF THE COMPANY
CORPORATE OBJECTIVES
1. To produce and market chemicals such as caustic soda, liquid chlorine,
hydrochloric acid carefully and in environmentally sound manner.
2. To make maximum profit from projects taken up.
3. To continuously upgrade the quality of Human Resource of the company and
promote organizational development
4. To continuously improve the plant and operational safety and abide by the
statutory pollution control standards
5. To ensure corporate growth by expansion and diversification.
6. To care the environment around.
7. To maintain optimum level of efficiency and productivity and optimum level
of investment.
MISSION
TCC is committed to supply quality chemicals at competitive prices to
customers. Customer satisfaction, concern for environment and safety are their
priorities.
VISION
Utmost level of conservation of all resources including energy.
Cost effectiveness in all the operations.
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Regular up gradation oftechnologies used in processing.
Compliance with laws and statutory regulation.
POLICIES FOLLOWED BY TCC
QUALITY POLICY
We are committed to enhance customer satisfaction by providing products and
related services complying with a continually improving quality management system.
ENERGY POLICY
Travancore-Cochin Chemicals is always committed towards the conservation of
energy by all possible means. They strive for:
Technological up gradation to reduce specific energy consumption.
Conducting energy conservation studies including energy audit and adopting
the apt measures for conserving energy.
Using renewable energy sources to the extent possible Disseminating knowledge and information on energy conservation to our
Employees.
Low energy fuels also to be tried depending upon feasibility.
HEALTH AND SAFETY POLICY
TCC is committed to provide every one of its employees and the related
public .
an accident-free and healthy environment in its efforts to manufacture high
quality products at competitive prices. The company will comply with all
statutory requirements in this regard.
The company will provide a work environment in which identified hazards are
controlled, if elimination is not feasible and will provide personal protective
quipments wherever necessary.
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Accident prevention is the direct responsibility of the Line Management and
will be an important criterion for performance appraisal. Line Management
will ensure that all safety measures are incorporated in the operating and
maintenance procedures as well as in any process technology changes in the
plant/infrastructure.
Consideration of health and safety will be given proper weight age in selection
and deployment of the personnel.
The company will ensure that health and safety aspects are given due
consideration in decision regarding purchase of plant equipments, machinery
and materials.
Every employee of the company shall perform his/her job adopting Safe and
proper work methods and using appropriate Safety equipments understanding
that their career advancement is linked with SAFE performance.
Contractors, sub-contract workers, transporters and visitors entering the
factory shall be required to observe health and safety practices of the
company in all their activities.
All contract jobs will be carried only through the laid down procedures with
appropriate supervision.
The company will carry out safety audits, risk assessment studies, emergency
mock drills, and periodic assessment of health of its employees as well as
status place hazards be identified, appropriately evaluated and effectively
controlled to achieve this goal.
Appropriate training programs are designed and imparted to suit the
requirements of different groups namely, customers, contract workers, drivers,
cleaners.
Regular and periodic training is imparted to workers and officers in batches in
accordance with a prepared schedule.
Training on safety equipments and handling of hazardous chemicals is
imparted to the employees.
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3.3ORGANIZATION STRUCTURE
The organizational structure of TCC is shown in the figure. The present organization
structure of the company has proved to be effective in conducting operations at its
optimum level. The staff structure encourages team work and good internal
relationship. Unity of command is maintained throughout the organization.
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ABBREVIATIONS
MD - Managing director.
DGMT - Deputy General Manager.
PM - Personnel Manager.
OM - Operating Manager.
EM - Engineer Manager.
PM - Project Manager.
SM - System Manager.
MTS - Manager Technical Service.
MHRD - Manager Human Resource Development.
CEPC - Chief Engineer Pollution Controller.
CETS - Chief Engineer Technical Service.
CES - Chief Engineer Safety.
SETS - Senior Engineer Technical Service.
SOQC - Senior Officer Quality Control.
MCP - Manager Corporate Planning.
CE - Civil Engineer.
DM(P&W) - DeputyManager Personnel and Welfare.
CSO - Chief SecurityOfficer.
FC - Finance Controller.
DFC - Deputy Finance Controller.
SAO(GA&F) - Senior Account Officer General Accounts and Finance.
SAO(CASH) - Senior Accounting Officer Cash.
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SAO(E&EDP) - Senior Accounting Officer.
SAO(CO) - Senior Accounting Officer Costing.
SAO(PF) - Senior Accounting Officer Provident.
MM - Marketing Manager.
SM - Sales Manager.
SSO - Senior Sales Officer.
MM - Material Manager.
MP - Manager Production.
MS - Manager Stores.
MIC - Manager Inventory Control.
APO - Assistant Personnel Officer.
CS - Company Secretary.
ADVANTAGES
Each individual in the organization is assigned a role , responsibility and necessary
authority. Each person who is assigned to an activity must know his position, his role
andrelationship with others.
The activities of all individuals are coordinated and integrated into a common pattern
in order to achieve the organizational objective. Organization is needed for the
purpose of integration of diverse activities in a cohesive manner.
The optimum use of human skill and efforts is achieved. It helps in smooth
operations and smooth flow, thus avoiding bottlenecks, idle time and idle machine.
DISADVANTAGES
No self motivation.
Alaway have wait for instructions.
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Takes time to carry out orders and actions.
3.4 MILE STONES OF THE COMPANY
TCC is in the forefront to adopt and incorporate the latest technology in its plants.
Different innovative and modern schemes were implemented over the course of
time. Hence TCC continue to be the competitive strength in the Chlor-alkali industry.
With expanded plants and higher production capacity, TCC has come out to be the
profitable public sector undertaking. TCC has bestowed with various awards for
excellent performance with regard to production, productivity, energy conservation
and environmental protection, which is considered as an award for commitment
rather than for efficiency.
1981 -Best Performance Award for Safety in the State from Directorate of Factories
& Boilers, Government of Kerala .
1988-89 -Best Pollution Control Award under group "Heavy Inorganic Industries" in
Kerala, from Kerala State Pollution Control Board .
1989 -Award for Best Performance in Safety in India under "Chemical Industries"
group from National Safety Council.
1989-90 -Prize for Productivity from Kerala State Productivity Council.
1993 -Best Performance award for Energy Conservation in the State of Kerala
under group "Chemical & Fertilizers above 3000 KVA" from Government of Kerala
1994-95 -Best Performance award for the Productivity in the State of Kerala under
group "Large Industries" from Kerala State Productivity Council.
1995-96 -Best Performance award for Productivity in the State of Kerala under
group "Large Industries" from Kerala State Productivity Council.
1998 -Best performance award for Energy Conservation in the State of Kerala under
group "Major Industries" from Energy Management Centre, Govt. of Kerala.
1998 -Performance award for Energy Conservation under group "Chlor-alkali
Sector", Ministry of Power, Government of India.
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2003 -Kerala State Energy Conservation Award (2000) in the category of Large
Scale industry .
2005 -National Energy Conservation Award "Chlor-alkali Sector"
2008- Pollution Control award from Kerala State Pollution Control Board
3.5 PRODUCT PROFILE
TCC produces wide varieties of products from Caustic soda to sodium hypochlorite
.Various product of TCC are;
1. CAUSTIC SODA (NaoH)
2. CHLORINE (Cl2)
3. HYDRO CHLORIC ACID (Hcl)
4. CAUSTIC SODA FLAKES
5. SODIUM HYPOCHLORITE
1. CAUSTIC SODA (NaoH)
Caustic soda is a basic alkali. It came into being in the latter halfof 19th century with
the development of electrolysis. Caustic soda lye,obtained from membrane cell is a
clear colorless, odorless and soapy liquid. TCC is producing two types of caustic lye
of concentration 32% and 50%.
USES
d for preparing pure
cellulose and for the preparation of alkali cellulose and for the production of viscose
solution.
neous
matter.
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.
essing monazite and refining of Bauxite.
2.CHLORINE ( Cl2)
Chlorine, a co-product obtained in the manufacturing process of caustic soda is an
equally important basic chemical. It is a renowned water purifying chemical. It is a
greenish yellow gas. Chlorine is sold after liquefying. Chlorine has got a pungent
smell and liquid chlorine is amber in colour.
USES
1. Producing insecticides (DDT, BHC etc) and pesticides.
2. In purifying drinking water and sterilizing sewage effluents.
3. For manufacturing PVC and allied co-polymers.
4. As a bleaching agent.
5. For producing a variety of organic chlorine compounds.
6. For upgrading titanium content in ilmonte.
3. HYDROCHLORICACID (Hcl)
Hydro chloric acid produced by TCC is of high purity and finds application in number
of chemical industries and it is yellowish green in colour. The Hcl produced have
concentration 30.33%.
USES
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1. For the production of ammonium chloride and in the manufacture of phosphoric
acid.
2.In monazite processing for the separation of rare earths as Chlorides from thorium.
3.As cleaning agent in galvanizing.
4.For hydrolyzing starch into sugar.
4. SODIUM HYPOCHLORITE
Sodium hypochlorite, commonly known as soda bleach, finds its application in
bleaching as a disinfectant and also in the extraction of rare earth elements. It is a
pale yellowish green colour liquid. Soda bleach is the only branded product that the
company is producing, brand name is Eko clean.
USES
1. As a bleaching agent
2. As germicide and cleaning agent.
3. For sterilization.
5. CAUSTIC SODA FLAKES
Caustic soda lye is concentrated to 98-99% NaoH and converted to flakes in a
continuous caustic fussion plant (CCF). It is a white deliquescent solid in
flakes form.
COMPETITORS OF TCC LTD
TCC is the only chlor-alkali unit under public sector in India and it is the only chlor-
alkali unit in kerala.Some of the major competitors are:
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1. Atul ltd, Ahmadabad
2. Bilt chemicals, New Delhi.
3. Century rayon, New Delhi.
4. Chem., Fab alkalis, Pondicherry.
5. Chemplat sanmat ltd, Mumbai.
6. PCW ltd, Mumbai.
7. Grassing industries, Nagda, Madhya Pradesh.
8. Gujarat alkalis and chemicals, Gujarat.
9. Gujarat heavy chemicals, Ahmadabad.
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CHAPTER IV
DEPARTMENTAL DETAILS
4.1HRD / TRAINING DEPARTMENT
Human resources is considered as the most vital asset of an organization. TCC has
a well defined employee power which helps the organization to perform well in the
markets. Human resource department is headed by manager (HRD). He is
responsible only for training and development M (HRD) id reporting to Assistant
General Manager (HR).
MAIN FUNCTIONS OF HR / TRAINING DEPARTMENT
a. Identifying training needs.
b. Arrangement requirement training.
c. Maintaining the training record.
SCOPE
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The procedure covers all aspects of training. Arrange suitable training for
employees forupdating skills based on the identified training needs.
Training advisory commitment is responsible for suggesting training requirements
of thevarious department and disciplines.
Formulating training programs on yearly basics.
The committee propose a training calendar every year
Training needs for the years are identified and recorded by the department the
head.
The details are handed over to the training department by respective departmenthead. Training department does compilation of the identified training needs of the
employees. Necessary training programs are arranged by training department to
later the identified training needs of the employees.Training department organize
training programs using internal faculty or engaging faculty from reputed
organization. The training department in consultation with concerned department
heads organizes in house training programs on special requirements. When
employees attend training programs conducted in house. A feedback about theusefulness of the training is obtained and consolidated. The concerned department
had evaluates the feedback from the participants after a period of 2-3 months to
ascertain the effectiveness of the training program. Employees are also sent for
training to other reputed institutors nominations for sending employees for training in
such institutions outside the company are put up for approval of the appropriate
authority as per the guidelines outside programs submits a feed back on the trainee
undergone the training department.The achievement against annual training
calendar is reviewed half yearly by department helps for the number of programs
held, number of employees participated for each programs the highlights of training
effectiveness, feedbacks..etc. The training department maintains a register on the
training program attended by the employees. Training department maintains the
format received from participants after getting it evaluated by the concern
department head regarding the effectiveness of training. The managerial personnel
of the company are imparted training to improve their managerial capabilities at the
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HRD center of the company and outside institutes depending upon the needs
identified by the head of the department.
GENERAL TRAINING
In order to provide this type of training, one has to determine what is the trainees
growth potential, up to what level to be done and requires evaluation of his present
performance.
NEED BASED TRAINING
Need based training will be done on the basis of determining the level of knowledge
and skill one requires for a job. Next is to find out how many employees have to be
given this training. On the basis of these needs training is given to the employees.
CUSTOMER TRAINING
Customers are given training on handling of chlorine and other products in various
situations.
INDUCTION TRAINING
It is the training provided to the newly recruited employees to familiarize them with
the activities, rules and policies of the organization. It is also done to introduce the
new employees to the other employees of the organization.
TECHNOLOGY TRAINING
Company provides advanced training for workers to cope up with the technological
changes.Feedback is obtained from employees and effectiveness of the training
program is ascertained after a period of 2-3 months.
PERSONALITY DEVELOPMENT PROGRAMME
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They are conducted on a regular time period for the development of both workers
and managers.
INTERNAL TRAINING
Every month three day training program is held for workers. The workers education
center,under the central labour industry conducts it. These programs are conducted
on a contract basisand are recorded annually 20-25 workers from various sections
are selected every month and 4-5 officers from WEC conduct the training programs.
The topics covered include personality,management development, inter personnel
relations, impact of globalization effectivecommunicationetc.Other in house
programs are conducted by agencies like Kerala state productivity council. Insuch
programs company can decide upon faculties and topics for training. During the
installation of membrane cell plant, officers were sent to Japan for training. So on the
job training is prevalent in all sections of the company.
EXTERNAL TRAINING PROGRAM
These programs are provided for workers conducted mainly inside Kerala and a few
numbers outside Kerala also. The management does not keep aside a budget for
training need. On anaverage TCC spends more than 11 lakh rupees on the training
needs every year.
OBSERVATION OF HRD
HRD department organizes training programs using internal faculty or engineering
faculties from reputed organization. TCC should see to it that training needs of the
works, supervisors and executives are recognized and separate training program
should be developed for each groups.
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FUNCTIONS OF PERSONAL DEPARTMENT
1. Recruitment: through professional and executive employment exchange andP.S.C.
2. Manpower planning: ascertaining the number of vacancies
3. Welfare functions: including statutory and non statutory welfare measures.
4. Grievance handling: as per the provisions of Industrial Disputes Act & factories act
5. Maintaining company discipline: as per standing order act
6. Industry relations
7. Public relations
8. Job descriptions (Techniques)
9. Job specifications (Techniques)
10. Job analysis (Techniques)
11. Performance appraisal
12. Training
13. Staffing
14. Formulates and implements personnel
15. Wage and salary administration
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16. Filing various returns relating to employees
PROMOTION POLICY
It is divided into two parts.
a. Managerial Promotion Policy:
This is on the basis of a stipulated length of service in the immediate lower grade
and it is the main criterion for promotion. Promotion from workers category to officers
grade shall be ordered only with board resolution and with permission of
government. Time bound grade promotions are considered in the case of lowest tow
managerial scales period of 10 years service can be considered for promotion.
b. Non- Managerial Promotion Policy:
Vacancies are to be filled by line recruitment through PSC and will be filled as per
the policy and procedure lay down through the term of settlement.
If a prospective employee has the minimum qualification and stipulated service then
he is considered for promotion. If qualified persons are not available for promotion in
the respective section/ department. It is notified on the company board. Candidate
with the same grade and stipulated length of service considered are not found
available after test, a lower grade person with stipulated service can be given double
promotion.
WAGE AND SALARY ADMINISTARATION
A sound plan of wage and salary administration seek to establish a fair and
equitablecompensation offering similar pay for similar work. Actually the settlement
of wage and salary is done by the accounts department. The trade union
management will decide how much to pay for each employees and workers
regarding his performance.
OVERTIME ALLOWANCE
Wage covered under the Factories Act will be given as overtime wages. According to
the provision contained in the Factories Act and the ruler framed thereafter. The
overtime wages for workers will be two times of effective wages.
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SHIFT ALLOWANCE
There are namely 3 shifts. Shift allowances to workers, who are working in shift are
WELFARE PROGRAMMES
Labour welfare measures in India can be classified as statutory and non-statutory.
Statutory welfare comprises those provisions which are binding on employer by law.
This relate to certain essential working conditions and standards of health statutory
welfare measures provided are accident benefit, annual bonus, drinking water , lunch
rooms, sitting facilities, storing and drying facilities ,health facilities and educational
allowance. The non-statutory welfare programs provided voluntarily by employer and
housing facilities, medical attendance schemes, group accident policy, production
bonus, voluntary retirement schemes and performance appraisal.
GRIEVANCE REDRESSAL
Grievance Redressal committee is statutory. It is to be legally maintained. Trade
unions are satisfied with the present condition. Hence in TCC Grievance Redressal
Committee is not there,as here exist a good employee-employer relationship.
Grievance Redressal committee consists of an experienced and efficient team of
personnel department. And also the moral level of employee is very good.
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TRADE UNION
There is no labour unrest in the company for the past few years. An atmosphere of
trust and mutual understanding is developed between management and labour
union. TCC Employees Association is the only one union in TCC which is
recognized.
WORKERS PARTICIPATION IN MANAGEMENT
TCC encourages its workers to take part in the management of the company. The
workers are often consulted through their union while implementing major welfare
programs of the company.In addition to this the workers are also included in some of
the committee for taking management decision, which includes committees like.
a. Canteen Management Committee
b. Safety committee
c. Grievance committee
d. Tri-Party Committee
e. Provident fund trust
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4.2 MATERIALS DEPARTMENT
Manager Materials is the head of the department. He is responsible for all functionsrelated to purchase, stores and inventory control. Materials department is divided
into three sections.
1. Purchase section
2. Stores section
3. Inventory Control section
PURCHASE SECTION
Purchase procedure:
- Receiving MPR.
- Evaluation of the MPR.
- Inviting tender from various organization.
- Evaluation of the tenders and prepare a comparative statement.
DF
AGM
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- Send tenders to the originator of MPR for recommendation.
- Issue purchase order as per the recommendation of the originator.
Purchase section deals with:
- Purchase of stock items as required by inventory control.
- Purchase of maintenance items as required by the maintenance planning and plant
sections.
- Purchasing of raw materials required for the process.
- Purchase of bulk consumable for the process.
- Purchase of demanded item.s
- Payment against delivery through bank.
STORES SECTION
Store section deals with:
- Maintaining a minimum stock of items required by various departments.
- Issuing of stock items required by various departments according to the materials
request.
(MR).
- Preparation of various reports like:
Receiving report.
Inspection reports.
Evaluation of MPR for purchase of new items.
Preparation of materials code system (10-digit system).
INVENTORY CONTROL SECTION
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Inventory control is an essential function of stores department. It helps to reduce cost
and increase profit of the organization. Codification of material is done by manager
inventory control. For controlling the inventory, certain levels of inventory such as
maximum, minimum and re-order level is prepared. When the stock reaches the re-
order level, purchase request is made.
INVENTORY CONTROL
The purpose of inventory control is to avoid surplus and security of materials. The
inventories items are classified based on value contributed by each items depending
on the cost of and turnover of materials.
OBJECTIVES OF INVENTORY CONTROL
- Avoid unwanted pilling up of inventory
- Material identification to avoid duplication
- To maintain records
- To dispose scrapped items
- To determine which and how much to replenish
FUNCTIONS OF INVENTORY CONTROL
Maintaining a minimum stock of items required by various departments. Preparations
of various reports regarding inventory such as:
Receiving reports
Inventory ledger
Inspection report
Evaluation of MPR
Preparation of material code system to verify items and for easy handling
Fix various levels such as minimum level, maximum level, re-order level,
damages level etc. of each items.
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Calculate and minimize lead time
Separate materials into Indian/import
4.3 OPEARATIONS DEPARTMENT
DUTIES & RESPONSIBILITIES OF ASSISTANT GENETAL MANAGER
OPERATIONS:
Head of the operations department.
DM(pr1)
SE
PR
Ex.Tr
DM(pr2)
PR
SE
Ex.Tr
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He fixes the monthly target of the product based on the market requirement.
He is responsible for modification in the production process and responsible for the
affluent discharge.
He is the designated emergency controller during any hazardous incident of
leakage & emission of toxic gasses/ fluid etc.
DUTIES & RESPONSIBILITIES OF PLANT MANAGER
Custodian of plant .
He will plan production activities to meet the production of target set by the AGM
(OP).
He is responsible for the material consumption.
He plans the shutdown activities and carries out maintenance work of the plant .
He co-ordinates the operational functions with the manager of other departments
for the smooth functioning of the plant.
OBJECTIVES OF OPERATIONS DEPARTMENT
Maximize production confirming to production specification.
Optimizing the consumption of electricity and purification of chemicals.
Maximize the production overheads.
Maximize the availability of electrolysis for operations.
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THE OVERALL PRODUCTION CAPACITY OF TCC
PLANTS IN TCC
There are three plants involved in the electrolytic production process of the
company.
1. AGC Plant This plant is designed by ASAHII GLASS COMPANY
LIMITED,TOKYO, JAPAN. The plant was commissioned on 29thmay 1997. The
productsare Caustic Soda , commercial Hydrocloric Acid, liquid Chlorine and
Sodableach. The plant consists of 20 electrolyzes. The plant has 125 TPD
CausticSoda production capacities.
2. UHDE 1 Plant The plant is designed by UHDE, Germany. The
plantwascommissioned in 2005. The plant has a production capacity of 25 TPD of
Caustic Soda. It consists of one electrolyze with 54 elements.
3. UHDE 2 Plant This plant is also designed by UHDE, Germany. The plant was
commissioned in 2006. The plant has a production capacity of 25 TPD of Caustic
Soda. It consists of one electrolyze with 54 elements.
RAW MATERIALS USED
Raw materials used in the production process in TCC are
1. Common Salt (raw salt)
2. Electricity
3. Water
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TECHNOLOGY USED FOR PRODUCTION
The technology used by TCC is Membrane Cell Technologywhich is environment
friendly and energy efficient technology.
PROCESS FOLLOWED
The process followed in production by TCC is electrolysis of Brine.
PROCESS DESCRIPTION
Brine (solution of raw salt & water) saturation & purification process are common for
AGC,UHDE 1 and UHDE 2 plants.
STAYS IN THE PRODUCTION PROCESS
1. Brine saturation and primary purification Sodium Chloride or row salt is fed into
the saturator using the bucket elevator, where it set mixed with the Chlorine
decomposed,depleted Brine. This saturated Brine from the saturator goes to
precipitation tanks A & B and a mixer tank where Barium Carbonate Soda Ash and
Caustic Soda are added respectively to remove Sulphates, Calcium and Magnesium.
Impurities as precipitates.the Brine along with the precipitates then goes to the
clarifier where 90% of the precepts are allowed to settle. Theclarified Brine is passed
through Anthracite filters where the remaining 10% precepts areseparated.HCL is
added to the filtered Brine tank to convert impurities to ionic form. Brine is to
beadmitted to the secondary purification system only after the desired purity level is
attained.2. Secondary brine purification The secondary Brine purification system
consists of our ion exchange filters. The primary purified Brine is passed through the
Ion exchange filters where it undergoes Ion exchange process. Ion exchange
materials are insoluble acids & bases, which when converted to salt remain
insoluble.These ion exchange materials are used in columns in which the solutions
containing ionic impurities like Calcium and Magnesium are in contact with the resin
bed. The saturated resin is then regenerated to its original state by acid alkali
solution.
3. ElectrolysisThe secondary purified Brine is passed through a heat exchange, fed
to Brine head tank and is admitted to the anode compartments of the electrolysis.Dematerialized water is also admitted to the cathode compartment of the
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electrolysis. Direct current (DC) supply is connected to the anode and cathode.
During electrolysis Caustic Soda Lye is produced at cathode which is 32%
concentration. Hydrogen gas is also formed at the cathode chamber. Chlorine is
formed in the anode where the depleted Brine solution comes out.Caustic Soda is
pumped into storage tank and Hydrogen and Chlorine gas goes to theirrespective
treatment section.
4. Chlorine treatment & liquefaction Chlorine treatment and liquefaction involves
cooling,washing filtration, drying, compression liquefaction, storage and liquid
Chlorine filling in the cylinders, the Chlorine from anode chamber of the electrolysis
is first cooled at 30 degree celcious with the cooling tower water. Final traces of salt
is removed by using a wet Chlorine filter, it is then again cooked using chilled water.After this the Chlorine gas is divided into two streams for the HCL synthesis and for
liquefying. The Chlorine for liquefaction is dried using 98% Hydrochloric acid in
drying tower. The dried Chlorine is compressed using acid ring compressors. The
compressed Chlorine gas turns into liquid Chlorine storage tanks.
Chlorine for the HCL synthesis unit is fed by using chlorine blower.
5. H2 treatment and HCL analysis Hydrogen gas from the electrolyser is washedwith water in washing chamber, cooled using tower water and admitted directly to
Hydrogen blower,after separating the condensate. The Hydrogen gas is used for the
HCL synthesis and also as a fuel in the CCF plant. Hydrogen for HCL synthesis is
fed to the oven using Hydrogen blowers. Here it is burned in the presence of
Chlorine. The resulting HCL gas is absorbed in the water flowing down the oven to
produce 31% commercial HCL gas.
6. Continuous Caustic fusion It is done in CCF (continuous caustic fusion) plant.
CCF plant is mainly for concentrating 32% NaOH lye to 50% NaOH lye and then to
98%-99% NaOH melts which is converted as flakes. The 32% NaOH lye is stored in
the main storage tank, as a part of which goes for sale. The remaining part of 32%
lye is passed through threeevaporators Ev1, Ev2, Ev3.In the first evaporator the
Caustic Soda lye is heated using vapours generated in Ev2 and Ev3.the steam
generated in Ev1 is then drawn by a vaccum pump through a condenser and thus
Ev1 is working under vaccum and at 70-80 degree celcious. The outlet from Ev1 is40% Caustic Soda lye which is passed through Ev2 where it is evaporated to 50%
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Caustic Soda lye using 9 kg/-cm steam from boiler. A portion of 50% Caustic Soda
lye cooled and sold. The remaining portion of 50% Caustic Soda lye is pumped to
Ev3 where it is heated using heat transfer salt which is a mixture of 53% Potassium
Nitrate, 40% Sodium Nitrate and 7% Sodium Nitrate. In Ev3 the 50% Caustic Soda
lye is concentrated to 98%-99% Caustic Soda melt which is converted as Caustic
Soda flakes in a flakers drum.
7. Soda Bleach preparationExcess of waste Chlorine cant be disposed as a waste
gas. But it has to be absorbed in dilute Caustic Soda lye to produce Soda bleach.
Thus the Soda bleach plant serves also as a pollution control system.A part of 32%
Caustic Soda lye, chlorine is used for the preparation of Soda bleach. The excess
Chlorine at the time of plant shutdown or startup and also from cylinder fillingstationgoes for Soda bleach preparation, 32% Caustic soda lye is diluted using de-
mineralized water. The solution is passed through two absorbing towers, where it
reacts with Chlorine gas so as to produce Soda bleach.
4.4 TECHNICAL DEPARTMENT
There are two main sections in this department:
GMT
DGM(TS)
AGM(TS)
CE(TS) DMTS(M) DMTS(C) SETS(C)
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1. The Technical Service section
The technical service department is concern with the monitoring of production
process. This includes making a comparative analysis if any deviations are found.
Reports are maintained on daily as well as monthly basis and internal as well as
external basis. The reports are sent to all other departments.
I. Daily report includes the following:
Daily production details
Material consumption details
Sales
Stock
Power consumption
Over time reporting etc.
II. Monthly internal reports include the following:
Production process report
Material balance
Chlorine utilization
Raw salt analysis etc.
III. Monthly external report includes reports to various Government department and
other agencies, production calculation and reporting.
Computerization & IT development
All functional areas are fully computerized. That is function wise, all functions are
fully computerized. But in depth wise TCC is trying to increase the depth of
computerization. The software in use is clipper and paradox. The server
configuration is IBM X 220 and the server capacity is 18GB hard disk running on
Novel 4.11 operating system. The server class machinesare P3, 1 GHz, 128 MB
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RAM, 18 GB hard disk plan to install Oracle based software for all the departments.
Presently there are two Local Area Networks (LAN). One pertaining to financial
data which is called financial package system and the other related to the materials
package system and the other related to the materials managements, which is the
materials management system.
2. Safety & Pollution control system
The safety policy of the company states that:
TCC is committed to provide every one of its employees & the related public an
accident free and healthy environment in its efforts to manufacture high quality
products with all stationary requirements in this regard.
The company will provide a work environment in which identified hazards &
controlled if eliminations not feasible and will provide personal protection
requirements like gloves, file mask welding shield, safety shoes, helmets, safety belt,
skin protective ointmentsetc .whenever necessary.
Accident prevention is the direct responsibility of the line management and will be
an important criterion for performance appraisal. Line management will ensure that
all safety measures are incorporated in the operating and maintenance procedure as
well as in any process technology changes in the plant.
The company will ensure that health & safety aspects are given due consideration
in decision regarding purchase of plant equipments machinery & materials.
All contract job will be carried only through the laid down procedures with
appropriatesupervision.
The company will carry out safety audits, risk assessment studies, emergency
mockdrills, periodic assessment health of its employees as well as status of
environment &implement remedial measures.
Employee, consumers & public awareness where necessary, will be imparted with
the required education, training & retraining safety and health aspects related to the
process and products.
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Contractors, sub-contractors, workers, transports & visitors entering the factory
shall be required to observe health and safety practices of the company in all their
activities.
The company will include a resume of its health and safety performance in its
annual reports.
FUNCTIONS OF TECHNICAL SERVICE DEPARTMENT
1. Deviation analysis of plant operating parameters.
2. Collection and computation of production details, raw materials, input output
details.
3. Downtime or failure analysis of plant and equipment and providing technical
advice.
4. Preparation of monthly raw materials and input output details.
5. Give suggestions on corrective action to avoid downtime of equipment.
6. De bottle necking to improve production and efficiency of operation.
7. Organizing energy audit and implementation of energy saving schemes.
8. Preparation of schemes for improvements or modification of process, plant and
machinery.
9. Vetting of proposal originated by other department.
10. Inspecting or testing of equipment for the plant.
11. Study and report on process upset accidents if any etc.
12. Any other job specifically assigned by management.
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4.5MARKETING DEPARTMENT
TCC is the only chlor-alkali unit in Kerala and hence it is more or less a monopoly in
Kerala market. However, nationwide there are around 40 competitors. TCC gives
high importance for customer satisfaction. They maintain close contact products.
Type of market is buyer market. Marketing department consists of two sections:
a. Office section
b. Issue section
All documentation works come under office section and all the work relating to salescome under issue section. TCC adopts marketing strategy according to the product
nature, market situation, demand for the product etc. TCC currently has about 80%
of the total market share in the state. Of the total production, 60% of the goods are
sold outside Kerala and 40% within the state.
MAIN FUNCTIONS OF OFFICE SECTION
Preparation of sales quotation, letters, amendments etc, maintenance of sales
officers register books and other necessary information
Preparation of sales budget, sales plan, monthly allotments etc,
correspondence with parties and follow up of routine and regular matters
ASST. GM MARKETING
MARKETING
MANAGER 1
MARKETING
MANAGER 2OFFICER SALES
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Preparation of sales order, dispatch and delivery notes
Up keeping of all files up to date
MAIN FUNCTIONS OF ISSUE SECTION
Preparation of schedule of dispatch and actual dispatch
Execution of sales offers
Advising parties about the dispatch effected
Maintenance of daily stock registers
DUTIES OF MARKETING MANAGER (SALES)
1. Concerned with the office section of the department
2. Responsible for tender issue process.
COMPETITORS
There are about 40 companies in India which are producing the same kind of
products that TCC in manufacturing. Of the 40 companies, 12 are concentrated in
the southern part of India. All these companies are private sector companies except
for TCC. Some of the competitors are:
1. Chemfab Alkalis Ltd, Pondicherry
2. Andra Sugar Ltd
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3. DCW Ltd, Mettur
4. Kothari Petrochemical Ltd
5. Tamil Nadu Petro products Ltd
6. SPIC Chennai
7. Sree Royal Seema Alkalis, Andhra Pradesh
8. Chemplast, Mettur
9. Chemtab, Pondicherry
CUSTOMERS
1. Kerala Water Authority
2. Hindustan Unilever Ltd
3. Hindustan Insecticides Ltd
4. Bharat Petroleum Ltd
5. Kerala Ceramics Ltd
6. Kerala Minerals and Metals Ltd
7. Hindustan Raw Earth Ltd
8. Steel Authority of India Ltd
9. Tamil Nadu Newsprint Ltd
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10. Indian Oil Corporation
11. Indian Aluminium Company Ltd
12. Kerala Chemicals and Proteins Ltd
13. Travancore Titanium Products Ltd
14. South India Viscose Ltd
15. Karnataka Soap and Detergents
16. Hindustan Organic Chemicals Ltd
17. Grasim Industrial Ltd
18. Pigments India Ltd
19. Hindustan Newsprint Ltd
20. Binani Zinc Ltd
ACTIVITIES OF MARKETING DEPARTMENT
Whenever a company places an advertisement regarding the requirement of
chemicals like caustic soda lye or flakes with the specification for the chemical
payment terms, quantity required, validity required, the companies that are ready to
supply viz., TCC, will send tenders to the required company. This is known as a
tender document. In a tender document mainly two documents are specified:
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a. Technical bid
This is the specification about the quality aspect of the product, how much quantity
can be given within a period as specified by the customer company etc. These terms
are well explained in the technical bid
b. Price bid
This is a part of the tender document which specifies the basic prices of the
company products. The document rate is given for bulk purchaser, payment terms
are also experienced. Along with the tender to the customer company, an attractive
Earnest Money Deposit (EMD) is also offered. This deposit is for the purpose of
assuring the customer company that if they accept TCCs offer, certainly the product
will be supplies to the customer. The deposit will be refunded by the customer
company after the purchase is made. The EMD is attached only in the case of bulk
purchase. After accepting the offer placed by TCC, the customer company will place
a purchase order. The purchase order explains the details of the product, quantity,
price etc. Sales order is placed and will be verified by Deputy Marketing Manager.
He makes arrangement in respect of supplying product to the customer. The
acceptance offer is usually by selecting the lowest price.
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4.6FINANCE DEPARTMENT
Travancore Cochin chemicals limited has an efficient finance department headed by
the finance manager and he is assisted by the deputy manager, finance. Finance
manager is responsible for shaping the fortunes of the company, preparing budgets,
raising funds, keeping different accounts etc. TCC is having managementinformation system to assist the finance department. The finance department itself is
divided into different sections like general accounts, costing bills, establishment and
provident fund accounts sections each having its own functions.
CMD
FINANCE
CONTROLER
DEPUTY FINANCE
CONTROLER
DEPUTY FINANCE
MANAGER
SENIOR ACCOUNTS
OFFICER
ACCOUNTS
OFFICER
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FUNCTIONS OF FINANCE DEPARTMENT
Purchase bills passing and payments to suppliers
Sales invoice recording
Debt collection
Budgeting and costing
Statutory auditing
Finance control
Handle all auditing and taxes
Sales accounting
Generation and utilization of funds
Finance book keeping and finalizing of accounts
Treasury operation
Cost record
Management information system and co-operate planning
TCC has an exclusive PF trust for their employees. The company gives money to
the trust. Trust invests this properly. Retirement benefits are issued from this
fund. The companys liability towards gratuity to employees is covered by group
gratuity scheme with the LIC of India.
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Sources of funds
For efficient production and sale there must be adequate finance for fixed assets,
raw materials to meet day-to-day expenditure. The company raise funds by mean of
equity funds and borrowed fund. The share capital includes authorized, issued,
subscribed and paid up capital. Subsidy has been received from DSIR and
government of Kerala. Loans are obtained as term from IDBI and material loans from
government of Kerala.
4.7ENGINEERING DEPARTMENT
The Engineering department has been divided into four sections.
1. Electrical Department
2. Mechanical Department
3. Instrument Department
4. Civil Department
ELECTRICAL DEPARTMENT
There are two functions for this section. They are as follows:
a) operationsb) maintenance
GM
ASSIT. GM
CHIEF ENGG (E)
Dy.MGR (E)Dy. MGR. (HT & LT)
CHIEF ENGG(C)CHIEF ENGG (M)
SE(M)SE(EL)
MEST(CD)
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The main function of the operational section is
The main function of maintenance dept is to provide assistance to project
development
of new project.
MECHANICAL DEPARTMENT
Following are some of the objectives of this department:
equipment handling.
INSTRUMENTATION DEPARTMENT
The main functions of this section are as follows:
CIVIL DEPARTMENT
The main functions of this section are as follows:
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4.8PROJECT DEPARTMENT
MAIN FUNCTIONS OF PROJECT DEPARTMENT
tenders
The new project that is going to start in TCC is the production of sodium chlorate.
This project is a joint venture between TCC and VCLL/ISRO.
CMD
GM
DGM(PJ)
CE(PJ 1) CE(PJ 2)
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SECURITY DEPARTMENT
Security department functions under the personnel manager with a chief security
officer and around 50 staffs. The main functions of the department are to protect the
company from external threats as a part of security, pass and badges are providedto each worker. The issue of pass is given by the P.M, and the duty pass is signed
by him.
SYSTEM DEPARTMENT
Objectives of systems department
1. Website management
2. Up gradation, maintenance and changes are done by manager system.
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CHAPTER V
SWOT Analysis
STRENGTH
Only Chlor alkali unit in the state
Good record of physical and financial performance in the past.
Qualified work force, brilliant engineers, managers and skilled workers.
No strike reported for the last few years .
Companys products are basic chemicals and are considered to be the building
blocks of chemical industry.
The company has 80% market share for its products in Kerala.
The company is a feeding industry to other companies.
Excellent management labour relation.
Strategic location with no other competitors around at present.
Availability of water in abundance as TCC is situated in the banks of river
Periyar.
Excellent transport facilities and proximity to national highway, railway line ,
seaport, and airports as well.
Companys products are basic chemicals and are considered to be the building
blocks of chemical industry.
TCC is a pioneer in the chlor alkali market and has created reliability credibility
among the customers.
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WEAKNESS
TCC is a public undertaking. The major decisions of the company have to be
approved by the government which delays the implementations of plans and there by
causing organizational inflexibility. The major weaknesses are;
high
OPPORTUNITIES
state due to the availability of raw material within the state. There is a high price in
the international market for rutile and related products.
Economic development of the country may results in higher demand for the
product especially for chlorine in near future .
wer so obtained can be
utilized for running the plants of TCC. Thus reducing the cost incurred on electricity.
THREATS
Competition from foreign countries
High cost of production
Higher in price of electricity
The infra structure of the company is obsolete compared to others
The import duty of central government is not fair and it caused periodic fluctuations
in the price of the companys product.
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CHAPTER VI
Observation/ Suggestion
OBDERVATIONS
The major type of customer deal with TCC is pharmaceuticals, soap
industries,insecticides, pesticides, paper industries and rayon industries.
No major environment pollution has been reported for the past 50% years of
operation.
The strength of TCC is the quality of their products services and the delivery.
Location preference, reference and quality are the major criteria for selectingmanufacture.
The company is depending heavily on electricity and around 60%of their
product price is for this.
SUGGESTIONS
The company must give some motivation to the employee in order to increase the
production.
The company must take necessary steps to maintain the ratios at standard level.
The company must activate the research and development cell in order to have
new invention in this field.
The company should conduct market research to find the movement of the
products and to identify potential customers.
One of the main raw materials is electricity which is an important factor of
production of the company. So it better to go for a mini power plant of its own.
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BLIOGRAPHY
Annual Report -Travancore Cochin Chemicals LTD.
WWW.TCCKERALA.COM
http://www.tcckerala.com/http://www.tcckerala.com/http://www.tcckerala.com/