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REPORT of the

ORGANISATION STUDY PROGRAMME

at

HMT MACHINE TOOLS LIMITED KALAMASSERY

Period

23.05.2011 to 22.06.2011

Submitted by

Job Thomas Cochin University of Science and Technology

Kochi – 682 022

MAY-JUNE 2011

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CONTENTS Title Page Number

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CHAPTER 1 INTRODUCTION TO ORGANISATION STUDY

INTRODUCTION

Organizational studies, sometimes known as organizational science, encompass the systematic study and careful application of knowledge about how people act within organizations. Organizational studies sometimes is considered a sister field for, or overarching designation that includes, the following disciplines: industrial and organizational psychology, organizational behavior, human resources, and management.

Whenever people interact in organizations, many factors come into play. Modern organizational studies attempt to understand and model these factors. Like all modernist social sciences, organizational studies seek to control, predict, and explain. There is some controversy over the ethics of controlling workers' behavior, as well as the manner in which workers are treated. As such, organizational behaviour or OB have at times been accused of being the scientific tool of the powerful. Those accusations notwithstanding, OB plays a major role in organizational development, enhancing organizational performance, as well as individual and group performance/satisfaction/commitment. The orgnaisation study is the systematic learning process about an organisation to understand the diiferent roles of each members in the organization. In organisation study, the different roles, namely, interpersonal roles, decisional roles and informational roles of various members are evaluated and how it affects the functioning of the organisation is analysed. In this work, M/s HMT Machine Tool Limited at Kalamssery was selected for the organization study.

An industry, which has undergone a radical shift in its paradigm thinking, the Indian machine tool industry is later recognized as a provider of cost-effective high quality lean manufacturing solutions. The industry resiliently supports all its users to enhance productivity as well as improve competitiveness, for the betterment of the final customer. Being an integral sector, growth of the machine tool industry has an immense bearing on the entire economy, especially India's manufacturing industry. And it is even more crucial for development of the country's strategic segments such as defense, railways, space, and atomic energy. World over too, industrialized-advanced countries have created market niches on the back of a well-developed and supportive machine tool sector.

HMT was conceived by the Government of India in 1949, and was incorporated in 1953, with the objective of producing a limited range of machine tools, required for building an industrial edifice for the country. With the success achieved in the initial years in absorbing the technology and in attaining production competence far ahead of the original plans, the Company launched a bold plan of diversification and expansion which resulted in the duplication of the Bangalore Unit and the setting up of new units at Pinjore, Kalamassery and Hyderabad. HMT MTL at

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Kalamassery is established in 1953 for producing the lathe. In the process of expansion, HMT MTLK started producing printing machines in 1972.

OBJECTIVES OF THE STUDY: To give familiarize with the business organization. To gain familiarize with the different departments in the organization and

their functioning. To understand how the key business processes are carried out in

organizations. Understand how information is used in organization for decision making at

various levels. To relate theory with practice.

METHODOLOGY OF THE STUDY: Both primary and secondary data is collected from the organization. Primary data is collected through interviews with employees at various

levels. Secondary data is obtained from company manuals especially quality

manuals company web site and other magazines and news papers. Direct observation is used to understand the production process.

PERIOD OF STUDY

The study was held from 23/05/2010 to 22/06/2010.

LIMITATIONS OF THE STUDY The findings need not be conclusive but only indicative. Area of concentration was mainly HMT Machines tools limited,

Kalamassery. The time span of this project was very limited to collect all the information.

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CHAPTER 2 INDUSTRY PROFILE, COMPANY PROFILE & PRODUCT

PROFILE OF HMT

INDUSTRY PROFILE

The machine tool industry constitutes the backbone of the industrial sector and is vital for the growth of the Indian machine tool industry. Even though the Indian machine tool industry is a small segment of the engineering industry, it plays a very important role in the development and technology up gradation of the engineering industry. The quality and cost of engineering products depends on the quality of mother machine tools and their automation level. The development of the machine tool industry is therefore of paramount importance for a competitive and self reliant industrial structure.

The growth of Indian machine tool industry and major user industries clearly shows the close inter dependencies of indigenous machine tools and the major user industries. This level of performance of the major user industries has been made possible only because of support of indigenous manufacture large and small, to meet almost all the requirement of machine tools, conventional, CNC special purpose and flexible manufacturing lines required by them.

Had the indigenous machine tool industry not been able to meet the major user industries demand, then these machine tools would have to be imported, at much higher prices, irrespective of rising cost of foreign exchange or not. This would have severely affected not only the country GNP and the overall economy of the country but not severely impaired the country space and the defense sector.

PROFILE OF COMPANY HMT

By end of the Second World War, the government of India confronted by a big problem of disposing the colossal war waste. Ultimately, a committee was constituted to inquire into the possibilities. The committee report of 1948 proposed the establishment of a government owned machine tool industry. This was expected to fulfill two aspects. The first was being utilization of the Rs.4000 million worth of metallic waste. The second was the incorporation of a state owned infrastructure – manufacturing facility. The result was the birth of THE HINDUSTAN MACHINE TOOLS LIMITED, which diversified in due course of time to the present stature of the multi core, multi location, and multi unit, multi product industrial giant HMT Ltd.

The HMT Ltd was started as a single factory to produce Tool Room Lathe at Bangalore in collaboration with M/s Oerlikon of Switzerland in 1953, with a

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capacity to manufacture around 400 machines per year. Since then different collaborations, continued in house R&D and tremendous marketing efforts brought HMT, to present status.

The growth of HMT Ltd. was characterized by the forward and backward integration of technology and product diversification. Thus the company that stated with manufacturing and selling lathes expanded its machine tools products range to evolve as the ultimate solution in metal cutting. The product diversification efforts took the company to the business of watches in 1962, tractor in 1971, die-casting on plastic machinery in 1971, printing machinery in 1972, presses in 1972, lamps & lamp making machinery in 1976, food processing machinery in 1980, CNC systems in 1986, ball screws in 1986 and reconditioning in 1990.

The multi product activities made HMT Ltd. change its identity as Hindustan Machine Tools Limited. Today HMT Ltd has 16 manufacturing units with 22 products divisions spread through the length and breath of India. A subsidiary viz., HMT (international) Ltd undertakes the exports of the company. They are also export agents for general other Indian companies.

HMT Ltd was restructured in 1992 to facilitate better administration of the multi product business activities. Accordingly, the following business group was established.

Machine tools business group, to concentrate on mental cutting machines Industrial machinery business group to deal with printing machines, die-

casting and plastic injection molding machines food processing machines and metal forming machines

Agricultural business group to concentrate on tractor Engineering components business group to deal with casting and ball screws Consumer product business group, to deal with watches and lamps

IN ADDITION TO THESE BUSINESS GROUPS, THE COMPANY OWNS THRESS SUBSIDIARIES AS FOLLOWS:

HMT (international) Ltd. which undertakes overseas project & exports PRAGA Tools Ltd. which manufacturers machine tools HMT bearing Ltd which manufacture precision bearing in collaboration with

M/S Kozo Japan

As per the revival plan of this public sector industry a turn around plan has introduced in early days of this millennium and re-organized as HMT Ltd holding company including tractor division and presently comprises of the following subsidiaries.

1. HMT Machine Tools Limited. 2. HMT Watches Limited 3. HMT Chinar Watches Limited 4. HMT Bearing Limited 5. HMT International Limited 6. PRAGA Tools Limited

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STRUCTURE OF HMT Ltd

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1. HMT MACHINE TOOLS LIMITED

The HMT Machine Tools Limited is engaged in the manufacture and marketing of general purpose machine tools, special purpose machine tools, computer numerically controlled machine tools, precision machinery system, printing machines, metal forming passes, dies casting and plastic injection molding machines, ferrous and non-ferrous casting.

The product range of HMT machine tools, Bangalore Heavy duty lathes Single and multi spindle automates Radial drilling machines Multi spindle drills Cylindrical & surface grinders Laser cutting machines CNC turn mill centers CNC wire cut EDM

PINJORE FMS & FMC

Horizontal machining centers Vertical machining centers Milling machines Broaching machines

KALAMASSERY CNC turning center Turn mill center Flexible turning cell Copying lathes Center lathes Offset printing machines Paper cutting machines

HYDERABAD Special purpose machines Horizontal machining center FMS CNC horizontal boring machines Bed type & floor types boring machines

AJMER Grinding machines SPM grinders CNC grinders

FACILITIES AVAILABLE IN DIFFERENT MACHINE TOOL UNITS CNC ram type plano miller Horizontal machining centers

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Vertical machining centers Vertical machining centers Horizontal jog boring machines CNC turning centers Turn mill centers Slide way grinders Cylindrical grinders Internal grinders Precision gear shapers Precision gear hobbers Gear grinders Induction hardening machines 3D co-ordinate measuring machines

2. HMT WATCHES LIMITED

HMT Watch Limited manufactures and markets watches including hand wound / automatic & quarts

3. HMT CHINAR WATCHES

HMT Chinar Watches limited is also one of the subsidiaries engaged in the manufacture of chinar model watches located in Srinagar, Kashmir state.

4. HMT BEARING LIMITED

HMT Bearing Limited is one of the subsidiaries engaged in the manufacture of different types of industrial bearing situated in Hyderabad.

5. HMT INTERNATIONAL LIMITED

HMT International is engaged in the export of HMT’s range of product worldwide HMT (I) also market and backed up by a good sales & services network. It also under takes Turkey project & technical services for developing countries.

6. PRAGA TOOLS LIMITED

Praga Tools Ltd is also a subsidiary of HMT Limited engaged in the manufacture of machine tools located in Hyderabad.

THE KALAMASSERY COMPLEX OF HMT LIMITED KALAMASSERY

The Kalamassery unit, the 4th machine tools unit was established in 1963 and started production in 1964. The unit originally manufactured only two types of center lathes viz. H & LB, but later added special purpose lathes like copying and turrent lathes. Model L. T-20 was the first product to be indigenously developed by the unit (1968) and the development of this product was a landmark in the history of the unit. The production of this was later licensed to M/S Qetcos, Kerala, Matools, Philippines Cyelon Steel Corporation Srilanka. The original center lathes H&LB were then replaced by a new family of unified series of lathes, which was designed

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and developed by the unit, incorporating the concepts of typification, standardization & unification.

PRODUCT DEVELOPMENT AT MACHINE TOOL UNIT KALAMASSERY

The following products are developed by the machines tools unit of Kalamassery indigenously.

Year Products 1969-70 LT-20 1976-77 NH./NL 1976-77 FC-25 1980-81 TL-20 1981-82 SBCNC 35 1982-83 SBCNC 55 1986-89 STC 25 1990-91 STC 15 1991-92 ECONOCNC 1992-93 STC 20 1993-94 NL 180 1994-95 NL 180 1996-97 TS 20 (Twin spindle) 1997-98 AUTOCOMP 1997-98 STALLION-200 1999-2000 AUTOMAN 2003 MCECL 2004 SMC WITH GANTORY CODER 2004 STALLION 1005

DIVERSIFICATION OF KALAMASSERY UNIT AND BIRTH OF PRINTING MACHINE DIVISION

During the period 1972-73, Kalamassery unit diversified its product range to include printing machinery division (PMK). The commercial entry of PMK was with two types of letter presses viz. RTE & RTAF under collaboration with M/S Nebiolo of Italy. Autoplaten, an indigenous development came up subsequently. During the ensuring years, the printing machinery division came up subsequently. During the ensuring years, the printing machinery division came up with offset press viz. OMIR in collaboration with M/S Nebiolo later indigenous offset press viz. SOM 136 was introduced to the market. The first two-colour machine from HMT was OMIR in collaboration with M/S Korning & Baver of Germany. The latest development of PMK is the paper-cutting guillotine PG 92D3, in collaboration with M/S Divano Blinders of Italy.

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THE CURRENT PRODUCT RANGE Product Model Offset printing machines SOM436 SOM425(four colour) SOM236 SOM231 SOM225 (double colour) SOM136 SOM131 SOM125g (single colour) Paper cutting machine PG-92D3

The Kalamassery units of HMT are famous for development activities. Their product have always fetched award and prized at different trade fair & competitions. To name a few are the prizes bagged in different IMTEX fairs by FC-25, SBC & SBCNC machines. The CNC lathe model STC has won the VASVIK Industrial research award 1987 instituted by the Vindhalaxi Audyogik Samsadhan Vikas Kendra, (VASVIK) for outstanding advancement of science and technology.

The machine tool product of this unit have been certified by RWTUV-(Reinisch west falischer techniseruber wachungs verein) an international certification agency of high repute as confirming to total quality management system.

Both the division have been awarded ISO 9001 certification by IROS. The manufacturing shop at MTK is supported by various infrastructural facilities like high technology CNC machine centres, testing facilities, foundry, heat treatment, computer system, CAD systems etc. Around 600 well experienced personal form the human resources of the unit keeping in line with the current corporate trends.

TRANING CENTRE

The manufacturing shops at MTK are supported by various infrastructure facilities like, high technology CNC machining center, testing facilities foundry, heat treatment, computer system CAD system etc around 800 well experienced personal form the human resources of the unit keeping in line with the current corporate trends. This unit views HRD as one of the primary concerns as a measure to increase productivity and enhance social stranding. The company has a well established training system by personnel of high technical and management skills. The HRD programme under taken by then includes the following.

i. Management orientation programme. ii. Supervisory development programme. iii. Customer training programme to equip the customer for the optimum

utilization of HMT machines. iv. Periodic awareness training programme for employees relating to safety,

quality, advanced technology, information technology etc. v. Multi-skill training to machine operators. vi. Induction and in-plant training to fresh recruits and transferees.

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vii. Apprentice training programme under the apprentice act. viii. Project guidance in management or technology to students. ix. Industrial familiarization program for engineering college students.

THE MARKETING NETWORK OF HMT LTD

The machine tools marketing divisions with its head quarters at Bangalore and having wide network of regional and divisional offices spread throughout India caters to the marketing needs of this unit at the primary level. To co-ordinate the marketing activities at unit level and co offer technical support to machine tool marketing, a strong sales and services team is constituted at unit level. HMT’s major customer includes defense, railways, automobile and other engineering industries in various sectors.

MAIN INLAND COMPETITORS FOR THE UNIT’S PRODUCTS Mysore Kirlosker Ltd ACE Designers NC Machines Private Ltd Lakshmi Machine Works

MAIN FOREIGN COMPETITORS FOR THE UNIT’S PRODUCTS a) Okuma, Japan b) Nori Saiki, Co Ltd., Japan c) Tukisama, Japan d) Muzak, Japan e) Iregai, Japan f) GDM, Germany g) Churchill, England h) Ernault Tayoda, Japan i) Victor, Taiwan j) Tuma, Korea k) EMAS, Germany

WELFARE MEASURES IN HMT, KALAMASSERY

1. Company quarters are provided to employees. 2. Subsidized transport facility is provided for employees residing outside HMT

township. 3. Company sponsors a central welfare association. This association has four

subsidiary clubs, i.e. arts and dramatic club, sports club, social club, educational society.

4. Subsidized canteen facility is provided to employees.

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WHAT IS “5S”

1S SEIRI Sort out unnecessary items in the workplace and discard them.

2S SEITION Arrange necessary items in good order, so that they can be easily picked for use.

A place for everything and everything in its place.

3S SEISO Clean your workplace, completely so that there is no dust on the floor, machine and equipments.

4S SEIETSU Maintain high standard of house keeping and workplace organization at all times.

5S SHITSUKE Train people to follow good house keeping disciplines autonomously.

INTERNATIONAL STANDARDS FOR QUALITY MANAGEMENT

Good quality system consists of sound technical and administrative procedures for assuring quality. QA offers more scope for reducing costs prerequisites and characteristics of good quality assurance and quality management. The challenge to a developing nation is to motivate processors and manufactures to adopt and implement these standards and to establish a credible nation quality registration scheme, which will be recognized by trading partners.

In an increasing number of markets and industries third party quality assessment and registration is becoming a pre-requisite for doing business. ISO 9000 registration as considered the minimum acceptable level for a supplier and those who cannot demonstrate this minimum level may not only have difficulty in selling in certain markets they may be barren from those markets.

Not only must a defendant be able to demonstrate that his product is well designed and conforms to all standards and regulations, but he must be able to demonstrate that the product is manufactured consistently with in a system that conforms at least to internationally accepted standards.

IN ADDITION, ISO 9000 SERIES STANDARD ALSO Motivates exporters Sets a base line Establishes reasonable standards for government procurement Focus training and professional development Sets general market procedure for regulating health and safety Reduces time consuming audits by costumes and regulators Raises levels of motivation, co-operation workmanship and quality

awareness. Improves efficiency, reduces scrap and rework.

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The following topics are dealt with in the ISO 9000 series of standards. 1. ISO 9000 – Quality management and quality assurance standards section and

use. 2. ISO 9000 – Model for quality assurance in design development, production

installation, and servicing. 3. ISO 9002 – Model for quality assurance in production and installation. 4. ISO 9003 – Guidelines on development of quality management system to

minimize costs and maximize benefits.

QUALITY POLICY

HMT MLT is committed to total customer satisfaction by the supply of quality products and services through:

Continuous improvement of technology of product and processes. Innovation and creativity. Effective implementation of quality management system. Monitoring the effective realization of quality objectives and periodical

review of its suitability.

HMT ORGANISATIONAL CHART

PRESIDENT OF INDIA

Ministry of Heavy Industries

Board of directors

Chairman & Managing Director(C&MD)

Managing directors (Subsidiary Chiefs)

Departments

1. Finance 2. Human resource management3. Marketing 4. Research & Development 5. Technology Development

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DESIGNATIONS IN HMT UNITS

OFFICERS

General Manager

Joint General Manager

Deputy Assistant General Manager

Assistant General Manager / Deputy Chief Engineer

Deputy Manager / Engineer

Officer / Deputy Engineer

Junior officer / Assistant Engineer

Senior Engineer

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EMPLOYEES

Worker Supervisor

Worker Grade WG-VI

Worker Grade WG-V

Worker Grade WG-IV

Worker Grade WG-III

Worker Grade WG-II

Worker Grade WG-I

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ORGANISATION STRUCTURE OF UNIT AT KALAMASSERY

(HMT MACHINE TOOLS LIMITED, KALAMASSERY)

Sales Inspection & Quality Control

Design & development

Material engineering

Planning Production Finance Personne l

HRD, welfare, IR

Cash & inward bill, outward bill, wages, material account

Manufacturing, production control, civil engineering

Repair & maintenance, preventive maintenance, energy conversion, reconditioning

MIS, corp. planning, industrial eng, computer centre, production planning

Materials stores, dispatch

Product develop, product up gradation, CAD, stds, technical library

Incoming inspection in process inspection & calibration, final inspection & testing, quantity mgmt system

Quality Sales eng., servicing, job order execution

Foundry Vigilance Safety Security PR

Assembly

Unit chief (GM)

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CHAPTER 3

STUDY OF DEPRATMENTS IN HMT MTLK Organization is a system of clearly defined structure of activities consciously designed to allow organizational participants to work effectively towards common goals. The organization is divided into various departments to improve the management and control. Organizational studies are attempts to observe the work of managers and employees in each department in the organizations and learn the secrets of managerial effectiveness. It also broadens the understanding of organizational processes and fruitfully blends management concepts with work life practices.

The departments in the HMT MTL at Kalamassery are broadly classified into two, viz., production departments and service departments. The details are given below.

The marketing department of the holding company HMT Ltd is shared by all the units of HMT Ltd located at various parts of the country. Hence separate marketing department is not available at HMT MTL at Kalamssery.

PRODUCTION DEPRATMENTS

Foundry department

Machine tool department 1. Machine tool manufacturing 2. Machine tool assembly

Printing machine department 1. Printing machine manufacturing2. Printing machine assembly

SERVICE DEPARTMENTS 1. Training centre 2. Human resource management 3. Public relations 4. Finance 5. Planning 6. Purchase 7. Sales 8. Quality control and inspection9. Stores 10. Plant services 11. Safety & security

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PURCHASE DEPARTMENT

INTRODUCTION

In the present scenario of increased competition, reduced time to market and globalised outsourcing, material management has evolved as one of the major factors for the success of an organization. The Purchase function, a key component of material management is now functioning with more agility and is shouldered with more responsibility than before.

In HMT Ltd., and its subsidiary companies, the purchase function is carried out by the purchase department of the respective unit or divisions and is responsible for procurement of the unit or division’s requirement. The heads of the material department and purchase department are accountable for effective discharge of purchase functions within the framework of purchase policy of the company.

STRUCTURE OF DEPARTMENT

D G M (printing)

D G M (Machine Tool)

D G M (Subcontract)

Manager purchase

Manger

Manager (Material Planning)

D C E (Material Planning) Manager

(purchase)

A G M (subcontract

Manager

Manager

Store officer

Officer (Material Planning)

Store Office

Office

StaffStaff

JGM

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OBJECTIVES Timely procurement and supply of required materials with prescribed

specifications and quality at the most competitive price and terms. Fair, Consistent and transparent purchase practice. Continuous search for alternate sources of supply and to develop reliable

sources of supply.

CLASSIFICATION OF MATERIALS

All purchases should be broadly categorized into Revenue and Capital. Under Revenue, further categorization shall be made into Production and Non production items. The Production items shall be categorized into “A” “B” and “C”.

MATERIAL PURCHASE REQUEST 1. Material Purchase Request duly verified and signed by the Material Chief

shall be the basis for initiating procurement action by the Purchase Department. The quantity and delivery schedule should be linked suitably to the production programme, taking into account the lead time for procurement.

2. MPR is raised in matching with maximum requirement of quarterly or half yearly production dispatch schedule as well as delivery schedule items keeping in view the operational plan required at a time and same should be received once in a month by the purchase committee.

3. The MPR shall be raised with requisite copy duly approved by the material chief.

4. On the receipt of MPR, the Purchase department will enter the MPR no. and distribute to the date of receipt in the MPR control register and distribute to the purchase officer.

5. For proprietary items, MPRs must be accompanied by proprietary article certified with source of supply issued by the concerned.

MODES OF PURCHASE

1. TENDER SYSTEM

Tender system is adopted to procure materials at competitive rates and different types of tenders are in vogue viz. Open Tender, Limited Tender, Single tender and local purchases through spot offers (spot tender). Where it is wanted, Global tender may be resorted to. Procurement process can also be through electronic mode (e-tendering, receipt of offer through secured mails) within the provisions of Purchase manual and relevant acts.

i. OPEN TENDER:

Open tender refers to calling of quotations by advertising tender enquiry in website of the company and at least in one reputed local or national newspaper. All tender

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notices are to be approved by the competent authority. All tender notices are to be approved by the unit chief / purchase chief. Open tender have to be resorted to for an item where the estimated tender value of purchase exceeds 25 lakhs. Under no circumstances, the advertisement is published in the category of classified advertisements. The time allowed for receiving quotations against open tender is fixed at a minimum of 21 days from the date of release of tender enquiry Notice. In case on non-receipt of at least three offers, the due date is extended for a further period of 7 days. In case of open tenders two-part system is followed, viz., technical bid and the price bid. The tender forms are priced suitably to recover the cost of advertisement. Purchase committee is entrusted to finalise fee for tender document. The security deposit and terms and conditions of tender is furnished in the tender notice.

ii. LIMITED TENDER:

Limited tenders are those addressed to all parties in the approved list of vendors for the required item as per the database maintained by the purchase department. The advertisement is send to the potential suppliers through UCP, speed post, courier or RAPD or email. The company’s official email id is only be used for all communication with suppliers. The time allowed for receiving quotations against Limited tenders shall be minimum 15 days from the date of release of tender.

iii. SINGLE TENDER :

Single Tenders are those addressed to a single party and the reasons for the same are to be clearly recorded in the proposal. This can be resorted to only under the following circumstances:

The government has channelized the supply only through single source Supplies are from government and semi government agencies and controlled

agencies that have a market monopoly for these products (eg. Petrol, Diesel, Iron ore etc.)

Proprietary items for which MPR accompanied by proprietary article certificate.

Designer justification or customer stipulation for the use of a particular make.

Time limit for obtaining offers may be stipulated based on requirement.

Single tender case is restricted to financial ceiling of 10 lakhs

iv. SPOT TENDER :

This is resorted to only for urgent requirements. A team of officers comprising of representatives from Purchase, Finance, and other user departments proceed to the market and obtain spot offers from local vendors after physically verifying and inspecting the goods and obtaining the assurance that the items are offered ex-stock. Offer is also received from established suppliers whenever possible the procurement is made from authorized distributor. The cheapest of the quotation collected by the

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team is used for the selection of the supplier, if the items are not readily available. The value of the spot tender purchase is limited to Rs.50,000/- To regularize the purchase, confirmation is issued by the unit chief.

2. PURCHASE FROM COLLABORATORS

Purchases from the collaborators does not come under tender system, The other procedures like MPR, obtaining sanction for the proposal and placement of purchase orders are to be followed. The import license if required is obtained by the purchase department. The requirements in quantity and values in terms of foreign exchange have to be planned well in advance. It is imperative that the items are ordered within a reasonable period so that shipment could be effected within the validity period of license.

3. SUPPLY THROUGH DGS&D RATE CONTRACT

The director of general supplies and disposal (DGS&D) entered into a contract from various items to cater to the requirement of different government organizations. List of stores on rate contract is published by DGS&D from time to time is used for the purchase with single quotation.

4. PURCHASE THROUGH LONG TERM CONTRACT

The objective of entering into a long term contract is to ensure continuous supply at competitive rates. Long term contract should generally be entered into a reasonable time but not more than two years at a time.

5. CASH PURCHASE

Cash purchase should generally be resorted to only in respect of items of small value and emergent requirements. The cash purchase is resorted only in respect of items of small value and emergent requirements. Purchase of material up to Rs.5000/- at a time is permitted for cash purchase.

6. WORLD BANK PROCUREMENT

In respect of any item procured out of the soft loan assistance from World Bank, the procurement procedures of World Bank shall apply.

7. PURCHASE FROM FOREIGN SUPPLIERS

The regular tendering procedure is to be followed for the procurement from foreign suppliers. Where the custom duty is not payable on imports because of government exemption notification or availability of special import license is to be indicated in the purchase order.

8. REPEAT ORDERS

Repeat orders are placed I some cases in order to save time and cost. Fresh tenders are not initiated in repeat order procedure. Repeat order is not permitted more than 2 years of original purchase.

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9. RE-TENDERING

Re-tendering is done in the following cases:- a) When less than 3 tenders are received. b) If the price quoted is significantly high. c) If the purchase committee feels that carter exists between the quoted suppliers. d) Change in material or specification after calling for tender. e) None of the offers meet the desired specification f) If the vendor withdraw the offer. g) Change in the market demand and taste after tendering process h) L1 back out.

TERMS OF PAYMENT

FOR INDIGENOUS SUPPLIERS 1. Normal payment period is 60 days. Extra payment period is negotiated with

the supplier 2. No offer is accepted with condition of opening the letter of credit. 3. In special cases, part or full payment against the dispatch document or

delivering goods 4. Advance payment along with the purchase order is considered as dangerous. 5. In case of controlled items, where supply is controlled by Govt. agencies and

the supplier insists the payment in advance, bank guarantee is accepted. 6. The performance of the supplier against the previous order is invariably

reviewed.

FOR FOREIGN SUPPLIERS 1. Payment is arranged against shipping documents Letter of credit is

established only through company’s banks and same is advised to the supplier by the corresponding foreign bank in that area.

2. Advance payment is permitted for items having value less than $2000/-. For advance payment, bank guarantee shall be obtained in case to case basis.

3. The performance of the supplier against the previous order is invariably reviewed.

PURCHASE PROPOSAL Purchase proposal is expected to contain the following documents

1. TECHNICAL SPECIFICATION The detailed specification is required to be attached with the purchase proposal.

2. COMMERCIAL DETAILS MPR No. Quantity and value Statutory levis Clearing, forwarding and commissioning charges Mode of transport Freight charges

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Insurance Delivery &Commissioning charges Payment terms Other terms and conditions Warranty Risk of purchase Duration of supply

SALES DEPARTMENT

INTRODUCTION

Sales and servicing activity is a most important function in fulfilling the objectives of the organization and needs of the customers. It has the activities of selling the machines as per customer satisfaction through its after sales activities.

STRUCTURE OF DEPARTMENT

SCOPE

The scope of the process mapped is sales, servicing and dispatch of HMT Kalamassery product.

Chief of sales

Sales Machine Tools Sales Printing Machine

Sales Engg.

Servicing

Spares

Sales Dispatch Sales Servicing

Spares Dispatch

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OBJECTIVES

The objective is to create and sustain customers in the line with the quantity policy of the company and provide after sales service to achieve total customer satisfaction.

HMT Machine Tools Kalamassery has a sales department. The machines are manufactured only as per the order from the customer. If any order cannot be accepted, then the company informs within seven days. If it can accept the order, within 10 to 14 days, HMT has to inform the customer that the order is accepted in the legal format.

PROCESS

The customer contacts the Regional office and specifies all his requirements, delivery date and other details. These details are then conveyed to the Sales department and Finance department for appropriateness of design time, design, financial concurrence etc. After the feasibility of the design is confirmed by both the department, it gets into production process. The finished product, after inspection and formalities, is dispatched to the customer at the required rate. The payment is made to the Sales department. After sending the required commission to the regional office, sales department sends the rest of the cash to the financial department.

ACTIVITIES OF SALES DEPARTMENT Regional and zonal officers of HMT are authorized to quote and obtain

order. Clarification sought by regional office are replied Orders are checked and registered’ Details of firm order are forwarded to department. Call for amendments and clarification are obtained from customer. Order acceptance (OA) is prepared for customer orders. Alterations in order acceptance is made through amendments Delivery period of order is decided in depatch production meeting. Allotment of the machine to the customer is done. Follows up for payment or dispatch clearance are made with customer. The payment or dispatch clearance received is intimate to finance

department. Details of dispatch are intimated to customer. Order and documents to the order including delivery voucher is put in the

customer file.

RESPONSIBILITIES OF VARIOUS DIVISIONS

SALES ENGINEERING

Submission of offers for CNC lathes against enquiries and collection of technically and commercially clears orders. Execution of orders in coordination with related

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departments is done by the sale engineering division. DGS&D rates are available for basic lathe machines. a) In proposal stage

Generation of enquiries in liaison with regional or zonal marketing officer. Preparation and submission of standard tooling machines for CNC Lathes. Interact with customers regarding the offers submitted and provide

clarification required on these offer. Follow up offer for the receipt of orders. Scrutiny of orders and obtaining technical and commercial amendments, if

any required. Put up sanction for unit chiefs, if the prices accepted vary from the approved

prices. Preparation of draft details of firm order for obtaining assembly group

numbers or stock numbers from design department. Preparation of tooling layout and follow up for customers approved in case

of tooled up officers. Associate with tooling layouts and also incorporate corrections in tooling

layout, if any. b) In execution stage

Issue details of likely orders Release of tooling layout for detailed toll design Initiate manufacturing or procurement of tooling Correspondence with the marketing officers Coordinate with all concerned sections and technical work up to dispatch of

the machines

APPLICATION ENGINEERING

Application engineering division is expected to coordinate the various activities of the concerned department

Coordination with concerned department to ensure availability of the machine.

Conducting job trials Conduct pre-sales trials Coordinate for the supply of short supplied items Coordinate with the training centre for training on CNC machines

SALES OFFICE

Submission of offers for conventional machines Scrutiny of orders regarding technical and commercial conditions Release of order acceptance Issue of amendments to order acceptance Release of Performa invoice Follow up with marketing or customer for payment dispatched.

SERVICING Commissioning and servicing of machines supplied

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Arranging free replacement spares for rectifying complaints reported during warranty period

Monitoring of customer complaints and provide technical advice Furnishing data for quality assurance department.

SPARES Receiving the customer enquiries for spare parts Issue order of acceptance against purchase order Issue Performa invoice for the payments Receive payment vouchers for accounts department Collect items against customers order and forward to dispatch sections Follow up of service issue, material issue and operational sequence. Planning of spare parts requirements Correspondence with customer and regional offices for spare parts requests Submission of details of spare parts requirements. Follow up with customers regarding pending payments Processing of HMT regional offices and unit spare transfer indent. Documentation of sectional and customer records.

DISPATCH Processing machine and accessories dispatch sheet. Dispatch inspection as per Order of acceptance (OA) Preparation of deliver voucher Physical dispatch of machine and accessories Dispatch of parts or machine with short supply.

LIST OF QUALITY DOCUMENTS

SALES

Work instructions for GPM sales

SALES ENGINEERING Work instruction for sales engineering proposal wing Work instruction for execution of purchase order Work instruction for job trials

SERVICING Work instruction for commissioning Work instruction for servicing Work instruction for compilation and upkeep machine files

SPARES Work instruction for spare quotation Work instruction for spare purchase order Work instruction for spare dispatch

LIST OF QUALITY RECORDS

SALES Check list on enquiry for GPMS

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Check list for order of acceptance applicable for machines Details for firm order for machines Order of acceptance (OA) Amendment to OA Enquiry resister Order under process register Order acceptance register

SALES ENGINEERING Copy of offer Details of likely oder Purchase order (PO) Details of firm order Amendment to P.O. Order of acceptance Amendment to OA Allotment order for machines Minutes of meeting with customer Departmental order Enquiry Register

SERVICING Commissioning report to finance department Delivery voucher Service report Servicing activities Activity register

LIST OF FORMATS AVAILABLE

SALES Order of acceptance Amendment form Details of form order for machines Check list for the order of release of OA applicable for machines Check list on enquiry for GPMs

SALES ENGINEERING Details of likely order Details of firm order Departmental order for manufacturing of tooling Allotment order

SERVICING Commissioning report to finance department Delivery voucher for pares Service report Servicing activities

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SPARES Quotation Order of acceptance Performa invoice Delivery voucher Dispatch information

FINANCE DEPARTMENT

INTRODUCTION

Every organization irrespective of its size relies on its financial health for its survival. The public sector organization HMT has a full fledged finance department in each of its units located at various places. The analysis of financial data is carried out by the finance department. The process of financial analysis is employed to evaluate pas, present and likely future performance of the organization. The financial strength and weakness of the organization is established based on the balance sheet and P&L account prepared by the finance department.

STRUCTURE OF DEPARTMENT

DMF(S) DMF (B)

MAIN A/C S

OBS CONCURRANCE

CASH P/F PA (JUN OFFICER)

IBS WAGES

2 A/C S OFFICERS

IDMF A/C S OFFICER

1 A/C S OFFICER

1 A/C S OFFICER

1 A/C S OFFICER 1 STAFF

1 A/C S OFFICER

1 A/C S OFFICER

1 JUN OFFICER

2 STAFF 4 STAFF 2 STAFF

G M (F)

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FUNCTIONS OF FINANCE DEPARTMENT

The major functions of financial department are:- Accounting the transactions carried out by the company and to prepare

monthly and annual financial statement. Arrange finance for working capital management requirement, capital

addition, and other day to day needs. Working capital management. Liaison with financial institutions and banks. Budgetary control and MIS

All finance activities in HMT-MTL, Kalamassery are computerized

VARIOUS SECTIONS OF FINANCE DEPARTMENT

IBS (INWARD BILL SECTION)

The entire bill that requires payment to be made by the company is sent through the IBS section. It includes purchase bills, expense bills and sundry creditor management. The IBS prepares the accounts for the purchase of material and other expenditure. Preparation of payment vouchers for the purchase offer, scrutinizing the purchase order MI slip and supplier invoice are done by this section. IBS prepares the monthly statements of sundry creditors and outstanding expenses and also makes entries for provisions.

OBS (OUTWARD BILL SECTION)

The entire bills that required payment towards the company are sent from OBS section. OBS section carry out debtor’s management, inwards management, invoice generation etc. This is mainly done based on the documents received from sales department. OBS interconnects the HMT and customer for payment matter. For dispatching the product, delivery voucher and other acceptance come to outward bill section and then to the concerned department. OBS prepare invoice after verification and then submit it to the dispatch section. The machine is sent to the customer at dispatch section only after receiving the invoice from OBS. The department maintains monthly statement about the debtor realization and provisions for sundry debtors.

FINANCIAL CONCURRENCE SECTION

Purchase of raw material and incurring of any other expenditure can be done by only with the concurrence of finance department.

PROVIDENT FUND SECTION

This department takes care of the employee’s provident fund and pension funds. This section arranges the recovery of provident fund from the employee salary. The present statutory minimum recovery is 12 percent. The employees are allowed to contribute higher quantum voluntarily. The company also contributes 12 percent of each employee’s salary into the provident fund account. The amount contributed by

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the employee and employer along with the interest is paid to the employee at the time of retirement or resignation or separation of employee.

WAGE SECTION

This section deals with salaries and wages of all personnel. The wages section prepares the pay roll every month on the basis of muster roll given by time office. The pay roll preparation process is computerized. This section also deals with the advances to employees.

CASH SECTION

This section is concerned with all receipts and payments. This section keeps the cash day book and bank day book. The payment vouchers prepared by inward bill section, wages section and other section are sent to the cash section for final payment. The salary to the workers and supplementary payroll for all employees are prepared by cash section. When the payments or advance cheques are received from the customer against invoice, the same is presented to bank by the cash section. Cash section is responsible for ensuring that the cash credit does not exceed the limit.

MAIN ACCOUNTS SECTION

This section records the various transactions accounted by other sections. This section prepares the final account. Main account section prepares the balance sheet of the unit every year.

COST AND MATERIAL SECTION

This section deals with the keeping of cost data. Price fixation is also done by this section by making use of costing technique. This section estimates the standard and actual cost of the machine manufactured by the company. This section prepares the data for selling price of the machine, special accessories and spares. The cost data for the cost fixation of spare parts is furnished by this section. This section maintains computerized store ledger and stock statements. It also prepare annual budget on the basis of production programmes, sale programmes and capital budgets. This section is responsible for all MIS and section also prepares cost monitoring report.

SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PREPARATION OF FINANCIAL STATEMENT

The financial statements are prepared as of a going concern, under the historical cost conventions, on accrual basis of accounting and in accordance with the provisions of company act 1965, and comply with mandatory Accounting Standards of India.

1. FIXED ASSETS

Fixed assets are valued at the cost of acquisition or construction or net of credit less accumulated depreciation to date. Cost includes direct cost and financing costs

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related to borrowing attributable to acquisition that are capitalized until the assets are ready for use. Laid recent free cost from the state government has been nominally valued and incidental expenditure on development of laid is included in the cost of land.

Fixed assets acquired under financial leases are not capitalized. However the amount of lease rentals for the unexpired period of the lease is disclosed as contingent liability.

Items of capital assets with WDV of Rs.1.0 lakh and above which have been retires from active use, are disclosed at lower of book value or net realizable value and shown separately in the fixed asset schedule.

2. DEPRECIATION

Depreciation on fixed assets is provided on straight line method, at the rate prescribed in schedule XIV to the companies act, 1956, prorate with reference to the date of addition or deletion except assets costing less than Rs.5000/- per assets which is written off to Rs.1/- in the year of purchase. Depreciation on fixed assets is calculated on prorate basis from the date of such addition or as the case may be up to the date on which such assets have been sold discarded or destroyed. Premium for leasehold land is mortised equally over the period of lease.

3. INVESTMENTS

Investments are either classified as current or long term. Current investments are carried at lower of cost and fair value. Long-term investment are carried at cost and provisions recorded to recognize any decline, other than temporary, in carrying value of each investment. Gain or loss in recognized in the year of sale.

4. INVENTORIES

Inventories are valued at lower of cost and net realizable value. The cost of materials is ascertained by adopting weighted average cost method

5. DEVELOPMENT AND COMMISSIONING

In respect of new projects, the pre-product revenue expenditure (including depreciation) is collected under the head “Development and commissioning expenditure” and charged to revenue over four years as follows. (a) In the year of commencement of the commercial product, one fourt of the

development and commissioning expenditure on a prorate basis for the period of production in that year; and

(b) The balance equally over the next three financial years immediately following.

6. DEFERRED REVENUE EXPENDITURE

Technical assistance fee (including fee for technical documentation exchange fluctuation difference) paid / payable under foreign collaboration agreement are amortized equally over the duration/ balance duration of the relevant agreement.

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Expenditure incurred on reconditioning of plant, machinery and equipment is amortized over a technically evaluated period of useful life not exceeding 5 years with prorate write off in the initial year.

Gratuity, earned leave encashment, settlement allowance and lump sum compensation paid to employee received under voluntary retirement scheme are written off in the year of disbursement of the amount.

Expenses incurred in respect of bonds issued for raising funds to meet payments made under the voluntary retirement scheme are amortized proportionally over a period of 5 years.

7. REVENUE RECOGNITION

Sales are set up based on Physical delivery of goods to the customer/ customer’s carrier/ common

carrier, directly supported by invoice excise duty paid challan, gate pass, delivery voucher and LR/GR in case of ex-works contracts.

LR/GR obtained and endorsed in favour of customer consignee ‘self’ in the case of ‘for’ designation.

Sales include excise duty but are net of trade discount and exclude sale tax.

8. FOREIGN CURRENCY TRANSACTION

Transactions in foreign currency are recorded at exchange rate(s) prevailing on the date of transaction or at the forward contract rate(s) wherever applicable. Current assets and liabilities (other than those related to fixed assets) are restarted at the rate prevailing at the year end or at the forward contract rate(s) wherever applicable and difference is recognized as income or expenditure in the profit and loss account.

Exchange difference arising and restatement of liabilities in foreign currency relating to fixed assets is adjusted to the carrying cost of the specific asset.

9. BORROWING COST

Borrowing cost are charged to revenue except those incurred as acquisition or construction of qualifying asset that necessarily takes substantial time to be ready and until intended use of the assets, that are capitalized to the cost of such assets.

10. LEASES

Lease rentals paid as per contractual obligations in respect of assets taken on lease are charged to revenue.

11. RETIREMENT BENEFITS

Provident fund is provided for under a defined benefit scheme. The contributions are made to the trust administered by the company.

Leave encashment is provided for under a defined benefit scheme on actuarial valuation.

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Gratuity is provided for, under a defined benefit scheme, to cover eligible employee’s liability being determined on actuarial valuation. Annual contribution are made, to the extend required, to a trust constituted for this purpose and remitted to life insurance corporation of India, under which the coverage is limited to Rs.50,000/- per eligible employee. The balance provision is being retained in the books to meet any additional liability accruing thereon for payment of gratuity.

Settlement allowance is provided for under a defined benefit scheme, to cover eligible employee, liability being determined on actuarial evaluation.

Pension is provided for under a defined benefit scheme, contributions being administrated by the government.

12. WARRANTY

Warranty provision for contractual obligation in respect of machines sold to customers is set up on basis of an annual assessment made with reference to past experience and is provided in the year of sale.

13. SPECIAL TOOLS

Expenditure of manufactured or brought out special tools are amortized equally over a five year period or earlier, if scrapped. Individual items costing less than Rs.750/- are written off fully in the initial year of acquisition/ manufacture.

14. RESEARCH AND DEVELOPMENT COST

Revenue expenditure is charged to profit and loss account under natural heads. Capital expenditure is recorded as additional to fixed assets and depreciated over the estimated lifetime of related asset.

Prototypes developed are carried as items of inventory at the lower cost or net realizable value until sale/transfer/scrapping. Prototypes remaining not disposed off for a period of five financial years are provisioned for obsolescence in the sixth year.

Contributions to sponsored research and development are amortized equally over the duration/ balance duration of the programme.

15. OTHERS

The amount of Rs. 50,000/- per head received / receivable from L/C in respect of gratuity claims of employees separated under VRS during the year is accounted as other income.

In respect of employees who have separated other than voluntary retirement scheme, the gratuity paid in excess of Rs. 50,000/-, earned leave encashment (ELE), settlement allowance (SA) is debited to the respective provision accounts. The provision at the year end for gratuity ELE and SA is restated as per actuarial valuation done at the year end in compliance with accounting standards 15. in case

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of ELE and SA, any short or excess provision is charged as expenditure or treated as provisions no longer requested.

SOURCES OF FINANCE

The sources of finance are:- Sale of machines Sale of Spares Sale of Accessories Sale of Scrap Service Job order

PUBLIC RELATIONS DEPARTMENT

INTRODUCTION

Public relation department is meant for communicating with the people who wish to gather information about the company. Concept of Public Relation as defined by HMT is “P” stands for Performance and “R” stands for Recognition. Hence public relation is the art of getting recognition for performance of organization. For the growth of the organization, it is necessary to have an efficient public relations department.

STRUCTURE OF THE DEPARTMENT

General Manager

Deputy General Manager (HRM)

Public relations officer

Office superintendent

Office staff & mail dispatch

Receptionist Photo copier operator

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SECTIONS UNDER PUBLIC RELATIONS DEPARTMENT

The various PR sections includes advertising section, news / information section, graphic/ photo section and grievance section.

PUBLICITY SECTION

Publicity section looks after the preparation of publicity materials, its implementation and review publicity strategies from time to time.

ADVERTISING SECTION

The advertising section decides the advertising strategies and budget in consultation with marketing department and advertising agencies. This section study the response of various advertisements in print and electronic media, message and their content

NEWS / INFORMATION DESK

News/information desk is responsible for press coverage, keeping the records of press clippings on subjects of interest to the company.

GRAPHICS/ PHOTO/ LAYOUT SECTION

Graphics/ photo/ layout section develops designs the visual part of the publicity materials/ brochures/ information bulletin and house journal of company.

GRIEVANCES SECTION

Grievances section interacts with various publics who are unable to get their grievances resolved from the concerned resolved from the concerned department of the company in the first instance.

FUNCTIONS OF THE PUBLIC RELATIONS DEPARTMENT

The functions of the public relations department emerge out of the change in values, philosophies and attitudes of the top management in the company. In the past, public relations department had meant for only two major functions, namely, public opinion and communication. In the modern era, many functions, such as evaluation, research, and counseling are associated with the public relations department

1. EVALUATION

The increase in the risk factors and the involvement of high cost in the activities made essential to evaluate the various programme from time to time. The evaluation not only ensures the achievement of its objectives but also increases the intensity of the impact of the programme. The evaluating programmes are related to building of corporate image, social advertising, building of favourable customer attitudes towards the company, building of sympathetic attitudes towards the company among publics.

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2. RESEARCH

Research carried out by the public relations department enhances the credibility of the company. The public relation department conducts research on the performance of the various groups in the company.

3. COUNSELING

Counseling is an important function of public relations department, which helps to develop long lasting relationship with the publics and associating firms. The objectives of counseling are to understand the basic grievances of the customer, exchange important information about the company, invite the suggestions to resolve the grievances and to explain why some of the suggestions are not feasible for implementation. Counseling is the effective method of understanding the trends of various publics.

HUMAN RESOURCES DEPARTMENT

INTRODUCTION

HMT Ltd has around 11,000 employees in the corporate level. The employees are divided into two groups, PS grade and WG grade employees in the shop floor and in various offices the employees include trainees recruited into various grades. In addition, there are Directors, a Chairman and MD appointed by the Govt. of India. The total strength of employees in HMT MTL, Kalamassery is now 499 compared to 3000 when it was started. This is due to VRS policy actively followed by the company. At present, 202 officers, 135 direct workmen and 162 indirect workers are working in HMT-MTL at Kalamssery.

STRUCTURE OF THE DEPARTMENT

Deputy General Manager (HR)

Asst. General Manager (HRM)

Manager training

Dy. Manager (Welfare)

Sr. Engineer (training)

Sr. Medical Officer

Sr. Engineer (estate)

Officer IR

Officer PR Dy. Engineer Dy. Engineer

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FUNCTIONS OF HUMAN RESOURCES DEPARTMENT

The major functions performed by the department are industrial relations, training, safety & securities, personal activities and welfare activities

1. INDUSTRIAL RELATIONS:

The company has been enjoying peaceful industrial atmosphere for as long time. The company has the cooperation of employees in almost all the activities. Whenever conflict occurs it is the duty of this department to look into the matters and take corrective action. The IR Officer acts as a liaison with legal advisors.

In the early days there were only one recognized union in HMT and it was CITU. Currently there exist four major trade unions. They’re

HMT Employees Union- this was affiliated to CITU. It is the 1st and largest union in the company.

HMT Employees Congress- this is also a recognized union affiliated to INTUC

HMT Workers Union HMT employee federation

The G.M. of the unit meets the trade union leaders once in every month to listen to their suggestions and complaints and to appraise the overall situation of the company.

It is natural that the interest of management and trade union differs on certain issues. In an industry the maximum production can be achieved only by securing the confidence and cooperation of the trade union leaders and utilizing them in a positive way.

2 TRAINING

HMT gives very high priority to human resource development through training and organizational activities. The company looks after training needs of employees through their life in the origin. They also conduct customer training programmes. The programmes are sandwiched with lecture sessions followed by interacting sessions guided by various expert faculties. The medium of instruction is English.

There are mainly four types of training programmes, namely, employee training, customer training, statutory training and student guidance programme

a. Employee training

Induction: Duration of this programme is one year. Induction is given to the people selected through recruitment. If the person successfully completes induction, he will be posted in suitable area. Otherwise give further training.

In plant training: It is the training given inside the plant or hands on training. It may be given to the employees who are transferred from different plants in different places.

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Multi-skill training: This is provided as and when it is recruited. This is given only for direct workers on the basis of recommendations of department head. Duration is three months. But it can be extended beyond three months if required. During training programme workers are considered as indirect workers.

Periodical awareness training: This training is given to supervisor and worker category employees depending on need and nature of work. Employees for training may be selected by head of the department.

b. Customer training:

It is given to the customers for the optimum utilization of their products. The main products of the company are machine tools. There are two types of machine tools- conventional lathe & CNC lathes.

CNC operation training: It is maintenance and operation training programme. Its duration is one week. Free training programme is given to a person per machine. It is given in four areas:

Computer programming CNC programming Metallic and hydraulic programming Electric and electrolytic maintaining

A nominal amount is charged from all the candidates. Training calendar is prepared before March every year. Calendar is sent to customers through marketing offices and sales offices. Feed back is collected at the end of the programme. Certificate is provided for training programme.

Printing machine training: The training includes usage and safety measures to be adopted. It is also for one week.

Product orientation training: It is given to the marketing executives, sales executives and service engineers. It is intended to give awareness about new products and also to give awareness about the new properties added to the product.

c. Statutory training (apprenticeship training):

It is given as per the guidelines ministry of labour and ministry of industry.

Graduate training: It is given to B. Tech graduates with mechanical and production. It extends to a period of one year

Technician apprenticeship: It is given to Diploma holders with mechanical, civil, electrical, and electronics back ground. Stipend is same as that of graduate training.

Vocational training: Office apprenticeship, medical lab technician etc are coming under this category.

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Trade apprentice ship: It is given to those who have passed SSLC, securing 1st class. For this training there is an entrance examination and interview. After that trades are fixed (trades are fitter, milling, turning, grinding).

Also apprenticeships training for ITA holders are conducted by HMT. The company also gives training for the operation of CNC lathes, for which duration is 6 months. It is provided to six persons at a time and a negligible amount is charged for the same. Also there is student guidance programming.

SAFETY AND SECURITY:

Safety: Company adopts statutory measures for ensuring safety. Sixty fire extinguishers are placed at different places inside the organization. The company conducts periodical medical checkup for employees in certain areas like electroplating which affect the health of the employees. A welfare checkup is giving to employees in foundry periodically.

In this department activities are carried out according to safety standards. These standards are exhibited at different places inside the organization. The employees are given several safety equipments like leather gloves, PVC gloves, helmets, fire shield, dust mask, welder shield, safety shoes etc. If any accident occurs in the company, the matter will be informed to the safety department within 24 hours by the supervisors through an accident intimation form. This form is prepared in triplicate- one copy to medical department, one copy to the safety department and the third to the concerned department. The supervisor should inform to the ESI department if the injured employee have ESI. All the accidents in the factory should be communicated to the factory inspector, if the employees are disabled for more than 48 hours.

There is a safety committee for discussing the problems relating to the safety of workers. The company maintains a pollution free environment inside and outside its premises. However certain areas such as foundry, chimney, electroplating department etc. are under the pollution control board. They undertake the sample periodically from the areas and check whether it is restricted to permissible level.

Security: The main function of the security department is to protect the company’s property. Gate pass is too provided for all the employees and also to those who enter the company for various purposes. There is separate entry for men and materials. This department undertakes patrolling day & night. It is the duty of security department to flag on the national flag in the morning and flag off in the evening.

At present, nine permanent staffs are in the department. Most of them are ex-service men. Twenty employees in the department are working on contract basis. They are kept in the security department as gate keepers. The main duty of this department is to check every employee and restrict entrance for unrecognized persons. The registers maintained in the security department are:

Material out going register/ white pass :sake of materials i. Gate pass 1 – the sending of machinery, spare parts within India.

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ii. Gate pass 2 – the material is sent to other country. Material incoming register: the material coming into the companies are

recorded here. The security will check quantity, supplier name etc. Tool register: temporary going of tools, to different parts in the company. It

contains date, time, quantity etc. In over time record contains records who have worked over time.

PERSONNEL ACTIVITIES:

This includes all the personnel administration activities in the company, the personnel function is carried out according to the policy framed by manual. Some of the personnel functions in the company are:

i) HRM grievance procedure: The objective of grievance procedure is to provide a settlement of grievances of officers and to adopt measures so as to ensure expeditions. Settlement of grievance leads to increased satisfaction on the job and results in improved productivity and efficiency in the organization. The various stages in the submission of grievance are as follows.

Each unit has a grievance committee consisting of production chief account chief and personnel chief of the unit. The personnel chief being convener of the committee.

The aggrieved person should submit his grievance in writing to the convener of the grievance committee.

The convener should collect all the related relevant data regarding the sound grievance.

Grievance committee then calls the assigned officer with in fifteen days of the receipt of the grievance and discuss with him. Within a week the grievance committee should record and submit its findings.

The findings of grievance committee should be communicated to the assigned officer by the convener with a copy to the department head for taking necessary action arising out of the findings of the grievance committee.

If the aggrieved officer is not satisfactory with the findings of the grievance committee, he may prefer an appeal to the Unit Chief. The Unit Chief should convey his decision within fifteen days of the receipt of the appeal. The decision of the Unit Chief is final.

ii) Recruitment: Procedure for recruitment of management trainees in engineering and other professional areas: The recruitment in these areas will be made by the Corporate Personnel Directorate.

iii) Induction policy: The induction program is for a period of one year. The functional relationship between corporate HRD divisions with management trainees during the induction program continues for the whole year. The purpose of this induction program is to facilitate the transition of the trainees from the campus to the industry.

iv) Promotion policy: There shall be two systems of promotion within the executive positions in HMT, namely, promotion within the group and promotion between the

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groups. All promotions are made in accordance with this promotion policy which will be from one scale of pay to the next without skipping any scale of pay.

The promotion norms shall consist of two parts Eligibility factors, which include a qualifying period, qualification norms

attendance conduct prescribed standards in Performance Appraisal. Suitability factors, which include an interview and assessment of the potential

of the executives in his own channel or for a post other than in his own channel of promotion.

Promotion within the groups: a. Unit cadre: The Competent Authority on the recommendations of Directorate

will make promotions within the groups. b. Corporate cadre: All promotions in the Corporate i.e. group V shall be

subject to availability of vacancies and the organization need to fulfill them.

Promotion between the groups:

These promotions shall be made in accordance with the above eligibility and suitability factors and will be based on the availability of vacancies and the organizational need to fill up such vacancies. In considering the promotion of an executive from 1 group to another, merit will be the primary consideration which will include an assessment of the executive’s potential and aptitude for higher managerial position.

Executive who have outstanding reports for three consecutive years shall be considered for promotion in accordance with qualifying periods prescribed for outstanding category. The outstanding ratings of these executives shall be reviewed in detail before such consideration by the respective performance review committees constituted for that purpose under the Performance Appraisal system.

The low performers who fail to fulfill the prescribe eligibility norms for three successive years shall be counseled by the committees. This is in addition to the counseling done by their respective reporting officers as laid down in the appraisal system. The committee may also recommend developmental training and change of job to enable such low performers to improve their performance.

v) Performance appraisal system: The appraisal will consist of the following stages:

Appraisal rating of the employee on i. Job performance factors- job knowledge, quality of work, target

fulfillment, cost\time control, and safety consciousness. ii. Managerial ability factors- planning & organizing, problem analysis

and decision, inter personal skills, communication skills, self motivation, commitment, responsiveness to change, developing subordinates, management of human resource, positive discipline.

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General comments and overall assessment of developmental needs of appraise leading to final assessment.

Review discussion by appraisal Follow up action to the taken Review discussion b/w appraises and after appraising the employee is

complete both by reporting and review officers.

vi) Voluntary retirement scheme: The scheme is introduced to cut down the manpower strength and reach an optimum level and also provide monetary benefit to employees. The scheme is not applicable for professionally qualified employees like graduate employees and professionally in finance, HRM, marketing.

Procedure for VRS: Employees opting for the scheme are to apply through proper channel to the HRM chief. The HRM department verifies the particulars and forwards it to recommending committees. After recommendation it is permitted. Employees are permitted to retire on any day of the shift.

vii) Participative management: In this scheme the participation flow from the grass- root to a corporate level through various stratified councils, namely, micro level councils and macro level councils.

Micro level councils: Micro level councils include workgroup council and unit management council

Work group council: It is functioning at work unit level. Chairman is the officer\ supervisor of the work group and other employees in the work group are members. This council shall provide a total and effective participation at the grass root level.

Sectional management council – chairman is the sectional head and members are the officers\ supervisors. This council shall review the progress of the work group councils functioning under their control. They shall discuss various problems of their section and try to solve them.

Department management council – departmental head is the chairman and all the sectional heads are the members. This council shall review the suggestions given by the sectional management council and try to solve the problem.

Link pin council: Link pin council consist of unit chief, president or general secretary of the recognized union, President of the officer’s association, Production chief Finance chief, Personal chief. This council shall oversee the functioning of all the above councils and monitor their activities. This council shall play the role of TROUBLE – SHOOTER and COORDINATOR.

Unit management council: Unit management council consists of unit chief and departmental heads.

Periodicity of meetings: Meetings will be held at least once a month. The progress reports shall be submitted by the chairman of the council to the chairman of the next

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higher council on a monthly basis. This council may plan the strategies for coordinating the activities of the other councils.

Macro level council: The macro level councils is the joint management council. The council consists of Chairman & MD, Functional directors, Business group chiefs, Personal chiefs of units, worker’s representative, Officer’s representative, GM (HRD). Meetings will be held at least once in an year. Periodicity Welfare activities:

WELFARE MEASURES

Welfare measures include statutory welfare measures and non- statutory welfare measures.

Statutory welfare measures:

Washing facilities – separate washing facilities for men and women, it is easily accessible to the work place.

Storing and drying of clothes. Sitting facilities First aid and ambulance – dispensary with all medical facilities and

ambulance. Canteen Rest room & lunch room – there is a home meal section attached to the

canteen. Rooms are provided for the purpose. Welfare officer – as per factories act, there are 1 welfare officer

Non statutory welfare measures:

Uniform – two sets of uniforms are supplied to eligible work men excluding foundry. For the foundry workers 4 sets of uniforms are provided. For administrative 2 sets of uniform are provided.

Housing - Subsidized quarters are provided for the benefit of the employees. 240 quarters under the SIHS for workers. In addition there are 32 single quarters and 48 multi quarters.

Transport facilities - Company buses and buses run on contract basis are plying through various routes for the benefit of all the employees. A certain amount based on the salary is deducted every month from the salary wages of the bus pass holder.

Recreational facilities: Social club, arts and dramatic club, sports club, educational society

Medical benefit –For those who are not covered by the ESI act, there is a medical benefit scheme. Under the scheme families are also eligible for treatment. Treatment can be had from the company’s dispensary or any provided hospital or company’s panel of doctors and any other government hospitals. Medical expenses are reimbursed by the company as per the scheme.

46

HMT Employees Consumer Cooperative Stores – The society has been formed for the benefits HMT employees and is in operation since 1965. Employees are eligible to apply for membership on payment of Rs. 10/- share. On request any number of shares can be allotted. It is managed by a committee consisting of nine members out of which six are elected and three (President, Treasurer and a member) are management nominees society at present is running a provision store, treasure store and a fare price shop.

PLANT SERVICES

INTRODUCTION Plant services department is responsible for maintaining the machines and equipments of the unit in optimum condition of performance so as to make them available for production. The plat services department is responsible for the erection and commissioning of the machines in the plant. The department is also responsible for the electrical power distribution of the entire factory complex. The department looks after the internal transport functions and house keeping activities inside the factory.

STRUCTURE OF DEPARTMENT

SCOPE Erection, commissioning, repair, maintenance, reconditioning, retrofitting

and preventive maintenance of all the machines and equipment used for production in the MTD and PMD plants and training center.

JGM (PS)

DCE (Mechanical) DCE (Electrical)

Sr. Engineer

Sr. Engineer

Sr. Engineer

Dy. Engineer

WG WG

Sr. Engineer

Sr. Engineer

Dy. Engineer

WG WG

47

Maintenance of the eot cranes, jib cranes, air compressors and a/c units in the MTD and PMD plants.

Upkeep of R&M stores and spare parts planning. House keeping activities in the shop floors. Materials movement in the shop floors and maintenance of internal transport

vehicles and equipment. Maintenance of power supply to the entire factory complex. Maintenance of 66 kV sub-station, switchgear, power transformers, and the

entire distribution system. Maintenance of supply distribution in colony, pump house. Maintenance of internal telephone exchange and the communication system. To arrange and co-ordinate contract works in connection with any of the

above activities.

OBJECTIVES To maintain the plant, machines and equipments in optimum conditions of performance ensuring availability for production. The plant services department sets its measurable quality objectives for every year. These objectives ensure that the machines and equipments are well maintained to meet the requirements of the customers. The quality objectives are communicated to all the employees in the department by displaying them in the key areas of the factory.

RESPONSIBILITIES OF OFFICERS HOD Head of Plant Services Department has to ensure

Administration Electrical Maintenance for MTD Mechanical Maintenance Internal Transport PMD Maintenance

Also ensure safety aspects as per Factories Act, Factory Rules and Electricity Rules in respect of Plant and Machinery. SECTION IN-CHARGE, MECHANICAL

Erection, commissioning and maintenance of all machines and equipment, cranes, air compressors and A/c Plant in the factory of MTK and PMD.

Preventive maintenance of all critical machines and equipment under his control.

Reconditioning of all critical machines and equipment. Testing of EOT cranes and compressors as per factory regulations. Maintenance planning. Identifying training needs of employees under his control. Lubrication services. House keeping functions in the factory. Ensuring compliance with ISO 9001 requirements of the department.

48

SECTION IN-CHARGE, ELECTRICAL Maintenance of Power supply system in 66KV Sub station. MTK and PMD

Plants and HMT Colony. Erection, commissioning and maintenance of electrical portion in machines

and equipment and operations of all electrical equipment. Preventive maintenance (Electrical) of all critical machines and equipment in

MTK and PMD. Reconditioning (Electrical) of all critical machines and equipment. Safety of all electrical equipment as per factory rules and electricity rules. Internal communication systems. Internal Transport vehicle electrical repair. Ensuring compliance to ISO 9001 standards of all the activities in his

section.

PROCESS CHART FOR BREAKDOWN MAINTENANCE

YesYes

No Yes

Yes

No

Receipt of Requisition for machine repair

Enter in daily work register and allot work according to priority

Is work simple?

Spares required?

Rectify Defects

Machine idle closing after checking and

acceptance

Entry of major break downs in machine

history

Review of major works in FORTNIGHTLY

MEETING for process improvement

Is work too complex?

Refer manual / drawing consult supervisor

Analyze the problem in detail and take expert

opinion from other departments, if required

Hire outside experts, if required

Spares available?

Spares repairable?Replace spare

Manufacture / procure spare

Repair the spare and assemble

Yes

No

No

No

49

QUALITY CONTROL & INSPECTION

INTRODUCTION

Quality control in its simplest term refers to control of quality during the manufacture. Both quality control and inspection are envisaged to assure the quality in entire area of production process. Inspection is a function of determining the quality. When quality becomes effective, the need for inspection decreases. Hence, the quality control determines the cause of variation in the characteristics of products and gives solutions by which these variations can be controlled. It is economical in its purpose, objective in its procedure, dynamic in its operation and helpful in its treatment.

STRUCTURE OF DEPARTMENT

SCOPE The quality control department is mapped to execute at the areas of incoming materials acceptance, sub-contract components acceptance, manufacturing process, assembly in process, calibration and certification of measuring instruments both in house and external, calibration and certification of all out going products of the unit. The department also conducts systematic analysis of feedbacks from both internal

JGM (Q)

DGM(Q)

DCE (MI)

DCE (Q)

DCE (IDI)

DCE (QP)

STQ

PS

WS

WG

PS

WG

PS

WG

SPQ

PS PS

50

and external origin. The department conducts customer complaint analysis and suggests / insists the corrective action.

OBJECTIVES The total quality management department sets its measurable quality objectives for every year. These objectives ensure that requirements of the products are not only identified and met with, but also constantly reviewed and improved. The quality objectives are communicated to all the employees in the department by displaying it in the key areas. The measurable objectives are set taking into consideration of the following.

Reduce internal losses due to scrap rejection and rework. Reduce external losses due to service cost. Maximize the customer satisfaction

PURPOSE To ensure the conformance of the incoming items or raw materials being

used for the production with the specified standards. To ensure that the casting produced in the foundry department meet the

design standards. To ensure documentation of the quality of the components and assembled

units by inspecting or testing. To ensure the testing of end products for its conformation with the

specification. This is carried out by inspecting the performance of the end machine in a systematic manner as specified in the working instruction manual.

To ensure the documentation of all inspection report. To ensure the procurement of modern testing instruments and periodic

calibration of the existing testing facilities. To ensure the quality of the manufacturing process of the major components

in the unit. To ensure the systematic analysis of the feed backs on performance and

reliability reports of the products from inspection. To ensure the systematic analysis of customer complaints for continual

improvement of the product quality To ensure total customer satisfaction.

MEASUREMENT OF TOTAL QUALITY MANAGEMENT EFFECTIVENESS

INSPECTION

The effectiveness of the inspection process is measured through four parameters taken from internal and customer feedback. An average expected value per annum will be fixed by evaluating previous years records and strategic measures will be planned to bring down it to a lower value than the expected. The measurement parameters are:-

No. of NCR in assembly due to the manufacturing components No of NCR in assembly due to brought out parts

51

Warranty cost due to failure of BOP items during the month in Rupees Warranty cost due to failure of manufacturing items during the month in

Rupees

QUALITY CONTROL

The effectiveness of the quality control is measured with five parameters. The average expected value per annum will be fixed by evaluating previous year’s record and strategic measures will be planned to bring down it to a lower value than expected. These parameters will be analyzed monthly in UQC meeting for necessary correction and preventive measures are taken to ensure its effectiveness. The measuring parameters are:-

Percentage loss of standard hours Loss in rupees Percentage loss in foundry product Average warranty cost per machine Average breakdown days per machine

QUALITY POLICY HMT MTL is committed to

Maintain QUALITY LEADERSHIP in all products and services. TOTAL CUSTOMER SATISFACTION through quality goods and services. Commitment of management of CONTINUALLY IMPROVE the quality

system. To create a CULTURE among all employees towards TOTAL QUALITY

CONCEPT. Total quality through PERFORMANCE LEADERSHIP.

QUALITY OBJECTIVES The objectives of the quality management at HMT MTL at Kalamassery are :-

Total production for the year 2010-11 - 78 cores Total sales for the year 2010-11 - 78 cores Operational profit (PBDIT) - 250 lakhs Internal losses (% of standard hours) - 0.6% Total foundry rejection - 2.4% Average warranty cost per month - Rs.900/-

ISO 9001 ACCREDITATION The HMT Ltd is accredited with ISO 9001 certification in 2001. Quality assurance offers more scope for reducing costs, rework. Extra handling, rejections etc and enhancing competitiveness and profitability than other management techniques there by considerably reducing warranty claims and premium pricing. Effective quality management system in a company will help the company to acquire and maintain desired quality and optimum costs through planned and efficient utilization of the technological and material resources available to the company.

52

RESPONSIBILITIES JGM (Q) is the head of the TQM department including quality assurance and quality management system.

DGM (Q) Register the service reports and hand over to the conveners of PWCCA

meeting for analysis Submit NCR to other departments like design, planning etc. and also to the

concerned department for corrective action. Analysis of the standard hour lost due to such defects.

Collection of shop NCRs, segregation and entering into main frame computer. Collection of internal rejection reports of manufacturing and foundry

departments and issuing the same for analysis to the concerned heads. Collection of assembly NCRs and giving the reports to concerned head for

corrective action. Collection of UQC inputs and prepares the UQC agenda. Preparation of management review meeting (MRM) agenda Preparation and distribute the minutes of meeting of UQC & MRM. Maintain relevant record necessary for ISO 9001 QMS

DCE (QP)

DCE(QP) is responsible for:- Incoming inspection, in-process inspection and final testing of printing

machine and paper cutting machines. Conduct of TQM activities like incoming inspection, in-process inspection,

assembly inspection and product testing of all printing division products. Plan and maintain process required for effective functioning of TQM

departments. Measure monitor and control the process and take necessary action to achieve the planned results.

Take positive leadership involving every employees of the section to achieve the planned performance and continual improvement.

Maintain ISO 9001 quality management system procedures and documents in the section.

Do the routine administrative function and maintain the records Plan and schedule the rollers required for different printing machines and

ensure the availability of them.

DCE (MI)

DCE (MI-machine inspection) is responsible for mechanical electrical assembly inspection, machine final testing, customer inspection, QC of painting, machine packing and dispatch inspection of all machines of HMT MTL at Kalamassery.

DCE (Q)

DCE (Q- quality) is responsible for:- Conduct the inspection of manufacturing sections of the machine tool division

and maintain section records.

53

Measure, monitor and control the TQM process and take necessary action to achieve the planned objectives.

Take positive leadership to achieve planned performance Maintain ISO 9001 quality management system procedures and document in

the section. Do the routine administrative functions and maintain the records.

DCE (IDI)

DCE (IDI ) is expected to:- Conduct the quality control of the incoming materials as per the design

documents / HMT standards Measure, monitor and control the internal customer / user department, feed

back and take corrective actions/ preventive actions. Interact with other departments like purchase, PPM and other user departments

for smooth functions of the section. Conduct inspection at the site of suppliers, work and give feedback and

technical guidance for improvement. Maintain ISO 9001 quality management system procedures and documents.

STORES

INTRODUCTION The store is the section in the organization meant for receiving, storage and issuing the inventories. In HMT MTL at Kalamassery, the stores are attached to the purchase department. Stores keep the materials in the custody against pilferage damage, deterioration and unauthorized withdrawal. For the convenience of handling the materials, the stores are divided into incoming store, main store, stationery store, sub-contract store and steel yard.

STRUCTURE OF DEPARTMENT

D G M (printing)

D G M (Machine Tool)

Manager (Material Planning)

D C E (Material Planning)

Store officers 1. Incoming store 2. Main store 3. Subcontract store 4. Steel yard 5. Stationery store

J G M

Store officers 1. Incoming store 2. Main store 3. Subcontract store 4. Steel yard 5. Stationery store

54

SUB SECTIONS IN STORES

INCOMING STORES

Incoming stores receives the materials against purchase order. The invoice and the materials are collected from the supplier at incoming store. The offer in charge of the store verifies the quantity of the supplied goods and physical condition of the goods supplied. After receiving the items, the stores officer prepares the material inward (MI) slip. The four copies of the MI slip are given to officer in charge of quality inspection. The quality of the material is assessed in the inspection and the record of acceptance/ rejection is marked in all four copies of the MI slip. One slip is kept in quality inspection department and other three slips are returned to the incoming stores. The MI slip number is the reference for all future communication with regard to the items received. The MI slip of the items rejected in the quality inspection will be sent to purchase department for taking necessary action for replacement of the items.

MAIN STORE / ISSUE STORE

The two MI slips and the materials are transferred to the main store from the incoming store. All the materials are tagged and stored in bin. A software based inventory register is maintained in the main store. The various other departments are given privilege to view the stock position of each of the item for preparing the order form to collect the items from the main store. The items are issued based on:-

Material warrant: The list generated by the department to collect the materials from the main store

Issue slip: By submitting the issue slip, items of immediate requirement is permitted to collect even from incoming store. Issue slip and the balance items will be transferred to the main store from the incoming store.

Demand note: Additional items of immediate requirement are collected from the main store by submitting the demand note.

On issuing items against the above documents are entered in the computer and the stock is updated.

SUB-CONTRACT STORES

The sub-contract store is the place to store items purchased under sub-contract. The sub-contract items include sheet metal work, gears work, grinding work etc. The HMT MTL at Kalamassery receives the subcontract items from various firms located at Coimbatore, Bangalore, Belgaum and Ernakulam. The functioning of sub-contact store is similar to that of the main store. The items are stored in different bins and issued against demand note originated from other departments.

The weigh bridge and fire proof store is controlled by the officer in charge of sub-contract store. Industrial oxygen for welding purpose, acetylene, manila rope etc are stored in fire proof store.

55

STEEL YARD

The billets, rounds of various diameters for making various components of the machine tools and printing machines are stored in the steel yard. The various quality of steel are painted with standard colour and stored at different location. The long steel cylinders are cut to the demanded length and issued from the steel yard. The steel sections are issued against demand note.

STATIONERY STORE

The stationery items like paper, pen, books, files etc. are stored in the stationery store. The items are issued against demand note.

PLANNING DEPARTMENT

INTRODUCTION

The Production planning department is the most vital link between product design and production department. This department provide necessary facilities and technical know how for the manufacture of the product. Production requires optimum utilization of natural resources, men, money, material and machines. But before starting the work of actual production, Production planning has to be done in order to anticipate possible difficulties and decide in advance how the production should be carried out in the best and economic way. The principle of Production planning lies in the statement “First plan your work, and then work for your plan”.

STRUCTURE OF DEPARTMENT

JGM (E)

DGM (E)

Sr. Engineer

Engineer

Dy. Engineer

WG

56

OBJECTIVES

In any business organization, production activities must be related to market demands as indicated by the continuous stream of the customer’s orders. For maximum effectiveness this must be done in such a way that customer’s demand is satisfied. But at the same time, production should be carried out in an economic manner. The process of developing this kind of relationship between market demand and production capability is the function of production planning and control.

ROLE OF PLANNING DEPARTMENT The role of Production planning department comprises of:

Production Pre Planning (PPP) and Planning Estimation (PPE) Production Planning Ordering (PPO) & Finished Part Section (FPS)

FUNCTIONS AND RESPONSIBILITIES

1. PRODUCTION PRE PLANNING Processing design documents Identification of house manufacturing item, outside manufacturing item and

brought out parts Preparation of preparation layouts Identifying and intending actions for all special toolings Implementation of design alterations Manufacturing special tool data Attending shop problems Coordinating activities related to alteration requests Preparation of documents related to assembly of products All data entry in computer related to PPP Verification and approval of materials warrant Maintain all data and records related to the products Arranging and ensuring all quality formats

2. PRODUCTION PLANNING ESTIMATION Estimation of standard time for manufacturing and assembly operations Preparation and implementation of alterations Data entry of activities related to PPE function in the computer Attending shop complaints regarding standard time Authorization of special time in job cars Arranging time study

3. PERFORMANCE MONITORING WING Analyze the organization requirement Design the structure report Create appropriate database Develop software for report Prepare making list and dispatch of statements

57

3. COSTING SECTION Arranging the data related standard labour, material and assembly cost Assessment of rectification or rework expenses Coordination of activities related to annual product costing

4. TIME RECORDE Monitoring and ensuring the regular flow of job card Entering ticket numbers and actual hours on each job Calculating the total standard hours for a job Obtaining signature on job cards and idle cards Acting as a link between PPD and shop floor.

PROCESS MODEL OF PRODUCTION PLANNING

SUPPLIER INPUT PROCESS OUTPUT CUSTOMERDesign

Tool design

Parts list component Drawings Assembly drawings Assembly group list

Tool database

Preparation of operation layout and

standard time for manufacturing components

New operation

layout New

operation master

PPO Manufacturing

Design

DDC

Parts list Component

drawing

Data entry terminals

Initiate procurement action of

components/standard parts

Letter of intimation

PPM subcontract

Design

DDC

Parts list Assembly drawing

Data entry terminals

Computerization of planning data

Parts list file

Product data base

PPO

PPM

Design Component drawing

Assembly drawing

Initiate action for new special tool

Departmental order

Tool design

Design

DDC

All notice parts list

Data entry terminals

Implementation of design alteration

Operation layout

Operation master Rework layout

PPO Manufacturing

assembly

58

PROCES FLOW CHART

Production pre planning seeks clarification

Start

Design Department

Whether documents as per norms

Production pre planning Studies the document

No

Yes

Production pre planning Classifies components

Is any Orderly Finished items?

PPP release documents to PPM for procurement Yes

No

Subcontract items

PPP release documents to PPM to raise MPR

Yes

No

Production pre planning Prepares operation layout

Casting, forging required

Intimate foundry/PPM department Yes

No

n

59

n

Special tool required

PPP raises DOs for special tooling Yes

No

PPP prepare operation master

CNC work required

Call for preparation of

CNC programme

Yes

No

Production planning computerize documents

Production planning releases documents

To other depts

Production keeps original documents

systematically

Stop

Tool design prepares special tool drawing

Production planning approves tool design drg

60

SAFETY & SECURITY DEPARTMENT

INTRODUCTION

HMT Machine Tools Ltd. is a company where health and safety assurance is properly maintained. The department which helps in maintaining safety has introduced many technical and methodical ways to reduce the accidents and hazards. For the safety of employees, some statutory tests are made for certain areas such as crane, lift, pressure vessels etc. There are sixty fire extinguishers placed in several areas for the safety of workers.

STRUCTURE OF DEPARTMENT

MAIN FUNCTIONS Safety of the organization Safety Promotion Prevention and precaution of fire Checking of the safety instruments Fire and safety training to the employees.

SAFETY MEASURES Fire hydrant network Sprinkler system for spraying water incase of fire Insulated sphere and bullets to reduce heat Deluge system provided for loading and unloading areas of chemical hazard Safety shower and eye wash system are provided Fire proofing is done Two generators of 1000kW are installed First aid systems are provided Fire alarm Smoke detectors Work permit system is practiced. Personal protective system

RESPONSIBILITIES OF SAFETY DEPARTMENT

The chief of safety department shall be responsible for the maintenance of the system related to safety management. He should ensure that standards of safety issued by the department are available with all sections and are clearly understood

G M

Safety officer

61

and followed. He should arrange for setting up safety committees to promote employees’ participation in safety measures and act as advisor and catalyst in such committee meetings. In co-ordination with HRD arrangement for in plant training of all employees in safety, health and fire prevention is another responsibility. Organize any other activity to motivate and make employees aware. Maintenance of records related to accident. Safety officer should arrange for procurement and distribution of high quality personal protective equipment. Arrange for the periodical testing and certification of all cranes, lifting tackles, lifts and pressure vessels used in factory by outside competent agency. Officer is to conduct accident investigation following receipt of accident intimation. Officer should conduct safety inspection of plant and machinery and arrange for corrective action in liaison with concerned sections if any unsafe conditions or actions are found.

SECURITY DEPARTMENT Security is one of the functional aspects of every organization. Its main purpose is to protect the man, material (raw material, assembled parts, building and installations) and its assets. This department consists of Chief Security Officer, Security Inspectors and Guards (permanent and contract basis). This department has common law on the basis of security standing order and guidelines. Confidential matters are handled under the direct order of General Manager. The total strength of this department is 39. They are working in different shift. Its systematic rule includes: Card Punching, Deployment of post details, Register signature.

STRUCTURE OF DIVISION

GENERAL DUTIES OF SECURITY DEPARTMENT Pass Checking Prevention of theft Fire or accident prevention

G M

C S O

Sr. SYI/SO

Shift I/C A Shift I/C B Shift I/C C

Sr. Security 1

62

Time keeping Ambulance control Patrolling Gate control Registers maintained at the gate

FOUNDRY & PATTERN SHOP

INTRODUCTION

The foundry & pattern shop attached to the machine tool division, HMT, Kalamassery and part of engineering components business group is geared to manufacture all cast iron & spherical graphical iron required for machine tools and printing machinery division and can also undertaken job orders. Established in 1968 with polish design, it is a semi mechanized foundry producing heavy duty gray & SG iron casting for machine tools and printing machines using mains frequency induction furnaces for melting and resin bonded sand for moulding and core making.

STRUCTURE OF DEPARTMENT

Dy. Chief Engineer (FP)

SFH Engr SFP

Ass

t Eng

inee

r M

eltin

g

Hea

vy m

ould

ing

Gre

en sa

nd

Sand

pla

nt

Med

ium

mou

ldin

g

Ass

t Eng

inee

r M

ech

mai

nten

ance

Elec

mai

nten

ance

Prod

Pla

ng C

ontro

l

Fettl

ing

PPE

PPM

Stor

es

Patte

rn sh

op

Foun

dry

Tech

Foun

dry

lab

Off

ice

Dy

Engi

neer

Dy

Engi

neer

Dy

Engi

neer

63

PATTERN SHOP A pattern is defined as anything used for forming an impression called mould in the sand. Mould when filled with molten material on solidifying, forms a reproduction of the pattern and is known as mould. It is slightly larger in size than casting. As the first stage in preparing the casting, the pattern of the castings is prepared. Pattern of casting is prepared at pattern shop with either of the materials given below

Wood:- Wood is the most commonly used pattern material as it is cheap, easily available and also easy to join and fabricate. But it has a large rate of moisture absorption and also warping and wearing is high.

Metals:- Metals have the advantage that they do not warp, are very accurate and have high strength. But shaping is slightly difficult and it is also subjected to rusting and the costs are also high.

Plastics:- They are mostly thermosetting plastics. They are light in weight, have very good surface, do not react with water or air and are not subjected to warping, but cannot withstand high temperatures.

Plasters:- The most common example is gypsum cement. Repairs can’t be easily done and it does not need skilled labour.

Wax:- Wax has very good surface finish, can be easily altered to any shape and is very accurate. But it cannot withstand high temperatures.

Wood with metallic coating Thermocoal: single use patterns are made using thermocoal

In the process of casting, a pattern is a replica of the object to be cast, used to prepare the cavity into which molten material will be poured during the casting process. The pattern needs to incorporate suitable shrinkage allowances depending on material flow and heat transfer considerations. Pattern making is a skilled technique that was highly valued in the different cultures practicing casting through the centuries. In sand casting, the pattern is usually of wood, whereas it may be metal or other materials in pressure or centrifugal casting. The patternmaker also decides where the sprues and risers (inlet and outlet for molten material) will be placed with respect to the pattern. Parts of the object which have holes or depressions are handled by inserting cores defining volumes that the material will not flow into. Sometimes patterns may also accommodate chills, solid pieces of the final material, to enable rapid cooling, resulting in martensitic hardening in the neighbourhood of the chill.

SAND MOULD MAKING PROCEDURE The procedure of making a typical sand moulding starts by placing a bottom board first either on the moulding platform or on the floor, making the surface even. The drag mounding flask is kept upside down on the bottom board along with the drag part of the pattern at the center of the flask on the board. There should be enough clearance between the pattern and the walls of the flask Rest of the drag flask is completely filled with the backup sand and uniformly rammed to compact the sand. The ramming of sand should be done properly so as not to compact it too hard, which makes the escape of gases difficult, nor too loose so that mould would not

64

have enough strength. After the ramming is over, the excess sand in the flask is completely scraped using a flat bar to the level of the flask edge. The finished drag flask is now rolled over to the bottom board exposing the pattern. Using a stick, the edges of the sand around the pattern is repaired and cope half of the pattern is placed over the drag pattern, aligning it with the help of dowel pins. The cope flask on top of the drag is located aligning again with the help of the pins. The dry parting sand is sprinkled all over the drag and on the pattern. A sprue pin for making the sprue passage is located at a small distance of from the pattern. Also a riser pin if required is kept at an appropriate place and freshly prepared moulding sand similar to that of the drag along with the backing sand is sprinkled. The sand is thoroughly rammed, excess sand scraped and vent holes are made all over in the cope as in the drag. The sprue pin and the riser pin are carefully withdrawn from the flask. Later the pouring basin is cut near the top of the sprue. The cope is separated from the drag and any loose sand one the cope and drag interface of the drag is blown off with the help of bellows. Now the cope and the drag pattern halves are withdrawn by using the draw spikes and rapping the pattern all around to slightly enlarge the mould cavity so that the mould wall are not spoiled b the withdrawing pattern. The runner and the gates are cut in the mould carefully without spoiling the mould. Any excess or loose sand found in the runners and mould cavity is blown any using bellows. Now the facing sand in the form of a paste is applied all over the mould cavity and the runners which would give the finishing casting a good surface finish. A dry sand core is prepared using a core box. After suitable baking, it is placed in the mould cavity. The cope is replaced on the drag taking care of the alignment of the two by means of pins. The mould is now ready to pouring.

MOULDING PROCEDURE The pig iron, MS scrap, Carbon, manganese and other constituent materials are melted in the electric furnace. The molten metal is drawn into a ladder and transported using an over head crane. The molten metal is poured to the mould trough the cavity designed for the same.

FORGING Forging is the operation where the metal is heated and then a force is applied to manipulate the metal in such a way that the required final shape is obtained. This is the oldest of the metal working processes known to mankind since the copper age. Forging is generally a hot working operation through cold forging is used sometimes.

FETTLING The complete process of the cleaning of casting, called fettling, involves the removal of the cores, gates and risers, cleaning of the casting surface and chipping of any of the unnecessary projections on the surface. The dry sand cores can be removed simply by knocking off with an iron bar, by means of a core vibrator, or by means of hydro blasting. The method depends on the size, complexity and the core material used. The gates and risers can be removed by hammering, chipping, hack

65

sawing, abrasive cutoff or by flame or cutting. Removal of gates and risers can be simplified by providing a reduced metal sections at the casting joint, for brittle materials such as grey cast iron, the gates cab easily be broken by hitting with a hammer. For steel and other similar materials sawing with any metal cutting saw like hack saw or band saw would be more convenient. For large size gates and risers we use flame or arc cutting to remove them. Similarly, abrasive cut off may also be used for removal of gates. Most of the abrasive cut off can be carried out by portable grinding machines with an angled grinding head. For cleaning the sand particles sticking to the casting surface, sand blasting is normally used. The casting is kept in a closed box and a jet of compressed air with a blast of sand grains or steel grits is directed against the casting surface, which thoroughly cleans the casting surface. T The shots used are either chilled cast iron grit or steel grit. Chilled iron is less expensive but is likely to be lost quickly by fragmentation. In the operation, the operator should be properly protected.

FOUNDRY PROCESS CHART

Planning / job order

Chief of Foundry

Foundry planning

Foundry Tech. Pattern shop

Moulding

Closing pouring

Knock out

Decoring

Fettling

Priming

Inspection

Store / customer

Sand plant Lab

Melting

66

MTK MANUFACTURING INTRODUCTION The machine tool manufacturing department at Kalamassery manufactures various components of conventional lathe and CNC lathes. For convenience, the various parts of the machine are divided into two, namely, small parts and heavy parts.

STRUCTURE OF DEPARTMENT

SECTIONS IN SMALL PARTS AND HEAVY PARTS DIVISION The small parts and heavy parts divisons are subdivided into sections.

Small parts Heavy parts

1 Rounds

2 Non rounds

3 Heat treatment

4 Leads screw

5 Spindles

1 Bed

2 Leg stock

3 Tail stock

4 Apron

5 Saddle

GMK

JGM (Machine Parts)

JGM (Machine Manufacturing)

JGM (Assembly)

Deputy Engineer (Small Parts)

Deputy Engineer (Heavy Parts)

Engineer Engineer

Direct Employees

Indirect Employees

Direct Employees

Indirect Employees

67

6 Gears

7 Terretch

8 C N C Turning

9 Accessories

6 Feed Box

The main operattions in the manufacturing department are gear cutting, gear shaping, taping, drilling, boring, facing, milling, turning etc. in addition, stress relieving furnace is used for relieving the stresses in the cast cast components. The stress relieved components are shaped in the havy parts section.

PAYMENT SYSTEM There are 20 direct employees and 15 indirect employees are working in the manufacturing department. The salary fo the direct employees are paid based on the company rules. The service of the skilled labours supplied by the labour contarctor is used in the department towrds indirect employment. The standard time for each job is identified and defined in the department. The indirect labour is instructed to complete the work within the stanadard time predefined for the component. The payment for manufacturing each component is computed based on the stanadrd rate and standard time. Hence, the worker who complete the job before the standard time will get advantage of payment for the standradr ime predifined for the component.

MTK ASSEMBLY INTRODUCTION The machine tool assembly department at Kalamassery assembles various components of conventional lathe and CNC lathes. For convenience, the assembly department is subdivided into NH assembly and CNC assembly. NH assembly section assembles conventional lathe and CNC assembly section assembles computer numerically controlled lathes. The most of the electrical components are ‘brought out’ items and is assembled by electrical assembly section.

SCOPE The main function of the assembly department is to assemble the materials based on the rolling plan supplied by the sales department and to confirm with the performance and the quality specified in the design documents. Assembly department offer the assembled machines for in house inspection. It will also monitor at different stages of assembly to ensure that a quality product is delivered to the customer.

PURPOSE To assemble the machines as per the rolling plan supplied by sales department. To assemble the machines to meet the design specification. To complete the assembly of machines as per dispatch plan. To evolve systems that can adapts the change in the sales plan.

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To improve the methods and systems to accommodate the change in needs of the market.

To coordinate pre-assembles, group assembles and final assembles to match with the assembly drawings and specifications of the machines.

To record non-conformities and take corrective actions to prevent recurrence of the problem.

To interact with the other departments like production design, tool design, purchase, sub-contract and sales for future improvement of the machine.

To complete assembly of machine without short comings and problems for final assembly.

OBJECTIVES To iimprove performance index To improve efficiency of operation To reduce number of non-conformities To reduce number of customer complaints.

STRUCTURE OF DEPARTMENT

RESPONSIBILITY OF OFFIECER IN CHARGE OF ASSEMBLY Supervising, organizing and monitoring the assembly of machines tools.

GMK

JGM (MP) Machine Production

JGM (MM-Machine Tool Manufacturing)

JGM (Ay- Assembly)

DGM (Foundry)

DCE DCE

Sr. Engineer Sr. Engineer

Work Group Work Group

Sr. Engineers

Work Group

JGM (Electrical Design)

Manufacturing Assembly

Elec

trica

l ass

embl

y

CNC assembly NH assembly

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Monitoring various activities in the assembly department Alloting and planning of work to meet the target. Maintian good industrial relationship and good working enviroment. Assist productivity improvement programmes.

PROCESS FLOW CHART

Subcontract Manufacturing Purchase

PPC Arrange warranty

Short warranty Group assembly

Non-critical assembly

Critical assembly

Inspection

Non-conformities

Correction NC audit

rejected

no

yes

Pre-final assembly

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PMK MANUFACTURING

INTRODUCTION

The printing machine department of HMT Kalamassery is a leading manufacture of offset printing machines in India. PMK department is functioning very similar to that of MTK manufacturing. The major components are cast with the help of foundry department. The cast components are manufactured into printing machine components at PMK manufacturing department.

STRUCTURE OF DEPARTMENT

SECTIONS IN PMK MANUFACTURING The PMK manufacturing is broadly divided into three sections, namely, small parts, heavy parts and high technology center

SMALL PARTS

GMK

JGM (Printing machines)

AGM (manufacture) AGM (assembly)

Sr. Engineer (rounds & cam, gears and rollers)

Sr. Engineer (non-rounds)

Sr. Engineer (heavy parts)

Engineer (high technology

centre)

Assistant Engineer (production planning)

Ex. Engineer

Work group

Ex. Engineer

Work group

Ex. Engineer

Work group

Ex. Engineer

Work group

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The small parts are again sub-divided into rounds non rounds and CGR (cams, gears and rollers). The round or symmetrical objects are machined rounds. The irregular parts are machined in non-rounds cams, Gears and rollers require more accuracy, hence they are machined in separate special purpose machines (SPM) in CGR.

HEAVY PARTS

As the name suggests, the heavy parts deals with machining of heavy parts like : 1. Weld metal base – The base is made by welding together the beams in the

welding shop. 2. Side frame – Side frames are mechanized, drilled bored. 3. Cylinder Drums are machined, and grinded

HIGH TECHNOLOGY CENTER

In this section works which require high accuracy are done in certain special machines.

MACHINES AVAILABLE AT PMK MANUFACTURING 1) NH/CNC Lathes 2) Grinding Machines 3) Milling Machines 4) Drilling Machines 5) Rack cutting machine 6) Cam milling machine 7) Gear hobbing machines 8) Planning machines 9) Boring machine 10) Straight bevel conflux generator 11) Engraving machines

WORK ASSIGNMENT PROCEDURE The method planning of the each component of the printing machine is developed by the planning department at HMT Kalamassery based on the detailed drawing issued by the design department. The planning department issues ‘operation layout’, which details the operations, section number, machine to be used for the operation, special tools to be used for the operation and description of the component. The production planning is done by the planning engineer in the plant. The planning engineer in the plant issues to the ‘manufacturing order’ for each component considering the availability of the machine in the plant. The ‘manufacturing order’ describes the operation number, section number, machine number, standard time (TS & TO), termination (start & end), quantity and inspection details. The worker will receive the design drawing, operation layout and manufacturing order of each component. The standard hour will be credited to the worker, if and only if the job is passed by the quality control personnel.

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PMK ASSEMBLY INTRODUCTION The printing machine department of HMT Kalamassery is functionally divided into two section, namely, PMK manufacturing and PMK assembly. The components manufactured by PMK manufacture section and brought out components are assembled in the PMK assembly section.

STRUCTURE OF DEPARTMENT

SECTIONS IN PMK ASSEMBLY

The printing machine assembly is primarily categorized in to three sections, namely, pre-assembly, group assembly and final assembly

1) PRE-ASSEMBLY

Pre-assembly is the stage in which various parts are prepared for assembly. This includes inspection, alignment and assembly of some delicate parts which needs high accuracy. Pre-assembly is again divided into two sections.

a) Mechanical Pre-assembly

The main parts assembled in this section are side lays and front lays, sheet pickup unit and wing gripper. About three hundred components are assembled in the

GMK

JGM (printing)

DGM (assembly)

DCE (Mechanical

pre-assembly) Sr. Engineer (Electrical assembly)

DCE (final

assembly)

Deputy Engineer

Work group Work group Work group

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mechanical pre-assembly section. The components that are assembled in the pre-assembly section are transferred to group assembly section and final assembly section.

b) Electrical Pre-assembly

All the electrical parts and circuits are assembled here. Power supply units and control units are assembled in this section. The major works carried out in this section are electrical panel preparation and cable preparation. The drawings and tools are given to the worker. The electrical control elements, MCB, wires are assembled in this section. The remuneration to the workers is paid based on the output measured in terms of standard time for each work carried out in the plant.

2. GROUP ASSEMBLY

In group assembly the compound parts which correctively perform certain functions are assemble. The main parts assembled in this section are cylinder drums (PC, BC, IC), inking units and feeder units.

3. FINAL ASSEMBLY

It is the final stage of assembly. Final assembly consists of mechanical and electrical assembly works. It is the assembly of and on the machine frame. The parts from pre-assembly and group assembly are assembled in the final assembly to form the printing machine. The general flow of assembly in this stage is as follows:

Base preparation Side frame mounting Bush suiting Lubrication system assembly Cylinder mounting Delivery unit assembly Swing gripper fitting Front lay and side lays Inking unit mounting Feeder mounting Electrical interfacing Paper feeding Checking time chart Testing Painting, cover mounting, dispatch

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CHAPTER FINANCIAL STATEMENTS

INTRODUCTION Financial statements are he indicative of the financial position of the company. The balance sheet and the profit and loss accounts are the financials statements collected from the company reports. The financial statements indicate that the company is in distress.

Balance sheet M/s HMT MTLK

Amount in rupees for the period Item Mar 2005 Mar 2006 Mar 2007 Mar 2008 Mar 2009

Source fund Share holders fund Machine tool directorate account (283,543,284) (394,904,025) (203,087,801) (54,775,637) 27,434,444 Reserves and surplus Loan fund Secured loans 81,561,459 77,677,266 68,970,807 27,721,155 40,371,149 Unsecured loan 502,142,514 565,731,841 21,320,000 55,741,842 77,598,878

Total 300,160,689 248,505,082 (112,796,994) 28,687,360 145,404,471 Application of funds Fixed assets Gross block 387,084,715 386,591,452 386,281,091 382,763,695 424,273,178 less depreciation 293,317,309 303,941,572 323,723,822 326,878,824 337,349,987 Net block 93,767,406 82,649,880 62,557,269 55,884,871 86,923,191 Capital work in progress 6,395,332 12,396,983 10,485,256 Machinery and equipments in transit and under erection 225,396 6,447,348 Investments Current assets, loans and advances Inventories 140,495,240 156,568,818 133,426,180 123,498,251 166,503,755 Sundry debtors 164,014,558 146,168,941 133,620,278 216,598,484 196,396,817 Cash and bank balances 4,406,924 11,539,119 14,560,740 2,862,458 5,708,727 Other current assets 4,226,579 4,191,023 4,708,576 4,816,031 4,238,467 Loans and advances 85,348,531 92,122,992 92,650,296 97,326,819 98,635,181

Subtotal 398,491,832 410,590,893 378,966,070 445,102,043 471,482,947 Less current liabilities

and provisions Current liabilities 314,700,885 322,429,814 339,282,763 263,728,832 218,132,315 Provisions 128,624,675 146,521,820 222,647,169 221,970,113 212,592,535

Subtotal 443,325,560 468,951,634 561,929,932 485,698,945 430,724,850 Net current assets (44,833,728) (58,360,741) (182,963,862) (40,596,902) 40,758,097 Miscellaneous expenditure Profit & Loss account 251,001,615 224,215,943 1,214,267 1,002,408 790,579

Total 300,160,689 248,505,082 (112,796,994) 28,687,360 145,404,471

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Profit & Loss Account M/s HMT MTLK

Amount in rupees for the period Item Mar 2005 Mar 2006 Mar 2007 Mar 2008 Mar 2009

Earnings Sales (gross) 515,731,393 544,793,834 553,928,675 565,264,246 547,972,262 Less excise duty 68,647,645 51,850,655 Transfer to plant 510,198 409,324 9,535,670 Other income 8,797,744 10,322,744 77,980,553 20,038,359 50,292,743 Accretion to work in progress finished stock & scrap 28,707,756 3,075,190 (38,744,127) (804,641) 27,259,237 Inter factory transfer 3,026,595 2,988,322 1,593,824 2,031,843 719,484

Total 556,773,686 561,589,414 594,758,925 527,417,832 574,393,071 Less : (Out going) Materials 215,586,596 230,028,746 212,745,913 228,691,601 249,481,574 Personal 190,562,018 198,717,893 221,370,400 211,083,118 202,035,411 Depreciation 7,714,778 9,048,954 9,936,154 9,576,526 11,920,471 Other expenses 68,913,289 74,668,251 115,225,366 52,183,036 56,171,049 Interest (net) 17,333,211 17,052,805 17,380,174 18,167,507 7,466,612 VRS compensation (written off) 36,832,310 38,040,649 46,401,453 31,117,243 7,336,470 Reimbursement of expenses to marketing 125,850,767 125,723,529 183,972,119 18,763,048 18,826,710

subtotal 662,792,969 693,280,827 807,031,579 569,582,079 553,238,297 Less Expenditure allocated to job done for internal use 1,878,815 2,383,030 7,670,721 9,562,494 12,720,771

Total 660,914,154 690,897,797 799,360,858 560,019,585 540,517,526 Profit before prior period adjustment (104,140,468) (129,308,383) (204,601,933) (32,601,753) 33,875,545 Less provision for taxes fringe benefit tax 686,502 1,285,036 702,085 627,032 765,280 Balance carried to balance sheet (104,826,970) (130,593,419) (205,304,018) (33,228,785) 33,110,265

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CHAPTER SWOT ANALYSIS

INTRODUCTION

SWOT stands for strengths, weaknesses, opportunities, and threats. SWOT analysis is a tool for auditing an organization and its environment. SWOT analysis is the first stage of planning and helps marketers to focus on key issues. Once key issues have been identified, the details are fed into marketing objectives. SWOT analysis can be used in conjunction with other tools for audit and analysis, such as PEST analysis and Porter's Five-Force analysis. SWOT analysis is a very popular tool, quick and easy to learn.

SWOT ANALYSIS OF HMT MTLK STRENGTH

High capacity utilization and productivity of the plant. Well qualified and technically skilled manpower. Good asset base. Good reputation. Strong base in India. One of the best producers of machine tools and printing machines. The company has ISO certification. Good industrial relations. Strong and accepted products.

WEAKNESS

For the recruitment and selection the time delay is there. Trust on IT application is not adequate. Political interference. Slow sales growth of the products. Market share of the products are shrinking due to competitors. Potential market is in north India but all the manufacturing units are in south

India. OPPORTUNITIES

Government support. Collaboration can be made with foreign giants. Good brand image. Boom in mechanization.

THREAT

Government policies. Privatization. Globalization. High competition from India and foreign companies. Growth of private enterprises in the sector.

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CHAPTER CONCLUSIONS

Advanced machine tools are vital to the realization of tomorrow’s critical technologies. In the efforts to survive in this highly competitive environment, companies are engaging in various initiatives such as expanding their market share by strengthening their sales and production bases through M&A, developing new products and functions that will give them an edge over other makers, boosting resilience against recession through production efficiency, and providing fee-paying after services. At present, differences in competitiveness among companies in the industry are beginning to become evident.

Predictions of economic growth for the machine tool industry are conservative, but positive. A new spirit of cooperation exists among industry, academia, and government to develop programs that best utilize research resources to help industry resolve problems in the way of progress. There are even signs that training, a long neglected issue for the machine tool industry, is getting fresh attention. Meanwhile, pressures for lower cost, greater productivity, and improved quality are forcing even the most conservative machine-tool users to re-evaluate their equipment and procedures.

The machine tool industry is experiencing both evolutionary and revolutionary change. Key components such as spindles and motors are improving incrementally while researchers propose radical new designs for bearings and machine tool configurations. Short production runs and just-in-time delivery are pressuring machine tool builders to make each machine do more? HMT is the leading machine tool manufacturing company in India. The company has to face tough competition from various companies. Even in the midst of tough competition from giants it still has a unique reputation of being the producer of a quality product. Even though the product has goodwill and good demand, the record shows that the company is running on loss. There are many factors, which contributes to the loss of the company.

High fixed overhead Lack of young blood in the executive level Potentials are not fully utilizing Wastage of raw materials Conventional Machines are used in large number in the plant Lack of Automation

The machine tool industry is set for an investment of Rs.2, 000-3,000 cores in the next two to three years. Even while the sector had its limitations in meeting the domestic demand, resulting in large dependence on imports, the sector was poised for an annual growth of 25 per cent. This would help in reducing imports while increasing its edge in the export market through modern technology induction and marketing strategies. Though exports were marginal at Rs 50 core, the increasing

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recognition of the sector from global companies should provide greater opportunities for contract manufacturing and even joint ventures adding to investments with latest technologies for the sector to grow faster.

The future focus would be on closing technology gap between Indian and international products through increased productivity, achieving higher consistency and accuracy, introducing modern safety concepts and enhancing research and development efforts.

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BIBLIOGRAPHY

BOOKS Aswathappa K., Human Resource & Personnel Management, Tata McGraw Hill

Publishing Co. Ltd., 2002 Edition. Chary S. N, Production & Operations Management, Tata McGraw Hill Publishing

Co. Ltd., 1999 Edition. Prasanna Chandra Financial Management Theory and Practice, Tata McGraw

Hill publishers, (2004). Kothari C.R., Research Methodology Methods and Techniques, New Age

Publishers, (2004)

REPORTS Annual Report of HMT Ltd. 2005 - 2006 Annual Report of HMT Ltd. 2006 - 2007 Annual Report of HMT Ltd. 2007 - 2008 Annual Report of HMT Ltd. 2008 - 2009 Annual Report of HMT Ltd. 2009 - 2010 Company manual

WEBSITE www.hmtltd.com