Chapter Title Page Page No
1 INTRODUCTION 01 1.1 INTRODUCTION ABOUT THE STUDY 02 1.2 INDUSTRY PROFILE 03 1.3 COMPANY PROFILE 05
2 RESEARCH METHODOLODY 06 2.1 OBJECTIVES OF THE STUDY 07 2.2 SCOPE OF THE STUDY 10 2.3 TOOLS FOR ANALYSIS 16 2.4 PERIOD OF THE STUDY 35 2.5 LIMITATIONS OF THE STUDY 53
3 DEPARTMENT PROFILE 57
4 SWOT ANALYSIS 59
5 FINDINGS SUGGESTIONS AND CONCLUSIONS 5.1 FINDINGS 5.2 SUGGESTIONS 5.3 CONCLUSIONS APPENDIX BIBLIOGRAPHY
1. INTRODUCTION
1. INTRODUCTION
Organizations play major role all over the world. Different organizations meet people needs and provide them with product, service or both. Due to globalization the world has become a global village. This has very much helped people to get their needs. Different firm play different roles and it has its own importance. The company which I have chooses for the organization study is TRACO CABLE Company. It is a well developed company fully owned by the State Government of Kerala.
TRACO CABLE Company produces different kinds of cables for different users. They produce power cables and telephone cables, which are mainly consumed by the Kerala State Electricity Board and Bharat Sanchar Nigam Limited. The products are utilized for the welfare of the public. These products are not directly consumed by the public.
The company has different departments to control the overall functioning of the company. The major shareholder of the company is the State Government of Kerala. The 86.6% of the shares are held by the State Government of Kerala. The Board of Directors is appointed by the Government. The company follows all the rules and regulations formulated by the Government and the other Acts.
In this organization study I have covered the organization as a whole briefly. All the departments in the organization are studied. The production and the sales function of the company are carefully analyzed. A care full and detailed study is conducted with the given period of time. The study is conducted for a period of 30 days, from 20st June 2011 to 19th July 2011.
2. OBJECTIVES OF THE STUDY
The main objectives of this study are;-
• To know the objectives and aims of the company.
• To know the various policies adopted by the company for the improvement of the company.
• To ascertain whether the company is in profit or loss.
• To know about the activities of the company.
• To understand the functions of different departments of the company.
• To know the duties and responsibilities of the different officials in the company.
• To know more about the products of the company.
• To know about the customer relationship of the company.
• To know about the welfare measures provided by the company.
• To ensure whether company provides any benefit for the society.
3. SCOPE OF THE STUDY
The Organizational study is conducted to have practical knowledge about the various functions and activities of an organization. The study done in TRACO CABLE Company helped to attain the aim of the study.
The study helped to know the activities of various departments in the organization. The importance of each activity in an organization is analyzed.
4. METHODOLOGY
The data for the study are collected in two ways. Primary data and secondary data are collected
Primary Data
Primary data was collected by conducting discussions with the company officials and other staff in the office as well at the factory. This is further followed up with the observation recording of necessary information and their analysis and interpretation.
Secondary Data
Secondary data was collected from published materials like journals, periodicals, etc.
The study is completed by analyzing and interpreting the primary and the secondary data. The data are also collected by visiting the plant and observing the production process directly. As part of the study all the departments of the organization was visited and data was collected in a systematic manner.
Period of the study
The organizational study in TRACO CABLE COMPANY LTD was conducted from 20st JUNE 2011 to 19thJULY 2011. I made use of all opportunities provided by TRACO CABLE Company during my tenure here. Working with TRACO CABLE Company gave me ample learning opportunity that I can make use of in my future voyage.
5. LIMITATIONS OF THE STUDY There are certain limitations for the study conducted in Traco Cable Company Limited.
• The major limitation of the study was the limited time period of the study.
• The time limit was 30 days only
• The inconvenience of the employees due to their busy schedule was another major obstacle.
• The company was not ready to give whole data because they need to maintain secrecy of data which affected the study to a great extent.
• Limitations of dependence on secondary data to some extent.
PROFILES
1. INDUSTRY PROFILE
A cable is two or more wires or ropes running side by side and bonded, twisted or braided together to form a single assembly. In mechanics, cables are used for lifting and hauling; in electricity they are used to carry electrical currents. An optical cable contains one or more optical fibers in a protective jacket that supports the fibers. Mechanical cable is more specifically called wire rope.
Ropes made of multiple strands of natural fibers such as hemp; sisal, manila, and cotton have been used for millennia for hoisting and hauling. By the 19th century, deepening of mines and construction of large ships increased demand for stronger cables. Invention of improved steelmaking techniques made high quality steel available at lower cost, and so wire ropes became common in mining and other industrial applications. By the middle of the 19th century, manufacture of large submarine telegraph cables was done using machines’ similar to that used for manufacture of mechanical cables.
HISTORY OF CABLES
In the 19th century and early 20th century, electrical cable was often insulated using cloth, rubber and paper. Plastic materials are generally used today, except for high reliability power cables.
Electrical cables may be made more flexible by stranding the wires. In this process, smaller individual wires are twisted or braided together to produce larger wires that are more flexible than solid wires of similar size. Bunching small wires before concentric stranding adds the most flexibility. Copper wires in a cable may be bare, or they may be coated with a thin layer of another material: most often tin but sometimes gold, silver or some other material. Tin, gold, and silver are much less prone to oxidization than copper, which may lengthen wire life, and makes soldering easier. Tight lays during stranding makes the cable extensible (CBA - as in telephone handset cords).
Cables can be securely fastened and organized, such as by using cable trees with the aid of cable ties or cable lacing. Continuous-flex or flexible cables used in moving applications within cable carriers can be secured using strain relief devices or cable ties. Copper corrodes easily and so should be layered with Lacquer.
At high frequencies, current tends to run along the surface of the conductor and avoid the core. This is known as the skin effect. It may change the relative desirability of solid versus stranded wires.
POWER CABLES
A power cable is an assembly of two or more electrical conductors, usually held together with an overall sheath. The assembly is used for transmission of electrical power. Power cables may be installed as permanent wiring within buildings, buried in the ground, run overhead, or exposed. Flexible power cables are used for portable devices, mobile tools and machinery.
Early telegraph systems used the first forms of electrical cabling, transmitting small amounts of power. Gutta-percha insulation used on the first Submarine cables was unsuitable for building wiring use since it deteriorated rapidly when exposed to air.
The first power distribution system developed by Thomas Edison in 1882 in New York City used copper rods, wrapped in jute and placed in rigid pipes filled with a bituminous compound. Although vulcanized rubber had been patented by Charles Goodyear in 1844, it was not applied to cable insulation until the 1880s, when it was used for lighting circuits. Rubber-insulated cable was used for 11,000 volt circuits in 1897 installed for the Niagara Falls power project. Oil-impregnated paper-insulated high voltage cables were commercially practical by 1895. During World War II several varieties of synthetic rubber and polyethylene insulation were applied to cables.
Modern power cables come in a variety of sizes, materials, and types, each particularly adapted to its uses. Large single insulated conductors are also sometimes called power cables in the industry.
Cables for direct burial or for exposed installations may also include metal armor in the form of wires spiraled around the cable, or a corrugated tape wrapped around it. The armor may be made of steel or aluminum, and although connected to earth ground is not intended to carry current during normal operation.
Power cables use stranded copper or aluminum conductors, although small power cables may use solid conductors. The cable may include uninsulated conductors used for the circuit neutral or for ground (earth) connection.
FLEXIBLE CABLES
All electrical cables are somewhat flexible, allowing them to be shipped to installation sites wound on reels or drums. Where applications require a cable to be moved repeatedly, such as for portable equipment, more flexible cables called "cords" or "flex" are used. Flexible cords contain fine stranded conductors, not solid core conductors, and have insulation and sheaths to withstand the forces of repeated flexing and abrasion. Heavy duty flexible power cords such as those feeding a mine face cutting machine are carefully engineered—their life is measured in weeks. Very flexible power cables are used in automated machinery, robotics, and machine tools. See power cord and extension cable for further description of flexible power cables. Other types of flexible cable include twisted pair, extensible, coaxial, shielded, and communication cable.
QUALITY OF CABLES
Believe it or not a brand of cable can be critical .example ; one of our clients moved into a new building the telephone guy also pulled the network cable and did the work station jacks and he did a good enough job of it. The problem was he pulled two brands of category - 5 cables, and one brand was incompatible with the network cards in the client’s computer. This was just a low based network with very short runs, but the workstation on that brand of cable simply didn’t network. We had to bill the client for new network cards and the cost of figuring out why the old ones didn’t work anymore. In a couple of other pre-pulled cases we found the wire so brittle we had trouble terminating in without breaking it. Again this increased the client’s expense. For these reasons we prefer to supply the cables regardless of who is going to pull it.
KEY SUCCESS FACTORS
Products of the companies like ACSR cables weather proof cables and power cables are used by several departments in India so they are manufactured to meet Indian standard specification. With stringent quality methods, the cables are of excellent quality and have been acclaimed as one of the best in the country, the signaling cables are made to railway specification are functioning all over India. This is because TRACO NEVER COMPROMISE ON QUALITY. More over the company has undertaken expansion and modernization projects, which would double the overall production capacity of power conductors. This would substantially help to improve the probability years. For example the company is now focusing on producing. Manufacture of ACSR cables owing to the drop in demand of jelly filled telephone cables in the country accordingly mgt has decided to modify the existing JFTC line to ACSR cables.
NATURE OF BUSINESS
The post and telegram department also recognized TRACO Company to manufacture petroleum Jelly Filled Cable incorporating the latest technology in the production and testing of such cables by recommending to the government of India to grant the license to TRACO for manufacture of 5000 lakhs KM Jelly Filled Cables per annum in view of superior technology incorporated in the manufacture of petroleum Jelly Filled Cables and on account of the fact that Jelly Filled Cables are cheaper compared to conventional. The telecommunication department of government of India has decided to discontinue progressing the manufacture and use of paper insulated lead sheared cables and to use only petroleum Jelly Filled Cables for subscriber lines in future.
CURRENT SCENARIO
In India most of the communication is being made possible through cable communication. The cable pays on important role in the field of communication. India is not for behind most of the developed countries in the field of communication. India is making its headway. Due to the lack of latest technology in the field of cable manufacturing. India has to depend in neighbouring countries for the import of either raw material or finished cables. So that no more money may be spend on the import of cables from foreign countries. As a result India has No:1 only achieved self-sufficiency in the field of cable manufacturing but is his made a big head in to the international market. The government has triggered the entire project relating of the setting up of cable manufacturing company in India. As a result the central government has allowed to import the machinery required for the manufacture of high quality cables, both power cables as well as Jelly Filled Telephone Cables and has allowed considerable rate of concession of these machinery as well as raw materials mainly coppers. The manufacturing of telephone cable was mainly reserved for public sector. The only unit till 1974 was Hindustan cables limited government of India undertaking. TRACO was the 1st state sector unit to manufacture telephone cables in India, it started its commercial production in the year of 1974. It is evident that there is a scope of establishing the facility for manufacturing of 5000 lakhs KM Jelly Filled Telephone Cables by TRACO in Kerala.
2. COMPANY PROFILE
TRACO CABLE Company Limited is a Kerala Government Company incorporated in the year 1960 and is manufacturing high quality electric Cables and wires. Since then TRACO has been in the forefront in meeting the needs of Public Sector Undertakings in India like Railways, Electricity Boards and other for AAC/AAAC/ACSR(low tension and high tension ranges)/JFTC Telephone Cables, Control Cables, Power and Signaling Cables. With the progress in Cable Technology TRACO has upgraded with
Prescribed standards are allowed to go to the market. TRACO CABLES have thus earned a name for themselves in Indian markets for dependability and quality under any circumstances.
The Company’s first manufacturing unit was set up at Cochin commenced manufacturing Power Cables, Control Cables, Signaling Cables and bear Conductors in 1964 with the technical collaboration of M/s. Kelsey Engineering Company, Canada. The machinery and testing equipments were imported from USA and Hungary, indigenous machinery were procured from M/s Madhya Pradesh Industries and M/s Ranasur Industries. The Company further added facility for the manufacture of Telephone Cables in the year 1974 at Cochin unit. The Company’s second Unit was set up in 1990 for the manufacture of Jelly Filled Telephone Cables at Thiruvalla in Pathanamthitta District with the technical collaboration with M/s General Cables Inc. USA. The major machineries were imported from M/s.De Angeli Italy and Testing equipments from M/s Philips –MEA, Germany. Indigenous machines were from M/s. Alind, M/s Usha Martin industries and M/s. Ranasur Industries. This unit is capable of manufacturing all sizes of Jelly Filed Telephone Cables ranging from 5 pairs to 1600 pairs with or without armoring as per BSNL specification.
The company added facilities by induction of new machineries and equipments at Thiruvalla Unit also for the manufacture of Power cables, Control cables, signaling and bare conductors and its commercial production commenced by Feb 2007
Chairman Shri.T Balakrishnan IAS
Additional Secretary To Government,
Industries Department,
Government Of Kerala,
Thiruvananthapuram
Managing Director Cdr. (Retd) K.Shamsuddin
Managing Director
Traco Cable Company Limited,
Cochin – 682036.
Directors 1, Sri. S.Vijayakumar
Deputy Secretary To Government,
Finance Department,
Government Of Kerala,
Thiruvananthapuram.
2, Sri. M.Thomas,
Additional Secretary To Government,
Industries Department,
Government Of Kerala,
Thiruvananthapuram – 695001
3, Sri. K.Asokan
Member (Transmission & Distribution),
Kerala State Electricity Board,
Thiruvananthapuram.
4, Sri. S. Venkadeeswaran
Managing Director
Telk
Angamaly South P.O
Ernakulam Dist.
5, Sri. R.Suku,
Managing Director,
United Electrical Industries Limited,
Pallimukku, Vadakkevila P.O., Kollam.
BOARD OF DIRECTORS
MARKET
The main customers for the ACSR cables are electricity board of various states and railway department. In the case of telephone cables main market was BSNL and other telephone companies. Company enjoys a good market as there is no straight competitor for the products offered. Since there is no advertisement for the products of the company, the company mainly goes for accepting quotation given in news paper internet and other publication or bulletin.
OTHER GROUP OF COMPANIES
TRACO cables have another unit called TCCL Irimpanam, Ernakulam main product of TCCL was Jelly filled telephone cables, railway signaling cables, aluminium, conductor steel reinforced cables.
Traco Cable Company Ltd shall strive for continuous improvement in its performance, by meeting the needs of internal and external customers complying with regulations through the involvement of all its employees.
ENVIRONMENT POLICY
Traco Cable Company Limited is committed for continual improvement in its performance in preventing environment pollution, to conserve resources and to comply with relevant environmental regulations.
PLANT AND EQUIPMENTS
The Cochin plant is having all facilities for manufacture and testing of cables and conductors. The Thiruvalla Plant is having all the facilities for the manufacture of Jelly Filled Telephone cables and Power Conductors, Power cables, Control Cables and Signaling Cables.
INFRASTRUCTURE FACILITIES
The Thiruvalla unit has around 6000 sq.meters covered area (Factory: 4750 sq.mtr Laboratory: 1250 sq.mtrs) within 14 acres of land and is located within municipal limits of Thiruvalla. The Kerala State Electricity Board has exclusively set up a 66 KV/ 11 KV substations for Thiruvalla unit within the company compound for uninterrupted power supply. Apart from this the company has two Captive Diesel Power Generating sets each of 500 KVA capacities to ensure uninterrupted activities in the unit. The unit is having its own captive water resources for continuous water supply.
The Cochin unit has around 8000 Sq. Meters covered area (Factory: 7000 sq.mtrs + 1000 sq.mtrs of Laboratories) within 36 acres of land. This unit is availing of 11 KV incoming feeder from Kerala State Electricity Board (KSEB) for continuous power supply. The company is having its own ground water sources, including an open pond for uninterrupted supply of water.
TESTING FACILITIES
The Cochin unit has all testing facilities for testing bare conductors such as Tensile Strength, elongation, electrical resistance etc. for testing facilities as per IS :1554 is equipped. At Thiruvalla unit, the company is having all testing facility as per BSNL specification for testing jelly filled Telephone Cables, Power Cables, Control Cables and Signaling cables at Thiruvalla unit.
ISO CERTIFICATION
ISO 9001
This is the quality management system and quality assurance standard brought into phase by international standards organisation (ISO) a confederation comprising standard of the world which aims at standards action of the quality of the product and services to enter to the complete satisfaction of the customer.
ISO 14001
TRACO cable company Ltd is committed for continual improvement in environmental pollution to conserve resource and to comply with relevant environmental regulations. As a reward for its environmental policy, TRACO cable has got ISO 14001 certification in the year 2001.
OTHER CERTIFICATIONS
TRACO cable has got certification from
• RINA- Italy
• KEMA-Netherlands
TECHNOLOGY
The manufacturing technology for power cables, signaling cables, control cables and bare conductors are from M/s. Kelsey Engineering Company, Canada. Technical knowhow for the manufacture and inspection of Jelly filled telephone cables are from M/s. General Cables Inc.USA, DE-Angeli Industries, Italy and M/s. Philips Communications, Germany.
HIGHLIGHTS OF THE PAST TWO YEARS
• The capacity for the manufacture of bare conductors at Cochin had been enhanced from 3000MT to 4500MT per annum, by adding Two No’s of Tubular Stranding Machines
• Revamping of the Thiruvalla unit had been undertaken by adding machines and equipments for the manufacture of ACSR conductors apart from the manufacture of Jelly Filled Telephone Cables.
• Balancing machineries were installed for the manufacture of bare conductors at Thiruvalla unit for 1500MT per annum.
• Manufacture of PVC insulated conductors such as whether proof cables have been commenced at the Thiruvalla unit
• BIS certification has been obtained for the Thiruvalla Unit for the manufacture of ACSR Conductors as per IS: 398 and PVC insulated whether proof Cables as per IS: 694 – 1990.
REVIVAL OF TRACO CABLES
A major factor that was affecting the profitability was the gradual decline in the prices of jelly-filled telephone cables (JFTC) because of the huge production capacity in the country as against an almost stagnant demand situation. Demand for Jelly-filled Telephone Cables reduced dramatically from 2002 onwards. ACSR cables and other Power cables were in demand. So Traco Cables started revamping the JFTC units for the ACSR machineries and started large scale production of ACSR cables by 2007 with the help of Loans granted by the Government. Now there is very limited production of JFTC.
After incurring losses for a few years Traco Cables has been coming out of the red from 2007. The profit made in 2008 was Rs 60 crores and the expected return for 2009 is Rs.100 crores from both the production houses combined.
BANKERS
• State Bank of Travancore
• State Bank of India
• Kerala State Co-operative Bank Limited
• Federal Bank
LEGAL ENVIORNMENT
The company has adopted various labour regulations which are enacted for labour welfare.
• Workmen’s compensation Act.
• Payment of wage Act
• Gratuity Act.
• Bonus Act.
• ESI Act.
• Apprentice Act.
• Factory Act.
• Industrial dispute Act.
• Maternity benefits Act.
POLITICAL ENVIORNMENT
TRACO cables is a Government owned firm, so naturally its policies and strategies are being affected by actions of political parties. Functioning of the company is being closely related to the policies and plans of ruling political parties.
CORPORATE GOVERNANCE
TRACO cable philosophy on corporate governance envisages the attainment of highest level of transparency ,accountability and equity in all factors of all its interactions with its stake holders, company maintain its corporate governance through value addition, wealth maximization and efficient use of resources.
3. PRODUCT PROFILE
COMPANY PRODUCTS
I) ACSR/ AAAC/AAC (overhead conductors up to 61 strands)
• All Aluminum Conductors (AAC) as per IS: 398 for power distribution
• All Alloy Aluminum Conductors (AAAC) as per IS : 398 for power distribution
• Aluminum Conductors with Steel Reinforcement (ACSR) as per IS: 398 for power distribution and transmission.
II) POWER CABLES (Copper and Aluminum conductors up to 1100/1500 volts) and Control cables/ signaling cables (copper conductors up to 37 conductors) as per IS: 1554 with PVC insulation.
III) JELLY FILLED TELEPHONE CABLES (Unarmored and Armored 5 pairs to 1600 pairs) as per BSNL specification.
IV) AERIAL CABLES
(Copper conductors overhead telephone cables up to 20 pairs) as per BSNL specification.
V) DROP WIRE (Copper conductor single pair telephone cable) as per BSNL specification.
VI) WEATHER PROOF CABLES (Aluminium conductor, PVC insulated single/ multi core) for power service connection as per IS: 694 specifications.
VII) HOUSE WIRING AND FLEXIBLE CABLES
(Copper conductor up to 128 strands) as per IS: 694 specifications.
VIII) RAILWAY SIGNALING CABLES
Signaling Cables - Used by Railways. PVC insulated & sheathed armored/unarmored Copper cables. 1100 V. Grade.
Spec: Indian Railway Specification No: S63 - 89 for PVC insulated cables for Railway Signaling.
IX) POWER CABLE WITH ALUMINIUM CONDUCTOR
PVC insulated and sheathed armored/unarmored Aluminum power cables
1100 V. Grade. Spec: IS: 1554 Part I
EXISTING AND NEW PRODUCTS
Existing
• Aluminium conductor steel Reinforced cables
• Weather proofing cable
New
• Railway signaling cable
DEPARTMENTAL STUDY
DEPARTMENT PROFILE
In order to produce and sell their products Traco Cables has seven key functional departments.
1 .Production department
2. Personnel and Administrative Department
3. Finance department
4. Quality Assurance Department
5. Marketing and Dispatch Department
6. Purchase department
7. stores department
Each of the functions will need to work together so that the whole of the organisation has the same aims and objectives. To achieve this communication across the various functions is key activity. A starting point for this type of communication is the creation of a clear set of company objectives which each function is aware of. These objectives then need to be further broken down into specific objectives for each function. Regular reviews of firstly how each function is performing against its objectives and secondly how the company is performing against its overall objective should ensure that the whole company is pulling in the same direction.
PRODUCTION DEPARTMENT
The production department is concerned with the production of ACSR and weather proof cables. The main raw materials used in production are aluminium conductor (9.5mm) and steel rod. Now company’s yearly production depends on the order. Capacity is 1500 metrics tons per year.
Production Department Chart PRODUCTION PROCESS OF ACSR CABLES
ACSR cables means aluminium conductor steel reinforced cables. Main raw material for ACSR cables are aluminium and steel. Aluminium cables are of 9.5 mm diameter .First step for production of ACSR cables is to pass aluminium wires through a rod break down machine so that we could get aluminium wire at required the size. These aluminium wires should rebound to a rebound bobbin.
Next step for production is rewinding of steel through a steel rewinding machine. After rewinding, steel should rewind to a rebound bobbin. Final but most important step of ACSR production is placing these rebound bobbins in tabular stranders. Ratio regarding number of rewound bobbins to be placed in tabular stranders is that there will be six aluminium bobbins and one steel bobbin. When the power is on the six aluminium cables are twisted to the steel cable.
The final product ACSR is come out and these ACSR cables are rebound in a wooden drum. Later ACSR cables should be transferred to quality assurance for final inspection. After final inspection and testing the tested OK cables are handed over to stores non conformities' identified during each stage of inspection shall be recorded in the non conformity report and handed over to the shift in charge(production) for appropriate action. The company follow shift working and it has three shifts and these shifts have its own target. TYPES OF ACSR CABLES
1. Squirrel - 6+1 (Includes 6 aluminium wire and 1 steel wire having diameter of 2.11 mm)
2. Rabbit - 6+1 (Includes 6 aluminium wire and 1 steel wire having diameter of 3.55 mm)
3. Racoon - 6+1 (Includes 6 aluminium wire and 1 steel wire having diameter of 4.09 mm)
MANUFACTURE OF PVC SHEATHED WEATHER PROOF CABLES
Step1: Reduce the size of aluminium to the required size using RBD (Rod Break Down).
Step2: With the help of LP100 machine sheath the aluminium conductors with coloured PVC i.e. red and black.
Step3: Then these two sheathed with black coloured PVC.
SUPPLIERS
The major suppliers of raw materials for ACSR cables are:
• Aluminium
• Nalco
• Balco
• Hindalco
• Steel
• Tata
• Aradhya
PERSONNEL AND ADMINISTATIVE DEPARTMENT
Personnel and Administrative department’s main responsibility is the recruitment, selection, training and development of staff. This will involve developing staff to maximise their potential in a manner that furthers the organisation’s objectives.
P&A adopts a welfare role which includes looking after employees whilst they are at work. They may also create policies that balance organisational needs with those of the employee.
This involves dealing with all administrative tasks including mail handling, dealing with enquiries/complaints, catering, and computer services. They will also produce documents (e.g. forms, stationary, and newsletters) for the organisation and maintain the organisation’s premises and equipment.
DEPARTMENT STRUCTURE
PERSONNEL DEPARTMENT
The term personnel department refers to the function of the organization that is responsible for the management and motivation of people in the workplace. Increasingly today the term Human Resource Management has come to replace personnel - because personnel management is seen as an old fashioned way of managing people, giving priority to organizational rather than individual development needs.
FUNCTIONS OF PERSONNEL AND ADMINISTRATION
The functions of Personal and administration are as follows:
1. All matters relating to employee and apprentice are dealt here.
2. Monitoring of attendance.
3. Preparation of annual increments.
4. Maintenance of service goods and personal.
5. Liaison between the employees and management.
6. Coordinating smooth functioning of the center.
7. All welfare activities of the employees.
8. All matters connected with employee dispute.
9. All matters regarding insurance.
10. Submission of accident reports of ESI.
11. All matters regarding training programs.
12. Legal matters connected to the employment and individual disputes.
Personnel work is concerned with:
1. The recruitment and selection of new employees, e.g. helping to prepare job advertisements and job descriptions for new posts, and helping to organize the interview process.
2. The induction of new employees where they are introduced to the company, and aspects of the job they will be doing as well as essential requirements such as health and safety training.
3. Training and development. Training focuses on the needs of the organization whereas development is more concerned with identifying and meeting the needs of individual employees.
4. Organizing the appraisal process to identify development needs of employees.
5. Representing the organization as a go between on disciplinary issues e.g. when a worker has continuously been late for work. Dismissing and making workers redundant where necessary.
TIME OFFICE
Time office functions under the P & A department deals with the time keeping and shift allocation of workers. Time keeping means recording of time spent by workers in their respective jobs. The time when the employees report for work, their leisure time, overtime, etc all are recorded. They maintain various records like attendance register, late and call register, short leave register, overtime register, etc.
LABOUR WELFARE
All the benefits are provided to the employees. A well maintained canteen is existing in the organization. Transportation facility is also provided for the employees. Two pairs of uniforms, slippers / safety shoes are provided to the workers every year. A cooperative society is also working in this unit
The labour welfare measures in Traco include;-
1.Bonus
The company is providing annual bonus and attendance bonus for the welfare of the workers.
2.Incentives
Incentives are given to the employees as per the rate of production; production incentives are also given.
3.Holidays
All the workmen will be eligible for all national and festival holidays in a calendar year.
4.Training
- External
- Internal
- In-house
Various graduates, diploma holders and ITI pass outs are taken as appnentices on one year contract.
5.ESI Scheme
The Employee State Insurance Scheme is provided to all employees in the unit. An employee can take leave incase of illness and he can get the money reimbursed through proper proceeding under the ESI Act. This scheme is open to employees who earn below Rs 15,000 per month. Employees who earn above this amount are given Rs 10000 as fixed medical allowance every year.
6.Retirement Facilities
1. Provident fund.
From the salary 12% is deposited to PF. At the time of retirement that amount is given
2. Gratuity
The workmen will receive gratuity benefits as provided under the Payment of Gratuity Act and rules there under.
3. Appointment of dependents
It is agreed to give preference to the dependent of employees in case of death of an employee or on super annulations, subject to availability of vacancies and suitability of candidates.
FINANCE DEPARTMENT
The financial section of the organisation will keep manual/electronic records of money received and paid out by the organisation. This information will then be used to produce various financial statements for tax purposes and to comply with legal requirements. The information will also be used to produce management accounts to enable senior managers to plan and review business strategy.
The finance department is responsible for administering employee expenses and salaries. For payment of wages the finance department will need to take into account statutory deductions such as tax, and employee contributions such as pension or loan repayment.
DEPARTMENT STRUCTURE Assistant Finance Manager
He is the Head of the Finance Department. All the below said functions will have to be supervised by him.
Junior Assistant
Duties involve
• All the transactions through cheques (outgoing)
• Sales bills entries
• Bank reconciliation statements
• Monthly bank statements etc.
Regional Clerks
Duties involves
• Preparation of salary sheet (Payroll)
• P.F Statements
• All Journal entries
Clerk
Duties involve
• Purchase Bill verification
• LIC Statements
Accounting functions Accounting involves the creation of financial records of business transactions, flows of finance, the process of creating wealth in an organization, and the financial position of a business at a particular moment in time.
RESPONSIBILITIES OF THE FINANCE DEPARTMENT
The finance department takes responsibility for organizing the financial and accounting affairs including the preparation and presentation of appropriate accounts, and the provision of financial information for managers. The main areas covered by the financial department include:
1. Book keeping procedures.
Keeping records of the purchases and sales made by a business as well as the capital being spend. Ledger entries of all financial transactions are carefully recorded in thick books (ledgers).
2. Creating a balance sheet and profit and loss account.
Financial statements need to be produced at given time intervals, for example at the end of each financial year. Trial balances are extracted from the ledger entries to create a Balance Sheet showing the assets and liabilities of a business at the year end. In addition, records of purchases and sales are totaled up to create a Profit and Loss (P&L) account.
3. Providing management information.
Managers require ongoing financial information to enable them to make better decisions. For example, they will want information about how much it costs to produce a particular product or service, in order to assess how much to produce and whether it might be more worthwhile to switch to making an alternative product.
4. Management of wages.
The wages section of the finance department will be responsible for calculating the wages and salaries of employees and organizing the collection of income tax and national insurance for the Inland Revenue.
5. Raising of finance.
The finance department will also be responsible for the technical details of how a business raises finance e.g. through loans, and the repayment of interest on that finance. In addition it will supervise the payment of dividends to shareholders.
SIGNIFICANT ACCOUNTING POLICIES
The financial statements are prepared under historical cost convention on accrual basis except where otherwise stated and in accordance with applicable accounting standards.
Fixed Assets and Depreciation
a. Fixed assets are stated at acquisition cost less accumulated depreciation.
b. Depreciation is provided on written down value method at the rates prescribed under schedule 14 to the Company’s Act of 1956.
Inventories
Finished Goods - At lower cost or net realizable Price inclusive of excise duty
Work in progress - At material cost plus proportionate Labour and Overhead Expenses to Material Consumed
Raw Material - At cost
Stores, Loose Tools - At cost Scrap - At Net realizable Price
Borrowing Cost
The borrowing cost in respect of loans availed from KIRFB & Government are charged to revenue account.
Retirement Gratuity
The liability towards retirement Gratuity under the Payment of Gratuity Act 1972 is covered under Group Gratuity Scheme of life Insurance Corporation of India. Company’s contribution to the said scheme is charged against the revenue. However, the Company will be liable for any payment in excess of the amount covered by the scheme.
Revenue Recognition
The Company recognizes sales at the point of dispatch of goods to the consumer. Sales are net of excise duty and sales tax.
Counter Liabilities (amounts not given whenever they cannot be ascertained & quantified).
QUALITY ASSURANCE DEPARTMENT
Quality assurance is a part of quality management which represents a complex process focused on creation of the confidence that the corresponding requirement to quality is kept, and includes all the factors and the actions needed for achievement of the appropriate quality level of products and services.
D EPARTMENT STRUCTURE
MARKETING AND DISPATCH DEPARTMENT
Marketing department of TRACO cables Thiruvalla is attached to its registered office in Ernakulam. TRACO Cable Company has a full fledged marketing team which controls all marketing operations of company. The marketing department attends the requirement of all type of customers .The wholesale and retail business are attend with individual care in this department. Since the maintenance and quality control department is concentrating in quality the work load of marketing is reduced to certain extend and the customer goes for TRACO cables products willingly and happily.
DEPARTMENT STRUCTURE
4P’s of TRACO
The marketing department concentrates on 4P’s. The 4P’s of marketing are as follows:-
• PRICE.
• PLACE.
• PROMOTION.
• PRODUCT.
• Price
While quoting the prices MOD VAT scheme is taken into account while computing the quoted price the entire CENVAT credit on input has already been taken into account .All the price of product has been fixed from the head office. Price is the amount of money customer has to pay to obtain the product. Price is an important aspect of a product. While fixing price certain aspect are taken into account. This include demand, cost, competition, government regulation etc. The following duties and taxes are considered while fixing the price:
1. Basic Excise Duty (BED)
2. Sales Tax
3. Cess
• Place
Physical distribution of goods and services is an important element of distribution strategy of any firm. Physical distribution strategy is concerned with actual shortage of their products for before and after production so marketing channel decisions are important decisions that management faces. Company’s marketing channel decision on distribution channels directly affects every other marketing decision. TRACO Cable Company is using the system of direct supply of products to their customers’. The main channel of distribution is through road. Place includes company activities that make the product available to target consumers.
• Promotion
Promotion is the particular combination advertising, personal selling and sales promotion which help in easy communication with customers. TRACO Cables have the capacity of producing both power cables and service wires for the entire south India. So there is no competition for the company. The main customers of the product are KSEB and various other state electricity boards and Railway departments. Therefore, there is no need for advertisements and the company mainly goes for accepting quotation given in newspaper, internet and other publications or bulletins.
• Product
The main product of TRACO is ACSR cables which used for transmission and distribution of electricity. Power cables are used for transmission purpose of electricity in power stations. Another products are Bare conductors are used for supply of power from substation to house hold .company is now focusing on power conductors because of drop in jelly filled telephone cables. Company also plans to concentrate on weather proof cables and control cables.
New product development
After fall in demand for jelly filled telephone Cables Company tries to increase their profit through introduction of new products such as railway signaling cables power cables and control cables.
Customers
Main products of TRACO cables are ACSR cables and jelly filled cables. Company is mainly targeting on two customer groups such as KSEB in the case of ACSR CABLES and BSNL in the case of JELLY FILLED TELEPHONE CABLES
The Process for Dispatching Finished Products
• From the Quality Assurance Department the Purchase Receipt Voucher (PRV) is obtained.
• The details regarding the quantity, Purchase Order, Delivery Date etc. on the PRV will be filed in the RG 1 Register.
• This is done to impose Excise Duty, CESS etc.
• Once this is done, the packing list is prepared in the marketing department.
• The packing list is then forwarded to the Quality Assurance Department.
• The packing list will then have to get clearance from the KSEB (Kerala State Electricity Board).
• Invoice Cum Delivery Challan (ICDC) is prepared in the Marketing Department.
• Only after the above procedures are completed, will the bill be prepared and sent to the KSEB.
Major Stages In New Product Development
PURCHASE DEPARTMENT
The purchasing department will be responsible for providing the materials, components and equipment required to keep the production process running smoothly. A vital aspect
Of this role is ensuring stocks arrive on time and to the right quality.
DEPARTMENT STRUCTURE
FUNCTION OF THE PURCHASE DEPARTMENT
The purchase department will be responsible for providing the materials, components and equipment required to keep the production process running smoothly. A vital aspect of this role is ensuring stocks arrive on time and to the right quality.
While purchasing procedures must comply with rules and regulations, they must also accommodate the needs of the company and recognize the mission of the company.
The purchasing department has to overcome the challenge of providing the goods needed by the production department in a timely manner. All employees involved in the purchasing process for their departments are responsible for understanding the limits of their authority and for understanding the rules and policies which govern the purchasing process.
The Process of Purchasing the Raw Materials is as follows:
• When an order comes in through the production department for a specific raw material, the unit head verifies with the store manager to check if the material is available. Once confirmed the store manager will sanction the purchase of the required raw material and forward it to the purchasing department.
• The purchasing proposal will be prepared and it will be sent to the Production Manager, Store manager and the Asst. Senior Finance Manager.
• Once approved the Purchase order will be sanctioned by the Purchase Manager.
• The ordered material will be received in the Store.
• The purchased goods will be tested by the Quality Assurance Department.
• SRV (Stores Receipt Voucher) will be issued by the Stores Department.
• The Original Bill will be sent to the Purchase Department and one copy to the Finance Department and another to the Head office.
• The Original bill and the SRV will be compared and then sent to the Finance department with the transportation expenses.
STORES DEPARTMENT
Stores or inventory means the materials coming in a systematic and scientific manner with a view to save them all kind of damages and loss, supplying them to the respective departments and exercising an overall control over the movement of these materials.The complete control on the raw materials is vested in the Stores Department.
DEPARTMENT STRUCTURE
Stores or inventory means the materials coming into the store or warehouse. Storekeeping is the physical storing of materials in a scientific and systematic manner with a view to save them from all kinds of damages and loss, supplying them to the respective departments and exercising an overall control over the movement of these materials.
Storekeeping involves the following functions:-
1. Receipt of materials.
2. Storage and preservation.
3. Issue of materials.
4. Record keeping.
5. Reporting.
A. Receipt of Materials.
The following are the suggested procedures to be followed for receipt of materials.
1. Whenever a material is received the following shall be verified.
a) Whether the material is accompanied by a Bill/ Delivery note/Challan etc. showing the detailed description of the material, specifications, quantity etc.
b) Whether a Purchase Order has been received for the materials.
c) Whether a copy of the Requisition for purchase has been received in the stores section to locate the actual intender of the material.
d) Whether the material has been inspected and quality accepted by a written inspection report.
2. If the entire above are confirmed the material can be accepted into stock.
3. If any of the document at (1) above are yet to be received the material may be sent to the suspense store.
4. After accepting of the material in stock an entry in the Day Book shall be made. The serial number of the entry in the Day Book shall be marked on the Delivery Note /Bill of the material for cross- reference.
5. On the basis of the entry in the Day Book, the Stores Receipt Voucher shall be prepared and duly signed.
6. A separate record of the materials sent to the suspense stores may be maintained and transferred to the day book at the appropriate time with remarks in the suspense account records.
B. Storage and Preservation
Storage means custody of the materials in a scientific manner so that materials can be located and identified easily and handled without difficulty.
The materials have to be stored in their predetermined places - the heavy and bulk items in the lower racks etc. the materials shall be stored as far as possible in the godowns close to the place of use to prevent unnecessary handling. The principle “a place for everything and everything in the right place”.
C. Issue of Materials
Materials shall be issued to the right person in right quantities. The actual intender of special items can be located from the copy of the “Requisition for purchase”. The materials shall be issued only against authorized, material requisitions. The issue of materials shall be personally supervised by a responsible employee of the stores section.
D. Record Keeping
The major records to be maintained in the stores section are;
• Day Book
• Stores Receipt Voucher(SRV)
• The Material Requisition(MR)
E. Reporting
The details called for should be properly reported and shall be in such form as can be used by anyone who may require the details. This can avoid repetitive report writing. The usual details required are.
a) Weekly stock of raw materials, packing materials.etc
b) Monthly stock position of raw materials, packing materials, etc
c) Quarterly summary of stores transactions
d) Periodic statements of pending purchase orders, etc
e) Any other details called for from time to time
FINISHED PRODUCTS
Finished goods or final product of the Company requires proper accounting, handling and storing. The finished goods inventories are governed b y the Central Excise Act and Rules and hence proper care should be taken to strictly adhere to the various provisions of the Act and Rules.
Acceptance of finished goods in stock
The products shall be accepted in stock and sent to the store room after receipt of a Product Receipt Voucher from the Quality Assurance / Production Department and Identification of the material. The Product Receipt Voucher should contain the following details.
a. Size of the cable
b. Identification mark i.e. Drum number, etc
c. Quality in meters with remarks such as “full length”, “short length”, etc
d. Any other information that may be required from time to time
The drum shall be verified for the correctness of size, quantity, drum number, etc, and stored in the stock yard approved by Central Excise authorities. A Production Report shall be prepared in the prescribed format and entries made in the RG1 Register. It is statutory that the production of each day should be entered in the RG1 Register on the subsequent day itself. Hence it has to be insured that the Production Receipt Voucher is received every day morning. In case no production is handed over on any day a PRV showing ‘nil’ production has to be written.
T is advisable to maintain a packing register to record the movement of packed cable drums / coil. The register should contain the following details.
i. Date of receipt ii. Size of cable iii. Drum number iv. Quantity
v. Dispatch details
ANALYSIS AND INTERPRATATION
SWOT ANALYSIS
Strengths
• Company have a Diverse range of products
• Trade unions are having good relation with management
• Company enjoys Good customer satisfaction
• Team work and co-operation of workers and management staff
• Frequent demand for company's product in the market
• Quality Product (ISO 9001 Certification)
• Environmental Certification (ISO 14001)
Weakness
• Frequent power failures
• Absence of continuous training
• Poor recreational facilities
• There is lot of formalities for implementing minor decisions
Opportunity
• The company has undertaken expansion and modernization projects which would double the overall production capacity for power conductors
• Demand for bare conductors is infinite
• Company plan to produce Railway Signaling cables so in the near future railway will became their client.
• The aim of the company is to meet global standards. This provides the opportunity to create world-class products.
Threats
• Emergence of private companies with cost efficient quality products
• Due to emergence of mobile phones there is a drop in demand for JFTC cables.
• Changes in technology
• Cost of raw materials
5.FINDINGS AND SUGGESTIONS
5.1 Findings
• The company has a monopoly market in ACSR cable and signalling cable.
• All the employees work together to develop the company.
• The company does not make any harmfulness to the surrounding.
• The employees get all allowances and other additional benefits.
• The company is concentrating on quality and therefore their product has 100% quality.
• The customer satisfaction regarding the Traco products is good. And it has good brand image.
• Safety measures are taken and each employee is well equipped for the risk in his job.
• Fewer funds are allotted for promotion activities.
• The employees both in the rank and under ranked are decently paid
• Workers health and safety are given prime importance. 5.2 Suggestions
• Traco Cable can take initiative for exporting to other countries.
• The customer of Traco Cable is mainly looking for high quality of the product so it should be maintained and improved.
• The company needs to move and update itself according to new technologies in the market to maximize quality production.
• Sales promotion technique should be adopted thereby increase the sales and thus market share can be improved.
• More investments to be made in Research and development.
• The company should utilize the railways to transport its materials which would reduce the overall logistics cost.
• Company should appoint more qualified employees so that new methods can be implemented easily.
• The company should always take up new measures to face the competition to remain as the market leader.
• The company should try to extend the market to other region also.
• The company should try to extend the product line like the other rivals.
CONCLUSION
Conclusion
TRACO CABLE COMPANY, a Premier Kerala Government Company does not make any harmfulness to the surroundings. The plant runs round the clock with each department playing crucial roles in its smooth running and together they maintain the market leadership meeting global standards.
The unit offers vast employment opportunities for skilled labourers in the locality and has been the so ever since it started. The HR department of the company takes excellent care of its employees with various schemes, medical care assistances, financial aid and provisions for assistance in developing basic amenities. The company meets all the statutory requirements for the betterment of the Employees. The two trade unions ensure that the rights of all workers are fulfilled and demands are met.
Thus, the organizational study conducted at Traco Cable Company, helped to throw knowledge and insight into the workings of the organization. It helped me to familiarize with different departments in the organization and their functioning’s. This study helped me to understand the relationship between management principles and practical applications. It also helped me to know the threats and opportunities faced by the company and the industry. I was also able to maintain an amiable relationship with the employees as well as with the managers. This study was a great experience for me and I am proud that I was able to do my organizational study at India’s no.1 Cable manufacturer.
APPENDIX
4. ORGANISATION STRUCTURE
BIBLIOGRAPHY Bibliography
Text Books
Human Resource Management - Aswathappa K
Principles of Management - Ramaswamy T
Financial Management - I M Pandey
Research Methodology - C.K Kothari
Journal
Product Profile
Website
www.tracocable.com
www.wikipedia.com/cables
