KLN ENGINEERING PRODUCTS PRIVATE LIMITED

KLN ENGINEERING PRODUCTS PRIVATE LIMITED

CONTENTS

S.NO.CHAPTERPage No.

01INTRODUCTION03

02COMPANY PROFILE 05

03FUNCTIONAL DEPARTMENTS PRODUCTION DEPARTMENT MARKETING DEPARTMENTHUMAN RESOURCE DEPARTMENTFINANCE DEPARTMENT 14 15 22 30 36

04SWOT ANALYSIS48

05FINDINGS CONCLUSION AND SUGGESTION51

06LEARNING EXPERIENCE55

BIBILOGRAPHY 57

Objectives of Organization study:

To know the company profile and organization structure To the know the how the department working in organization Finance dept, HR dept, Marketing To understand the Industry and give suggestions on particular condition

CHAPTER- I INDRODUCTION

1.1.1 THE BEGINNINGDESCRIPTION:-Land Area (sq.ft)25,000

Built Up Area (Sq.ft)20,000

Products ManufacturedExhaust Systems, Air, Oil and Fuel Filters

Our parent company was established in Bangalore in the year 1972. This unit has the ability to produce all kinds of filter elements. This will include Air Filter, Oil Filter, and Fuel Filter both elements as well as spin-on filter cartridges located in the heart of Bengaluru in Rajajinagara Industrial Estate over the years due to the demands of our customer we have five locations all within radius of about 2 to 3 kms. In these units we have the ability to control the quality from the initial stage up to the delivery to our customer. Filter Paper impregnation facilities are also available along with the necessary testing facilities for every process. Press shop with big drawing facility and presses from 5 tons to 150 tons are available. A fuel fledged plating shop and painting, powder coating facility is also available. KLN Bengaluru produces about 2, 00,000 filters per month of various kinds. We are also producing Mufflers for some customers. The combined strength is approximately 180 employees and the total floor area is about 40,000 sq. ft.

2.1COMPANY PROFILE

KLN Engineering Products Pvt. Ltd., F-56, Industrial Estate, Rajajinagar, Bangalore - 560 010 was established in 1972 and has been involved in the manufacture of Industrial and Automotive Filters and Muffler Assemblies.

Filters, Silencers and Air Cleaners are manufactured in six independent Units located in Bangalore, Chennai, Alwar and Attibele with total covered area of 2,00,000 Sq. Ft. employing 400 Skilled and Non-skilled workers. The yearly sales are about Rs. 500 million. We have started a venture in Colombo under the name of KLN Lanka Pvt. Ltd. To produce Oil and Fuel Filters in Sri Lanka for sale in the domestic market.

We have time tested and quality approved Sub-contractors whose units exclusively produce components to KLN Engg. Products Pvt. Ltd. At present we produce about 5, 00,000 Oil and Fuel Filters, 50,000 Silencers and about 25,000 Air Cleaners per month. Most of these components are supplied to our customers on self certified basis.

We have been regularly re-designing and upgrading our customer products with our indigenous Research & Development and Quality Assessments. At present due to our consistent quality and supply the following customers have appointed us as a single source :

Tractors and Farm Equipments Ltd. Chennai for supply of Air Cleaners & Silencers (Self certified till year 2007) Ashok Leyland Ltd. for supply of all their Silencers Simpson & Company Ltd. for supply of Canister Oil Filters VST Tillers & Tractors Ltd. for supply of Silencers and Air Cleaners

Caterpillar India Pvt. Ltd. for supply of Oil Filter Assembly Strainers and Breathers ELGI Equipments Ltd. - For supply of Air Cleaners Kerala Agro Machinery Corporation for supply of Air Cleaner (They have awarded us as the best supplier of the year 2003-04) Hindustan Motors Ltd. for supply of Oil Filter Eureka Forbes Ltd. for supply of Air Cleaner Elements Rane TRW Steering Systems Ltd. for supply of Hydraulic Filters in Power Steering TAFE Access Ltd. for supply of Hydraulic Pump Strainers and Other Components Kirloskar Oil Engines Ltd. for supply of Air cleaner, Oil filter and Pre-cleaner Same Deutz-Fahr India (P) Ltd. for supply of Air cleaner and Silencers For most of the above customers we have been supplying these components for last two decades. This talks volumes about our capabilities and performance.In the last 35 years KLN Engineering Products Pvt. Ltd., has established a leadership in the market for Automotive Lube Oil , Air, Fuel Filters and Silencers producing them with proven technology. The company has been awarded the ISO/TS 16949:2002 Certificate by Kiwa International Cert GmbH.The company also Exports filters to various customers in Sri Lanka, Europe, Australia, UAE, Nigeria etc.,

THE PROMOTERS

KLN Engineering Products Pvt. Ltd., is a Bangalore based Private Limited company promoted by Mrs. GITA SHETTY, Mr. PRASANNA KUMAR SHETTY and Mr. NAKUL SHETTY. The last two Directors are qualified engineers. Together they have been able to establish a range of products to cater to all spheres of Industry.

Our success is directly dependent upon the success of our client. Therefore we view ourselves not as manufacturers, but as strategic partners with the clients. There is no better way to ensure success than to become responsible stewards of our clients reputation.We are uniquely positioned to provide affordable, high quality filters and mufflers that will assist our clients in the development of their products to meet the trying demands of an ever growing, competitive global market environment. To this end it is the sincere endeavor of every one in our organization to strive for complete customer delight by delivering products of the right quality at the right time and at the right price.

At KLN Engineering Products Pvt. Ltd., good is not good enough. We redefine perfection day after day, and constantly strive to become long term strategic partners with our clients, by providing superior products and services, which demonstrate responsible stewardship.

In this pursuit of excellence, our organization is committed to provide a spectrum of filters and muffler assemblies of the highest quality for the use in Industry.

Our objective is to help in the creation and development of high quality Automotive and Industrial Filters and Muffler Assemblies for use in the Asia-Pacific Region, which would ultimately benefit the society at large.

ORGANISATIONAL GOAL

KLN Engineering Products Pvt. Ltd., will evolve into a leader in the field of Industrial and Automotive Filters and Mufflers. This leadership will result in a commanding market share in domestic markets, with high customer loyalty. All this will be achieved by the combined efforts of its satisfied Employees.

C. Vision mission and Quality policy.Vision StatementProduct Excellence, Hard Work, and Continuous Self Improvement to encourage individual ability and creativity and build effective teams.To contribute for the advancement and development of the nation and improve human life and to become market leader by adding continuously new capacities incorporation state of art technology to produce quality KLN engineering products at least cost to the full satisfaction of customers and to enter into related fields and maintain core competencies. Mission Statement To raise the companys standards to International levels.

QUALITY POLICY

To produce reliable products and achieve customer satisfaction by Following customer specification, procedures and do timely delivery. QUALITY OBJECTIVE

Effectively implement the documented quality system. Train and motivate employees by providing working environment, training and incentives. Adopt appropriate technology in production.

D. Product service profile. AutomotiveFilters IndustrialFilters Silencers / Mufflers Autocomponents 1. AutomotiveFilters

1. Air intake systems: We are currently manufacturing an extensive range of Air Intake Systems which includes Pre-cleaners, Intake Tubes along with the necessary mounting accessories. We also have the ability to design from sketch the entire intake system as we have done for several of our plans.2. Air filters:We manufacture several kinds of intake Air Filters from flows of 10 cfm up to 3000 cfm. The range of filters include Dry Type Paper Elements, PU Foam based Filters and Oil Bath Air Cleaners. We have also developed a range of Hybrid Air Filters that take advantage of the benefits of different forms of filtration to create combinations of Oil Bath and Dry Filters in one package. This greatly enhances the life of the Dry Type Filter Elements by taking advantage of the dust holding capacity of the oil bath media. This is done keeping efficiency levels at minimum of 99.96%.KLN has been awarded with Patent for a Revolutionary Design for the Cyclonic Pre-cleaner which is currently been marketed in several parts of Europe and India. a. Dry type b. Oil bath air cleaners

3. Oil Filters: We have a fully backward integrated unit capable of designing and manufacturing any kind of Oil Filter be it Lubricating Oil, Transmission Oil, Hydraulic Oil etc. Oil Filters are manufactured using various media such as Wire Mesh, Non Woven Fabrics, and Filter Paper etc. The filters we produce are either in the replaceable cartridge type or also in the Spin-on variety.

4. Fuel Filters: Fuel Filters for most of Diesel Engines utilizing media such as fabrics, filter Paper, Crepe Paper and other edge filtration technique are currently been used by us. These Medias are used to make either cartridge filters or spin-on filters of the highest quality. 5. Strainers & Breathers: We have an extensive range of Suction Strainers and Retainer Line Strainer, Crank Case Breather and Oil Filter Cap Breathers are some of the kinds of strainers we manufacture.

2. IndustrialFilters:

Panel filters Pre filters Railway applications Air filters Strainers

3. Silencers / Mufflers

4. Autocomponents: Apart from filters and mufflers we also produce range of components for use in the automotive industry such as machined casting and brackets as shown below

I. Achievement Award

S no Description of awards Year

01Best Supplier Award from Simpson & Co. Golden Jubli Celebration 1990

02KAMCO Best Supplier Award2003-04

03Women Entrepreneur Award 1990

04Women Entrepreneur Award Karnataka State

2004

05Best Presentation Sri Lanka Auto Part Conference 1997

06Priyadarshini Award Federation of Indian Women Entrepreneur1998

07TAFE Best Supplier Award for Overall Performance 2007

08 ELGI Best Supplier Winner 2007-08

09Ashok Leyland Award towards QCLDM Performance Improvement

2007-08

10Ashok Leyland Award in Recognition of Outstanding Performance in Cost 2007-08

11Best Supplier Award for Overall Performance

2009

Organization Structure

Dispatch SectionOperatorOperatorJunior. OperatorSenior HelperHelperSr. Charge HandPurchase EngineerQuality Auditor HelperSenior HelperJunior. OperatorOperatorSenior OperatorJr. Charge HandQuality TraineeTech. Engr.Quality Engr.Asst. Rep.QC Asst. Mgr.Sales Rep.Store KeeperH.R ManagerChief Executive OfficerDIRECTOR TECH. DIRECTOR COM. MANAGING DIRECTOR

GM - ProductionR&D & QC Head

H.R ManagerPurchase & Planning ManagerAccounts & Excise ManagerSales & Marketing Manager

Quality & Technical ManagerProduction Manager

Accountant

Accounts Asst.

Shop floor Forman Shop floor Forman Shop floor Forman Sales Asst. Store Accounting

Prodn. Supr. Machine Shop Excise Asst.Prodn. Supr. Assy. Sec.

Senior HelperSr. Charge HandSr. Charge HandSenior OperatorCharge HandJunior. OperatorJr. Charge Hand

Helper

Charge Hand

Senior OperatorJr. Charge Hand

CHAPTER IIIFUNCTIONAL DEPARTMENTS

PURCHASE DEPARTMENT:Stores Department:It is located very near to plant section. The entire purchase and stores department is controlled by purchase officer. All the materials are stored systematically. The stock position of essential materials is updated every day and for ready reference. The materials are stored in a manner which can be identified very easily. The materials are bifurcated according to the daily requirement, considering its essentiality; there are seven rooms where all the materials are stored separately.

Nature of Purchase Policy:On credit basis and few materials are on advance payment and lesser value items on cash basis depending upon the circumstances.

Credit System Followed:The material payment on credit basis is normally released within a span of 30 days. The payment for capital items will be: On delivery of KLN equipments on site. 30% against errection & commissioning. 10% payment against bank guarantee for a period of one year.

Method of Purchasing: 1. For certain things key directly move towards manufacturers. 2. For certain things, they directly move for floating the enquiries for the concern suppliers.3. In some cases, they directly move for government agencies.

Purchase Procedure:By making enquiries, obtaining quotations, by receiving quotations, comparison and placed before purchase committee after giving due consideration about the rates quality, suitability of required material. Then issuing purchase orders to the suitable party in accordance with the terms/conditions of the organization.

Issuing of Material Procedure:The materials are issued according to the requirement of various sections against the indent authorized by the superior officers.

Procedure:They receive the purchased materials from various suppliers or from government agencies or from manufacturers and they count it and they enter it in purchase register. Then they enter in stock register. They issue it to various sections where they are required. These issues will be made on indent basis. In the indent the requirement of the materials section for which it is required along with the signature of the indenter, authorization by superiors is essentially found.

STORES MANAGEMENT:PURPOSE OF STORES:Stores play a vital role in the operations of a company. It is in direct touch with the user department in its day to day activates. It is having functions of stores.1. To receive raw materials. Components, tools, equipments. 2. To provide adequate and proper storage.3. To meet the demands of the consuming departments.4. To minimize obsolescence, surplus and scrap through proper condition preservation and handling.5. To highlight stock accumulation, discrepancies and abnormal consumption and effect control measures.6. To ensure good housekeeping so that material handling, material preservation. Stocking, receipt and issue can be done adequately.7. To assist in verification and provide supporting information for effective purchase action

1. PRE PURCHASE SYSTEM Initiating the purchase through requisitions, selection of suppliers, obtaining quotations and evaluating them, are broadly the pre purchase activities. Requisitions: The department concerned, in need of a material, usually present a completed requisition made by the department head. However, it has to be countersigned by the Unit Head. In any organization, only a limited number of officers are empowered to countersign the requisitions as it amounts to authorization of the expenditure. Purchase department must have the list of such officers to check the validity of the purchase requisition Normally; there is a delegation of authority in authorizing a requisition. This is expressed in terms of the financial limits up to which an officer can authorize a requisition This form contains i. Department requiring the material.ii. Requisition reference number.

(b) Traveling requisitions: This document is widely used for requisitioning items that are required frequently in bulk quantities over a long period. During each stage, a purchase order is initiated. Factors such as specification and supplier details are written permanently and provisions for entering date, quantity required names of requisitioned and authorizer are available. This reduces paper work and eases the operation. Standardized clerical system can be devised and the bulk of the work can thus be efficiently handled. For repeat ordering, this is the ideal procedure.This form consists of a. Material descriptionb. Part number c. Annual usage.d. Name of the supplier.I Enquiries many organizations often invite suppliers to quote rates for supply of materials. For this purpose a standard format is used which is similar to a purchase order in an aspects except that word such as this is only a request for quotation or this is not a purchase order are printed so as to ensure that the supplier does not consist the request for quotation as a firm order.ORDERING SYSTEMHaving selected the supplier and the rates agreed, the buyer places the purchase order on the supplier, expressing the term and conditions. The purchase order once accepted becomes a binding contract. The details that are normally furnished in a purchase order are listed below.a. Purchase order reference number (which will be quoted in all subsequent follow up measures pertaining to that order).b. Description of the materials and detailed specification.c. Quality required and delivery schedule.d. Price and discounts.e. Shipping instructions. f. Location where the materials are to be shipped (usually the name and address if the buyer).Post purchase SystemThis includes follow up procedures, receipt and checking invoices.(a) Follow up procedures. Follow up implies commitment of time and money and therefore it has to be selective. Certain priorities could be established for follow up. Only critical items require continuous follow up. Depending upon the movement. Items can be classified into fast moving and slow moving. For fast moving items, follow up can be initiated whenever the stock level depletes to one months consumption For slow moving items also similar norms can be established A few organization also have decentralized inspection facilities for on the spot inspection and acceptance. Purchase Order (P.O) status reports are generally prepared so that selective follow up is ensured. The status report can be printed part number wise or supplier wise for suitable follow up.(b) Receipt: A systematic record of the consignments received, carrier details and descriptions are to be maintained in chronological sequence, to help in quick identifications of materials so that inspection can be arranged prior to acceptance. Many organizations have a separate central receiving section for this purpose. As mentioned earlier. A copy of the purchase order is sent to the central receiving section for reconciling purposes.

(c) Invoice Checking. The supplier normally sends the invoice for the materials supplied for payment. It is essential that this invoice is matched against the receipt details, quantity accepted and rejected so that payments can be made within the stipulated periodDiscount period or provisions be made which will keep in funds planning. Normally invoices are sent to the buyers finance and materials management department is necessary.

Inventory Control:It is a systematic control over purchasing, storing and consumption of materials so as to maintain a regular and timely supply of materials at the same time avoiding over stocking. It is being achieved in the KLN by systematically organizing the procedures and activities relating by Purchasing Properly storing Issuing as per requirements Keeping record on consumption of material Systematic overall record keepingInventory Management:In the KLN, inventory is begin managed systematically giving importance to the requirement of materials to keep continuous production process to avoid over stocking of materials. These inventories are stored in a systematical manner and maintained with regular and timely supply of materials. The process of purchasing, reception and inspection of material storing and issuing and consumption of materials, record keeping are systematically organized in the KLN. All these processes are prejudiced on routine basis by the representatives of chartered accountants and monthly as well as yearly consumption of overall materials are being interpreted in the financial statements which will be certified

Objective of Inventory Control: Ensuring timely availability of right type of keep the continues production process. Avoiding overstocking of materials to ensure minimum capital investment by removing unnecessary blockage of funds. Economy in buying and controlling expenses by organizing ideal order quantity of each item. Prevention of leakage, deterioration of waste material by arranging systematic, suitable storage facilities by fixing allowable waste percentage.

Material Requirements Planning:According to requirement the material forensuring continuous systematic, suitable storage facilities by fixing allowable waste percentage. Based on the requirement and nature of material Value of the materials Availability and sources of materials Means of transportation and its cost Storage capacity and facilities

SWOT Analysis of Production DepartmentStrengths: Abundance availability of paper, which is the important raw material for KLN. The use of German Technology. Consistent and compressive quality. Weaknesses: Process is too low.Opportunities: To introduce paper packing to cater to the overall demand and market situation. Threats: Concentration of paper, deposits may result imbalances in supply and demand of engineering products cause unsteady prices in Southern region.

MARKETING DEPARTMENTMarketing is a social and managerial process by which individuals and groups obtain what the need and want through creating, offering and exchanging products and value with others.

President

Sr. General Manager

Dy. General Manager

Excise StaffSite StaffDepot Staff

Marketing ProcessThe marketing process consists of analyzing marketing opportunities, developing marketing strategies, planning marketing programs and managing the marketing efforts.1. Analyzing market opportunitiesThe marketing department is continuously involved in analyzing the long-run opportunities in this marketing for improving the units performance. These people recognize the abundance of opportunities in the bargaining business field. The building of the future is fast becoming a reality and high investment in this area is likely to continue in coming decades. This wide and constant market and increasing demand for engineering products is great opportunity for KLN to launch new products into market and to capture regular market with good quality of products.

Marketing department is responsible for monitoring of commercial market and its components and the related technology trend never less than of competitors and the related technology trend never less than of competitors activities for forged materials. It is responsible for the following activities: Market analysis and planning Product analysis Competition analysis Determining customer satisfaction Marketing department is also responsible for other internal department such as operation, finance, purchasing etc. Pricing and order administration Regular customer interaction Handling non technical customer complaint Definition of commercial aspect of new supplier contract Price updating Authority and responsibility of marketing manager Contract review and resolves the differences with customers Customer complaint handling Follow-up and review payment collection To coordinate for new product development activities To study, enquiry and reply regarding feasibility To coordinate for product price finalization

2. Developing marketing strategies KLN Engineering products Pvt ltd has decided to target the home segment, Govt. and private customers, bulk purchases. It involves a differentiating and position strategy for the target market. This strategy includes the excellent service, pricing and distribution and networking policies.3. Planning marketing programsMarketing programs includes marketing mix and marketing allocations. It includes 4Ps such asProduct - Customer needs and wantsPrice - Cost to the customer Place - ConveniencePromotion - Communication

4. Managing the Market segmentOrganizing the market resources and then implementing and controlling the market plan. The company has built a marketing organization that is capable of implementing a market plan, Marketing research, Setting Advertising, Customer servicing and so on. As marketing department is fully automated and having talented personnel who work around the clock to achieve organizational goals and objectives.

Functions and objective of marketing department Marketing department has to perform following function and objectives with brief explanation.1) Price fixation Based on prevailing marketing conditions As per C.M.A guidelines As per with the other main competitors

2) C.M.A meeting Sales promoters and the Branch Managers to review the price attend local C.M.A meetings The company executives and attend senior level C.M.A meeting.

3) Sales Promoters Sales promotion and market survey. Price fixation. Appointment of authorized stockiest. Timely disposal of stocks. Timely delivery of material to dealers. Timely collection of payments. Collection of confessional forms.4) Appointment of stockiest procedure Interested parties are selected and dealership application forms are issued. Minimum monthly sale guarantee assurance is taken from the stockiest. Application form, partnership deed, sales tax registration copies are collected at the time of appointment. Dept In charge, area manager and sales promoter of that area should forward application form.

Fixation of transportation rates Sealed quotations are invited from transporters. Agreements are on quarterly basis/half yearly. Comparative statements are prepared for approval. After approval agreements are entered with transporters with penalty/bonus clauses (if any). The billed rates are inclusive of unloading charges. All transportation rates/contract copies are given to account department for passing of bills.

Transportation Bill passing procedure The transportation bills are passed on weekly basis. The transportation bills are checked thoroughly with the acknowledgment received and advice is sent to account for releasing payment. Shortage/Damages if any reported, the cost of the same is deducted from the transporters bill and credited to sales expense account.

Centralized Invoicing Depot sends challenges to site twice a week. On receipt of challans, checking is dine immediately and fed into computer and invoices are sent Depots/parties. When the loaded trucks report back the excise invoices are issued based on the data from booking file and handed over to the truck driver immediately.

Loading Co-ordination with packing plant personnel, for destination wise loading of engineering products grade wise as per depots requirement. Frequent weight checking of loaded Engineering products is being carried out at packing plant to ensure accurate loading. In case of any variations it is being informed to technical person for attending the same.Dispatches Monthly Engineering products dispatches are planned at the site Road based on the required Engineering products grade wise by all the depots/orders on hand. All the depots are informed well in advance about monthly Engineering products dispatches planning.SWOT Analysis of Marketing Department Strengths: Brand name of KLN. Quick delivery after placing order.

Weakness: There is no proper distribution within Karnataka. There is no proper Electronic media publicity. No meeting with the dealers to buy their loyalty. Lack of good incentive scheme for dealers.

Opportunities: Increase the installed capacity and penetration in important market segment. It can become market leaders in engineering products industry. Going for contacts and Govt. projects and receiving good and huge order.

Threats: High competition among engineering products companies. Threat of cut throat competition. Advertising and publicity by the competitors may reduce the market share of the company.

Human Resource Department:HRM is planning, organizing, directing and controlling of the procurement, development, compensation, integration and maintenance of people for people the purpose of contribution to organization, individual, social goals.HR needs to be given a strong emphasis, as it is the quality of human factor in his organization, which determines its effectiveness.Objectives of Human Resource in KLN ENGINEERING PRODUCTS PRIVATE LTD To attract and retain best available young talent in the country in areas like Finance, marketing and personal. To maintain effective coordination between HRM and other departments. HRM department helps in motivating the employees in attaining individual Goals and in retune will lead to attain the organizational goals. A qualified applicant for specific type of job. To ensure the above objectives by eras of a systematic scheme of centralized Recruitment this will be regular and effective.ScopeThe recruitment of professional trainees in professional areas like finance, marketing, personnel etc. induction level of executives that is PS 3 for centrally pooled requirement of units. Recruitment of senior executive at level of corporate cadre like PS 7 as per need of unit.

Various Departments under HRM

Establishment SectionEstablishment section of KLN engineering products private limited involved with the activities like recruitment, selection, promotion, and performance appraisal record of day-to-day activities as well as manpower adjustments. The selection is basically involved with establishment activities.Recruitment and SelectionIt is process of selection for prospective employee and stimulating and encouraging them for job in an organization. Selection is process of putting right person to right job according to job specification of organization.

Recruitment is a generating of application or applicants for specific jobs. Recruitment consists of two main processes:1. Identification of vacancy of staff and workman2. A stock of a recruitment source

Internal sourcesExternal sources

i. Circulation, advertisement in group companies.ii. By internal promotion.iii. By internal or group units/company transfer/deputations.iv. By internal trainees and apprentice.v. Extension of service.

i. Advertisement in leading news papers.ii. From consultants and placement agencies.iii. Form waiting list/shortlist and with references of VIPs, known concerned. iv. Applications from applicants directly received from time to time.

Table-3: Recruitment SourcesSelectionSelection will be done at the interview after complete verification of application blank with passport size photo affixed, original certificates, with regard qualification, experience last salary drawn, references etc., attached assessment form to be filled up and signed by the interview committee. If selected the salary offered, grade, trainee or probationer or direct employment, designation etc., offered should be mentioned for final approval of the president (unit head) and the Sr. President, in case required.

PlacementDepending on clear vacancies in the concerned departments/section on the basis of sanction strength the candidates selected on the basis of qualification, experience, age, professional requirement, etc., are placed with proper designation in the respective department initially on probation of one year. Fresher graduate/diploma holders and ITI and other or taken as trainees on stipend per month. Test conducted for trainees. Oral test. Medical examination. Verification of certificates and reference. Induction.

A circular is issued to all departments and notice is also displayed in case when Sr. Officers and above or newly appointed induction booklet to study the plant and organization is issued to new entrants. Training and Development The company organizes training programmed on need basis regularly for fresher and for existing employees. The type of training is as under:a. On the job training for all categories of employees.b. Learning new techniques through internal training or by external agencies.c. Refreshers training and training for promotion in the organization.d. Remedial training and general training in safety, discipline, culture, rules and regulations of the company, statutory matter and procedure.

Internship training This sort of training is important to employees who are transferred from other units, fresher or to the employee promoted in new jobs. This is advanced vocational training system.

External trainingEvery year before March annual training calendar is prepared after consulting all the concerned departmental heads on various need based training programme on different aspects like technical, marketing and of HRD administration to develop skills and latest technical knowhow and same is approved by the management. Promotions. Procedure. Career path.

Welfare Department Employee Motivation With the provisions of following incentive Attendance Bonus O.T. allowances etc

The employees are motivated to discharge more work. Rewards are given to the outstanding technical employees.

Employee benefits: Attendance Bonus (30 days) Working during holidays single wage will be paid and for the officers compensatory holidays will be given. Provident fund facility as per the P.F. Act. Employees deposit linked insurance scheme. Group gratuity for employees having more than 5 years experience. Bonus will be paid with respect to bonus act. Festival advance given to employees Rs.2, 000/- and it will be recovered in 10 equal installments. T.A. / D.A. will be paid as per service rules. Training and development programme facilities to all the employees. Festival advance given to employees Rs.2, 000/- and it will be recovered in 10 equal installments. T.A. / D.A. will be paid as per service rules. Training and development programme facilities to all the employees.Leave Benefits: Earned Leave of 30 days in a year. Earned Leave can be available five times in a year. Half payment leaves for 20 days in years. Casual leave of 15 days in a year.

Retirement Benefits: Pension benefits from PF authority Gratuity benefits as per gratuity act. Employees group linked insurance scheme (EGLIS) contribution among along with interest.

INDUSTRY RELATIONIn KLN, Industrial relations deal with either the relationship between the state and employers and workers in an organizational themselves. This helps to resolve from any kind of disputes like: misunderstanding, difference of opinions, (or) conflict that arises between an employer and his workmen. Therefore a high level of understanding and positive relationship between them, can alone lead to the achievement of organizations objectives. Hence industrial relation plays an important role.SWOT Analysis of HR Department. Strengths: Use of man power is less. Experienced the labour efficiency.

Weaknesses: High Labour turnover ratio. Lack of Skilled Labours. No equal treatment to the stockiest for their lifting. No professional management. Less staff in management field.Opportunities: The company is offering Apprentice and Internship.Threats: Recessionary trend likely to follow after the boom.

FINANCE DEPARTMENT

VP of Accounting Department

Personal Secretary

AccountantAccount OfficerManagerSr. Manager

Figure: Finance Department structureFinancial management vows to the application of general management principles to a particular finance operation. It guides investment where opportunity is the greatest producing relatively uniform hard-sticks for judging most of the firms operations and projects. Certain uniform norms for financial consideration have to be setup to enable an enterprise to judge its activities properly. Financial management is the dynamic involving or making of day to day financial decision in a business of any size. Financial management however, should not be so planned as to contribute to project making activities for finance cannot be generated without profits. Financial management is the dynamic involving or making of day to day financial decision in a business of any size. Financial management however, should not be so planned as to contribute to project making activities for finance cannot be generated without profits. Financial management unlike other functional areas of a business related both to the company as on operating entity and to the interest of the owners. The finance department is the life blood of the organisation that can be controlled by the organization by making an more or less, Increase or decrease of the production etc.,Functions The function and responsibility of the finance and account wings include the following: Determine the financial resources required to meet the corporation operating and capital expenditure program. Forecast how much of there of these requirement would be met by internal generation of funds by the corporation and will have to be obtained outside the corporation. Develop the best plans to obtain the external funds needed. Establish and maintain a system of financial control governing the allocation and use of funds. Analyze the financial results of all operation, report the facts to management and make recommendation concerning future operations. Carry out special studies with a view to reduce costs, improve efficiency and profitability.The above are dealt with detail here under:

a. Feasibility study and project reportsIn regard capital expenditure related to new project or expansions feasibility studies and detailed projects reports are to the prepared by the management and these should be examined by the financial wing to ensure that the capital expenditure proposed would be in further once of the objectives for which the corporation has been established, that the expenditure proposed to be incurred is reasonable and the expenditure would result in ensuring reasonable profit.

b. BudgetingLong term operating expenditure budget concerning a period of 10 years indicates the likely profit/loss earned during period. Preparation of long term capital expenditure budget covering a period of about 5/10 years and advise the arrangement in regard to the timing of the incurrence of capital expenditure.

Capital expenditure budget is in regard to the capital expenditure that is expected to be incurred during the year. The preparation of the arrival operating budget, the budget returns that flow out of the comprehensive budgetary system in operating.c. Cash flow statement Based on the long term budget the financial wing would prepare a cash flow statement indicating the inflow and outflow of cash during the period similarly it will also prepare a details of monthly cash flow statements for the year based on the annual budgets.d. Working capitalIt will also make an assessment of the working capital requirement for the fiscal year and advice the management regarding the sources of financing the working capital requirements.e. PurchaseFinance wing will be associated on a matter relating to purchase of equipments, machinery etc. it would also lay down suitable procedures for purchase to ensure that adequate control is exercised over such purchase and that there are no un-economic purchase.f. Pricing policiesIt will also advice the chief executive on pricing policies followed in the organization in regard to the selling price of power inter departmental issues charging of materials to jobs contract.g. Service conditionsIt advices the management on all service matters having financial implication such as scale of pay clearness allowance bonus gratuity etc.

h. Accounting mattersGeneral finance and accounts being is in charge of allows, budgets and internal audit of the corporation. It shall maintain adequate records of assets, liabilities, and transaction of corporation see that adequate internal audits there of the correct and regularly made and recommended and enforce duly approved methods and procedures where by the business of the corporation with the maximum safety efficiency and economy. It shall examine all proposed disbursements from the corporations funds and approve in advance payments required take made in accordance with the prescribed administrative and accounting requirements and procedure. i. Stores accountFinance and account wing responsible for the maintenance of adequate system of store accounts. It would assists the management in determining the minimum, maximum and ordering levels of various items and also be responsible for the introduction and for operation of the ABC method of control with a view to reduce the inventory holding to the optimum level.It would also be responsible to ensure that the verification of stocks of various items of store is carried out by ensuring:1. That physical stock of selected items is verified every day.2. That each item of stock is verified at least once in a year.3. That the surprise elements in regard to stock verification are maintained.4. Internal audit: it will organize effective internal audit departments and will process the reports submitted by the internal audit and place the same before the chief executive.5. Annual accounts and audit: it will ensure that the annual accounts are prepared in time according to provisions of law. It will attend to all matters relating to the statutory audit and the audit by the comptroller and audit general.6. Tax matters: it will be responsible for attending to all tax matters relating the corporations.

j. Reporting The following reports are taking submitted to the management1. Resources employed.2. Summary of cash flow for the quarter.3. Forecast of cash flow for the next quarter.4. Capital expenditure incurred during the quarter compared with sanctioned amount, budget estimates etc.5. Any other report prescribed by the undertakings relating financial matters.

k. Head Office Finances and Account WingThe finance and accounts wing of the head office is divided into the following sections: Establishment Bills and banking Management information system and financial concurrence Assets accounts Book keeping and compilation Budget and finance Provident fund, Pension and Recruitment benefits.

SWOT Analysis of Finance DepartmentStrengths: Fast accounting system and immediate problem solving. Strengthen the internal control procedures of Books and Accounts.Weakness: Lot of fluctuations in the prices i.e. no stable pricing policy. Very rigid in managing finance.

Opportunities: Financial reserve likely return.

Threats: Sustainable financial Backing

StrategySkillsStaffStyleSystemStructureValue Shared7 s MODEL

APPLICATION OF 7 S MODEL

The 7-S-Model is better known as McKinsey 7-S. The two persons who developed this model are, Tom Peters and Robert Waterman, have been consultants at McKinsey & Co at that time. They published their 7-S-Model in their article Structure Is Not Organization (1980) and in their books The Art of Japanese Management (1981) and In Search of Excellence (1982).Perhaps the most important element, which trigged the interest of American managers in the issue of culture, was the emergence of Japanese Competition. As Japan began to take a leading role in one basic industry after another, the question of cultural difference emerged as a casual factor to explain Japanese superiority. There were those who signal the deterioration of sound cultural values as the central reason behind the slipping of America as a worldwide industrial power. They suggest that Americans have gotten too fat, demanding too much from society without imposing any equivalent internal demands of themselves, and that they seem to have a lost a sense of pride and self-satisfaction derived from a job well done. When contrasted with their Japanese counterparts, the gap seems to be enormous and still growing. Somehow, there is basic erosion of standards of excellence that seems to undermine the basic fabric of American society. This is a message of gloom, and the popular press, as well as the academic writes, when contrasting American and Japanese management styles have been repeatedly conveying the message in recent years. The most notable exception, which might be the cause of its enormous popularity, has been the book In search of excellence by Peters and Waterman (1982), where they emphasize the lesson to be derived from Americas best run companies. Paradoxically, it is interesting to observe that the best compliment that can be made to an American firm is that it resembles a Japanese company. Mc. Kinseys 7S model reflects upon the framework used to evaluate the best managerial companies.The model starts on the premise that an organization is not just Structure, but consists of seven elements:

The Seven S architecture

1. STRUCTURE

Definition of Structure:Structure describes the hierarchy of authority and accountability in an organization these relationships are frequently diagrammed in organizational charts. Most organizations use some mix of structures- pyramidal, matrix or structured ones to accomplish their goals. A structure is the formalizing of relationships, roles and responsibilities in order to recognize and perform work.

In simple terms, structure is a pattern in which various parts or components are inter-related and inter-connected. So, organization structure is a pattern of relationships among various activities and positions. Because various people hold these positions, the structure defines the relationships among people in the organization

Organizational structure performs in the following major functions: The overall responsibility for the safe and efficient operations at the location shall rest with the location in charge. However all the officers working at the location shall have the following functions as entrusted by the location in charge from time to time. Implement all the statutory requirements related to receipts storage and dispatch of product. Impart adequate training to all subordinates enabling them to perform their duties satisfactorily. Develop and maintain good relationship with all customers and other connected agency. It undertakes a wide variety of activities through devices such as departmentalization, specialization, division of labor of delegation of authority. The manager of the company is in a position to control the activities of different department on the organization. For taking the entire problem he meets the knowledge of about both technical and managerial knowledge. The employees of each department is responsible for the activities done in their respective departments and answerable and reporting to the department manager. In the organization the department manager comes under the top level management. Under these position technical officer, sales officer, accounts officer and administrative officer are present they comes under the middle level management and other workman, security guards and clerks comes under the lower level management of the organization. KLN engineering product private ltd, each department is interlinked with other departments has to maintain a good control with other departments

2. STRATERGYIt refers to the set of decisions and actions at gaining a sustainable competitive advantage.OBLIGATIONSTowards customers and suppliers:To provide prompt, courteous and efficient service and quality products at fair and reasonable prices. Towards suppliers:To ensure prompt dealings with integrity, impartiality and courtesy and promote ancillary industries. Towards employees:Develop their capability and advancement through appropriate training and career planning. Towards community: To develop techno-economically viable and environment-friendly products for the benefit of the people. Encourage progressive indigenous manufacture of products and materials so as to substitute imports. To ensure safety in operations and highest standards of environment protection in its manufacturing plants and townships by taking suitable and effective measures.

3 . SYSTEM

System refers to all the rules, regulation and formal procedure and informal that complement organizational structure. It includes buying and selling, planning and control system, capital budgeting system, recruitment, training and development schemes. In KLN Engineering product private ltd there is a separate department to plan and control the buying activities in this department the organization has to account for how much raw materials the trucks have to bring. The buying is planned according to demand of the granite stone in the market. Recruitment is the process of searching prospective employee and the recruitment of employees are carried out at the head office, Bangalore in the human resources department. In case of vacancies Or in case of appointing from outside, the In KLN Engineering product private ltd recruit people through consultancies, employment exchange and sometimes it will be published in news papers. They conduct interview. The qualified suitable candidates selected to the right job.

4. STYLE Style of the organization is the evident through the patterns of actions taken by the member of the top management team over a period of time. Reporting relationships may also convey the style of the organization.5. STAFF People processed used to develop managers socialization process ways of shaping positive values of management cadre ways of introducing your recruits to the companys ways of helping to manage the concern of the company.6. SKILLS Skills refer to an organization dominant capabilities and competence with employee. Every organization needs to has well trained and experience people to perform the required activities. A skill is an individual ability to translate knowledge into action. The aim of organization is to provide quality to their customer satisfaction, consistent quality to all. The organizations success depends on the skills of the employees.7. Shared value The company produces good quality products for which it has also received an award. The company has signed a memorandum of understanding (MOU) with M/s Shougang international trade and engineering corporation, Beijing (China) for technological tie-up for setting integrated granite plants of which is yet to start its operation.

CHAPTER-IV SWOT ANALYSIS

Strengths: Low cost of Production. Brand name of KLN. Consistent and compressive quality. Enduring advertisement with low budget. Quick delivery after placing order. Fast accounting system and immediate problem solving Low power cost KLN Engineering is produced by dry process which gives good quality and economy.

Weaknesses: High Labour turnover ratio. There is no proper distribution within Karnataka. There is no proper Electronic media publicity. Lack of Skilled Labour. No equal treatment to the stockiest for their lifting. No meeting with the dealers to buy their loyalty. Lot of fluctuations in the prices i.e. no stable pricing policy. No professional management. Lack of good incentive scheme for dealers. Very rigid management. Less staff in management field.

Opportunities: It can become market leaders in engineering products industry. New innovative ideas development quick hardening engineering product. Increase the installed capacity and penetration in important market segment. To introduce paper packing to cater to the overall demand and market situation. If possible build own infrastructure as transport vehicles. To take the advertisement of boom and reap more profits, keeping customers happy and satisfied. Going for contacts and Govt. projects and receiving good and huge order.

Threats: Higher capacity in southern region. High competition among engineering products companies. Threat of cut throat competition. Strategic and wide advertisement and publicity by the competitors. Fixing competitive prices of face the competition. Withering away of stockiest because of carrot shown by other companies. Likely entry of other foreign firms due to liberalization. Recessionary trend likely to follow after the boom. Slowing down of infrastructural process like building, bridges etc.

CHAPTER- VFINDINGS CONCLUSIONAND SUGGESTION

FINDINGS: Studying McKinseys 7s model with respect to KLN Engineering products private ltd. Gave me a great exposures to learn about the company. I learned about the working of the company in the 4 weeks. It was my privilege to be there and learn different things about the company. The staff of the company were very much co operative in helping me out in my project as well as in updating the manual. I also gained knowledge about the manufacturing operations of the company through it was not a part of the project. The HR officer and the legal advisor were very co operative enough and helped me in every aspect. Here I came to get a close view of the working environment of the corporate world. My one month in plant training in KLN Engineering products private ltd was a wonderful and knowledgeable experience in my life. In this time of training I came to know how a top level management works with participation of lower level management.

CONCLUSION: Based on the analysis and discussion made in the study, the overall performance of the company in the recent years in every satisfactory. Compared to its past records it has a good control over the market and has been able to utilize the opportunities and it strengths to topmost level. It has achieved a new mile stone by conserving the energy at all leaves so that the energy consumption to be as a low as possible. The company is achieving increase in Engineering products. With the establishment of the third unit the company is going to achieve more production and fittest competitor in the market. Environmental improvement has been a continuing mission with KLN Engineering products private limited. All of us, by exercising these common habits, can make our organization excel continually and can create a place where we will enjoy working and feel proud to be a member of this Group.

SUGGESTIONS: The following are the suggestions that are as follows. The company should be liberalized in providing leave facility to employee because it affects the morale of employee. The company should formulate strategies which can play an important role in the mental and physical development of the employees. The worker should be give performance based incentives or increments regularly based on their performance. Which will motivate them and in turn boost up their morale and increase in productivity? From the discipline point of view it should follow strict rule like curbing the drinking habit at the work place. Training and development programme should be designed for the overall development of workers. External consultant should be brought to train the workers as they will be more serious and enthusiastic at that time and ready for change. Increase the marketing network by which sales can be increased. The company should be grow like a global market.

STUDENTLEARNING EXPERIENCE

STUDENT LEARNING EXPERIENCE At the time of one month training I came to know: How managerial function work in an organization. What is the importance of maintaining the relationship with the workers How theoretical concepts are applied in organization practically. How planning, organizing, staffing, leading, controlling, all this management functions in an organization.

On the first day when I visited the HR manager gave me clear idea about what I have to do in that organization. And also clear all my regarding in plant training, after that he gave me some inputs about the company, that help me to get basics idea about that organization, their operations, products and all. From all these I understood that how KLN Engineering product private limited is different from competitors.

BIBLIOGRAPHY

BOOKS

Marketing Management Philip Kotler Production Management K. Aswathappa Personnel and Human Resource Management Subbaraos

1. WEBSITESwww.klnengineering.com

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