O/E/N India Ltd.
INTRODUCTION
In the Indian electronics industry for over 35 years the name O/E/N India Ltd. has been
synonymous with precision, high quality electromechanical components like relays, switches,
trimming potentiometers and allied assemblies.
Since 1969, O/E/N has been market leaders for all products under its manufacturing range and
caters to market segments like industrial instrumentation & controls, automotives, strategic
electronics and high end consumer electronics with emphasis on quality.
The state of the art assembly and manufacturing facilities of O/E/N covering over 18000m2
spread over 2 suburbs of Cochin and 1 in Peenya in Bangaloru. O/E/N has their own captive tool
design center and well equipped tool room capable of producing high precision tools and
moulds. In-house preproduction pressed metal parts with allied annealing and plating, finishing
plants and moulding shops for moulded plastic parts.
The quality management system of the company is approved to ISO 9001 with automotive
production lines being approved to ISO/TS 16949. The environmental systems of the company
are approved to ISO 14001. Individual products are covered by approvals from defense or
telecom authorities or by UL, CSA or VDE.
R&D laboratory of O/E/N is recognized by the Department of science and technology,
Government of India, and is competent to develop high precision miniature, electromechanical
components and allied subsystems. R&D is geared to work on acquisition of technology as to
transfer technology top business partners.
One of the thrust areas of business is contract manufacturing. O/E/N has got plants identified
under Electronic Hardware Technology Park (EHTP) scheme for duty free inputs for exports.
There are several companies from outside India who utilize O/E/N’s expertise in manufacturing
to produce low cost high quality products.
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O/E/N India Ltd.
Design of the study
Objective of the study
Textbooks, Journals, Libraries etc. can provide only limited amount of knowledge about the
activities inside an organization. In the modern world of improved knowledge and technology,
management students who have clamor for taking corporate jobs should be aware of various
functions within an organization. For getting detailed knowledge about such things, it is better to
have a close observation about such functions. An organizational study also provides hands on
experience to them. Books and classroom lectures give more emphasis to theoretical aspects of
management and concept development. But in the actual practice things may not be exactly the
same as theory. The process and activities in an organization depends on the products, size of
operation, competitiveness its organizational framework, and like. The present organization
study is undertaken with certain clear-cut objectives. They can be grouped as:
Primary objective
To acquire knowledge about the functions of various departments in O/E/N towards the
achievement of its organizational goals.
Secondary objective
To compare theoretical knowledge with actual practices.
To study functions of top, middle, lower levels of management in the day-to-day functioning of
the firm.
To study how various departments coordinate with each other.
To experience the organizational processes at various levels.
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O/E/N India Ltd.
INDUSTRY PROFILE
National Profile
The Electronics Industry in India took off around 1965 with an orientation towards space and
defense technologies. This was rigidly controlled and initiated by the government. This was
followed by developments in consumer electronics mainly with transistor radios, Black & White
TV, Calculators and other audio products. Colour Televisions soon followed. In 1982-a
significant year in the history of television in India - the government allowed thousands of colour
TV sets to be imported into the country to coincide with the broadcast of Asian Games in New
Delhi. 1985 saw the advent of Computers and Telephone exchanges, which were succeeded by
Digital Exchanges in 1988. The period between 1984 and 1990 was the golden period for
electronics during which the industry witnessed continuous and rapid growth.
From 1991 onwards, there was first an economic crises triggered by the Gulf War which was
followed by political and economic uncertainties within the country. Pressure on the electronics
industry remained though growth and developments have continued with digitalization in all
sectors, and more recently the trend towards convergence of technologies.
After the software boom in mid 1990s India's focus shifted to software. While the hardware
sector was treated with indifference by successive governments. Moreover the steep fall in
custom tariffs made the hardware sector suddenly vulnerable to international competition. In
1997 the ITA agreement was signed at the WTO where India committed itself to total
elimination of all customs duties on IT hardware by 2005. In the subsequent years, a number of
companies turned sick and had to be closed down. At the same time companies like Moser Baer,
Samtel Colour, Celetronix etc. have made a mark globally.
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O/E/N India Ltd.
Current Scenario
In recent years the electronic industry is growing at a brisk pace. It is currently worth $10 Billion
but according to estimates, has the potential to reach $ 40 billion by 2010^. The largest segment
is the consumer electronics segment. While the largest export segment is of components.
The electronic industry in India constitutes just 0.7 % of the global electronic industry. Hence it
is miniscule by international comparison. However the demand in the Indian market is growing
rapidly and investments are flowing in to augment manufacturing capacity. India however
remains a major importer of electronic materials, components and finished equipment amounting
to over US$12 Billion in 2005^. This is not a desirable situation and local manufacturing has to
keep pace with growing local demand.
The output of the Electronic Hardware Industry in India is worth $11.6 Billion ^ at present.
India is also an exporter of a vast range of electronic components and products for the following
segments -
Display technologies
Entertainment electronics
Optical Storage devices
Passive components
Electromechanical components
Telecom equipment
Transmission & Signaling equipment
Semiconductor designing
Electronic Manufacturing Services (EMS)
The growing Indian market for electronic products is over US$25 Billion and is growing
at about 30% per annum! At this rate it is projected to exceed US$ 70 Billion by 2010
and US$158 Billion^ by 2015. This growth has attracted global players to India and
leaders like Solectron, Flextronics, Jabil, Nokia, Elcoteq and many more have made large
investments to access the Indian market. In consumer electronics Korean companies such
as LG and Samsung have made commitments by establishing large manufacturing
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O/E/N India Ltd.
facilities and now enjoy a significant share in the growing market for products such as
Televisions, CD/DVD Players, Audio equipment and other entertainment products.
The growth in telecom products demand has been breathtaking and India is adding 2
million mobile phone users every month! With telecom penetration of around 10%, this
growth is expected to continue at least over the next decade. Penetration levels in other
high growth products are equally and growth in demand for Computer/ IT products, auto
electronics, medical, industrial, as well as consumer electronics is equally brisk.
Combined with low penetration levels and the Indian economy growing at an impressive
7% per annum, the projection of a US$150 Billion^ + market is quite realistic and offers
an excellent opportunity to electronics players worldwide.
^From www.elcina.org
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O/E/N India Ltd.
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O/E/N India Ltd.
Company Profile
Established in 1968, O/E/N is the market leader for Electromechanical Components.
Manufacturing plants are located in the suburbs of Cochin and Bangaloru with over 18,000
square meters of factory space. They offer a comprehensive range of products with applications
in most segments of Electronic Industry including Communications, Automotive, Strategic
Industrial Controls, Instrumentation and Consumer Electronics. The quality management system
of the company is covered by ISO 9001: 2000 Certification.
Factory infrastructure include fabrication plant for pressed parts, plastic moulded parts,
electroplating facilities, Research & Development Laboratory, sophisticated Tool Room and
Quality Assurance & Test Labs. Apart from regular production, O/E/N offers facilities for
contract manufacturing and already exports considerable volumes.
“We are the customer link to the future. We help turn/transform customer concepts to product
applications. We create made to order products, to customer specifications. The hard earned
reputation for quality products & services has helped us enhance customer base. Clients choose
O/E/N and stay with us because we provide world class technical and reliable support. Customer
care and satisfaction is part and parcel of our work culture. We nurture continuous innovation,
team work, employee involvement and stay focused on customer needs. We have successfully
established customer loyalty by working towards establishing lesser gap between customer wants
and products/services we deliver. In fact, O/E/N is the virtual supplier of Electromechanical
Components.”-website of O/E/N
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O/E/N India Ltd.
History of O/E/N
O/E/N India Ltd. was formed in 1968 as a joint venture with OAK Electro/Netics Corporation,
U.S.A under the leadership of founder M.D, Late Mr. K.A Mathew. At the inception, 45% of the
equity shares were held by OAK Industries Inc, U.S.A and 25% by Kerala State Industrial
Development Corporation and the balance primarily by the directors and their associates. The
abbreviation O/E/N was devised out of the name of the collaborator.
The OAK group was a pioneer in the field of professional grade rotary switches, keyboards, and
push button switches, miniature and power relays, miniature trimmer potentiometers, controls
and control systems serving many segments of electronic industries- appliances, manufacturing,
industrial, aerospace, military and other fields.
Until O/E/N India went into production, entire requirements of the country for these products
were being imported from the U.S and the U.K. The major customers for these products were
Indian PSUs like BHEL, HAL, ISRO, DRDO, HMT, etc.
The company started with OAK designs and eventually added new designs in due course. The
company reached its break even in 1970 and declared its first dividend in the year 1973. In 1980,
the company started a sister concern O/E/N Micro Systems to take up manufacturing of
computer peripherals and in 1984 O/E/N Connectors India Ltd. in collaboration with FCI
Connectors, France. By 1985, the company set its second manufacturing plant in Peenya,
Bangaloru.
Till 1990’s the company was enjoying a monopoly in the market with no competition from the
local businesses. However with the liberalization policy of the 90’s, the company was forced to
face severe competition from the global brands. It took some time for the company to react and
change itself from the slow pace culture generated by the monopolistic leadership to that of a
flexible innovation culture needed in the midst of a competitive market. The growth of the
company was dampened though losses were avoided.
Unable to change with the times, O/E/N Microsystems was forced to be closed after enviable
years of growth in the startup period and closed down in the year of 2001. The company was
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O/E/N India Ltd.
subsequently merged to the parent company in 2003. FCI also increased its share in O/E/N
Connectors to 51% and then to 65% in 1996.
The company realizing the faults reinstated its position in the early 2000s entering into tie-ups
and technological transfer agreements with major global players to bridge the technological gap.
The company had invested in enriching its core competency in electromechanical sub systems
development and had entered into contract manufacturing. The policy changes reflected more
emphasis on value addition and value creation.
(Note: The initial collaborator M/S OAK Electro/Netics Corporation was subsequently renamed
as OAK industries Inc. The brand OAK is no more and the equity held by OAK was bought back
by the company in a phased manner. )
Milestones of O/E/N
1968: Formation of O/E/N India Ltd. in collaboration with OAK Electro/Netics
Corporation, USA. Plant location at Mulunthurthy
1969: Commencement of production
1970: Company reaches Break Even
1973: Maiden dividend was declared
1974: Company achieves target of Rs. 10 million turnover
1976: Started in-house tool room
1977: Company starts R&D facility
1980: QA lab expanded with sophisticated tool equipments
1980: OEN Micro Systems; a sister concern started
1981: OEN India Connectors started in collaboration with FCI SA, France
1983: Second plant of O/E/N India was setup; located at Peenya
1993: Becomes an ISO 9002 Company; second such company in Kerala to achieve this
fete
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O/E/N India Ltd.
1993: OEN India Connectors become FCI OEN Connectors after FCI increases stake in
company to 51 %
2001: ISO 9001-2001 company; first in Kerala
2001: After initial success and failure to achieve expected profits in subsequent years
OEN Micro Systems was closed and merged with the parent company, O/E/N India Ltd.
2003: O/E/N becomes first company in Kerala to be certified most sought after
international quality systems standard ISO/TS 16949-2002
2003: Company incorporates ERP
2004: ISO 14001:1996 & OHSAS 18001:1999 were achieved
2006: Achieves another target of Rs. 50 crores profit
2006: Achieves coveted ‘Ford Q1’ preferred quality status
Business Mission
Attain leadership position
Create wealth
Be the best in the business
Business Vision
Centre of technological excellence
Market leader in electromechanical components in country
Business Goals
To attain a respected presence in the industry
To build progressive relationships
To improve organisational strengths
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O/E/N India Ltd.
To fine tune competitive advantage
To offer unique services
To undertake customizing of products
Quality Policy
“Quality is our technology to attain most preferred manufacturer and supplier status through
strong commitment and continued improvement”
Material Policy
“Manage the supply chain to ensure satisfaction of all our customers by supplying quality
products at optimum prices at the right time”
Social Obligations
O/E/N has formed a foundation which provides medical treatment for underprivileged in society.
It also provides scholarships to children of employees and maintenance charges for schools and
colleges
Major Customers
o American Power Conversion(APC)
o GE Medical Systems
o TATA
o M&M
o Johnson Lifts
o JCB India
o ITI Ltd
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O/E/N India Ltd.
o Ford India Pvt. Ltd.
o Bharat Electronics Ltd.
o L&T Ltd.
o ABB India Ltd.
o Hyundai
Other Major players in the Industry
o Electrical Associates
o Indian Electro Trade
o Invented Electro Systems Pvt. Ltd.
o Minitek
o Ramesh Electronics
o Power Max
o Allied Controls Inc.
o American Relays Inc.
Products Profile
Industrial Relays
Series 31 Enclosed, Plug in
Series 31 10 A Enclosed Relay
Series 31 6 A Open Relay
Series 32 2 Pole 20 A Metal Can Relay
Series 51 10 A Indicator Relay
Series 33 Industrial Relay
Series 37 Industrial Relay
Series 38 Industrial Relay
Telecommunication/Signal Relays
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O/E/N India Ltd.
Cradle Relays
Series 36 1A Sensitive Relay
Series 77 1A Telecom Relay
Series 67 3/5/7A, Versapack Relay
Signal Relays
Series 34 Flat Pack Relay
Series 42 Pigmy Relay
Series 52 DIP Reed Relay
Series 56 Miniature Relay
Hermetically sealed relay
Series 30 Crystal Can Relay
Power Relays
Series 57 2/6 A Miniature PCB Relay
Series 58 10/16A Sealed PCB Relay
Series 59 10/16A Miniature PCB Relay
Series 61 5A Sensitive PCB Relay
Series 62 25A PCB Relay
Series 63 25A Spaded Terminal Relay
Series 81 PCB Relay
Series - 68 Miniature Power Relay
Automotive Relays
Series 35 Medium Power PCB Relay
Series 35 Heavy Duty PCB Relay
Series 53 35/70 A Power Relay
Series 73 20 A Sealed Relay
Series 74 20/30 A 1C Relay
Series 76 Mini PCB Relay
Series 78 Power Relay
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O/E/N India Ltd.
Rotary Switches
Series 11 (AM) Switches
Series 12 (J/JC) Switches
Series 13 (OM) Switches
Series 14 (AML) Lever Switch
Series 15(HM) Switches
Series 16 (LORLIN CK)Switches
Other Switches
Series 22 Snap Action Micro Switch
Series 25 Rocker Type DIP Switch
Series 27 Slide and Piano Type DIP Switch
Series 44 Potentiometers
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Board of Directors
Managing Director
Executive VP
GM Finance GM Eng. Services CGM Eng. Resources CGM Technical Sr. GM MKTG
AGMR&D
AGMHRD
Sr. ManagerProcess
Eng.
AGMMFG
AGMTools,
Fabrication and plating
AGMCust. Care
AGMMKTG
O/E/N India Ltd.
Organizational Chart
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O/E/N India Ltd.
Organization Set Up
O/E/N India Ltd is a public limited company headed by Managing Director, Smt. Pamela Anna
Mathew
Board of Directors
Pamela Anna Mathew (MD)
Venu Nellar
Sarah Mathew
Mathew K Mathai
Babu Paul D
P K Kurien
Sunela Sarah Thomas
Registered Office
O/E/N India Ltd.
Vytilla
P.B No. 1952
Cochin-682019, Kerala, India
Bankers
Centurion Bank of Punjab
Bank of India
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O/E/N India Ltd.
Employee Strength of O/E/N India Ltd.
Mulunthurthy Vytilla Peenya
Executives 126 19 9
Non-executives 409 17 176
Worker/Trainees 5 13
Apprentices 409 26
Total 949 36 224
Grand Total 1209
Quality System Certification
ISO/TS 16949:2002
ISO/TS 9001:2000
ISO 14001:2004
OHSAS 18001:1999
FORD Q1 Preferred Quality Status
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Senior Manager
Assistant Manager
Senior Accounts Officer
Cost and Accounts Staff
O/E/N India Ltd.
Finance Department
Departmental Structure
Finance department is the life blood of the business. So in any organization the most important
department is Finance Department. Without this department no organization can work smoothly.
O/E/N also has an efficient department for Accounts and Finance. Finance department is
concerned with planning and controlling of the firm’s financial resources.
The important objectives of the finance department include:
Preparation of corporate plans and budgets.
Financial planning cost control and ensuring uniform and correct observation of
financial disciplines of the company
Monitoring the progress of budget achievements
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O/E/N India Ltd.
Providing accounting services to all levels ensuring updating of systems procedures
for the same.
Advising management on funds utilization and its implementation.
Vetting of all investment proposals, certain of new assets, new posts etc. From the
point of financial feasibility
Evolve an audit manual
The finance department performs various functions very effectively .the main functions of
the department include:
To collect all sums due to the company in time as per sales, orders etc
To make timely payments to creditors, suppliers, contractors, employees,
Government statutory bodies, service providers etc
Timely dispersant of salary/wages/perks to employees as per agreement, MOU etc
To assist all types of audit work.
To prepare MIS as required by the management
To complete all Budget works.
To manage cash proper to maintain liquidity
To assist all departments in providing financial administration of all transactions.
To make proper entries in books of accounts and extracts reports like Trial
balance, P&L A/c , Balance Sheet on a time bound basis
Significant Accounting Polices:
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O/E/N India Ltd.
Every organization has its own accounting policies. O/E/N also has its own accounting policies.
The following by the company:
a. Fixed Assets
Fixed Assets are started at cost of acquisition or construction less
depreciation. All costs relating to the acquisition and installation of fixed
assets are capitalized. Assets and liabilities are consistently being recorded
at historical costs of the company and therefore they are not adjusted to
reflect the change in value in the purchasing power of money
b. Investment
All investments are valued at cost.
c. Inventories
Raw materials ,materials in progress , and stores and spares are
valued at the cost on weighted average method
Finished goods are valued at cost
Goods in transit are valued at cost
d. Sales
Sales are recognized upon delivery of products and are recorded inclusive
of excise duty but are net of trade discount, sales tax return.
e. Depreciation
Depreciation on fixed assets has been provided as per the rates prescribed
in scheduled XIV of the Companies Act of 1956. Under written down
value at any method depreciation on additions and deletions of fixed assets
is calculated on prorate basis
f. Retirement benefits
Gratuity liability is provided on the basis on the company rules prevailing
from time to time. The gratuity fund created to the company has been
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O/E/N India Ltd.
approved by the income tax authorities. The net assets enable the fund to
be fully discharged by the company’s obligations in respect of gratuity,
payment of the employees etc.
g. Scraps
Accounting of scraps is done at the time of sales. In finance department,
several sections such as salary/wages, provident fund, loans, over time
allowances, dearness allowances, etc each section is handled by one
person or two
h. Accounting policies
The financial statements are prepared under the historical cost convention
on an accrual basis and in accordance with the mandatory accounting
standards issued by the ICA and relevant provisions of the Companies
Act, 1956.
i. Excise duty
Excise duty has been accounted on the basis of both payments made in
respect of goods cleared as made by provisions made for finished goods
lying in the factory warehouse
j. Research and Development
Capital expenditure on Research and Development is treated as addition to
fixed assets and included in the respective heads under fixed assets.
Revenue expenditure on research and development are charged to profit
and loss account.
k. Proposed Dividend
Dividend proposed by the directors is provided for in the books of account
pending approval at the AGM
l. Contingent Liabilities
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O/E/N India Ltd.
Contingent liabilities are not provided for, but disclosed in Notes on
Accounts forming part of accounts
m. Deferred Taxation
Deferred tax asset has been determined taking into account the timing
difference in respect of depreciation and terminal benefits and is
recognized in the profit and loss account
n. Export Incentives
Export incentives in the form of Credit earned under Duty Entitlement
Pass Book Scheme is treated as income in the year of export at the
estimated realizable value/actual credit earned on export during the year.
O/E/N has consistently made profits over the many years of its functioning in spite of
unfavorable conditions. Sales during 2006-07 registered a growth of 33% over the previous year
of 47.12 crores.
Working capital management
O/E/N conducts its financial dealings with Bank of India & Centurion Bank of Punjab. The
banks can realize assets of the company in case payment is not made on time. Term loans have
been availed by the company from the banks. Salaries of the employees are given through bank
accounts of employees.
Share Capital Structure:
Authorized share capital: 10,000,000 equity shares of Rs.10 each.
Issued, subscribed and paid up capital: 50, 99,260 shares of Rs. 10 each fully paid up.
Equity shares
Borrowings from the two above said banks
Fixed deposits
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O/E/N India Ltd.
Investments:
O/E/N held 91905 fully paid up equity shares of FCI OEN Connectors ltd. Promoted by O/E/N
India Ltd. In 1981. The company has since sold above said shares @ Rs. 700/share to M/s FCI
SA, France. It currently holds 7200 equity shares of face value Rs. 10 in Bank of India Ltd. and
2001 equity shares of face value Rs. 10 each in OEN Electronics Pvt. Ltd. and 20000 equity
shares of face value Rs. 10 in Kerala Environ Infrastructure Ltd.
Turnover for the last ten years:
Year Rs. In Crores
1997-98 22.14
1998-99 21.05
1999-00 26.15
2000-01 30.82
2001-02 31.07
2002-03 35.70
2003-04 37.74
2004-05 39.05
2005-06 46.85
2006-07 55.65
Profit before Interest & Taxes (PBIT) over the years:
Year Rs. In Crores
1997-98 31.39
1998-99 27.53
1999-00 41.89
2000-01 45.87
2001-02 49.09
2002-03 79.05
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O/E/N India Ltd.
2003-04 65.94
2004-05 66.53
2005-06 56.96
2006-07 81.78
Dividend
The dividend paid for the equity shares was 10% for the last ten years. The company has paid
Rs.5099260 as dividends in the year 2006-07.
Earnings per Share (EPS) over the years:
Year Rs./share
1997-98 2.22
1998-99 2.01
1999-00 3.37
2000-01 5.57
2001-02 3.78
2002-03 7.43
2003-04 5.54
2004-05 6.89
2005-06 4.92
2006-07 6.05
Exports and inland sales over the years:
YearSales In crores
Exports Imports
1997-98 2.60 23.06
1998-99 1.05 23.53
1999-00 7.28 25.42
2000-01 1.30 34.20
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O/E/N India Ltd.
2001-02 4.42 30.70
2002-03 3.53 36.41
2003-04 5.45 36.77
2004-05 5.85 38.94
2005-06 8.59 43.70
2006-07 7.94 54.75
Net Worth of the company over the years:
Year Rs. in millions
1997-98 142.957
1998-99 147.888
1999-00 159.601
2000-01 183.987
2001-02 160.959
2002-03 172.173
2003-04 194.197
2004-05 216.162
2005-06 235.443
2006-07 260.336
Sources of funds as for the year 2006-07 in crores:
Paid up capital: Rs. 50993
Reserves and surplus: Rs. 209344
Secured loans: Rs. 99846
Unsecured loans: Rs. 31952
Deferred tax liability: Rs. 21419
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O/E/N India Ltd.
Borrowings:
A term loan of Rs. 4.85 crores has been availed from Bank of India has been repaid to the extent
of Rs. 0.43 crores during 2006-07. The balance outstanding in the above term loan as on 31 st
march 07 is Rs. 3.074 crores
Reserves & Surplus:
Out of the profit made in 2006-07 an amount of Rs. 2.40 crores has been transferred to General
Reserve Account. Together with this, the balance as on 31.03.07 stood at Rs. 20.934 crores.
Year
Profit In crores
Gross
Profit
Net
Profit
1997-98 3.13 1.21
1998-99 2.75 1.09
1999-00 4.18 1.83
2000-01 4.58 3.04
2001-02 4.90 2.06
2002-03 7.90 3.78
2003-04 6.59 2.82
2004-05 6.65 3.51
2005-06 5.69 2.51
2006-07 8.17 3.08
Ratio Analysis
Current Ratio: Current ratio= Current assets/Current liabilities
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Executives
GM Engineering Services
Technical operator- maintenance
Technical operator- Electrical maintenance
Technical operator- Electronic maintenance
O/E/N India Ltd.
The ratio for the year 06-07 is 2.587 while for the previous year it was 2.585. This shows the
company’s short term solvency, i.e.; the ability of the company to meet its short term loans. The
ratio provides a margin of safety for the creditors. It is an index of the firm’s financial stability.
Net Profit Ratio: Also called the net profit to sales or net profit margin ratio, it measures the
profit per rupee of sales.
Net Profit ratio = Net Profit/Sales*100
The ratio for the year 06-07 is 5.55 while for the previous year it was 5.36. As is evident from
the analysis a slight increase in the ratio has occurred which shows better profitability than the
previous year. The usefulness of the ratio is for proprietors. It is an index of efficiency and
profitability of the business.
Engineering Service Department
Departmental Structure
The engineering service department is responsible for the monitoring of the overall mechanical,
electric and electronic failures of the company. Maintenance in this department is majorly
classified into electric, electronic and mechanical maintenance.
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O/E/N India Ltd.
This department has direct relationship with all other departments of O/E/N. the major duties
include:
Break down maintenance
Predictive maintenance
Preventive maintenance
Assure continuous power supply to all departments
Alternate power generation on power failure
Water availability
Waste water treatment
Document submission to pollution control board
Research and Development Department
Departmental Structure
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CGM Engineering. Resources
AGM R&D
Asst. Manager R&D Asst. Manager Document control
Executive, Design & Development
Executive, Design & Development
Designers Executive, Product
Operators
O/E/N India Ltd.
Research and development (R&D) department is mainly involved with the design and
development and the betterment of existing products. Thus, the major objective of R&D is to
develop quality products based on ‘cutting-edge’ technology. The company R&D facility
operates over a wide range of electronic research and applications. The facility is a self contained
centre with well equipped laboratories and multi disciplinary team of professional design
engineers.
The R&D department is mainly concerned with designing three types of products:
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O/E/N India Ltd.
a. Products provided by the customer according to their specifications
b. Existing products available in the market not
c. Existing products with additional features
The major phases of new product development are:
1. Planning and defining program or project: This stage is the initial stage in the long
process of R&D. The initial stage is concerned with identifying what kind of product is to
be made and it is feasibility in creation (financial, conceptual, and process).
2. Product design and development: In this stage, the department usually uses the PRO-E
software to design the finished product. Along with this the product and the tools are also
designed. The manufacturing of the tools also take place in this stage. A review on the
progress of the process is done bringing to an end the second phase of the NPD process.
3. Process design and development: In this phase the process sequence, labor
characteristics, room characteristics, etc. are identified and developed.
4. Product and process validation: The validation and testing of the products made are
conducted in this phase along with the final designing of the product. The design made up
in this phase goes into the pre-production run in the fifth stage. The relay values, dropout
volts, withstand, life, ampere, etc. are tested and validated to the benchmark. A review is
conducted after this phase.
5. Feedback, assessment and corrective action: A preproduction run for 20,000 to 30,000
units are conducted. After this regular production is done. For the first three months the
R&D team along with production team would be constantly monitoring the production
process and the mistakes are taken care immediately without any delay.
The average time taken for a new product to be designed and developed is six months.
The products developed in-house are:
1. S-22 Micro Switch
2. S-24 Toggle Switch
3. S-25 Dip Switch
4. S-65 Micro Switch
5. S-87 Telephone Keypad(white)
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O/E/N India Ltd.
6. S-88 Telephone Keypad(black)
7. R-26 PCB mountable industry relay
8. R-29 General purpose relay
9. R-31 General purpose relay
10. R-33 Power relay
11. R-34 Flat packet relay
12. R-35 Heavy duty auto relay
13. AR-35 Automotive auto relay
14. R-36 Industrial relay
15. R-38 10 Amp. Relay
16. R-40 Automotive miniature dual relay
17. R-49 General purpose relay
18. R-52 Reed Relay
19. R-53 PT Auto power relay
20. R-53 Auto power relay
21. R-56 Miniature dip relay
22. R-57 PCB Mountable Industrial relay
23. R-58 PCB Mountable Industrial relay
24. R-61 Miniature power relay
25. R-62 Power relay
26. R-63 Spaded power relay cradle
27. R-67 Mechanical Latch relay
28. R-68 PCB Mountable industrial relay
29. R-69-40A Power relay
30. R-71-80A Power relay
31. R-73 Automotive Power relay
32. R-74 Automotive Power relay
33. R-76 Automotive Power relay
34. R-78 Automotive relay
35. R-79 Automotive Power relay
36. R-80 Automotive Power relay
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O/E/N India Ltd.
37. R-82 Solenoid
38. R-91 Fan Regulator
39. R-93 Automotive relay
40. 98-Collimator
41. Series 99-Carrier panel
The company after recognizing the importance of R&D has further invested in development
of new products. Recognition by the department of Science & Technology, Government of
India has been further extended up to March 2010. Apart from adding of a few customized
products, the contribution from new products during the last few years has not been
satisfactory. The company incurred capital expenditure of Rs. 4.32 crores for new tools, new
equipments for existing product lines, R&D and new products in the year 2006-07.
General Services Department
Departmental Structure
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General Manager
Assistant GM
Executives
Staff
O/E/N India Ltd.
The general services department is primarily concerned with the stocking and dispatching of
products systematically. Functions of this department include:
o Storage of the finished products
o Packing
o Dispatch - Domestic and Exports
o Sales service order processing and dispatch
o Accounting of central excise duty
Following a written order from the general service department and a printed copy of the sales
order, the packing and shipping section collects goods from the finished goods section, packs it
and weighs it. After this an executive of the general service department comes to the disposal
section and does the final labeling. All due forms like bill of entry, freight charges, excise duties,
postal charges are cleared by the department. Domestic dispatches are mainly done by courier
services like First Flight, Blue Dart, etc.
Production Planning Department
Departmental Structure
BERCHMANS INSTITUTE OF MANAGEMENT STUDIES Page 33
Asst. General Manager (Production Planning)
Deputy CE (Production Planning)
Skilled Assistant (Production Planning)
Planning Assistant (Production Planning)
O/E/N India Ltd.
This department is mainly concerned with the achievement of daily and monthly targets and
allocation of production losses. This wing also integrates production activities and works closely
with marketing department.
Objectives:
Ensure assembly line availability
Fabrication and plating production programming to meet the required delivery schedule
Procedure:
Order controls issued by marketing department with required documents, if any, are
received through materials after authorisation
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O/E/N India Ltd.
Production copy of order controls after authorisation is sent to manufacturing units of
Electrogiri, Peenya and R&D respectively
Work orders are issued by Planning for ERP products
Based on draft programs received from marketing, monthly production program will be
finalized in consultation with Materials and Manufacturing departments
P1,P2,P3 priorities are divided and production program copies are sent to Manufacturing
and Marketing departments
A monthly report on production program is given to the M.D after finalization
For parts received from outside (purchased parts) process orders are raised and sent thru
Production Planning department and Quality Assurance (QA) is done for furthur
processing in Fabrication/ Plating shop. Production Planning department will arrange
with the concerned department for furthur processing of parts according to urgency
A list of priorities is given to plating shop daily for guidance
Stores
A subsection of the Production Planning department, the store, as the name suggests, is the
place where the materials are stored. Materials purchased when approved by QA is sent to
the relevant stores for storage
Objectives:
To reduce inventory
To reduce material cost
To reduce production hold up
The store could be divided into three namely:
1. Raw Materials store: Stores all heavy metals and rods, most necessary for fabrication and
plating. It is in proximity to the fabrication and plating shop. Whenever materials are
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O/E/N India Ltd.
issued they are recorded in manual register as well as in the computer. Each lot of
material contains the accepted card tag. Whenever materials near their reorder quantity ,it
is immediately informed to the Production Planning which in turn informs the Purchase
department
The bin card, maintained by the store keeper follows a standardized code. Each cubicle is
marked with a distinct raw material code and description as well. For example, PB 223-
0020-2100 indicates bronze strip of 20 mm thickness and 21 mm width. Similarly all
materials are identified with a distinct eleven digit code.
2. Piece Parts store: Here, various vendor supplied parts as well as other components like
bobbin pins, etc. required for the assembly line are stored. It also stores silver, used in
plating shop. The components for each relay are stored in cubicles marked with distinct
code. It also contains a weighing machine for checking the gross weight of the materials
brought in before storing them. Through ERP system, they are able to know the required
issue quantity to be procured to the assembly line for scheduled production
3. Finished Products store: In this store that comprises of the final packaging section also,
all the finished goods are taken for the assembly line and store. This storage is much like
that of the piece parts store.
Here, the goods, before final packaging is weighed and the gross mass is weighed once
again after final packing over the packed bulk the product code, date, gross weight, net
weight and customer code are labeled. A separate section is kept aside for the outer
packages, cartoons, etc.
Process Engineering Department
Departmental Structure
BERCHMANS INSTITUTE OF MANAGEMENT STUDIES Page 36
General Manager
Senior Manager
Engineers
Mechanical Engineering Electrical Engineering
Operators Operators
O/E/N India Ltd.
Working in O/E/N from 1995, the department helps others especially the assembly unit by
providing automated machines and technology integration.
Objectives of automation are:
Reducing labor fatigue and time
Prevention of scrap
Improving upon quality
An automation process in progress, based on the request of a prestigious customer, Hyundai, is
the manufacturing of the series 73 relay used by the customer. A trial run has been going on for
the past one year in order to check any problems regarding assembly of parts. The main
processes that are performed here are:
Pin insertion
Coil winding
Soldering
Resistance testing
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O/E/N India Ltd.
While doing the trial run, an observation sheet is maintained by the supervisor that contains the
following data:
Starting time
Damages found
Stoppage time
Total machine hours
After trial ruin is conducted for each day, operations are stopped and executives from QA and
Process engineering are called in along with the supervisors, to rectify damages. This may
require changes in equipment and process and this is taken care off.
Enterprise Resource Planning (ERP)
All the departments are equipped with a computer with internet connectivity. Executives are
trained in using computers for report formation and e-mail communication. The company has a
website: www.oenindia.com, through which customers can view product catalogues and send
enquires. ERP is a subsection of the process engineering department. The ERP package used by
the company was offered by PeopleSoft in 2003. ERP is a system that integrates all functional
departments to work with common database and aids to plan effective utilization of resources.
ERP imparts traceability into the system. The various reasons that prompted the company for
ERP are:
Previously used system was working on UNIX and FOXBASE, which was
technologically obsolete and unable to meet the IT requirements of the company
Information integrity
Reduce data redundancy
Induce traceability and user accountability
Adopt an common standard with state of the art technology
Need for common data base
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O/E/N India Ltd.
Modules implemented in ERP are:
Personnel and Payroll Information System(PDIS)
Store Inventory and Purchase System(SIPS)
Maintenance Management System(MMS)
Integrated Cost and Finance System(ICFS)
Attendance Information System(AIS)
Even though the ERP has been implemented, it has been observed that many operations have
a parallel data entry mainly in the store and in the assembly store
Quality Assurance Department (QA)
Departmental Structure
BERCHMANS INSTITUTE OF MANAGEMENT STUDIES Page 39
GM QA & Manufacturing
Senior Manager QA
Chief Engineer QA
Executive (Final Inspection)
Executive (Incoming Inspection)
Executive (lab)
Inspector Inspector Technician
O/E/N India Ltd.
Quality products and services to the customers is the primary task but the ultimate aim is to offer
customers improving products and services. The QA department is involved in inspection of
parts, incoming materials and financial products and also in maintenance of quality records. QA
lab facilities are used by other companies too underlining the quality and standards kept by the
company in maintaining its QA department. Major functions of this department are given below:
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O/E/N India Ltd.
Incoming Inspection: Inspection of first sample is done by incoming inspection
executive after receiving reports along with samples. Inspection of vendor supplied parts
is done according to specifications. Criterion for incoming inspection is that if five items
randomly taken are qualified then the entire lot is approved and if three items are rejected
the entire lot is rejected. Following processes are done in incoming inspection
Inspection of raw material
Inspection done during fabrication of parts, samples are tested on an interval of
one hour
Inspection of in-house processed parts
Inspection of packing boxes, mould tray
Product specification testing
Parts after plating and processing
Customer supplied parts are tested
Finished Product Inspection: This process is done to ensure and certify that the required
quality is maintained for finished products. Finished products are tested by checking
random samples offered by product inspectors by subjectual appropriate routine life tests
as per work instruction for ensuring product reliability and performance against relevant
specifications at regular intervals.
`QA Lab Tests:
1. Electrical Life
2. Mechanical Life
3. Continuous Energisation at Elevated temperatures
4. Rotational Life
5. Burn In
6. Solder ability
7. Robustness of Terminations
8. Impact-Bump
9. Vibrations
10. Temperature Cycling
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11. Climatic Cycling
12. Resistance to Soldering heat
13. Resistance to solvents
14. Damp Heat Test
15. Corrosive Atmosphere Test
16. Temperature Change of Resistance
17. Scaling(gross leak)
18. Scaling(immersion)
19. Scaling(MSLD)
20. Temperature(Dry heat)
21. Damp Heat(Cyclic)
Some of the equipments used for testing:
1) Dry Heat Chamber
2) Solder Bath
3) Multi Meter
4) Multi Vibrator
5) Dimmer Stats
6) Temperature Probe
7) Bump Test Monitor
8) Cold Chamber
9) High Volt Tester
10) Humidity Chamber
11) Damp Heat Cyclic Chamber
12) Environmental Chamber. –65 to +180o C
13) Altitude Chamber, Altitude up to 70,000 feet.
14) Vibration Machine, 5 to 5000 Hz Max 25 mm displacement.
15) Mass spectrometer Leak Detector, Helium detector,
16) Sensitivity 6 x 10-11 cc/sec
17) Humidity Chamber: 1) Programmable, -10 to +93o C. 98%RH
2) Steady State 40oC. 90-95% RH
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O/E/N India Ltd.
18) Salt Spray Chamber
19) X-Ray Plating Thickness Tester.
20) Bump Tester, Peak Acceleration 40+/- 4g, Drop height 25mm.
Visual defects to be checked for products coming into QA:
i. Damages like blur, etc.
ii. Tool marks
iii. Slug marks
iv. Tracks
v. Plating peel-off
vi. Discolouration of parts
vii. Finger prints(in case of copper plated products)
viii. Contact springs
ix. Scratches
x. Pit marks
xi. Dust
xii. Presence of oil/wax etc.
xiii. Presence of metallic and plastic dust
Inspection Modes:
Normal Inspection mode: This mode is carried out in early stages of quality inspection.
Normal to tightened Inspection mode: When two out of five or more consecutive lots of a part
gets rejected in normal inspection, there is a switch over to tightened inspection.
Tightened to Normal Inspection mode: When five consecutive lots of a part get accepted in
tightened inspection mode, normal inspection mode is resorted back.
Calibration Section
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O/E/N India Ltd.
This section functions within the QA but performs a distinct function. In this section, chiefly,
tools and equipments used in assembly line and QA parts are checked or calibrated. Calibration
means testing the measuring equipment, their precision as well as their conformity. This helps to
check timely decadence and wear and tear of equipment used in product inspection. In the
calibration observation sheet which is tagged along with the tool, the observations are noted
down as “P” or “F” for pass or fail. A colour label is stuck on the equipment after calibration
signifying the following:
Green- O.K
Red- Out of Use
Yellow- Limited Use
In case of yellow, users are to use the equipment carefully and correction in measurement is
made manually. Equipment of various departments is sent for calibration and a copy of the
calibration observation sheet is sent to the concerned department along with the calibrated tool.
Materials Purchase Department
Departmental Structure
BERCHMANS INSTITUTE OF MANAGEMENT STUDIES Page 44
Assistant GM
Senior Manager
Assistant Manager
Executive Executive
Store assistant Office assistant Store assistant
O/E/N India Ltd.
The materials purchase department is an important department in O/E/N. The hectic procedures
concerning the purchase of materials, choosing suppliers of materials, etc are decided by this
department. Functions and procedures of the department include
i. Approval of new suppliers: New sources are identified through various inputs like
publications, ads, introductory letters, references through internet, through
correspondence, etc. A request for quotation is sent to new sources along with
specifications, drawings, samples, supplier evaluation forms, etc, where ever applicable.
On receipt of quotations and other details, offers are evaluated. If required, furthur
correspondence/negotiations/request for samples is made and new suppliers for ordering
are identified. Trial order is placed with new suppliers based on terms and conditions.
Trial order item on receipt are forwarded to QA for evaluation and inspection report is
forwarded to suppliers. Based on acceptance of trial batches, new suppliers are included
in “Approved Suppliers List”
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O/E/N India Ltd.
ii. Supplier Monitoring: For suppliers, supplier performance is monitored based on the
following for automotive parts:
Quality 40%
Delivery 10%
Price 15%
Premium freight incidence 10%
Customer line description 10%
Quality issues for customers 10%
Documentation 5%
For suppliers of non-automotive parts supplier performance is monitored based on:
Quality 40%
Delivery 25%
Price 25%
Responsiveness 10%
Performance rating is done during April and September every year for suppliers made during the
previous six months. Based on rating suppliers are classified into five grades:
Grade A: Rating>=90
Grade B: Rating>=80 and <90
Grade C: Rating>=70 and <80
Grade D: Rating>=60 and <70
Grade E: Rating<60
Suppliers belonging to group E are removed from approved suppliers list. Suppliers are
reevaluated every three years based on their performance rating for previous three years. Those
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O/E/N India Ltd.
who have not supplied for three consecutive years are discarded from approval list. Suppliers
removed are prequalified per procedure for approval of new suppliers.
In case of rejection of supplied items suppliers are informed along with inspection
report/Corrective and Preventive Action Report (CPAR) and asked to submit counter measures
and ensure implementation of measures depending on severity of problem. Suppliers are
instructed to present the counter measures for major problems in a meeting at O/E/N. Even after
counter measures if suppliers are rejected no furthur orders would be placed.
iii. Purchase of Materials: For raw materials and precious metal parts, suppliers are
instructed to send Material Test Certificate along with supplies which are forwarded to
QA on receipt.
iv. Receipt: Material s coming to receiving stores are moved to “for checking”
v. Storage areas are:
a. Piece parts store
b. Raw materials store
c. Consumable tools store
d. Tools and mould store
e. Air conditioned store
f. Precious material store
g. Metal scrap yard and waste material storage
Marketing Department
BERCHMANS INSTITUTE OF MANAGEMENT STUDIES Page 47
Senior General Manager
Field Manager Asst GM (MRKTG) Asst GM(Customer Care)
Field Engineers Executives Executives
Staff Staff Staff
O/E/N India Ltd.
Departmental Structure
BERCHMANS INSTITUTE OF MANAGEMENT STUDIES Page 48
O/E/N India Ltd.
Marketing office of O/E/N India Ltd is situated at Vytilla, Cochin. Usually orders are taken up to
the 25th of every month and orders coming after the 25 th are scheduled for the next month. The
minimum lead time for orders varies from six to eight weeks. There are seven regional offices
for O/E/N, they are:
Regional Sales Offices:
New Delhi
O/E/N India Limited
76, FIRST FLOOR (REAR SIDE)
SANT NAGAR, NEAR NEHRU PLACE
NEW DELHI - 110 065
Bangaloru
O/E/N India Limited
KE-204 & 205, SUNRISE CHAMBERS
ULSOOR ROAD
BANGALORU - 560 042
Chennai
O/E/N India Limited
E-3, SANGATH APARTMENTS,
M.G.R NAGAR
VELACHERRY
CHENNAI - 600 042
Pune
O/E/N India Limited
A1 / 9, KUSUM SOCIETY
HAREKRISHNA MANDIR ROAD
MODEL COLONY
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O/E/N India Ltd.
PUNE - 411 016
Hyderabad
O/E/N India Limited
2nd FLOOR, PLOT NO. 85,
ROAD NO.3
TRIMURTHY HOUSING SOCIETY
MAHENDRA HILLS
SECUNDERABAD - 500 026
Market segmentation of O/E/N
Industrial instrumentation/Controls-30%
Defense-6%
Consumer Electronics-35%
Telecom-4%
Automotive-25%
Authorised Stockists
Bangaloru:
o Amar Radio Corporation
11/1 Thiglar Periyanna Lane
Silver Jubilee Park Road, Bangaloru – 560 002
Mumbai:
o Brisk Electro Sales Pvt. Ltd.,
394-A, Lamington Chambers
2nd Floor, Lamington Road, Mumbai – 400 004.
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O/E/N India Ltd.
Secunderabad:
o Cosmos Electronics,
Room No.1, 2nd Floor,
Srinath Commercial Complex,
S.D. Road, Secunderabad –500 003.
Calcutta:
o Electronics Components & Systems,
32, Ezra Street, 418 Todi Corner,
Calcutta –700 001.
New Delhi:
o Indian Technological Products Pvt.Ltd.,
15 Dsidc, Sheme 1, Industrial Complex,
New Okhla Phase 11, New Delhi – 110 020.
o Kudamm Corporation
D 17, 2nd Floor, Kalkaji, Opp. Nehru Place Bus Terminal
New Delhi - 110 019
Chennai:
o Seshasayee Brothers Pvt. Ltd.,
5/1, Krishnamma Lane,
Nungambakkam, Chennai – 600 034
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O/E/N India Ltd.
Dealers:
New Delhi
Chennai
Cochin
Coimbatore
Hyderabad
Trichy
Pune
Kolkata
Bangaloru
Jaipur
Lucknow
Mangalore
Vishakhapatnam
Jamshedpur
Functions of the marketing department are:
Sales
o Direct selling
o Through dealers
Sales promotion
o Participation in industrial exhibitions
o Sending catalogues, brochures, etc to companies directly
Ads
o Industrial directories
o Technical magazines
o Websites
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O/E/N India Ltd.
Technical support
Agency work: O/E/N undertakes agency work for the following companies
o Bourns Inc. ,USA
o Otto Controls, USA
o Diptronics Inc, Taiwan
o Xiamen Hongfa, China
Exports
Customer services
Payment collection
Market planning: Target set for every year is 120% of sales made in the previous year.
The price of the product is based on creditability of the purchasing company as much as
quantity ordered. The sales forecast is based on past trends, seasonal expectations, as well
as projected sales figure of clients, in tandem with data received from regional offices.
This forecast is then passed to production planning department. Colour code used to
make forecasts based on which product line expansion or capacity planning is utilized.
Colour code is as follows:
Dark blue: production in trial
Red: new product
Light green: imported
Lavender: outsourced production
Brown: Peenya production
Black: established and mature products developed at Mulunthuruthy
Ensuring Credit Worthiness of Customers: Marketing determines credit worthiness of
customers based on past payment trends and sales turnover of customers. Usually it
ranges from 15-30 days. In case of prestigious clients, it is extended to 60-90 days. In
case of new clients there are different phases of credit collection. Usually an advance of
about 15% of actual price is demanded.
Market promotion/enquiry handling
Advertising
Cataloguing
Mailers
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O/E/N India Ltd.
Personal visits
Customer relatives
Intelligence gathering
Receipt and review of enquiry
Sending quotations
Order processing
Receipt and review of order
Order control processing
Delivery note generation
Dispatch of materials
Payment collection
Credit Payment follow up and cash collection
Receiving and recording payments
After sales services
Reviewing customer complaints
Reviewing lack products in case of rectification
Analysis of customer complaint
Performa Chelan generation
Customer satisfaction evaluation
Questionnaire reviews
Sending questionnaires to customers
Collecting completed questionnaires
Data compilation
Analysis and interpretation
Presentation of reports and action plans
Reports to field staff on specific customer responses
After sales services
BERCHMANS INSTITUTE OF MANAGEMENT STUDIES Page 54
Deputy Manager
Asst Manager(non auto)
Asst Manager (auto) Asst Manager(switches)
Executives Executives Executives
Staff Staff Staff
Senior Manager
O/E/N India Ltd.
Manufacturing Department
Departmental Structure
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O/E/N India Ltd.
Manufacturing is the main department in any organization and the major impetus of any
company also goes into this function of manufacturing. O/E/N has a manufacturing space of
18,000 m2 in three locations; Mulunthurthy, Vytilla in Kerala and Peenya in Karnataka. The
manufacturing department consists of
Tool room: O/E/N has a well equipped modern tool room with all facilities. The specialty
is in the design and manufacture of tools and moulds for electromechanical components.
Tool room is managed by a team of expert engineers in tool design and in manufacturing
a group of well trained tool room makers and mechanics, a well equipped press and
moulding shop attached to the tool room provide facility for providing the tool and
moulds. Tool room works in four wings:
o Tool design
o Machining
o Tool assembly
o Maintenance
The Tool Room is equipped with CAD facility and a machine shop having the following
special machines in addition to conventional machine tools.
o Charmilles Wire EDM
o Charmilles Spark EDM
o Wickman CNC Profile Grinder
o WMW Optical Profile Grinder
o WMW Jig Boring Machine
o Mikron Milling Machine
The Tool room can accept orders for design and manufacture of the following types of
tools and moulds, for fabrication of components to customers’ design.
Press Tools – Progressive, compound and Single operation tools
Injection Moulds
Compression moulds
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O/E/N India Ltd.
Transfer moulds
Assembly Tools
Jigs & Fixtures
Fabrication Room: The main assembly is supported by comprehensive fabrication
facilities with power press for pressed piece parts, a plating plates that handles plating of
conventional as well as precious metals. This has three divisions
o Actual fabrication
o Electro plating
o Moulding shops
Assembly Room: This department is mainly related to the manufacturing and assembly of
relays, switches and potentiometers. This department works 24 hours in a day as three
shifts. Their main objective is to reduce process scrap, improve group index and achieve
programmed production.
Relays are differentiated based on materials used, temperature and pressure withstanding
ability, electrical parameters, type of moulding, etc. List of operations in manufacturing
relays are:
Coil terminal insertion and bending
Coil winding
Coil timing and cleaning
Coil terminal straightening
Core head correction
Coil, core yoke assembly, taking
Non/NC contact terminal signaling and cleaning
Moving spring bending
Moving terminal –R/C
Armature correction
Armature/retainer/base plate assembly
Cover printing
Calibration and cover insertion
Base plate and cover stacking
Scaling, hole checking/filling and terminal cleaning
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O/E/N India Ltd.
Terminal cutting
Terminal timing and cleaning
Switches: O/E/N manufactured switches are mainly used by the Ministry of Defense. The
series 13 switches are exclusively created for a company in the U.K. Switches are
differentiated based on materials used, temperature and pressure withstanding ability,
electrical parameters, type of moulding, etc. The main processes in switch
manufacturing are:
Rotor blade trimming
Rotor blade splitting
Staking
Eyeleting
Shaft and star wheel assembly stacking
‘C’ washer cylindering
Ball and spring assembly
Final assembly
Mounting hardware assembly
Potentiometers: As per orders, assembly of potentiometers is undertaken. Therefore the
manufacturing of these are less compared to other products. This product is used in
electronic circuits for getting desired voltage drops. All the parts of the potentiometers
are imported
Procedures inside Assembly Room:
a) Information and scheduling system: This is to provide information on the
functioning and daily targets at the assembly room. There are mainly two types of
information boards inside the assembly room; manually written board and digital
information boards.
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O/E/N India Ltd.
Diagrammatic representation of manually written board:
Programmed
Quantity
Daily
Target
Quantity
Achieved
Quantity
Cumulative
Target
Quantity
Cumulative
Achieved
Quantity
Process
Scrap
Percentage
Diagrammatic representation of digital information board:
Product Name
Monthly Target
Production to date
Today’s Target
Production up to last hour
Last hour production
b) Daily meeting at work place: A meeting between supervisor and the assembly
workers happens before each shift to discuss on previous day’s production. The
discussion may go up to ten minutes.
c) Integration with production planning department
d) Operation control procedures
Auxiliary Supportive Procedures Enabling Product Efficiency
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O/E/N India Ltd.
1. Check Sheet
2. Daily maintenance check list
Neatness of work place
Machine condition
Felt condition
Tool status
Cavity cleanliness
Paper clamping of tools
Air pressure
Calibration status of measuring instruments
Proper safe guards
Equipment checking
3. Inter process transfer card
4. Process control measures
Contract Manufacturing
O/E/N undertakes Contract Manufacture of branded electronic and electromechanical
components to customer design and specifications.
o Value addition in the process.
o Expertise in made to order products.
o In built capability to make supply chain short.
o Low cost, trained & experienced labour force.
Machinery includes welding machines, winding machines, riveting machines, eyeleting
machines, air screw drivers, air presses, hydraulic presses, ovens, soldering stations, potting
stations, calibration stations etc...
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O/E/N India Ltd.
The assembly shops supported by a fully fledged, well equipped Fabrication shop - High
speed presses, multi slide machines, automats, moulding machines etc. constitute a part of the
big list.
A well equipped Tool Room with special purpose machine to manufacture & maintain all
tools, moulds, jigs and fixtures required by the press and plastic shop.
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O/E/N India Ltd.
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AGM
Welfare Manager
Security officer HRD Office Canteen Contractor House Keeping First Aid
Drivers Watchmen
Workers Workers
O/E/N India Ltd.
Human Resources Department
Departmental Structure
Human resources are the asset of any organization. Therefore managing the human resources are
the most important functions of any organization. So it is essential for the organization to fix a
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O/E/N India Ltd.
separate department for the management of human resources. O/E/N has an efficient HR
department, which is headed by chief general manager (ER). This department is mainly
responsible for personal functions of the company for resulting in timely action for maintaining
smooth industrial relations leading to employee’s morale and productivity. The personal
department renders all personal and establishment services to all persons.
Objectives of the HR department include:
Establishment of industrial relations, welfare, salaries and wages, recruitment etc.
To provide leadership for management of industrial relations and employees
welfare function of the company.
To provide basics for corporate strategies and polices for maintenance of
industrial peace and for work
For evolving system of prompt attention and redressal of employees grievance
and the prevention of the same.
Administration the different committees for employees participation
Evolve and update practices for checking incoming and outgoing of materials and
persons.
Implementing the standing orders pertaining in the company
Functions of the HR department could be broadly classified into:
Personnel administration
Employee relations and benefits
Personnel Administration contains:
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O/E/N India Ltd.
Recruitment: The most important function of the personnel department is the
recruitment of the right person in the right place at the right time. It is the first
time process by which employment is provided to the organization by means
of adequate manpower resources. It is the positive process of searching for the
prospective employees and circulating them to apply for the jobs. The sources
of recruitment can be classified as follows:
Internal sources: Internal sources include personal already on the
payroll of an organization i.e. its present employees. Another method
in internal sources is by direct recruitment of employees.
External sources: The term external sources indicate the sources
outside the enterprise. The main sources are by external agencies and
Employment Exchanges. The outside sources include:
New entrants to the labour force
The unemployed with wide range of skills
Retired experienced person
Selection: Invite candidates for preliminary interview /tests through phone,
letter, etc. Based on interview rank candidates, shortlist and call for final
interview, check references, coordinate with departments and arrange date and
time of interviews/ tests
Appointment
Attendance and leave marking
Pay roll management
Increments/Promotions/Transfers
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O/E/N India Ltd.
Training: Training is provided to all new employees who include non
executive, executive, skilled and unskilled, clerical and administrative staff.
Training is also provided to employees when the need arises from internal and
external sources, i.e. the trainers may be from inside or outside the company.
The basic policy of the company states that at least one
man-day/employee/year should be dedicated to training.
Women Welfare Cell
Trade Unions and Labour Relations
Employee Relations and Benefits contain:
Employee health and safety
Health and accident insurance
First aid
Collective bargaining
Negotiations
Union Relations
Employee Involvement
Canteen
Employee transportation
Benefits Administration
o Spouse Allowance
o 10/20/35 service year completion gifts
o Free coverage in health insurance for executives
o Double increments/Promotion based on performances
o Spouse allowances
o Children education
o Group health and personal accident insurance coverage
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O/E/N India Ltd.
o O/E/N Executives Superannuation Fund
o O/E/N Employees Cooperative Credit Society
Medical Reimbursements
Merit rating
Value Addition
Change Management
Employee Education/Awareness
Project Work/Studies
Security
Joint Consultative Committees
o Canteen Committee
o Safety Committee
o House Loan Committee
o Women Complaint Committee
Employee Strength of O/E/N India Ltd.
Mulunthurthy Vytilla Peenya
Executives 126 19 9
Non-executives 409 17 176
Worker/Trainees 5 13
Apprentices 409 26
Total 949 36 224
Grand Total 1209
Daily Shifts at O/E/N
8.30 A.M -5 P.M General shift
7 A.M-3.30 P.M A shift
6 A.M- 2 P.M A1 shift
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O/E/N India Ltd.
2 P.M-10 P.M B1 shift
3.30 P.M – 12 P.M B shift
12 P.M-7 A.M C shift
SWOT Analysis
Strengths
Brand Name
Market leader in domestic market
Cheap labour compared to global standards
Good employee-employer relation
Job security to employees
Quality products
Ideal location
Highly efficient management
Extensive data and knowledge on Indian market
Very low overall attrition rates
Weakness
Lack of innovative products
Highly functional departmental organization structure with limited horizontal integration
Lack of training
Outdated technology
Overdependence on import sources for raw materials
No lateral entry to induct skilled and specialists to top slots; only filled by promotions
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O/E/N India Ltd.
Opportunities
O/E/N has potential to attract any major global player for a takeover or collaboration. The
synergy will help O/E/N to get wider global market reach in addition to changing market
dynamics
The next generation relays will be using solid state relay technology. O/E/N can
gradually enter into this market
O/E/N can increase scalability and production efficiency by introducing partial
automation in key production lines
Experience and expertise in core competency
Website renovation
Entering into newer and related industries
Employing more youth for a steady organisational change
Threats
Change in relay technology from electromechanical to solid state relays
Losing the leadership position due to lack of innovation and new products
Rapid change and obsolesce of technology
Drain in market share in sensitive segments with entry of cheap Chinese brands
Stiff competition from imported relays available in grey market
Steep rise in raw material costs leading to a vertical cost increase
Attrition among new comers
Focus on value addition
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O/E/N India Ltd.
CONCLUSION
This report gives a detailed study of the organizational system and functioning of O/E/N India
Ltd. The report covers description about various departments of the company and their functions.
The materials purchase department deals with the storage of materials rights from the raw
materials to the finished products and invites quotation and based on the vendor ratings; get the
required quantity and quality of guaranteed materials. The production department is directly
responsible for achieving the target production. Engineering department deals with the
maintenance and calibration of equipments used in the production process. The finance
department deals with the payments and receipts where as the HR department maintains an
effective relationship between management and employees. The QA department ensures quality
in products and processes while the General Service and Process Engineering departments assist
the smooth running of the organization.
The labour welfare measures and job satisfaction among the employees are very good. Above all
O/E/N is managed by an efficient Board of Directors, which plans, organizes and controls all
activities in close co-operation with the other officials of the concern.
O/E/N continues to occupy an important place among the electronics manufacturing companies
in the country. With newer technology O/E/N can reduce cost of production and will be able to
regain its previous market position.
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O/E/N India Ltd.
O/E/N has proved itself as a successful undertaking as its employees are performing effectively
and efficiently for the best of the organization. This training provided the trainee with very useful
first hand information about a manufacturing firm.
APPENDIX
Comparative Profit & Loss Account for the years ended 31.03.2006 & 31.03.2007
Schedules Year ended 31.03.2007 Year ended 31.03.2006
INCOME
Sales N 556536681 467853015
Other Income Or 20461539 21256776
Stock Differential P 2950475 (3964194)
TOTAL 579948695 485145597EXPENDITURE
Materials consumed Q 2770946712342122
87
Other expenditure R 216929779 195649790
Less: Capital Jobs Allocated
13550153 12391930
Purchase of trading goods
17695097 10710763
TOTAL 498169394 428180910
Profit before Depreciation and
Taxation81779301 569644687
Less: Depreciation 30600422 28258903
Profit before Depreciation 51178879 28705784
Less: Provision for taxation
Current tax 16600000 9000000
Deferred tax 32500000 1905000
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O/E/N India Ltd.
Fringe Benefit tax 410000 1380000
Prior years 49609 8664222
Net Profit for the year
30869270 25085006
Add: Surplus carried forward from last
year2785203 2514629
TOTAL 33654473 27599635
APPROPRIATION:Proposed dividend 5099260 5099260
Corporate tax 866619 715172Transfer to general
revenue24000000 1900000
0Balance carried to
Balance Sheet3688594 2785203
Comparative Balance Sheets as on 31.03.2007 & 31.03.2006
I. Sources of FundsAs per
Schedule
31.3.2007 31.3.2006
1. Shareholders Fund
a) Capital A 50992600 50992600 b)Reserves and surplus
B 20934591 184440200
260336191 235432800 2. Loans and funds a)Secured loans
C 99846269 100328951
b)Unsecured loans
D 31952319 3847113
131798588 138800064 3..Defered tax liability 21419200 18169200
Total 413553979
392402064
II. Application of funds1. Fixed assets E
(a) Gross block 494856885
452543313
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O/E/N India Ltd.
(b) Less deprecation
256960082
226164886
(c) Net block 237896803
225778427
(d) Capital work in progress
F 4181285 13789194
242078088 239567212. Investments G 1463060 12630603. Current assets,
loans & advances
(a)Inventories H 121675555
102520779
(b)Sundry debtors I 124212708
98571966
(c)Cash & bank balances
J 6709939 5274666
(d)Other current assets
K 4698263 5989881
(e)Loans & advances
L 20401181 34823320
277097586
247180612
Less: Current liabilities & Provisions
M
(a) Liabilities 55682324 44193319(b) Provisions 51402431 51415916
107084755
95609229
Net Current Assets
170012831 151571383
Total 413553979
392402064
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O/E/N India Ltd.
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
0
10
20
30
40
50
60
22.14 21.0526.15
30.82 31.0735.7 37.74 39.05
46.85
55.65
Turnover
Rs. In Crores
1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Profit In crores Gross Profit
3.13 2.75 4.18 4.58 4.9 7.9 6.59 6.65 5.69 8.17
Profit In crores Net Profit
1.21 1.09 1.83 3.04 2.06 3.78 2.82 3.51 2.51 3.08
0.5
2.5
4.5
6.5
8.5
Profits over the Years
Rs. in
cro
re
s
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O/E/N India Ltd.
BIBLOGRAPHY
1. Kotler Philip. Marketing Management Millennium edition
New Delhi: Prentice-Hall of India Pvt.Ltd, 1998.
2. Panneerselvam .R Production and Operations Management
Second Edition New Delhi: Prentice-Hall of India Pvt.Ltd, 2005
3. Dessler Gary Human Resource Management 7th edition
New Delhi: Prentice-Hall of India Pvt.Ltd, 2000.
4. www.oenindia.com
5. www.elcina.org
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