elgi final
TRANSCRIPT
1
CHAPTER 1
1. INTRODUCTION
1.1 TRAINING
1.1.1 DEFINITION:
Activities designed to facilitate the learning and development of new and
existing skills, and to improve the performance of specific tasks or roles. Training
may involve structured programs or more informal and interactive activitiessuch as
group discussion or role playingwhich promote experiential learning. A wide variety
of activities, including classroom-based courses, on-the-job training, and business or
simulation games, are used for training. Audio-visual and multimedia aids such as
videos and CD-ROMs may also be employed. Training may be provided by an
internal training officer or department, or by external training organizations. The
effectiveness of training can be maximized by conducting a training needs analysis
before hand and following up with evaluation of training. Training should result in
individual learning and enhanced organizational performance.
1.1.2 TYPES:
I.On-the-job Training and Lectures
The two most frequently used kinds of training are on-the-job training and lectures,
although little research exists as to the effectiveness of either. It is usually impossible
to teach someone everything she needs to know at a location away from the
workplace. Thus on-the-job training often supplements other kinds of training, e.g.,
classroom or off-site training; but on-the-job training is frequently the only form of
training. It is usually informal, which means, unfortunately, that the trainer does not
concentrate on the training as much as she should, and the trainer may not have a
well-articulated picture of what the novice needs to learn.
On-the-job training is not successful when used to avoid developing a training
program, though it can be an effective part of a well-coordinated training program.
2
Lectures are used because of their low cost and their capacity to reach many people.
Lectures, which use one-way communication as opposed to interactive learning
techniques, are much criticized as a training device.
II. Programmed Instruction (PI)
These devices systematically present information to the learner and elicit a
response; they use reinforcement principles to promote appropriate responses.
When PI was originally developed in the 1950s, it was thought to be useful only for
basic subjects. Today the method is used for skills as diverse as air traffic control,
blueprint reading, and the analysis of tax returns.
III. Computer-Assisted Instruction (CAI)
With CAI, students can learn at their own pace, as with PI. Because the student
interacts with the computer, it is believed by many to be a more dynamic learning
device. Educational alternatives can be quickly selected to suit the student's
capabilities, and performance can be monitored continuously. As instruction
proceeds, data are gathered for monitoring and improving performance.
IV. Audiovisual Techniques
Both television and film extend the range of skills that can be taught and the way
information may be presented. Many systems have electronic blackboards and slide
projection equipment. The use of techniques that combine audiovisual systems such
as closed circuit television and telephones has spawned a new term for this type of
training,teletraining. The feature on “Sesame Street " illustrates the design and
evaluation of one of television's favorite children's program as a training device.
V. Simulations
Trainingsimulations replicate the essential characteristics of the real world that are
necessary to produce both learning and the transfer of new knowledge and skills to
application settings. Both machine and other forms of simulators exist. Machine
simulators often have substantial degrees of physical fidelity; that is, they represent
3
the real world's operational equipment. The main purpose of simulation, however, is
to produce psychological fidelity, that is, to reproduce in the training those processes
that will be required on the job. We simulate for a number of reasons, including to
control the training environment, for safety, to introduce feedback and other learning
principles, and to reduce cost.
VI. Business games
They are the direct progeny of war games that have been used to train officers in
combat techniques for hundreds of years. Almost all early business games were
designed to teach basic business skills, but more recent games also include
interpersonal skills. Monopoly might be considered the quintessential business game
for young capitalists. It is probably the first place youngsters learned the words
mortgage, taxes, and go to jail.
1.1.3 TRAINING METHODS:
All training methods can be grouped into two categories:-
a] Training methods for operatives and
b] Training methods for managers
a] Training Methods for Operatives:
Under these methods the new employee is assigned to a specific job at a machine or
workshop or laboratory. He is instructed by an experienced employee or by a special
supervisor who explains to him the method of handling tools, operating the machines
etc.
Vestibule Training: - This method involves the creation of a separate training
centre within the plant itself for the purpose of providing training to the new
employees. An experienced instructor is put in-charge of this training. Machines and
tools are also managed in the training centre, so as to create working conditions
similar to those in the workshop.
4
Advantage: - No interference with regular production.
Disadvantage: - Costly, adds nothing to productions during training period.
Apprenticeship Training:-This method of training is meant to give the trainee
sufficient knowledge and skill in those trades and crafts in which a long period of
training is required for gaining complete proficiency.
Generally, the trainees work as apprentices under the direct supervision of experts
for long periods of say, two to seven years. This programme consists of providing
actual work experience in the actual job as well as imparting theoretical knowledge
through class room lectures which may be arranged either in the plant or in the
institution attached to the concern. This method of training enables the trainees to
become all-round craftsmen. But this method is very expensive and also there is no
guarantee that a trained worker will continue to work in the same concern after the
training is completed.
Internship Training :- This method of training is generally provided to the skilled
and technical personnel. The object of this type of training is to bring about a balance
between theoretical and practical knowledge, under this method, students from a
technical institution possessing only theoretical knowledge are sent to some
business enterprise to gain practical work experience. Simultaneously, the
employees of business enterprises are sent to technical institutions to gain the latest
theoretical knowledge on a subject.
Ex. B.E. (Prod.) - 6 months in plant training
B.E. (Mech.)- 2 days in a week during final year
b] Training Methods for Managers:-
Executive talent is the most important asset which a company can posses. Although,
it does not appear on the company's balance sheet, but it produces more important
effects on the company's progress, its profit and the price of its stock than any other
asset in its possession.
5
The following are the various training methods for managers.
1] Observation Assignment :-
Under this method, the newly recruited executive called "understudy" is made an
assistant to the current job holder. He learns by experience, observation and
imitation. If decisions are discussed with him, he is informed on the policies and
theories involved.
2] Position Rotation :-
Under this method, the trainee executive is rotated among different managerial jobs.
This not only broaden and enriches his experience as a manager but also enables
him to understand inter departmental relations and the need for co-ordination and
co-operation among various departments.
3] Serving on Committees :-
Another important method of training on an executive is to make him serve on a
committee. While serving on a committee, the executive comes to learn not only the
various organizational problems, views of senior and experienced members, but also
learns how a manger should adjust himself to the overall needs of the enterprise.
4] Assignment of special Projects :-
Sometimes, as a method of training some special project is assigned to a trainee
executive. for example, he may be ask to develop a system of cost allocation in the
production of certain goods for which an order has been received by the company.
While working on such project, the trainee not only acquires knowledge about them,
but also learns how to work with and relate to other people holding different views.
5] Conference and Seminars :-
Often an executive is deputed to attend a conference, seminar or workshop to
receive a quick orientation in various areas of Management with which he might be
unfamiliar. One advantage of this type of training is that all the participants coming
6
from different organizations get an opportunity to pool their ideas and experience in
attempting to solve mutual problems. The attitude is one of joint exploration. This
encourages cross fertilization of ideas.
6] Case Study :-
A case is a written account seeking to describe an actual situation. A good case is
the vehicle by which a chunk of realty is brought into the class room to be discussed
over by the class and the instructor. Discussion on a case requires a capable
instructor, who can evoke and guide intelligent discussion analysis, so that
meaningful learning experiences occur. There is no "right" answer or simple
explanation in the comprehensive case. The advantages of this method are more
depth of thinking, more perception in a situation, greater respect for and
consideration for the opinion of others.
7] Incident Method :-
This method was developed at M.I.T. by Paul and Pigors, as an outgrowth of
dissatisfaction felt with the case method. In the usual case method the entire
problem is presented to the students, whereas in the incident method only a brief
incident is presented to provoke discussion in the class. The group then puts
questions to the instructor to draw out of him the salient facts and additional
information, needed to arrive at a reasonable solution or resolution of the case. This
method draws the participants into discussion with greater emotional involvement. A
unique advantage of this method over the case method is the procedure of obtaining
information by questions, one that often must take place in actual business
situations.
8] Role Playing :-
In this method, the instructor assigns parts taken from case materials to group
members. The situation is usually one involving conflict between people. The role
players attempt to act the parts as they would behave in a real life situation, working
without a script or memorized lines and improvising as they play the parts. The
7
development of empathy and sensitivity is one of the primary objectives of role
playing.
9] Laboratory Training (or Sensitivity Training) (T group Training):-
This type of training is designed to increase the managers understanding of himself
and of his own impact on others. The training takes the form of a group discussion,
and through a leader trained in the technique is present, the group may decide on
the subject of discussion or suggest changes in procedure. In the course of
discussion, conflict, hostility, stress and frustration may be purposely generated for
they later on become motivations for growth as well as food for learning. The
laboratory training aims at achieving behavioural, effectiveness in transactions with
ones environment.
1.1.4 RECENT TRENDS IN TRAINING:
Traditional view of lectures being able to deliver learning to a large group of
audience in a small time and at a tighter expense is being challenged, with
participants preferring a method that can value their experiences and feedback more
than what a traditional lecture system allows them to.
Retreatsare facing the challenges of cost and returns – with an increasingly diverse
and dynamic workforce, and with organizations running on tight schedules and
tighter budgets, it is becoming increasingly difficult to bring a sufficient number of
participants together in a retreat setting, and to justify the high cost associated with
the method.
While electronic and web based learning sessions are becoming more popular due
to their relative ease of setting up, and the advances in technology bringing virtual
closer to real every day, age‐old trends of distance education and mentoring are
making a strong return in Canada, especially in the recessionary period.
Distance education started in Canada as a concept during as early as 1860’s, and
it focussed almost exclusively on participants from off‐urban locations. However, with
time and advent of technology, distance education has evolved to various forms of
8
online courses and sessions, allowing participants the freedom of time, location, and
learning material.
The role of mentoring and coachingis probably most important in workforce today
than ever. With an aging population, organizations are looking at their replacement
charts and succession plans more closely than ever, and this type of learning
provides an ideal ground for organizations to retain the skills that senior employees
could potentially take along with them upon retirement. Not only does this learning
style gives senior employees an opportunity to pass their wisdom to their potential
successor in the organization, but also allows the protégés to begin contributing to
the decision making process much earlier in their careers as they get a chance to
interact with the employees who have already been recognized in the workplace as
leaders and experts in their respective fields of work.
1.2 ADVANTAGES OF TRAINING:
1.2.1 CASE STUDY:
Traineeship Eases Finance Sector Training Load
A two-year financial services traineeship, backed by employer incentives, is
easing the path to better customer service and legislative compliance for a
Queensland company.
The Queensland Teachers Credit Union (QTCU) has around 40 financial
services trainees among its 250 staff in 12 branches from Cairns to Southport. At the
successful completion of their traineeship, they will all receive Certificate III in
Financial Services.
QTCU training officer Ross Acutt says its a move that he'd recommend to any
financial services sector employer.
"From March, new Commonwealth legislation requires some employees in
our sector to meet a certain standard of competence and the delivery of the
Certificate III in Financial Services through traineeships is making that process of
compliance easier for us," he says.
9
"As well, we will have better trained employees with enhanced skills who will
provide better services to our members.
"QTCU is very focused on maintaining a strong branch infrastructure and our
trainees will now have a nationally-recognised qualification that helps us provide high
service standards consistently across all of our branches in Queensland."
Mr Acutt says providing training opportunities and a career path for
employees helps make QTCU an employer of choice in a competitive recruitment
market.
"Potential new and existing staff see this training as a great personal
development benefit, which helps us retain staff and attract a high standard of new
recruits."
Mr Acutt says the whole process of signing up, registering the trainees and
accessing suitable training was made simple by Queensland Apprenticeship
Services (QAS).
QAS is a business unit of Commerce Queensland and provides a free service
to employers and employees across the State. The service includes advice on the
most suitable training available, assistance and advice on recruitment options,
obligations of parties, assistance with completing the paperwork and payment of
Commonwealth Government incentives.
QAS has offices throughout Queensland. QAS senior New Apprenticeships
consultant Fiona Woodhouse, who specialises in the financial services sector, says
the working partnership between QTCU and QAS has smoothed the path for QTCU
and its employees and given them a clear understanding of the system and their
obligations.
She says employers could be eligible for a range of Australian, state and
territory Government employer financial incentives for employing trainees.
10
1.3 ISSUES IN TRAINING PROGRAMME
Training versus Awareness Creation
The evaluations reviewed indicate a frequent confusion between the concepts
of training and awareness creation in the design of training programmes. The
evaluation report of a project in demographic training in Honduras stressed this
difference and explained its causes. This explanation, which referred specifically to
demography, can be generalised to other substantive fields. According to this report,
awareness creation aims at promoting understanding and acceptance of the
significance of various population problems. It brings facts and issues to the attention
of large audiences or specific groups, such as decision-makers and opinion leaders.
On the other hand, training aims at developing skills and in-depth knowledge on
population topics in a structured and systematic way. While awareness creation can
include among its targets a diverse audience with various profiles, training is aimed
at specific categories that meet a number of conditions. In addition, training takes
place during a limited and pre-determined time period, follows rigorous
methodological and pedagogical rules and aims at achieving a well-defined amount
of competence.
Failure to recognise this difference had resulted in projects that were
overburdened with an assortment of objectives aiming at both technical training and
awareness-raising. Being two disparate categories, as explained above, these can
generate opposing dynamics and the steps taken to achieve one can lead away from
the other. The confusion between training and awareness creation in formulating
project objectives weakens the focus of project strategy and finally diminishes project
effectiveness.
The unclear distinction between training and awareness creation in project
design has a diminishing effect on project effectiveness. This is because training and
awareness creation have different objectives and their achievement requires
different approaches. The lack of definition, and at the same time, reconciliation of
these approaches can undermine the coherence of the project strategy.
11
Needs Assessment
An important factor in designing training programmes is the magnitude of the
demand for the skills to be developed by the training. It was often observed that the
objectives of training activities, in terms of people to be trained, were not determined
on the basis of the requirements for specific skills or projections of jobs to be
created, especially in the public sector. This can have a deleterious effect on the
sustainability of training imparted because, if trainees are not given ample
opportunity to practice their skills, eventually such skills will be lost. An assessment
of the capacity of national institutions to absorb trained personnel is therefore critical
to ensure the effectiveness of training.
Persistent and rapid turnover of staff is a recurrent problem in developing
countries. Population programmes often suffer because of the departure of qualified
personnel for better job opportunities elsewhere. In some regions, such as Latin
America, the private sector is a significant pole of attraction, in part because of the
large salary differentials. To address this problem, several evaluations stressed the
necessity of a national or sectoral personnel training plan based on sound needs
assessment. This plan would co-ordinate complementary in-country and external
training activities to produce the needed pool of skilled labour in a specific time
period. In addition, it could offer alternative solutions to the turnover problem,
through, for example, the establishment of career development schemes with
incentives that would help retain trained professionals in the country programme.
The level of knowledge within the target group (s) is an additional factor to be
considered in designing and implementing training programmes. This is important for
formulating relevant curricula and appropriate materials and for determining the
length of a course. In this connection, it was also noted that prospective trainees
were often aware of their own shortcomings and could articulate rather well the
specific areas where they require training. As a rural teacher from San Lucas
Toliman in Guatemala states: “A six grade student asked me how a woman got
pregnant and I was unable to answer his question. I told him I would give him an
answer the next day. The next day the student appeared and asked me to do what I
12
promised. I then told him a woman got pregnant when she had relations, and he
asked me what “having relations” was. I just didn’t know what to answer.”
Effective training should be based on proper needs assessments. Such
assessments refer both to the demand for trained individuals in the concerned
substantive areas as well as the level of knowledge of prospective trainees.
Selection of Trainees
A major concern observed in many training projects relates to the selection of
trainees. Evaluation findings pointed out that trainees for long term training in
specific technical topics such as demography, statistics or family planning were
generally well selected, probably because selection requirements were usually
clearly defined by the training institutions.
On the other hand, the selection of participants for short-term training or
workshops was much less systematic. Evaluations showed that people sent to
courses, especially when these were located abroad, often did not have the
necessary substantive background. Trainees were, in many cases, not carefully
identified in terms of anticipated use of the training. This problem became more
prevalent at interregional workshops where the reward of trip tended to overshadow
the practical reason for participation.
Selection of trainees tended to be more rigorous for long-term training. For
short-term training of workshops, criteria of selection were less well defined or
inconsistently applied. As a consequence, the technical background of participants in
the latter tended to vary quite significantly with resulting uneveness in the
assimilation of knowledge imparted.
Content of Training
Many reports criticised the widespread tendency to train personnel without
reference to their job description. This had led to irrelevant curricula and therefore, to
insufficient preparation of trainees for their future tasks. Frequently, there were no
clear guidelines to link training content to the specific tasks that the trainees should
13
be prepared to perform on the job. For example, in many projects evaluated, family
welfare educators usually received very little information on family planning during
their basic training. These professionals acquired their knowledge of family planning
mostly through their work experience. They were, however, the first point of contact
for potential family planning clients at the clinic. Their performance was, therefore,
critical to the clients’ decision to adopt family planning. This important role in
enhancing contraceptive acceptance had, however, been overlooked in the content
of their basic training.
Evaluations of demographic training and research criticised the highly
mathematical profile of the training curricula. In an otherwise highly successful
training project in Malawi, it appeared that “… the content of courses sponsored by
the project favoured the measurement and estimation of demographic phenomena,
whereas for many students, a more substantive discussion of issues, alternatives
and policies would have more significance. Moreover, although the population
courses were optional for all undergraduate students, their technical content
apparently discouraged some of the undergraduate student body from participating,
particularly those students who were uncomfortable with statistics and mathematics.”
Linking training content to the job descriptions of trainees is essential to
ensure that they acquire the appropriate skills.
Training of Trainers
The lack of qualified trainers is a major problem facing population
programmes. Many reports emphasised the need for preparing a cadre of master
trainers to ensure the sustainability of training efforts. The evaluation of an
interregional project on reproductive health in adolescence advocated both the
preparation of a permanent cadre of master trainers and an emphasis on training of
trainers (TOT) to optimise the use of scarce human and financial resources. At the
same time, the widely applied strategy of successive training of trainers, or training
“in cascade”, which usually starts with a pool of instructors trained abroad, was
criticised in many evaluations. It was observed that this approach had led to a loss in
quality of training as one got further from the starting point. The evaluation of IEC in
14
support of MCH/FP advocated the replacement of the training “in cascade” approach
with an itinerant team of permanent, highly competent trainers.
Another concern related to the level of competence among training staff in
population topics. Evaluations noted that, in many cases, the personnel in charge of
the training was not adequately prepared in the population area. In a Population
Communication Training Project in Kenya, for example, the staff recruited to the
Population Communication Department, while well qualified in various aspects of
communication, lacked any substantive knowledge of population issues. This
problem also occurred in population education projects, where, in most cases,
educators in charge of the integration of population issues in various other
disciplines, were themselves not conversant with population topics. These
professionals usually had a variety of backgrounds in, for example, health, labour,
social welfare, and they were skilled neither in population issues nor in innovative
education techniques.
It is therefore essential that the competence and qualification of trainers be
ascertained beforehand. In this connection, attention should be paid to both the
substantive as well as methodological aspects of training.
Experience showed that:
a) the strategy of training a permanent cadre of trainers is preferable to the
training “in cascade” approach.
b) the competence and qualification of trainers in population topics should be
ascertained and strengthened, as necessary, before implementing a training
programme.
Training Methods
The evaluations reviewed emphasised the importance of effective and
innovative training methods that are culture sensitive and appropriate to the subject
matter. Along with traditional teaching methods, such as formal lectures, seminars
and workshops, all evaluation reports advocated the introduction of techniques that
facilitate the sharing of ideas and thoughts among participants. Participatory learning
15
by doing and group-dynamic approaches were found to be particularly effective in
this regard.
The use of participatory methods of learning was described in an evaluation report of
an interregional project dealing with reproductive health in adolescence. The training
provided by this project emphasisedbehavioural change through interpersonal
communication by stressing listening skills. Numerous trainees interviewed by the
evaluators commented that this approach to counselling had radically changed their
views from a process of didactic instruction to one of assisting people in reaching
their own decisions regarding behaviour. The two-way communication aspect was
apparently both eye-opening and welcomed as a tool for improving services for
adolescents.
Another example is a Population Education project in Sudan that introduced
some innovative teaching techniques and achieved a break from the old ways of
teaching. The new approach placed the student rather than the teacher at the centre
of the pedagogical process. In addition, the project integrated population education
concepts into different subjects of the school curricula. This required an
interdisciplinary approach to population issues, reorienting the previous strategy of
teaching population topics separately.
Participatory methodologies can also be used for training in population and
development planning. In many UNFPA-supported projects in this area, training
techniques requiring role-playing and simulation games were used to simulate
planning and policy formulation processes. In addition, case studies were used to
familiarise students with the use of planning models for policy analysis and offered
opportunities for empirical work within a theoretical, conceptual framework.
The effectiveness of training depends to a large extent on the quality of the
methodology should take into account both the socio-cultural characteristics of
trainees and the specificities of the subject matter. The use of participatory
approaches should be explored, where feasible, especially with regard to training
that aims ultimately to effect behavioural changes.
16
Training Materials
Manuals, guidelines and IEC materials for population training were the weakest
component in all projects evaluated. In demographic training, use of appropriate
materials including microcomputer simulation programmes to illustrate population
dynamics was found to be infrequent, although a wide array of such materials had
been produced by an interregional project that supplies them free of charge.
Unfortunately, the outputs of this project did not appear to be well known at the
country level.
The evaluation findings pointed out that training in population and development
made extensive use of demo-economic models. In most cases, however, these
models had not been designed for training purposes, but for use by planners.
Therefore, when used in training programmes, their complexity should be reduced to
a few meaningful relationships to avoid confusing trainees whose educational
background may n for a thorough understanding of complicated planning issues.
The absence or inadequate supply of relevant material in medical and paramedical
schools imposes a heavy burden on training in MCH/FP. Practically all evaluation
reports reviewed in this sector emphasised the lack of or inadequate dissemination
of manuals and guidelines at all levels of the service delivery system. In addition, the
reports pointed out the low incidence of pre and post testing of materials despite the
general acknowledgement that these are critical steps towards qualitative
improvement of services.
The quality of materials used was stressed by almost all the evaluation reports as a
decisive contributor to training effectiveness. An example is the evaluation of quality
of family planning services which recommend support for the development of
culturally appropriate and understandable materials for training service providers in
MCH/FP. Innovative and effective teaching methods need appropriate teaching
materials for better impact.
17
Impact of Training
Impact evaluation is important for assessing the effectiveness of training.
Such evaluations should examine, inter alia, the appropriateness of both training
curriculum and teaching methodology. Various reports stressed that the quality of an
impact evaluation depends greatly on its being planned for in the original design of
the project or programme. Thus, evaluations of impact should not be viewed as
periodic events: continuous, in built evaluation mechanisms should form part of the
strategies for project execution to gather data for eventual impact assessment.
The reports reviewed for this paper, however, rarely refer to this type of
exercise. In most cases, only the impact of short-term training was assessed. For
long-term training, as in demography or in-school population education, evaluation of
impact rarely occurred.
An exception was the evaluation of a population education project in Morocco.
Based on an experimental type of design, using both quantitative and qualitative
methods, the evaluation of this training reached some unexpected findings. For
example, it showed a discrepancy between the knowledge of population issues
among students and their attitudes concerning population problems. Although
students were very interested in rather complex subjects, such as “population and
development” and “population and alternatives for the future”, they did not change
their attitudes on everyday life concerns, such as the number of children desired.
The evaluation pointed out the influence of traditional and cultural norms on the
attitudes and beliefs of the students and highlighted the inappropriateness of the
teaching methodology used by the project.
A concern stressed by many reports and by the UNFPA publication
“Population Policies and Programmes. Lessons Learned from two Decades of
Experience” was the infrequent use of evaluations findings. In most training
programmes, no follow up system was implemented that would allow trainers to
collaborate with and help the trainees in their undertakings after the training. A
general conclusion of the reports reviewed was that evaluation findings infrequently
entered the decision making process and that they were not used systematically for
reorienting or designing training programmes.
18
An impact evaluation provides significant information on the extent to which
the training content and methodology and should be integrated in the project design.
Institutional Environment
Implementation of training is often influenced by external factors such as
political stability, economic conditions, institutional capacity in the field of population
and stability of training institutions and staff retention. Attention to these factors is
important for the institutionalisation of training systems within countries, to ensure a
continuous supply of qualified personnel.
The influence of the institutional environment was obvious in the training in
demography project in Honduras. The University where the project was located was
often disturbed by strikes and social and political incidents. These led to recurrent
interruptions of courses and departure of students. As a result, the evaluation
advised the re-location of the project in a more stable setting.
It must be recognised, however, that the institutional environment is usually
beyond the control of managers of training programmes. The structural requirements
necessary for the sustainability of training efforts have to be addressed by political
decision-makers. They have the ultimate responsibility to ensure the optimal
conditions to enable training facilities to respond to the needs of the country.
The capacity of the institutional setting to meet training needs is related to
exogenous factors such as political decisions, economic conditions and institutional
resources. In most cases, these factors are beyond the control of managers of
training programmes.
1.4 PRESENT INDUSTRIAL SCENARIO
The employees are provided with both on the Job training and off the Job
training, Training is to fill the gap between actual performance and excepted
performance,
Various types of training provided to the employees are
♦ Internal
19
♦ External
♦ Multi skills training
♦ Field Work
♦ Project Work
♦ Industrial Visit
♦ ITI Govt. Apprenticeship Training
♦ Vocational Students Training
♦ In plant training to students
♦ Induction training
♦ Regular training from annual training needs Identification
♦ On the Job training for new or transferred employees
♦ Development programme Induction training
Induction training is provided as part of the placement activity of HRM
process. Once selected candidate is joined, he is inducted in the organization to
understand its various practices, products and processes, linkages in the process,
Interaction points for his position, quality management system and safety systems.
HRD interacts with the functional heads of the function in which the candidate
is to be placed, to arrive at the areas where more focus should be given, accordingly
a schedule is provided to be the newly recruited employee. An induction manual
which contains the essential details about product/ processes, systems and
organization is provided for reference.
Once the induction training is completed a written test is conducted to know
his leave of understanding. HRD & the HOD concerned will evaluate the
effectiveness after which the employee is placed on the job. Incase, my further
training is found necessary it is arranged. The level of learning and his performance
is received after 3 months using post induction review.
The employee is induced in the regular training programmes as per his
training requirements identified by his functional head.
Monthly training programme details are informed to the functional heads
through Inter Department Memo to ensure the participation of the employee 5 days
prior to the start of the month.
20
Training hall requirement, training aids like OHP, multimedia projector etc are
booked by the HRD personnel though lotus notes/e-mail and the status of the same
is viewed online before the commencement of the training the HRD personnel goes
to the venue and checks the arrangement.
Participates attending the training are recording in training programme
attendance. At the end of training the participants are asked to evaluate and give
their feedback in training program. The feed back is consolidated and analyzed
through program evaluation questionnaire. Retraining is planned if the overall rating
is less than 50%. Details of the training attended by the employees are entered in
the individual training record.
After completing the training the effectiveness is assessed based on the
objective test.
On the job training is provided to the new and the transferred employees and
on the effect of non conforming products over the customers.
On the job is focused on function related specific aspects which is conducted
by the foremen/supervisors in the particular function.
The training focuses on the job content this is accomplished through an
instruction session and subsequently evaluating the performance through
observation by the superior once the employee starts performing to the expected
level, the functional head will inform the HRD for recording the same in the individual
training record.
Development Programme
Development programme is conducted for the potential employees to enable
them to acquire competency to hold higher responsibilities in future.
21
CHAPTER 2
2. PROFILE OF THE ORGANIZATION
2.1 INDUSTRY PROFILE
Elgi Electric with over four decades of experience has been engineering
solutions for the Textile and Motor Industry. The ability to comprehend customer
needs and to evolve customized solutions is what makes it stand apart. The
company has always been in the forefront of technological advancements has
designed and developed products to suit the futuristic requirements of the industry.
The company's textile products are a testimony to its technological superiority.
Small wonders then, over 25 million spindles spread across the globe, are spinning
high quality yarn with Elgi Electric make products. The company offers customized
solutions to every application. Be it spinning or weaving, it's range has just the right
product for every application.
Apart from this, the company's portfolio of products comprises of yarn
conditioning systems, centralized vacuum cleaning systems, metal and spark
diversion systems, pneumafil waste collection systems, etc. Just to name few.
Motor Division offers premium/high efficiency electric motors, alternators and
DG Sets. We also offer AC/DC motors and traction changing pointing machines to
Indian Railways.
No wonder, Elgi Electric's customers have that extra competitive
edge.Technical tie-up with the world leaders have helped Elgi Electric in latest
advancements and reinforce the image of Elgi as Quality conscious manufacturer.
22
2.2 COMPANY PROFILE
2.2.1 INTRODUCTION
Discipline, Honesty, Trust & Communication are the four basic precepts
essential for the success of our organization.
Discipline is our way of life. Without it, all our planning of resources viz., men,
money, material, machinery & Methodology at our command will serve no useful
purpose.
Honesty & integrity are the pillars on which an organization’s services rest.
We believe that all our actions must adhere to this value.
Trust and openness are value built over the years and we response implicit
faith in this. It is people who act as the guiding force to achieve our commitment &
goals.
Communication plays a vital role and we value open communication. It is our
duty to make the work atmosphere congenial and fraternal and that communication
should cross all the levels and function each working day and at any available
opportunity.
We believe in participative style of management which would ensure
dependability and dedicated involvement of people throughout the organization.
Thus, we offer a tremendous amount of learning for those who have the
initiative and innovativeness for a dynamic change process. With your background,
knowledge, skill and aspirations,we look forward to your valuable contributions in our
never ending strive for excellence.
And finally, a virtue that all must strive to achieve and demonstrate viz.,Dignity
of labours, no task however small or large is les or more important.
23
2.2.2 MANAGEMENT:
Under the leadership of its Chairman, Mr.D.Vidyaprakashand the
Managing Director,Mr.SumanthRamamurthi and the Cheif Operating
Officer,N.RavichandranELGI Electric strives to meet the modern business
demands ethically. The people led skills, the initiatives taken by the Group and the
team spirit helps ELGI Electric to march ahead in becoming a global leader.
2.2.3 CORE ATTRIBUTES :
Being Driven by Market Need
Staying Focused
Being True to processes that we have laid down
Being fair and ethical at all times
Through Team Work and goal congruence at all levels
Assessing its progress through the satisfaction of its clients
Determination, Passion & Integrity
2.2.4 RESEARCH AND DEVELOPMENT:
Elgi is well equipped with an extensive research and development
department.
Technology transfer from world leaders helped Elgi to produce world class
products and achieve the leadership in the textile industry.
The research wing provides solutions for the challenges ahead and brings
products with the futuristic features
2.2.5 VISION STATEMENT OF THE COMPANY
i) MOTORS DIVISION
ELGI electric strive to become a major player in the industrial Motors
Business.
24
In order to meet the unprecedented competitions due to globalization of the
economy, we have to improve our competitiveness manifold and maximise value for
our customers and stake change our way of working.
ELGI Electric will use business Reengineering as a tool to bring about a
dramatic improvement in its performance & growth. Through reengineering we plan
to achieve the following goals.
1. 30% of turnover should be contributed by new products.
2. Overall cost reduction of 10% by next year, 15% by the year after next.
3. Zero complaints from customers on quality on products & service.
4. 100% adherence to delivery schedule to our customers.
5. Zero failure on commitment to our vendors.
We will make our employees realize the importance of this effort and play a
positive role towards total customers’ satisfaction. We will also strive to create an
atmosphere of ownership among our employees.
We will name out reengineering programme as ‘SPRINT’ which reflects our
goal.
S - Sales to increase
P - Profitability to increase
R - Reduction in cost of operation
I - Innovation in process
N - Nil complaints from customers
T - Total customers’ satisfaction
ii) OHTC (OVERHEAD TRAVELLING CLEANER) DIVISION
ELGI electric will strive to maintain the market leadership in India.
In order to meet the unprecedented competitions due to globalization of the
economy, we have to improve our competitiveness manifold and maximise value for
our customers and stock holders. We are in a situation where we will have to bring
25
ELGI Electric to the front ranks, which cannot be reached by its competitors. To
achieve this objective we have to radically change our way of working.
ELGI Electric will use business Reengineering as a tool to bring about a
dramatic improvement in its performance & growth. Through reengineering we plan
to achieve the following goals.
1. 30% of turnover should be contributed by new products.
2. Overall cost reduction of 10% by next year, 15% by the year after next.
3. Zero complaints from customers on quality on products & service.
4. 100% adherence to delivery schedule to our customers.
5. Zero failure on commitment to our vendors.
We will make our employees realize the importance of this effort and play a
positive role towards total customers’ satisfaction. We will also strive to create an
atmosphere of ownership among our employees.
We will name out reengineering programme as ‘SPRINT’ which reflects our
goal.
2.2.6 HISTORY:
Incorporated on 25th Apr 1963 as Pvt Ltd
Commenced on 1964 with the manufacturing of wood working machines in
collaboration with M/S FESTO MACHINE FABRIC, GERMANY
Diversified manufacturing of DC mototrs& signal machines for Railways.
Widened its activities with the production of DC motors for other industrial
applications.
Today, it is the leading producer of DC motors for all Zonal Railways, Railway
production units, NTPC, SAIL etc., SIEMENS, Railway Products India Ltd,
Crompton Greaves, ITW Sigmode, Kone Elevator India Ltd etc.
2.2.7 MILESTONES
1970 – OHTC for textiles
1977 – Clear Roller Cleaner for Textiles
26
1991 – Technical collaboration with ERNST JACOBI GmbH, Germany
1996 – Jun, Technical collaboration with M/S ARGUS FIRE CONTROL Inc,
USA
1996-97 – Expansion of manufacturing of special purpose motors & point
machines
1997 – Diversification of manufacturing of PVC based products like Power
duct, Pipes, Profiles
2.2.8 GROUP OF COMPANIES:
LG Balakrishnan& Brothers
ELGI equipment Ltd
ELGI After Sales
ELGI Finance/Polytex/Ultra
ELGI Tread India Ltd.
ELGI Training Centre
LGB Textiles
Precot Mills
Premier Mills
SARA ELGI GROUP
Super spinning mills Ltd.
ELGI Electric and Industries Ltd.
ELGI Building Products Ltd.
SARA ELGI Arteriors Ltd.
SARA ELGI Envirotech Ltd.
SARA ELGI Industrial R & D Ltd.
2.2.9 PRODUCTS EVOLUTION THRU YEARS
YEAR PRODUCT COLLABORATION
1970 OHTC Own
1977 Clearer Roller Cleaners Own
1991 OHTC M/S ERNST JACOBI FmbH, GER
27
1995 Brushless Alternator M/S WTS GUINALT CIE, FRA
1996 Fire Protection System M/S ARGUS FIRE CTRL INC, USA
1997 PVC Pipes & Profiles M.S WIESNER
2000 Yarn Conditioning System M/S WELKER GER
2.2.10 QUALITY CERTIFICATION:
ELGI Electric got ISO 9001:2000 from M/S K.P.M.G Agency in 2001.
ELGI Electric got ISO 9001:2000 from BUREAU VERITAS Agency in the year
2007.
2.2.11 QUALITY POLICY:
Customer satisfaction is our primary goal.
Our actions are directed at delivering Quality Products & Services in time as
per agreed terms & specifications on continued basis.
To make continual improvement in the process & people.
CHAPTER 3
DEPARTMENTAL ANALYSIS
The various Departments in ELGI are
1. Human Resource Department
2. Finance Department
3. Production department
4. Materials department
5. Marketing department
6. Quality department
7. Systems Department
8. Research & Development Department
28
3.1 HUMAN RESOURCE DEPARTMENT
3.1.1 INTRODUCTION
HR department handles the most valuable yet vulnerable resource of the
company i.e. the employees. It is concerned totally with maintaining the harmony
within employees, friction free employees, and employer relation, keep the morale
high, reduce all causes of employee fatigue or failure, take care of accidents and
safety, keep a striking balance between satisfying the employee Land profit sharing
etc
3.1.2 PURPOSE
To drive overall HR department with robust system and policies for
recruitment, development, retention, compensation and employee engagement to
achieve the business goals.
3.1.3 STRUCTURE
3.1.4 FUNCTIONS
The human resource department is accountable for manpower planning and
budgeting as per business requirement. They develop strategies to cut down the
Vice President - HR - Corporate
Sri. P.M. Jagadeesan
Head HRA.Shanmuga Sundaram
Asst.R.Balachandran
Security
House keeping
OfficerL.James
Asst.V.Nithyanandam
Jr.OfficerP.Nithya
ETP Operator
29
manpower cost to increase profits. The department interprets company goals into
departmental goals and ensures communication to all employees. It ensures
performance driven culture across the organization. They monitor on time hiring
based on business required. Plan and conduct new employee orientation and foster
positive attitude towards employee goals.
Identify training needs and accountable for training and development for
employees at all levels. Responsible for improving employee engagement by
controlling attrition, attracting and retaining high quality talent. Preparation and
implementation of HR policy systems and organization chart. Ensure smooth
functioning of canteen, safety and security, house keeping, contract management,
employee welfare activities.
Helps the organization maintain a good rapport with government officials.
Identify legal requirements and government reporting regulations affecting HR
function. Implement cost control measures across the organization. Have periodic
interaction with all levels of employees to make them aware of the company’s
position, competition, future trends and motivate them to adapt to the changing
environment. Establish a code of conduct for the employees and promote ethics
and value system in the group concern.
3.1.5 RECRUITMENT AND SELECTION
Application
paper advertisement
Campus Interview
Internal /External.
3.1.6 SELECTION CRITERIA
Age
Communication Skill
Physical Stamina
Leadership Skill
Social & Human Relation Skill
Formal education
30
Technical Education
Previous Experience
Social Status
Suitability to the post.
3.1.7 METHODS OF SELECTION
Aptitude Test
Intelligence Test.
Attitude test
Achievement test
Personal Interview
Group discussion
3.1.8 PERFORMANCE APPRAISAL
At all levels
Executives, Staff, Workers, Trainees and Apprentice.
Periodical appraisal
Reporting officer Appraisal
HOD Appraisal
3.1.9 PROMOTION
Based on organizational needs
Based on skill requirement
Based on Manpower
3.1.10 STATUTORY COMPLIANCE:
Employees provident fund organization
Employees state insurance corporation
IFS
TPCB
Local panchayat
Employee Exchange
Gratuity, Bonus, Min wages, Govt. ITI
31
3.1.11 EMPLOYEE WELFARE:
LRG Ranganayakiammal Charities
o Medical Asst.
o Educational Asst.
Uniforms & Shoes/yr
Attendance Incentives/month
Night shifts Allowances/month
Egg allowance/month
Educational loan/yr
Death relief fund – Till service
Group mediclaim& group personal Accident policy
Protective Equipment
Retirement benefit fund
Diwali cloth purchase coupon
EMBF (Employee Mutual Benefit Fund) for 5 yrs
Sports
Spectacles allowances/2yr
Family planning is encouraged with cash advance
Medical checkup
LGR Nagar Residents Association
Employee marriage contribution – Rs.2000/-
Birthday Greeting Issued
3.1.12 COMMITTEE & MEETING
Worker representative committee –as and when required
Canteen committee – every Monday
EMBF committee – every 5th
Departmental meeting/week
Management review meeting/month
House keeping committee/month
Land committee/month
AyuthaPooja committee – when required
32
3.1.13 SECURITY
Security staff headed by the chief security officer works at all the shifts. To
facilitate the security measures, single point entry is adopted to control visitors. For
materials separate gate passes are issued
3.1.14 HUMAN INVENTORY:
Manpower, 1st Sep, 08’
Division
wise
Operators Staff Apprentice Casuals Total
RMD 111 25 18 0 154
Textile 149 52 10 0 211
Sheet Metal 12 2 1 0 15
Corporate 4 20 0 7 24
Grand Total 276 99 29 7 411
Staff:
Total - 99
Permanent - 78%
Probationers - 9%
Trainers - 13%
Operators:
Total - 312
Permanent - 87%
Probationers - 1%
Trainers - 1%
33
Apprentice - 9%
Casuals - 2%
3.1.15 OBSERVATIONS:
Recruitment is done through advertising in leading portal, and the procedure
is the standard procedure. Also there are opportunities for the heirs of the
workers to join in their organization through interviews.
There is no restriction for the worker to see the HR manager and can enquire
about anything with them.
The manager is so well going with the workers and he move with them with
interest.
Here the relation between the top level and the lower level are well
appreciated. This helped the company to well come across in some hard
situations.
But in contrary, there is a well marked labour turnover which accounts for the
decreased improvement in the growth as a whole.
Uniforms are provided by the company per year, with many provisions for
their well being.
Overall, to say, the workers are more interested in working for the company.
3.2 FINANCIAL DEPARTMENT
3.2.1 INTRODUCTION
The probability that a component part, equipment, or system will satisfactorily
perform its intended function under given circumstances, such as environmental
conditions, limitations as to operating time, and frequency and thoroughness of
maintenance for a specified period of time.
3.2.2 PURPOSE
Monitors quality engineering and customer complaints and ensures high
standard of quality in products manufactured and to reduce rejections and rework at
34
various stages. Ensures that produce PPM are maintained as per company target.
Responsible for implementation of processes to improve product reliability.
3.2.3 OBJECTIVES
To arrange adequate funds for the business
To ensure proper utilization of funds
To increase profitability of business
To maximize the value of the firm
To do the analysis and appraisal of financial performance
To anticipate the financial needs
To maintain good relations with suppliers and monitor their performance
Physical location and stocking of materials
Minimization of damage
3.2.4 FUNCTIONS
Arrangement of funds
o Reserves and surplus
o Deferred Tax Liability
o Secured Loan
o Unsecured Loan
Funds management
Funds management includes payments like salary, wages, repayment etc.
Expenses and revenues:
Financial forecasting and planning
To advice top management on all financial matters and to suggest various
alternative solutions to any financial difficulty
Co –ordination and control
Help in tax administration and tax planning
Preparation of audit report
Storage of raw materials ,finished goods and engineering goods
Handle scrap disposal
35
Material, Factory, administrative expenses are managed and controlled.
Managing revenues within budgeted limits (expenses) and to attain the budgeted
revenues.
3.2.5 BUDGETING
Budgeting is done for the period of April 1 to 31st march of every year-It is
done by estimating
1. Estimating domestic and foreign sales.(Marketing department)
2. Based on number of units, Material Requirement and its total cost required Is
calculated
3. For some components Job Work is needed, total cost involved for job order is
calculated.
4. Expenses for Manufacturing goods such as wages, salary, power etc., are
calculated
5. Administrative expenses are calculated...
6. Adding (2+3+4+5), gives budgeted value,, based on estimated sales
revenues are calculated.
7. From above values, budgeted profit, taxes are calculated.
8. Budgeted values and actual values are compared. Reasons for deviation of
actual are analysed. It might be market condition, raw material prices and
other political economical factors. If there is deviation due to assumptions
(wrongly), it is corrected during next year budget.
3.2.6 CREDIT POLICY
Credit policy for both the customers and suppliers are decided by following
factors
Negotiation, Demand and supply, Long term Relationship, Price
3.2.7 CASH SECTION
All cash receipts and payments are carried out in this section. Daily cash
transactions are properly recorded and maintained in this section, which is
completely computerized.
36
3.2.8 FUNCTIONS OF CASH SECTION
1. Preparing and maintain daily cash receipts and payments register
2. This section deals with their bankers
3. This Section is responsible for all payments relating to remunerations such as
salaries and other expenses.
3.2.9 INCOME TAX
The income of all employees will be assessed and deducts the tax from the
employees whose salary exceeds the limits.
3.2.10 SERVICE TAX
Service tax will be paid for any service rendered to the company.
3.2.11 COSTING
The major objectives of the costing section are to maintain accuracy of quality
reports and the preparation of MIS in quality cost in order to submit the same to the
management. Costing section maintains the function of keeping the stock ledger.
The functions of costing section include, preparation of MIS, ascertaining the product
cost etc. the main aim of MIS preparation is to provide information to the
management, regarding the production and allied data
3.2.12 PAYROLL
The duty of executive of the payroll section is to perform salary calculations. All
such calculations are done with the help of the software. This helps the executive to
monitor the time office section where the attendance of the workers is registered.
When a person is appointed by personal department they will specify his amount of
pay, allowances payable and the same is intimated to the payroll section
Function of payroll section include
Salary calculations
Employee states insurance (ESI) calculation
Provident fund calculations
Income tax calculations
37
3.2.13 BALANCE SHEET (Rs. in Crore)
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Sources of fundsOwner's fundEquity share capital 6.27 6.27 6.27 6.27 6.27Share application money - - - - -Preference share capital - - - - -Reserves & surplus 190.54 160.61 129.90 115.09 104.61
Loan fundsSecured loans - - - 4.45 6.59Unsecured loans - 0.01 0.18 0.19 2.29Total 196.82 166.89 136.35 125.99 119.76
Uses of fundsFixed assetsGross block 152.93 134.57 127.08 117.82 111.81Less : revaluation reserve - - - - -Less : accumulated depreciation 91.12 86.35 88.07 82.57 74.03Net block 61.81 48.21 39.01 35.26 37.79Capital work-in-progress 1.01 0.76 0.08 0.28 1.65Investments 38.57 34.07 16.05 16.00 22.21
Net current assetsCurrent assets, loans & advances 218.80 242.17 207.57 166.46 142.13Less : current liabilities & provisions 124.75 159.89 127.82 93.16 85.04Total net current assets 94.05 82.28 79.75 73.30 57.09Miscellaneous expenses not written 1.37 1.57 1.46 1.15 1.03Total 196.82 166.89 136.35 125.99 119.76
Notes:Book value of unquoted investments 36.82 32.33 14.31 14.26 8.03Market value of quoted investments 3.47 4.70 5.83 10.62 12.09Contingent liabilities 3.51 6.35 5.99 7.94 9.07Number of equity sharesoutstanding (Lacs) 800.00 800.00 800.00 800.00 800.00
3.2.14 PROFIT & LOSS ACCOUNT
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Income
Operating income 480.75 452.41 379.49 313.09 286.51
38
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Expenses
Material consumed 311.88 303.01 254.54 207.71 181.72
Manufacturing expenses 9.42 8.67 7.12 5.68 5.84
Personnel expenses 43.52 38.10 35.37 27.89 22.76
Selling expenses 16.72 19.41 16.89 15.56 18.81
Adminstrative expenses 31.71 23.16 23.00 18.51 20.46
Expenses capitalised - - - - -
Cost of sales 413.25 392.35 336.91 275.37 249.59
Operating profit 67.50 60.06 42.58 37.73 36.92
Other recurring income 2.82 3.92 3.08 3.59 3.87
Adjusted PBDIT 70.33 63.98 45.65 41.32 40.79
Financial expenses 1.44 1.79 1.47 1.20 0.96
Depreciation 7.95 6.83 6.92 9.32 9.61
Other write offs 0.68 0.69 0.62 0.53 0.49
Adjusted PBT 60.25 54.67 36.65 30.27 29.73
Tax charges 23.52 15.86 11.17 9.38 9.50
Adjusted PAT 36.73 38.81 25.47 20.89 20.23
Non recurring items 3.02 0.72 -2.10 -3.26 1.16
Other non cash adjustments -0.27 - - - -0.21
Reported net profit 39.47 39.52 23.37 17.63 21.18
Earnigs before appropriation 122.10 95.43 65.50 51.09 42.68
Equity dividend 8.15 7.53 6.27 6.27 6.24
Preference dividend - - - - -
Dividend tax 1.39 1.28 0.97 0.88 0.85
Retained earnings 112.55 86.62 58.26 43.93 35.59
39
Mar ' 09
Mar ' 08
Mar ' 07
Mar ' 06
Mar ' 05
0
5
10
15
20
25
30
35
4039.47 39.52
23.37
17.6321.18
Net Profit
Reported net pr...
OBSERVATION
Calculating the payroll for the worker
Costing
Accounts through the system
Sales order
3.3 PRODUCTION DEPARTMENT
3.3.1 INTRODUCTION
Production is the use of machines, tools and labor to make things for use or
sale. The term may refer to a range of human activity, from handicraft to high tech,
but is most commonly applied to industrial production, in which raw materials are
transformed into finished goods on a large scale.
3.3.2 PURPOSE
To achieve production target on time.To maximize shop efficiency and
maintain high quality standards.Provides products of high quality for sale as per time
40
specified, while effectively utilizing the production facilities and manpower available
and practicing efficient procurement and production techniques.
The ELGI Electric is most concerned with both Textile and Motors section.
They are in the height of extreme importance in both these sectors.
Elgi Electric is a renowned name in the textile Industry. Today, with over three
decades of experience, the company has been providing engineering solutions for
the textile industry. The company has always been in the forefront of technological
advancements and has designed and developed products to suit the futuristic
requirements of the industry.
3.3.3 PRODUCTS
i)TEXTILE PRODUCTS
a. YARN CONDITIONING SYSTEM
The difference between Conventional yarn and Profix Conditioned yarn is
rather obvious. Conditioned yarn.gives to you advantages that contribute to enhance
production efficiency both at the knitting and weaving Stages. Made Possible by
significant increase in single yarn elongation, yarn Strength, better hairiness value
and constant coefficient friction.
Perfect Yarn Condition System is defined to deliver maximum value and
incorporate World class standards and is ideal for treating all kinds of Yarn.
41
Elgi Electric also manufactures Conventional Yarn conditioning plant
“SUPERGAIN” without Energy Saver Unit. You can choose between PROFIX
Energy Saver and "SUPERGAIN"
This Product is manufactured with German Technology
Features
The chamber is made of corrosion-resistant stainless steel material. It is
thermally relaxed for dimensional stability and fabricated to precision
Equipped with energy saver unit for power saving
Equipped with latest version of PLC (Programmable Logic
Controller)compatible with Window based software
Water level sensor interfaced with PLC facilitates automatic feeding of water,
thus eliminating the need for a separate pump or manual feeding
Well-proven automatic platform arrangement makes easier for loading and
unloading process
Single stage, mono block water ring pump is used. Which is Equipped with
activation protection
Silicon rubber door seal is used to withstand high temperature application
Low Temperature Conditioning – possible form 46'C
Heat Setting – possible up to 120'C
42
Single cycle or multi cycle up to 20 steps - possible in cop, cone and hank
form
Safety instruments – incorporated as per International Standards
Control Panel
Equipped with Programmable
Logic Controller (PLC) ensure
safety of the stored programmes
The advanced design of the
system does not require stabilizer
and backup battery.
Up to 8 sets of various
programmes can be stored.
Single cycle or Multi cycle (up to
20 steps) programming is
possible.
Analogue and Digital modules are designed for up-gradation and
expandability.
Double protection for total circuitry.
OPTION : Interfacing facility for production data available.
Auto Platform
Well - proven automatic platform
arrangement make easier for
loading and unloading process.
A special slipping clutch
arrangement is provided
for safety.
Chain carrier and Arm
movement for feeding
and taking out the
material from the
chamber is interfaced with the PLC.
43
b. SPARK DIVERTER
Spark Diverter: Automatic fire protection system for chute feed and lap feed lines.
Even a single Spark will activate diverter, stop the machine and sound alarm.
Features
TAC APPROVED Automatic
fire Protection System for
chute feed lines
Compact design - requires only
1.5 meters or 5 feet of space
due to high speed - 50
millisecond reaction time
Works in areas of positive or negative air pressure
Simple push - button reset and easy installation
More than 75,000 in use in spinning mills worldwide
Easy installion
Separate filter with pressure guage and solenoid valve are provided for easy
maintenance
High-Speed Diverter Mechanism
50 millisecond reaction time
Pneumatic system-operates at 75 psi or 6 bar air pressure
Low voltage - powered by 24 volts DC from control panel
ARGUS 343 Infrared Spark Detection
Detects single spark or amber at speeds up to 60 meters per second or 200
feet per second
More than 75,000 in use in spinning mills worldwide
Discrimination circuitry reduces false alarms
c. METAL DIVERTER:
44
This unique compactly designed high speed metal detector is an automatic
system for chute feed and lap feed lines.
Features
TAC APPROVED Automatic fire Protection System for chute feed lines
Compact design - requires only 4 meters or 13 feet of space due to high
speed - 50 millisecond reaction time
Removes all metal particles from opening lines
Metal is ejected into collection can, production is
not interrupted
Works in areas of positive or negative air pressure
The system working time is recorded up to 10,00,
000 hours.
Micro processor based system with interfacing
facility (Remove programming is done with the help of RS232 interface)
All the programs can be Restricted by using passwords
Counter is provided to display the Metal Detector activation
Metal Detector
Detects all metal (ferrous & non ferrous) as small as 2 mm
Detects particles moving at speeds up to 33 meters per second or 108 feet
per second
Full digital control
Programmable - 100 levels of sensitivity
Light weight (24 kgs or 53 Lbs) - suspends on non-metallic duct without need
for bulky floor support
Remote programming & diagnosis possible by RS 232 interface
Non Metallic Duct
Strong, lightweight, antistatic composite duct
Does not interfere with performance of metal detector
d. OVERHEAD
45
The Company pioneered the concept of Overhead Cleaners in India.
Technical collaborations with world leaders in Germany have helped reinforce the
image of Elgi Electric as a quality conscious manufacturer. The company's products
are a testimony to its technological superiority. Small wonder then, over 50 million
spindles (50,000 OHTC's) spread across the length and breadth within the country
and outside, are spinning high quality yarn with Elgi Electric OHTC's. The company
offers customized solutions to every application. Be it spinning or weaving, straight
or curved path, it's range has just the right product for every application.
Apart from this, the company's portfolio of products comprises of Yarn
Conditioning Systems, Metal and Spark Diversion Systems, Bobbin Transporting
System, Cone Packing Machine, Centralized Vacuum Cleaning Systems, Energy
Saving Motors, etc. just to name a few.
No wonder, Elgi Electric's customers have that extra competitive edge.
e. CONE PACKING MACHINE:
Working Principle
ROCKPACK/HP Machine automatically warps-up either conical or cylindrical
yarn packages having variable diameter (from 160 to 300 mm) with a high-density
polyethylene film.
One of the major features of the ROCKPACK/HP Machine is that it does not
carry out welding operations on the polyethylene film used for packing process.
The wrapping is performed by actuating a piston, which pushes the edges of
the film (already wrapped around the Cone/cheese) inside the spool, thus obtaining
a better yarn packing presentation and an easy-to-remove packing material at the
time of usage.
Working Capacity
The ROCKPACK/HP Cone packing machine can pack up to 900 Yarn
packages/Hour approximately (depending on the type of Cone/Cheese used).
46
Advantages
Higher Productivity
Man Power Reduction
Accuracy and Flexibility
Relief from Heavy lifting
A Complete control of Material Flow
Elimination of Yarn damages
f. BOBBIN TRANSPORT SYSTEM
ELGI ELECTRIC with over 3 decades of
experience in Textile Engineering and
renowned for offering innovative and world
class products bring you the state-of-the-art
Bobbin Transport System (BTS).
The Bobbin Transport system
provides economic advantage to package
handling in Ring spinning. It ensures the
protection of Roving wound around the
Bobbin, which is highly liable to damages
during manual transportation BTS also protects the Yarn where the Roving defects
are transferred.
47
Bobbin Transportation System is certainly the area in Spinning Mill where the
investment in Automation is more easily justified due to labour savings and reduction
in damages to yarn. Especially in the coarser count spun the saving will be higher.
BTS Advantages
Can be installed in the existing layout (both Building and Machinery)
Interface any roving and ring frame.
Contact less Bobbin Transport.
No Mix-up of yarn counts.
Technology Up gradation.
Man Power Reduction.
Features
Constant Production for long duration time.
Advantage of extremely simple system forbobbin transporting.
Full digital control
Suitable for fine and medium counts.
Light weight (24 kgs or 53 Lbs) - suspends on non-metallic duct without need
for bulky floor support
Types
Manual Bobbin Transporting System
Closed Loop Bobbin Transporting
System
Automatic Block Creeling Type System
g. CENVAC:
Features
Eliminates handling of heavy equipment
Clean environment
Less maintenance
No lubrication required. Hence oil free air
handling
48
Low noise level
Specially made nozzles facilitate access to reach difficult areas for better
cleaning
Detachable container mounted on castor wheels facilitates easier operation
h. CLEAR ROLLER CLEANER:
Features
An excellents device to clean the
clearer roller automactically
Saves 80% of the cleaning time and
labour
High efficiency with low power
consumption
Low maintenance cost
Easily transportable within the
department
Adjutable to all size of rollers
ii) PRODUCTS - MOTORS
a. PREMIUM EFFICIENT ELGI TECO AC MOTOR
Salient Features - Energy Efficient
Suitable for 415+/-10%, 50Hz +/-5% and combines variation of +/-10% Exceeds EFF1 requirements Non-hygroscopic class F insulation Temperature rise limited to class B Design ambient of 45 deg C Terminal box rotation in steps of 90
deg Detachable cable gland plate IP 55 enclosure Better dynamic response Dynamically balanced High efficiency and Power factor Standardisation of mounting
dimensions for interchangeability and ease of maintenance
49
Rugged construction
b. STANDARD AC MOTOR
Salient Features - High Efficient
Suitable for 415+/-10%, 50Hz +/-5% and combines variation of +/-10% Non-hygroscopic class F
insulation Design ambient of 450 C Use of cold rolled silicon steel
for lamination Larger terminal boxes to suit
even aluminium cables Terminal box rotation in steps of
90 deg IP 55 enclosure Better dynamic response Dynamically balanced High efficiency and Power factor Standardisation of mounting dimensions for interchangeability and ease of
maintenance Designed for Indian tropical environment
c. TECO AC MOTOR
Salient Features - High Efficient
Suitable for 415V + / - 10%, 50 Hz + / -5% and combined variation of + / - 10%
Exceeds EFF1 requirements Non-hygroscopic Class F insulatio. Temperature rise limited to Class B Design ambient 45'C Terminal box rotation in steps of 90' Detachable cable gland plate IP 55 enclosure Better dynamic response Dynamically balanced High efficiency and power factor Standardisation of mounting
dimensions for interchangeability and ease of maintenance
Rugged Construction
d. DC MOTORS:
Dc Motors can be manufactured aganist specific customer requirements.
50
Salient Features
A) Cyclonic Filter Dust Exhauster Motors
The unit comprises of motors and centrifugal type exhauster blower set
Motors are used in Diesel Locomotives to cyclonic the air intake filtration system to feed the filtered air to engine
It carries away by the bleed air to exhaust into the atmosphere
It gives continuous removal of dust particles is make by provision of dust exhauster unit
B) Fuel Pump Motors
The motors are used to drive fuel oil and governor oil pump on Diesel Electric Locomotives
The Motor operates fitted with a pump
C) Crank Case Exhauster Motors
It is a motor exhauster set to exhaust the smoke into the atmosphere produced by diesel engine
The Motor works at 0°C to 55°C and industry environment
e. POINT MACHINES
Salient Features - Point Machines
IRS Point Machines as per specification No.IRS-S-24/2002 of RDSO It is a Non Trailable Electric Point Machines 143mm & 220mm throw with
internal locking used for operation of points of Railway yards
It is an electrically driven machine operates at 110V DC
Point machines are operated by Station Masters to give directions to the trains to control and regularize the train traffic
It can be operated manually by using a crank handle at the site during the interruption in power supply
f. EG SERIES BRUSHLESS ALTERNATORS
51
Features
Alternators are with automatic voltage regulators Voltage regulation less than or equal +/-1% Class F/H insulation Three times the rated current for
motor starting Total harmonic distortion less than
4% AVR with built-in load acceptance
module Protection against under speed and
the entire range Auxiliary winding to protect from
load distortions Vacuum Pressure Impregnation for enhanced thermal stability Permanent magnets insertion for faster voltage build-up IP 23 and double bearing as options Backed up by over 85 service centres across the country
3.3.4 FUNCTIONS
Accountable for production output, product quality, cost and timely delivery to
customers. Accountable for continuous improvement on various plant performance
parameters such as quality, productivity, cost. Responsible for assuring timely supply
from vendor items competency of team members by training and job allocation. They
are responsible in establishing world class manufacturing practices.
They implement safety norms in production, storage of materials. Liaise with
R&D department on product improvement and new product introduction. Participate
in failure analysis group and feedback on analysis for production improvement.
Implement production management techniques to improve efficiency and reduce
cost. Guide direct reports in worker management and planning activity. Introduce
methods improvement in productivity at all manufacturing points
They plan and execute the production and packing operation as per the
specified time line. Planning and maintaining inventory of raw materials and packing
materials based on plan. They implement the various procedures to improve
productivity. The department follows LEAN manufacturing system for its production
52
process. Initiate cost saving projects and encourage engineers for the effective
implementations.
Review production schedule with production engineer on a daily basis.
Monitor rejection rework levels for each product lines and process. Authorize
engineers change requests, line rejection reports. Monitor work in progress levels
and achieve targeted reduction in it. Participate in failure analysis meeting and
receive feedback in the form of suggestion for improvement in production process.
11 measures for effective production are:
Productivity
The total productivity is calculated as the total of per employee work
multiplied by the total number of days.
ALP-Adherence to Leveled Production
Planning a model and maintaining the production.
On time sales
Production of the required product to be completed within the specified
time and with one week delivery time.
Inventory
Maintaining the stock of the raw materials, finished goods and also the
work in progress products.
Line rejection
Rejection based on the quality of the produced products.
Line rework
The rejected products that can be reworked and used.
Space utilization
The total space utilized is to be reduced. They have planned to reduce
50% of the existing area.
Kanban system
The stock out status of the different components are identified by the
two bin system.
Warranty complaints
Installation
Inward rejection in PPM
53
The rejected parts is calculated in parts per million.
BAAN System:
A system that monitors the required materials, production based on the
demand.
Planning the total number of products is done based on the demand specified
by the marketing department.
MRP-Material Requirement Planning, based on the requirements given by the
marketing department.
Stages in the generation of production order are:
Planning
Release production details
Active production
Completion
Closing
Packing of the finished goods is being contracted. the goods are packed after
audit and the details of warranty and the description about the components are
specified in the packing slip.
Ensure that hour accounting is done for the entire workforce under
supervision. They evaluate the shop floor efficiency in various production lines and
review. They oversee pilot batch production of new product under development and
plan the manpower requirements. Ensure effective implementation of panchatantra
in the shop floor. Review product quality / inspection reports with reliability and
initiate steps to improve product quality. Anticipate the capacity and bottle necks and
find ultimate resource internally or inform head manufacturing.
Consolidate MIS reports of head manufacturing, ontime delivery, production
effective delivery, rates cost reduction, shop efficiency hours. Co-ordinate with the
maintenance department on preventive maintenance of machines. Review ISO
documentation and monitor compliance to the ISO guidelines on production.
Implement multi skill project and encourage workers to develop multi skills in the
54
production area. They council the workers on work ethics and absenteeism.
Encourage workers to come up with more number of suggestions for improvement.
3.3.5 OBSERVATIONS
The layout is perfect with its design to move the products of each stage in
such a way to reduce the waiting time.
When the first part is finished, it is moved to the next stage which is
located very near to that.
All the parts necessary for the product are manufactured by them.
Except for some parts which are imported like the electric board used in
the spark diverter.
The labours were found in the regular uniform.
Power supply is a major drawback in the production process.
Regular power shut, reduces the production and also the industrial time.
They workers are well versed in their field of operation, which resembles
their involvement in the work and also their experience.
The layout is based on the ISO certification, with each section properly
divided from other.
Simulation is also done in their own unit which is an added advantage.
Men shortage is informed well before to the HR department so that they
make such an move to fill the gap either by recruiting or by shifting
workers from other section where the operation is mild.
3.4 MATERIALS DEPARTMENT
3.4.1 INTRODUCTION
Material can be anything: a finished product in its own right or an unprocessed
raw material. Raw materials are first extracted or harvested from the earth and
divided into a form that can be easily transported and stored, then processed to
produce semi-finished materials. These can be input into a new cycle of production
and finishing processes to create finished materials, ready for distribution,
construction, and consumption.
3.4.2 PURPOSE
55
To meet the production needs with the appropriate material on time.
3.4.3 FUNCTIONS
Accountable for procurement at the right time at the right cost to keep the
production line going. Responsible for effective procurement and ensure timely
supply of materials and consumables. Obtain maximum credit limit from vendors.
Ensure participation in production review meeting and address items required
urgently on priority. Co-ordinate with reliability and PED team to improve the quality
vendors and increase the self certified vendors.
Ensure participation in engineering change request meeting with full details
and date of implementation and price impact. Ensure participation in new product
design, review meeting to review it from material functions view point. Lead the
purchase team and communicate the designs across purchase team effectively. Fix
measurable for engineers to achieve the organizational goal.
Attend failure analysis meeting and analyze root cause problems. Review
pending orders and critical items purchase with buyers. Organize rework of purchase
activity plan in case of rescheduling of orders, change in forecast. Review inward
rejection and line rejection with the buyers and initiate the steps to reduce these.
Review on time delivery with buyers and vendor periodically.
3.4.4 OBSERVATIONS:
The various raw materials used in the production are made by the company
itself except some parts.
The electric circuit board used in spark diverter, OHTC etc. are bought from
another company.
Packing material is bought separately.
There is a proper storage facility in the company both for the finished goods or
the parts of the product in various stages of assemblage.
3.5 MARKETING AND SALES DEPARTMENT
3.5.1 INTRODUCTION
56
Marketing is everything that you do to reach and persuade prospects. The
sales process is everything that you do to close the sale and get a signed agreement
or contract. Sales is the pinnacle activity involved in selling products or services in
return for money or other compensation. It is an act of completion of a commercial
activity.
3.5.2 PURPOSE
Provides marketing support to the sales force. To lead sales and marketing
network to achieve targeted sales, turnover, profit, finished goods inventory,
receivables.
3.5.3 FUNCTIONS
Accountable for sales turnover as per budget.Accountable for sales budget
inventory, finished goods and receivables.Accountable for budgeted profits. Control
operational expenses as per budget. Resource planning for the department including
manpower and capital.
Marketing activity includes the 3C’s and 4P’s. The 3C’s used are company,
customer and competitor. The 4P’s are product, position, price and promotion.
Develop sales strategy for product groups to maximize revenue and profitability.
Accountable to develop sales tools for achieving targeted sales. Prepare forecast for
short term and long term planning. Estimate dealer network spread and required
information.
Accountable to drive the product engineers to achieve the targeted sales from
the product groups. Ensure effective and smooth relationship with the dealers and
sales engineers in the regions for growth in business. Ensure monthly sales analysis
for taking the corrective action whenever required. Accountable for sales promotions,
pricing and discounting.
Develop strategy to achieve sales, receivables and inventory targets as per
budget. Meet monthly top line sales goods across products. Build robust evaluation
system to access the sales performance. Conducting competitor analysis by keeping
abreast of market trends and competitor moves to achieve market sales
57
metrices.Evaluating marketing budgets periodically including manpower planning
initiatives and ensuring adherence to planned expenses.
Dealer management evaluation of existing dealer and addition / deletion
based on performance evaluation. Creating and implementing sales policies and
system for direct sales and channel sales. Management of dealers. Obtain price
approvals from original equipment manufacturers whenever required. On time sales
and delivery.Accountable for commercial operations for units and spares.
3.5.4 NETWORK
NATIONAL
For Lmw Textile Machineries
Territory : Tamilnadu,AndraPradesh,Karnataka, Pondicherry &Kerela
Agent Name :Super Sales India Limited
Territory : All states of India
Agent Name : VOLTAS LIMITED
OtherthanLMWFrames,TFO, Looms, Etc
Territory : Tamilnadu
Agent Name : J.Engineers
Territory : Delhi, Haryana,Punjab,Chandigarh, Utter Pradesh, Himachal Pradesh and Jammu & Kashmir
Agent Name : Spintex Private Ltd
Territory : Maharastra - South
Agent Name : Vijaytex Corporation
Territory : West Bengal
58
Agent Name : Dynatex Marketing
Territory : Andra Pradesh, Karnataka, Kerala
Agent Name : R.J.Engineers P Ltd
Territory : Rajasthan
Agent Name : Shree Maruthi Associates P Ltd
Territory : Maharastra - North
Agent Name : VijiayshriTexcom P Ltd
Territory : Gujarat
Agent Name : Sam International
INTERNATIONAL
International Agent : Bangladesh
Agent Name : A.T.E.Technologies [Ban] Private Limited
International Agent : Thailand
Agent Name : Intasia Co
International Agent : Indonesia
Agent Name : PT Protechma Indonesia
International Agent : Egypt
Agent Name : ATAG Export & Import
59
International Agent : Kenya/Thanzaina
Agent Name : Lakshmi Machine Works Ltd
International Agent : For Other Countries
Agent Name : Elgi Electric and Industries Ltd
3.5.5 MARKETING STRATEGY
Colourful & Attractive Banners
The marketing is very unique by having many no if attractive poster importing the importance of each of their products in their industry. Each product comes with many such posters and information catalogue. These are as follows.
Eg.Yarn conditioning System:
This picture is an example of how to easily make anybody to understand what the product does, with a simple comparison. Here the difference in value is much greater to understand.
“Do You Have” Posters:
60
Comparison with Normal Products of same line:
61
3.5.6 OBSERVATIONS:
Advertising is the major part in their product.
Found reputation in various parts of the world.
Products are despatched within the time limit
Estimation of the market demand holds success for them.
There are different versions of the same product for matching different types
of industrial capability.
Low cost and smaller equipment for smaller industry, and that’s larger for high
capital industries.
Discount is provided when bought as a package of equipment
Rich R&D provides such a quality product which maintains and increases the
customer count day by day.
3.6 QUALITY DEPARTMENT
62
3.6.1 INTRODUCTION
ELGI’s quality is the decisive. The quality realization is the backbone of Sara Elgi Group. It is an ISO 9001 – 2000 certified company with exports more than 25 countries around the world.
Meeting latest requirements of customers by anticipating the needs of the customer before customer expects it.
3.6.2 FUNCTION
Has computerized test set up to analyse product performance.
Having stringent incoming inspection norms, maintains quality as expected level by the customer. All measuring and monitoring instruments are being calibrated and are being traced to national / international standards. Calibration system is being monitored through computerization.
The Elgi Electric strength is quality and performance of the product manufactured by them. Quality of final product is determined with sophisticated computerized testing facility.
There are quality checks at every stage of manufacturing starting from raw materials supply. At every stage of the manufacturing process, it is ensured that good quality products only move to the next stage. This assures the best quality output.
Calibrated instruments are being used which are traceable to national / international standards.
Computerized type test facility for AC Generators up to 380 KVA
63
Computerized Routine test facility for A1
Type test facility to AC Motor with Dynameters up to 250 KVA
3.6.3 OBSERVATIONS:
The industry layout is based on the specifications by ISO
Each section in the industry is separated by lines which makes the industry
looks like having different blocks.
Each product is properly tested before packing with the inbuilt testing facility.
Packing is also done properly.
64
3.7 SYSTEMS DEPARTMENT
3.7.1 INTRODUCTION
The system department is responsible for computerized of different
departments of ELGI industries.The main function of this department operates and
co-ordinates all systems in the organization. The simple structure of department
facilities speedy communication flow with in the department.
Structure of systems department
3.7.2 OPERATION
1. Monitoring Operation
Security problems in the System were solved using Central Virus
Scanning System and Firewall solve problems related to network connections.
2. Monitoring Function
The systems department in the plant solved network problems as well as
computer problems, regular back ups were taken daily, weekly and monthly for
providing reliability in the system. All the computers were connected using both point
GROUP MANAGER-SYSTEMS,
EXECUTIVE- SYSTEMS
EXECUTIVE
65
to point and star topology connections. Proper authentication was given to each
department using ID and Password.
ELGI produces many renowned products which is systematized and
maintained by the help of IT department. IT helps them to keep track of every
product, its demand forecast and production cycle. Automobile sectors production
and growth can be ensured using technology advantage.
3. Advantage
Low transaction cost
Better availability of raw materials
World wide availability
Reduced paperwork
Avoid data redundancy
Making relevant database
Brand building
Conferencing
Manufacturing planning
Order processing
Quick updation
Recruitment
3.7.3 OBSERVATION
Sever is connected using LAN and WAN
Power fromUPS
The individual database of each worker is maintained properly.
Database related to the finance is really holding the hands.
Internet is provided to the employee and the information like circulars or any
other information is passed through intranet.
The mails are regularly opened up and are properly handled and recognized.
66
3.8 RESEARCH & DEVELOPMENT DEPARTMENT
3.8.1 INTRODUCTION
New product design and development is more often than not a crucial factor in
the survival of a company. This is necessary due to continuous technology change
and development as well as other competitors and the changing preference of
customers.
3.8.2 PURPOSE
To set realistic goals for design engineers and manage their performance.
Undertake special projects and complete them under specified time, budget, cost
reduction, targets. They also generate new products development projects.
Accountable to launch new products on time as given by business
development to increase the line for the business. Finalize new product development
schedules with business development. Prepare and obtain approval for project
development budget. Review project progress on specified milestones. Provide
leadership to resolve project conflicts with internal and external customers and
suppliers.
Guide engineers and motivate team to meet product development objective.
Undertake special projects for design. Ensure complete utilization of design and
development resources. Update and maintain all infrastructure facilities for product
development. Identify training needs for present and future plans. Implement
systematic cost control measures for product resources and day to day operations.
Participate in reviews of deficiencies in existing product performance and
involve wherever necessary in corrective action. Authorize all changes in drawings.
Identify and participate in programs of current development in product design
technology infrastructure and prepare proposals to update existing process
infrastructure. Improve system to improve efficiency of design process.
67
CHAPTER 4
4. COMPILATION &CONCLUSION
4.1 INTRODUCTION
Elgi Electric with over four decades of experience has been engineering
solutions for the Textile and Motor Industry. The ability to comprehend customer
needs and to evolve customized solutions is what makes it stand apart. The
company has always been in the forefront of technological advancements has
designed and developed products to suit the futuristic requirements of the industry.
The various departments which help in the specialization of the company are
4.1.1 Human Resource Department:
Employee Welfare:
LRG Ranganayakiammal Charities
o Medical Asst.
o Educational Asst.
Uniforms & Shoes/yr
Attendance Incentives/month
Night shifts Allowances/month
Egg allowance/month
Educational loan/yr
Death relief fund – Till service
Group mediclaim& group personal Accident policy
Protective Equipment
Retirement benefit fund
Diwali cloth purchase coupon
EMBF (Employee Mutual Benefit Fund) for 5 yrs
Sports
Spectacles allowances/2yr
Family planning is encouraged with cash advance
Medical checkup
68
LGR Nagar Residents Association
Employee marriage contribution – Rs.2000/-
Birthday Greeting Issued
Committee & meeting
Worker representative committee –as and when required
Canteen committee – every Monday
EMBF committee – every 5th
Departmental meeting/week
Management review meeting/month
House keeping committee/month
Land committee/month
Ayutha Pooja committee – when required
These meetings and committee helps to build up a good relation between the
employee and the employer and to shut down any grievances between them.
Also there are no very long procedures to meet the HR manager, since he’s
always available and can at any time they can meet him.
4.1.2 Financial Department
Uses customized software for increase the flexibility of accounting.
All necessary decisions relating to finance is taken by top level officials
Payroll is prepared for each workers with ease with the help of the softwares
and it reduces much time.
Net profit in increasing upto march 2008, but maintains with only a slight
growth in this year.
Arrange adequate fund for the business
Helps in financial forecasting
Help in tax administration and tax planning
Preparation of audit report
Storage of raw materials ,finished goods and engineering goods
Handle scrap disposal
Arrangement of funds
o Reserves and surplus
69
o Deferred Tax Liability
o Secured Loan
o Unsecured Loan
Funds management includes payments like salary, wages, repayment etc.
Expenses and revenues
To advice top management on all financial matters and to suggest various
alternative solutions to any financial difficulty
4.1.3 PRODUCTION DEPARTMENT
The ELGI Electric is most concerned with both Textile and Motors
section. They are in the height of extreme importance in both these sectors.
Elgi Electric is a renowned name in the textile Industry. Today, with
over three decades of experience, the company has been providing engineering
solutions for the textile industry. The company has always been in the forefront of
technological advancements and has designed and developed products to suit the
futuristic requirements of the industry.
PRODUCTS - TEXTILE PRODUCTS - MOTORS
YARN CONDITIONING SYSTEM PREMIUM EFFICIENT ELGI TECO AC
MOTOR
SPARK DIVERTER STANDARD AC MOTOR
METAL DIVERTER: TECO AC MOTOR
OVERHEAD DC MOTORS:
CONE PACKING MACHINE: POINT MACHINES
BOBBIN TRANSPORT SYSTEM EG SERIES BRUSHLESS ALTERNATORS
CENVAC:
CLEAR ROLLER CLEANER:
4.1.4 MATERIALS DEPARTMENT
Accountable for procurement at the right time at the right cost to keep the
production line going. Responsible for effective procurement and ensure timely
supply of materials and consumables. Obtain maximum credit limit from vendors.
70
Ensure participation in production review meeting and address items required
urgently on priority. Co-ordinate with reliability and PED team to improve the quality
vendors and increase the self certified vendors.
The various raw materials used in the production are made by the company
itself except some parts.
The electric circuit board used in spark diverter, OHTC etc. are bought from
another company.
Packing material is bought separately.
There is a proper storage facility in the company both for the finished goods or
the parts of the product in various stages of assemblage.
4.1.5 MARKETING & SALES DEPARTMENT:
Develop strategy to achieve sales, receivables and inventory targets as per
budget. Meet monthly top line sales goods across products. Build robust evaluation
system to access the sales performance. Conducting competitor analysis by keeping
abreast of market trends and competitor moves to achieve market sales metrices.
Evaluating marketing budgets periodically including manpower planning initiatives
and ensuring adherence to planned expenses.
International Buyers are due present in
Bangladesh Bahrain Iran
Srilanka Kenya Turkey
Nepal Nigeria Egypt
Pakistan Tanzania Lebanon
Thailand Uganda UAE
Vietnam South Africa Iran
Indonesia Switzerland Mauritius
4.1.6 QUALITY DEPARTMENT
ELGI’s quality is the decisive. The quality realization is the backbone of Sara
Elgi Group. It is an ISO 9001 – 2000 certified company with exports more than 25
countries around the world.
71
Meeting latest requirements of customers by anticipating the needs of the
customer before customer expects it.
Has computerized test set up to analyse product performance.
Having stringent incoming inspection norms, maintains quality as expected
level by the customer. All measuring and monitoring instruments are being calibrated
and are being traced to national / international standards. Calibration system is being
monitored through computerization.
4.1.7 SYSTEMS DEPARTMENT
The system department is responsible for computerized of different
departments of ELGI industries. The main function of this department operates and
co-ordinates all systems in the organization. The simple structure of department
facilities speedy communication flow with in the department.
Sever is connected using LAN and WAN
Power from UPS
The individual database of each worker is maintained properly.
Database related to the finance is really holding the hands.
Internet is provided to the employee and the information like circulars or any
other information is passed through intranet.
The mails are regularly opened up and are properly handled and recognized.
4.1.8 RESEARCH & DEVELOPMENT DEPARTMENT
New product design and development is more often than not a crucial factor in
the survival of a company. This is necessary due to continuous technology change
and development as well as other competitors and the changing preference of
customers.
Guide engineers and motivate team to meet product development objective.
Undertake special projects for design. Ensure complete utilization of design and
development resources. Update and maintain all infrastructure facilities for product
development. Identify training needs for present and future plans. Implement
systematic cost control measures for product resources and day to day operations.
72
4.2 RESTATEMENT OF THE PROBLEM
4.2.1 HUMAN RESOURCE DEPARTMENT:
High labour turn over
Salary hike and bonus payments can be initiated, when attaining the fixed
targets or more than that.
Quality of the food provided in the canteen can be improved with new
contractors.
Participating the employee in decision making can be done to ensure their
participation in the growth of the company.
The company can go for modernization, by creating the awareness of jobs.
Ventilation in the plant can be improved by installing more exhaust fans of
high power.
The production can be increased by the modernization of plant.
Free times can be provided in between for better relaxation.
73
4.2.2 PRODUCTION DEPARTMENT
The production is much affected by the regular power shut down.
Lack of modernization of the plant due to the opposition of the employees due
to job fear also hinders the target achievement.
If any department goes for strike it would affect the whole production unit.
Many process involves manual work which can be done through machine if
installed, where those workers can be employed in some other work.
Competition is higher with its demand is now going at very lower rate than
before.
Not all the spares are produced by this company, the electric circuits are
bought from some other company
74
4.2.3 MATERIALS DEPARTMENT
The materials for production are mostly produced inside but some other raw
material is bought from outside.
Price volatility of the raw materials
Less demand in the product leads to stacking of the finished goods when
forecasting fails.
Higher transaction cost in the host country
Storage of material is affected due to the format of the industry which leads to
minor problems like defective packing material due to improper seasoning
75
4.2.4 MARKETING & SALES DEPARTMENT
Competition is heavier
Demand is drastically reduced due to financial situation like recession
Raw material cost is much higher and due to this it is not able to maintain the
price o the material.
There is no bondage with textile major like LMW which reduces the
compatibility issues between them
Sales has been very much reduced for the same reason as recession and it is
still aching for recovery.
76
4.2.5 QUALITY DEPARTMENT
The quality is affected by the industrial environment of storing the material.
The employees work in an environment that could be much air circulated
but continuous working creates manual errors in the products.
Supervision is also done manually and small errors are void off from
recovery.
The separation lines made between different sections of the industrial unit
is not properly followed.
77
4.2.6 SYSTEMS DEPARTMENT
The softwares used in some system are outdated and makes the user less
technical than their counter parts in other industries.
Some system has older version of the operating system, this prevents them
from using the latest technical softwares.
Only certain people use the system efficiently since others think that either it
is not necessary or hesitate to study them.
This creates some problem in the condition that if the responsible person is
either absent or left the industry, its not easy at a stretch to maintain the work
performed by that person in the system.
78
4.3 RECOMMENDATIONS OF THE STUDY
4.3.1 HUMAN RESOURCE DEPARTMENT
Salary hike and bonus payments can be initiated, when attaining the fixed
targets or more than that.
Quality of the food provided in the canteen can be improved with new
contractors.
Participating the employee in decision making can be done to ensure their
participation in the growth of the company.
The company can go for modernization, by creating the awareness of jobs
made easier and increased production and also with the salary hikes if
needed.
Ventilation in the plant can be improved by installing more exhaust fans of
high power.
The production can be increased by the modernization of plant.
79
4.3.2 PRODUCTION DEPARTMENT
Remodelling the time of work to adjust the production schedule to recover
from power shut downs
Creating awareness among the workers that modernization will not be a
problem in their employment but only increase the standard of the company.
Reasons that cause strikes and lock outs can be identified and prevented.
Where there is a possibility of installing machinery which will have a dramatic
improvement in the production, the company should not hesitate to install that.
Production should be based on the demand and to steps to be taken to
ensure there is a demand always for the product.
In due course of time, all the spare parts of the product can be made to
produce within the same company so that it reduces the cost of the product
and henceforth the price of the product.
80
4.3.3 MATERIALS DEPARTMENT
In the near future, all the spare parts of the product can be made to produce
within the same company so that it reduces the cost of the product and
henceforth the price of the product
Since there is a high price volatility, the company should make sure that the
raw materials are produced within the unit which can improve the production
also.
The production should be based on the demand which will prevent the
unnecessary stacking of the goods or the raw materials
The materials storage should be improved so as to ensure the product is
always in good quality
4.3.4 MARKETING & SALES DEPARTMENT
81
Competition cannot be controlled but can be overcome by altering the
strategy of sales, modification in the production and by attractive
advertisements.
Recession is also not in the hands of the company, but can be prepared to
face the situation
Price is the major deciding factor for sales, so that the factors needed to
reduce the price should be created, like home raw material production
There is a good opportunity if it links with textile major like LMW with which
the products can be sold along with them as a default.
4.3.5 QUALITY DEPARTMENT
82
The storage facility should be improved to ensure the product in the storage
doesn’t lose its quality
The problem related to humane errors should be reduced since it will be
observed only in the industry where its installed
This will create negative impact on the company, which has been scoring
higher grades in all its aspects, during these years.
Supervision should be very strict to ensure there is no leakage in his work.
The rules inside the industry should be properly maintained and the lines in
the industry for separation of the blocks should not be crossed unnecessarily.
4.3.6 SYSTEMS DEPARTMENT
83
The company should use the updated softwares so as to ensure that they are
going in the advanced technical knowledge than its counterparts.
The operating system should also be upgraded at least to windows me so that
it can support the new softwares.
All the employees should study the work in the system so that they get
improved in their knowledge and can replace another worker incharf\ge of the
system in his absence.
4.4 CONCLUSION
84
In-plant training is one of the major components to understand the entire
procedure and process of any function. The in plant training is an essential academic
requirements of management students. The industrial training that have under went
in the ELGI has enriched my knowledge how far the management activities and
protocols has been followed in the organization and also about the
manufacturing process and operations held the company. ELGI currently the Market
Leader in India has unique feature in all its activities and is the only manufacturer in
India offering comprehensive range of Textile and Motor products. Thus the training
in this company throws light on the practical aspects of Company activities and
enables to have first hand information relating to the functioning of a company.
BIBLIOGRAPHY
85
Company manuals
www.elgielectric.com
www.saraelgi.com
www.en.wikipedia.com