organisation study at vj industries pvt ltd

An Organisation Study At VJ INDUSTRIES PVT LTD

INTRODUCTION

Organizational functioning is an important factor for any organization to achieve the desired

goals and objectives. This requires coordination at all levels to smooth functioning. This

report aims to understand the functions of VJ INDUSTRIES PVT LTD relation to different

departments.

Organizational study is “the examination of how individuals construct organizational

structures, processes, and practices and how these, in turn, shape social relations and create

institutions that ultimately influences people”. Organizational studies comprise different areas

that deal with the different aspects of the organizations, many of the approaches are

functionalist but critical research also provide alternative frame for understanding in the field.

An organization is a social arrangement which pursues collective goals, which control its own

performance, and which has a boundary separating it from its environment. Organization is

the association formed by a group of people who see that there are benefits available from

working together towards some common goal.

Organization studies are the study of individual and group dynamics in an organizational

setting, as well as the nature of organization themselves. Whenever people interact in

organizations, many factors come into play. Organizational studies attempt to understand and

model these factors. Organizational study is very essential for MBA graduates as it help us to

connect theory with practice.

Organizational study refers to the study of organization as a whole and getting adequate

knowledge with various departments in the organization. The study was carried out at VJ

INDUSTRIES PVT LTD, Bangalore. This study is based on the different aspects and

dimensions of different departments of the company.

Acharya Bangalore B-School


OBJECTIVES OF THE STUDY:

To familiarize with overall performance of VJ INDUSTRIES PVT LTD

To study different departments in the organization and their functioning

To enable and understand how the key business process are carried out in

organizations.

Understanding the Organizational Work culture.

Understand how information is used in organization for decision making at various

levels.

Finding the problems and limitations of the organization, if any and giving

appropriate suggestions to overcome the difficulties.

To identify opportunities, threats, strengths, and weakness of the departments.

METHODOLOGY OF THE STUDY:

I have conducted a descriptive type study by personally visiting the firm. The main sources of

information were primary data and secondary data.

Primary data: It was collected by personally interviewing and interacting with the managers,

officers, staff and workers of various departments of the company.

Secondary data: It was collected from various records like the annual reports of the

company, company brochure, company documents, company journal and the website of the

company.

SCOPE OF THE STUDY:

Organization study provides an opportunity to the management trainees to have practical

knowledge about the organizational activities in a company by conducting a study there. He

gets wide range of knowledge about the organizational structure, functions of various

department and officials. It enables him to do the SWOT analysis of the company. Finally he

can put forward suggestions for the improvement of the company.



LIMITATIONS OF THE STUDY:

The study has limited scope, as it aims an overall organizational study and not an in-

depth.

Information obtained is incomplete and inaccurate since the financial and some other

confidential information were not provided by the company.

The data collected from different personnel in the company contain biased statements.

It was difficult for me to grasp the technical operations of the company

The study was only for limited days (30 days).



2.1 INDUSTRY PROFILE

INDIAN SCENARIO:

India stands 16th in production and 11th in the consumption of machine tools in the world as

per the 2014 Gardner Business Media survey. The country is set to become a key player in

the global machine tools industry and is likely to see substantial high-end machine tool

manufacturing. Industry experts say that the phenomenon is linked to the spurt in

manufacturing, for which the machine tools sector serves as the mother industry. Since, the

manufacturing capacity is stagnating and the growth rate for the machine tools industry

falling in developed economies, shifting machine tool capacity to low-cost high skill

geographies like India, has become imperative.

The Indian Machine tool Industry has around 1000 units in the production of machine tools,

accessories/attachments, subsystems and parts. Of these, around 25 in the large scale sector

account for 70 percent of the turnover and the rest are in the SME sector of the industry.

Approximately, 75 per cent of the Indian machine tool producers are ISO certified. While the

large organized players cater to India’s heavy and medium industries, the small-scale sector

meets the demand of ancillary and other units. Many machine tool manufacturers have also

obtained CE Marking certification, in keeping with the requirements of the European

markets.

The industry can be segmented in several ways:

CNC Conventional

Forming Rs. 328 Cr RS. 180 Cr

Cutting Rs. 2601 Cr Rs. 372 Cr

Indian Machine Tool Industry 2012-13 & 2013-14 (INR Crores)

2012-13 2013-14 Growth Rate

Production 3885 3481 -10%

Exports 214 246 15%



Imports 7598 4672 -38%

Consumption 11265 7907 -29%

The Indian machine tools sector offers several opportunities for investment. Given the current

gap between demand and supply, there is a clear need for adding capacities in this sector. The

industry is moving towards increasingly sophisticated CNC machines, driven by demand

from key user segments, such as, automobiles and consumer durables. Machine tool

manufacturers need to develop capabilities to cater to this demand and investments in this

area could yield long term benefits.

MACHINE TOOLS PRODUCTION IN INDIA:

Machine tools production in India has decreased to Rs 3481. Cr. during 2013-14 from Rs.

3885 Cr compared to 2012-13 registering the annual decline of 10%. Machine wise

production values are collected from all the members from each quarter and consolidated to

annual production values for further analysis. IMTMA segregates the production of machines

into CNC machines, Non CNC machines, Metal cutting machines and Metal forming

Machines.

Production of Metal Working Machine tools in India (Value Rs. Cr)

Metal Cutting Machines Production



Production of metal cutting machines reached Rs.2973 Cr during 2013-14 compared to

Rs.3320 during 2012-13 registering annual decline of 10%.

Metal Forming Machines Production

Production of metal forming machines has reached Rs. 508 Cr during 2013-14 compared to

Rs. 565 Cr during 2012-13 registering a decline of 10 percent.

MACHINE TOOLS EXPORTS FROM INDIA:



Machine tools exports from India have reached Rs.246 Cr during 2013-14 compared to

Rs.214 Cr during 2012-13 registering an annual growth rate of 14%. Machine wise export

values are collected from all the members from each quarter and consolidated to annual

export values for further analysis. All types of machines CNC, non CNC, metal cutting and

metal forming were exported from India to various countries.

Exports of Metal Cutting Machines

Metal cutting machine exports from India has reached Rs.129 Cr during 2013-14 compared to

Rs.112 Cr during 2012-15 registering a Y-O-Y decline of 5%.

Exports of Metal Forming Machines

Metal forming machine exports from India has increased to Rs.117 Cr during 2013-14

compared to Rs.102 Cr during 2012-13 registering a Y-O-Y growth of 14

MACHINE TOOLS IMPORTS:

Machine tools imports to India has reached Rs.4672Crores during 2013-14 compared to Rs.

7598Crores during 2012-13 registering a decline of 38%. All types of machines CNC, non

CNC, metal cutting, metal forming, used and new machines are imported to India from

various countries



Imports of Metal Cutting Machines

Metal cutting machine imports to India has reached Rs 3589crores during 2013-14 compared

to Rs.5636crores during 2012-13 registering a Y-O-Y decline of 36%

Imports of metal Forming Machines

Metal forming machine imports to India has reached Rs 1083crores during 2013-14

compared to Rs.1962crores during 2012-13 registering a Y-O-Y decline of 45%.

CONSUMPTION OF METAL WORKING TOOLS:

Metal working machine consumption in India has reached Rs.7907 Cr. during 2013-14

compared to Rs.11, 267 Cr. during 2012-13 registering a Y-O-Y decline of 29%.



Consumption of metal cutting machines

Metal cutting machine consumption in India has reached Rs.6433 Cr. during 2013-14

compared to Rs.8844 Cr. during 2012-13 registering a Y-O-Y decline of 27%.

Consumption of metal forming machines

Metal forming machine consumption in India has reached Rs.1473 Cr. during 2013-14

compared to Rs.2425 Cr. during 2012-13 registering a Y-O-Y decline of 42%.

GLOBAL SCENARIO:

Dollar‐volume production of machine tools around the world during 2013 dipped by 9%

Output by the 28 principal producing countries was $68.64‐billion. That represents a decline

from 2012’s $75.4-billion. Most major producers had relatively small percentage changes in

their output. Among the larger gainers were Germany with a 6% increase; the Italy with a 2%

improvement; Spain, 11%; and the Austria with 9% growth. Other countries declined in

production, including Japan, China, US and the United Kingdom.

Germany saw an increase of 6% in output in 2013 remains by far the largest maker of

machine tools. Japan ranks second, with 32% decrease in production from the year before,

and it is followed by China. The output from those top three account for 52% of 2013’s total

world shipments measured in this survey. The United States, still sixth in output.

The largest‐consuming country in the world continues to be China, which installed $11.3-

billion worth of machine tools. On a per-capita basis, consumers Switzerland, South Korea,

Germany and Taiwan top the list.

Based on the Gardner’s machine tool consumption survey report 2014 India’s position in the

world during 2013 is 11th in Consumption, 16th in production.

1. Production of Machine Tools

Global Machine Tool estimated production amounted to USD 68.6 Billion during 2013 a

decline of 9% from revised USD 75.4 Billion during 2012. India Production now occupies



16th position in the world compared to 13th position during 2012. Top five countries are

Germany (21%), Japan (18%), China (13%), Italy (8%), & Korea (7.7%) Top 3 countries

accounts for 52% of the global output.

2. Consumption of Machine Tools

Global consumption of machine tools amounted USD 54.4 Billion during 2013 had decreased

by 9% from revised USD 59.4 Billion during 2012. China which occupies top position

accounts for 21% of the world’s consumption. Top 5 consuming countries are China (21%),

US (15%), Germany (13%), Korea (8.2%) & Japan (7.7%) India with about 2.6% global

share occupies 11th position in the world compared to 6th position during 2012.

GLOBAL MACHINE TOOL PRODUCTION CHART

Value in US $

Sl No Country 2012 2013 % Change

1 Germany 13824.9 14687.7 6%

2 Japan 18231.3 12326.4 -32%

3 China 9236.7 8743 -5%

4 Italy 5606.1 5710.4 2%

5 South Korea 5485 5306 -3%

6 United States 4983.2 4956.1 -1%

7 Taiwan 5414 4537 -16%

8 Switzerland 3282.2 3129.1 -5%

9 Spain 1095.1 1218.6 11%

10 Austria 1000.1 1094.3 9%

11 United Kingdom 911.7 891.7 -2%

12 Canada 752.2 803.4 7%

13 Turkey 644.2 709.2 10%

14 Czech Republic 720 705.6 -2%

15 France 752.2 686.6 -9%



16 India 798 658 -18%

17 Brazil 643.3 420.1 -35%

18 Netherlands 402.5 415.7 3%

19 Mexico 389.4 374.4 -4%

20 Belgium 304.7 324 6%

21 Russia 263 210.9 -20%

22 Sweden 201.9 208.5 3%

23 Finland 187.7 184.6 -2%

24 Australia 148 160 8%

25 Portugal 70.7 74.4 5%

26 Denmark 70.7 73 3%

27 Argentina 39.7 43.1 9%

Total 75,485 68,651 -9%

Source: Gardner Business Media, Inc

GLOBAL MACHINE TOOL CONSUMPTION

Value in US $

Sl No Country 2012 2013 % Change

1 China 12,950.60 11,364.50 -12%

2 United States 8,835.40 8,039.80 -9%

3 Germany 6,515.40 7,065.00 8%

4 South Korea 4,464.00 4,476.00 0%

5 Japan 5,914.80 4,196.50 -29%

6 Mexico 2,070.70 2,245.60 8%

7 Italy 2,072.30 2,078.30 0%

8 Russia 1,934.80 1,711.90 -12%

9 Brazil 1,883.20 1,674.00 -11%

10 Taiwan 1,840.70 1,629.00 -12%



11 India 2,167.50 1,441.00 -34%

12 Turkey 1,343.50 1,399.70 4%

13 Canada 1,052.00 1,099.70 5%

14 Switzerland 1,053.30 1,079.00 2%

15 France 1,044.00 1,000.00 -4%

16United

Kingdom1,069.30 954.2 -11%

17 Austria 624.1 585.6 -6%

18 Spain 392.3 419.8 7%

19 Czech Republic 430.5 419.7 -3%

20 Netherlands 399.4 394.4 -1%

21 Sweden 333.3 268.3 -20%

22 Argentina 274.1 220.2 -20%

23 Australia 187.7 206 10%

24 Portugal 172.5 130.1 -25%

25 Finland 158.2 118.2 -25%

26 Belgium 223.1 116.9 -48%

27 Denmark 84.3 75.7 -10%

Total 59,491 54,409 -9%

Source: Gardner Business Media, Inc

INDIA’S GLOBAL POSITION

India's Position Globally during 2013

Value in US$ Mn Rank

Production 658 16

Consumption 1441 11



INDUSTRY NEWS AS ON MARCH 2014

Machine tools production in India has reached to Rs. 2395 Cr. during Apr- Dec-13 compared

to Rs.2725 Cr during Apr- Dec -12 registering the decline of 12%. Machine wise production

values are collected from all the members from each quarter and consolidated to annual

production values for further analysis. IMTMA segregates the production of machines into

CNC machines, Non CNC machines, Metal cutting machines and Metal forming Machines.

Machine tools imports to India has reached Rs.3327 Cr during Apr- Dec-13 compared to Rs.

5771 Cr during Apr- Dec-12 registering a decline of 42%. All types of machines CNC, non

CNC, metal cutting, metal forming, used and new machines are imported to India from

various countries

Machine tools consumption has reached Rs.5541 Cr during Apr- Dect-13 compared to

Rs.8298 Cr during Apr- Dec-12 registering a decline of 33%. All types of machines CNC,

non CNC, metal cutting, metal forming, are consumed in India.

2.2 COMPANY PROFILE

VJ INDUSTRIES PVT LTD



The company is an ISO 9001-2008 Certified Company operating on a 22,000 sq. ft.

manufacturing facility in Peenya Industrial Area, Bangalore. Each part is sent through

various stages of documented in-process and final inspection quality control to

guarantee that every detail of your part has been checked and approved.

Their components are exported to the United States of America. They meet the

stringent quality requirements of the Automotive and Material Handling Industry

The company maintain a comprehensive, versatile, state-of-the-art production facility

capable of manufacturing the most critical and sophisticated sheet metal components

and assemblies. Their capabilities will meet the range of your production needs, from

prototype modelling through low and mid volume production, to high volume runs

requiring manufacturing ceIls and continuous flow production.

Product configurations from small mounting brackets to large frames, panels and

complete cabinet assemblies are readily produced. As a vendor in your supply chain

the company can produce, procure components, assemble and deliver partial or full

product builds that can be a strong competitive advantage.

Their precision sheet metal fabrication services include CNC Laser Cutting, CNC

Punching, CNC Turning, Shearing, Bending, Rolling, Welding, Surface finishing,



Painting, Powder Coating, Anodizing, Chromating etc., for all types of Metal

Fabrication.

The company employ their own engineers. They know fabrication and can help your

designers reduce cost through improved manufacturability.

The company design and build our own fixtures, which reduces your development

time and cost.

Techniques used in fabrication:

When fabricating or shaping parts, several techniques are used to remove unwanted metal,

among these are:

Electrical discharge machining

Grinding (abrasive cutting)

Multiple edge cutting tools

Single edge cutting tools

Other techniques are used to add desired material. Devices that fabricate components by

selective addition of material are called rapid prototyping machines.

VISION:

The VJ industries pvt ltd vision is:

To maintain zero ppm

To maintain zero customer complaint and produce good products

MISSION STATEMENT:

The VJ industries pvt ltd missions are:

Company recognizes the responsibilities as corporate citizens to foster progress and to

promote the general welfare of the society.



Company will exceed customer expectations through reliable products, on time

delivery, cost-effective solutions with the added assurance of prompt service.

VALUE STATEMENT:

Customer Delight

Cost –effective working

Passionately ensuring Quality

Empowering people

Business ethics and transparency.

CORPORATE STRATEGIES:

Effective utilization of Man power

Technology up gradation

Capacity building

Effective utilization of resources

Increased employee morale

Method study for reducing Lead time

Aggressive Marketing

PLANT AND FACILITY:

The success of VJ industries pvt limited is in the manufacture of most critical and

most sophisticated sheet metal components, assemblies and machined components has led to

a sustained effort to enhance production capacity over the years. The manufacturing facilities

are located on campus at Peenya; an industrial suburb of Bangalore.

With a built-up area of over 22,000 square meters, the plant is equipped with state-of-the-art

production, assembly, painting, metrology and testing facilities. Advanced machines of

exceptional precision standards, made by some of the most renowned manufacturers in the

world, have been installed for the production of critical components. These include high-tech

CNC machines for various operations calling for close tolerances, and welding robots.

Thereby VJ industries pvt ltd has the infrastructure to ensure the high quality of machines

bearing its name



TECHNOLOGY:

VJ Industries PVT LTD has recently acquired equipment that’s considered to be some

of the latest manufacturing technology available on the plant floor today. Innovative flexible

machining cells has increased quality and productivity without adding cost. Utilizing this

strategy will result in increased value to our customers while allowing us to respond to

engineering changes faster than before. Improving the way we do business in a changing

environment is the key to our success. The latest product development tools are being used to

insure that the parts are designed for manufacturability and durability. The results of this

approach are shorter time to market, optimized design and improved quality.

CUSTOMERS:

VJ industries value added customers are:

NAME COUNTRY

Artek group LLC USA

RAV international inc USA

Emerson industrial automation ITALY

Electric power generation pvt ltd INDIA

SRV Telecom INDIA

BEML INDIA

KPTCL INDIA

Olaer Fawcett Christie hydraulics SWEDEN

Jacob Mueller FRANCE

TATA marcopolo motors ltd INDIA

TD power system ltd INDIA

COMPETITORS:

• LMW – LAKSHMI MAIL LINE WORKERS

• PMT

• LOKESH



• HASS

• DGM

• JYOTHI

EXPORTS:

Sweden

France

Italy

U S A

2.3 PRODUCTS PROFILE



VJ Industries has maintained comprehensive versatile state of the art production facility

capable of manufacturing the most critical and most sophisticated sheet metal components,

assemblies and machined components.

VJ Industries has offered custom prototyping services to customers in various industries

including automotive and agriculture. We offer on-site precision prototyping and product

development, for your iron and aluminium products, from idea to functioning machined part.

Prototypes are created using temporary patterns, temporary fixtures, and other low cost

prototyping tools. We specialize in production volume ranging from a single model up to

short runs. Ductile iron, aluminium, and steel are machined using our state of the art, custom

CNC machines. They are machined in sizes up to 7.87" in diameter and 6.30" long for

turning, and 39.4" long, 31.5" wide, and 31.5" high for milled pieces.

Our engineers work across disciplines, testing design approaches using sophisticated software

and methods. We meet the highest industry standards and approved quality control

procedures with our products and processes

Variety of products supplied by V J Industries

AUTOMOTIVE

ENCLOSURES & PANELS

RACKINGS

PRESSED COMPONENTS

MATERIAL HANDLING ASSEMBLIES

IRON BRAKE ADAPTER

DRIVE SHAFT FLANGE

AUTOMOTIVE ENGINE MOUNT

STEERING KNUCKLE

FRONT ENGINE ACCESSORY DRIVE

AUTOMOTIVE:



Production of auto components demands a high degree of accuracy to achieve class-A

standard finish. The company offer a wide range of products and services specifically

designed to meet the requirements of the automotive industry. Our components are exported

to the United States of America and used by GM (General Motors) and Freightliner.

Some of the automotive products produced by them are:

Chassis components

Chassis brackets

Rain tray

ENCLOSURES AND PANELS:



The company fabricate custom sheet metal panels for Factory Automation, Electrical

Distribution and for the Telecommunication Industry as per I P Standards. They also design

and produce intricate electrical enclosures for the electrical drives manufacturers and power

and hydraulic systems producers.

The company have the space and capacity to do large assemblies.

The company is one of the reputed organizations engaged in providing superior quality

control panel for rolling mills and steel mills. These control panels are made from high

quality of raw material which ensures durability at its user end. These products are available

in market at competitive rates

RACKINGS:



Not only can VJ industries supply competitively priced storage equipment, they can assist

you by laying it out accurately on paper first. Racking Systems can be custom engineered to

meet out specific application requirements. The company has ideas and solutions to help your

storage system to continue to contribute to the efficiency of your company as it grows and

changes.

PRESSED COMPONENTS:



The company understand the art of pressed metal. Whether its tooling or volume production,

it have all that you will need to take great products to market. VJ industries can provide high

volume production as well as low volume pre-production and prototype samples.

BRAKE ADAPTER ASSEMBLY:



The brake adapter highlighted here exemplifies our ability to manufacture precision CNC

machined products and provide value added services. Composed of D65-45-12 ductile iron,

this product utilized our precision CNC milling capabilities and included operations such as

drilling, tapping, boring, and straddle milling.

The customer supplied drawings called out dimensions of 8.5" in length and width, 1.25" in

height, with tolerances of ±0.002". This high volume production run required the use of a

comprehensive quality control system including inspection gauges, inspection of threads and

bolt presence, and function gauge checks.

DRIVESHAFT FLANGE:

At VJ Industries, we specialize in precision CNC machining for almost any volume run. This

low volume project was manufactured for a customer in USA (GM), and designed for use in

an automotive application as a drive shaft flange. The part required dimensions of 3" in

height, an outside diameter of 5.75", with tolerances of ±0.0004".

Composed of 7003 ductile iron, it utilized various precision machining processes. Machining

of this product was conducted on our CNC lathe and included drilling, tapping, and boring.

The inside diameter of the flange received spline broaching. Dimensional quality was

monitored throughout with functional gage checks.

AUTOMOTIVE ENGINE MOUNT:



The product highlighted here is manufactured for use as an engine mount. The project

specifications called for a high volume product with strength precision machining.

Composed of D 5506 ductile iron, it measured 4.75" in length, 5" in width, and 6.5" in height.

It also had to be manufactured to tolerances of ±0.0004".

We chose to machine this part on our state of the art horizontal CNC machining centres.

Multiple machining processes were applied including drilling, grooving, and tapping. Before

the machining, each part had an e-coat applied, and after the machining, each part was

deburred.

In order to accommodate the customers production needs, we have developed a just in time

(JIT) delivery schedule. This will provide the customer with deliveries when they are needed

for production, decreasing their inventory and saving them precious floor space.

IRON STEERING KNUCKLE:



We manufacture a variety of automotive suspension and power train components, which

requires capabilities that go far beyond most machine shops. We manufactured this critical

automotive component for an auto manufacturer in Michigan.

This part was designed to be used as a steering knuckle. This component is not only

responsible for a cars steering but it must also support the entire front end.

Manufactured from high strength D65-45-12 ductile iron, it featured dimensions of 10.5" in

length, 9.5" in width, 4" in height, and meet tolerances of ±0.0006".

The milling processes required to manufacture this component include drilling, boring,

reaming of tapered holes, as well as straddle and slot milling. After milling, the parts had a

groove machined, followed by tapping, and tapered hole reaming. The finished parts were

deburred and featured an e-coat and machined finish. We currently manufacture 3,200 of

these components to this customer per year.

FRONT ENGINE ACCESSORY DRIVE (FEAD):

The product highlighted here is manufactured for use as a Front Engine Accessory Drive

(FEAD) Mounting Bracket. The project specifications called for a high volume product with

strength and precision machining.

Producing manufactured assemblies requires the versatility to allow for varied processes to be

performed in-house, saving the customer time and production costs. The assembly shown

here is a perfect example of precision machining and quality assembly of components.

The customer supplied engineering drawings called for dimensions of 21.5" in length, 7" in

width, and 2.25" in height, with tolerances of ±0.005". Composed of A356 T6 aluminium,

machining was performed on our precision CNC horizontal machining centres. Processes

used include milling, drilling, and hollow milling, as well as tapping.



Functional gauge checks were used to verify dimensional integrity, before the parts were

fully assembled. We manufactured 7,000 of these components for this customer, delivered in

JIT shipments.

DUCTILE IRON COVER:

This power steering side cover is used to enclose a power steering assembly in an automotive

application. The part was formed from a D65-45-12 ductile iron, and required to be machined

to tolerances of ±0.00035".

The machining process required CNC milling and turning, which included drilling, boring,

grooving, and threading. Our facility is equipped with advanced CNC machining centers with

capabilities such as robotic loading and unloading, inverted vertical lathes with live tooling

and much more. After machining, the covers are assembled with the installation of bearings,

then roll formed to secure the bearings, and o-rings are installed and then on to final

inspection.

FLEXIBLE MACHINING CELLS:



VJ Industries extensive new line of 'Double column, turret type, CNC Flex machines' are

changing the way that medium and high volume parts are produced. The unique bank of flex

machines each have up to eleven axis allowing many parts that would normally require multi

loads to be completed in a single fixturing. VJ Industries has brought innovation and

advanced productivity to the manufacturing plant floor like never before.

These one of a kind advanced machining centres were designed to manufacture and

incorporate the latest machining technology. The result is high-speed cells that offer

flexibility and capabilities not possible with traditional dedicated machining centres.

In this rapid changing world the double column, turret type, CNC flex machine gives VJ

Industries the advantages of reduced changeover time, lower retooling costs and the ability to

respond quicker to production capacity requirements.



IRON STEERING STABILIZER:

This large ductile iron bracket was designed for use as a steering stabilizer in an automotive

application. Known as a track rod bracket, it's composed of D65-45-12 Ductile Iron, and we

manufacture 50,000 of these components per year for our customer in USA. Manufacturing

requires the use of our state of the art precision CNC 7 axis flex machine cells features. This

allows for the high volume and precision for the straddle milling, drilling, and slotting

processes required for the fabricating these parts. The customer supplied drawings called out

dimensions of 14.5" in length, 8.5" in width, 6" in height, and tolerances of ±0.005", with

machined and E-coat finish. Quality throughout the production run is maintained through

functional gauge checks.

ORGANISATION STRUCTURE


MANAGING DIRECTOR

GENERAL MANAGER


An organization chart is a diagrammatical form which shows important aspects of an

organization including the major functions and their respective relationships.

In other words, it is a graphical portrayal of positions in the enterprise and of the formal

lines of communication among them. It provides eye-view of the relationships between

different departments or divisions of an enterprise as well as the relations between the

executives and subordinates at various levels. It enables each executives employs to


FINANCE

MANAGER

PRODUCTION

MANAGER

PURCHASE

MANAGER

MARKETING& SALES

MANAGER

HR

MANAGER

SAFETY

MANAGER

1. ASSISTANT ACCOUNTS OFFICER

2. ACCOUNTS STAFF

1. ASSISTANT MANAGER

2. STORE KEEPERS

1. MILLER

2. SHIFT ENGINEER

3. QUALITY DEPARTMENT

4. PACKING DEPARTMENT

1. MARKETING EXECUTIVES

2. SALES EXECUTIVES

ASSISTANT OFFICER

1. ASSISTANT HR

2. SUPERVISORES

3. TIME KEEPERS


understand his position in the organization and to know, to whom he reporting. Thus, it is

obvious that an organization chart has the following characteristics;

It is a diagrammatical presentation.

It shows principal lines of authority in an organization.

It shows the interplay of various functions and relationships.

It indicates the channels of communication.

An organization chart is merely a type of record showing the formal organizational

relationship which management intends should prevail. It is therefore, primarily a technique

of presentation. It presents diagrammatically the lines of authority and responsibility among

different individuals and positions. It may be either personal or functional.

Personal organization chart depicts the relationship between positions held by different

persons. Functional organizational chart depicts the functions or activities of each units and

sub-unit in the organization.

Organization chart helps in the following ways;

It shows the employees how their positions fit into the total organization and how

they relate to others. It shows the lines of authority and responsibility among

employees.

It serves as a valuable guide to the new personal in understanding the organization

and their training.

Managing director heads the company and manages the day to day affairs. They take all the

decisions in consultation with the general managers and other managerial staffs lead the

entire company towards attaining the goal and objective of the company.

PRODUCTION AND PLANNING DEPARTMENT

In any Business Organization, Production activities must be related to market demands as

indicated by the continuous stream of customer’s orders. For maximum effectiveness this

must be done in such a way that customer’s demand is satisfied .But at the same time,

production should be carried out in an economic manner. The process of developing this kind



of relationship between market demand and production capability is the function of

production planning and control

The production Planning Department is the most vital link between production design and

production department. This department provide necessary facilities and technical know –

how for the manufacture of the product. Production requires optimum utilization of natural

resources, men, money, material and machines. But before starting the work of actual

production, Production planning have to be done in order to anticipate possible difficulties

and decide in advance has how the production should be carried out in the best and economic

way.

PRODUCTION DEPARTMENT STRUCTURE

The production department structure of VJ INDUSTRIES PVT. LTD. is as follows:

PRODUCTION IN CHARGE

QUALITY CONTROL WORKSHOP INCHARGE

INSPECTOR TECHNICAL STAFF

PACKAGING & WAREHOUSING WORKERS

VARIOUS SECTIONS:

In VJ INDUSTRIES PVT LTD one can identify various sections in the production and

planning department. Some of the sections and their functions are listed below:



DESIGN AND DEVELOPMNET:

Prepares:

specifications

Drawings

Product List

Inspection Standards

Release papers for manufacture.

Test Charts

PRODUCTION PLANNING:

Prepares:

Operation Layouts

Estimate Standard Time assemble Flow Charts.

Production scheduling

Control Production Activities

Functions and Responsibilities:

1. Identify in- house manufacturing, outside manufacturing and brought out components

2. Prepare Operation Layouts for all in-house manufacturing Components.

3. Identify and initiate action for all special tooling

4. Maintain special tool data

5. Co ordinate and implement design alterations

6. Prepare list of assembly operation, assembly flowchart etc.

7. Intimate for part programming of CNC operations

8. Computerize the data related to part list data

9. Attend shop problems related to production

10. Coordinating all activities related to computerization of PPP function.

11. Arranging and ensuring the availability of all quality formats related to PPP function.



PRODUCTION PLANNING ORDERING (PPO):

1. Issue Series wise manufacturing papers to production shops

2. Co ordinate activities with various department for effective control of production

Central Production Planning and Control (CPPC):

Handed over the manufacturing papers along with raw material to shop PPC

Finished Parts Stores(FPS):

Receipt, storage, control and issue of manufactured component-small parts and sheet metal

items.

Functions and Responsibilities of PPE Personnel:

Estimation of standard time for all manufacturing /assembly operations identified in

operation layouts and assembly list of operations.

Attending shop complaints regarding standard time

Authorization for special time in job cards

Arranging for time study/Activity sampling.

LOAD CAPACITY ANALYSIS:

LOAD CAPACITY ANALYSIS is a vital step in production planning because from such an

analysis the following vital information are gathered.

The total of each machine should work in order to achieve the production target of

the year. This is the “LOAD” on the machine group. (eg: turning, milling, grinding

etc.).

The total time that will be available in each machine group found by considering the

total number of working days, the number of working hours per day, the total number

of workers and such other factors. This is the “CAPACITY” of each machine group

By comparing the LOAD-CAPACITY of each machine group (hence this name

LOAD-CAPACITY ANALYSIS) we can identify the shortage or surplus hours on

each machine group and production programme can be planned accordingly

LOAD CAPACITY ANALYSIS is thus first and the foremost step in planning the

production programme in an year.



The annual operating plan for the year is collected and detailed description of each

product is furnished.

The steps involved are calculating the standard hour load in each machine group is

followed by steps by arriving eventually at the actual hour load.

After comparing the load and capacity in each machine group, areas of shortage or

surplus are identified.

FOUNDRY SECTION:

Foundry industry is the mother industry for all types of industrial, agricultural and consumer

products. The developments in this industry therefore are bound to have a far reaching affect

on the production in all other sectors. Though the casting processes are based on techniques

that are age old and amazingly simple in principle considering the effectiveness of the results

achieved the metal casting industries have become the key industries in the world today.

Foundry industries based on casting principles. Casting is a process & producing metal parts

of desired shape by pouring molten metal in to a prepared mould and then allowing the metal

to cool and solidify. This solidified metal is known as casting.

VJ INDUSTRIES FOUNDRY:

The foundry attached to the machine tools division to manufacture all cast iron and spheroid

graphite iron required for machine tools and printing machinery division and can also

undertake job orders. Established with POLISH design, it is semi mechanised foundry

producing heavy duty grey and SG iron , castings for machine tools and printing machines

using means frequency induction furnace for melting and resine bonded sand for moulding

and core making.

OBJECTIVES OF FOUNDRY DIVISION:



In any business organization, production activities must be related to market demands as

indicated by the continuous stream of customer orders. Aggregate planning is carried out in

an economic manner for maximisation of production. From the annual operating plan, rolling

production plan for three months is made. Objective of the foundry division is to achieve the

annual production target in an economic manner by the timely supply of castings to the

production shop and the outside customers.

This can be achieved by

1) Reducing percentage rejection of casting in foundry.

2) Reducing percentage rejection of castings at customer’s end.

3) Reducing energy consumption.

4) Increasing yield percentage.

5) Reducing production loss by TPM.

Different activities of Foundry

Pattern making

Sand preparation

Moulding

Metal preparation

Pouring

Knock out

Finishing

Inspection

STEPS INVOLVED IN MAKING A CASTING:

Make the pattern out of wood, metal or thermo coal

In case of sand casting select, test and prepare the necessary sand mixtures for mould

and for making.

With the help of patterns prepare the mould and necessary cores.



A mould is a container having a cavity of the shape to be cast and core body which is

employed to produce a cavity in the casting.

Melt the metal to be cast.

Pour the molten metal in the mould.

Remove the casting from the mould after the metal solidifies.

Clean and finish the casting for priming.

Test and inspect the casting.

Remove the defectors if any salvage.

Pasting is ready for shipping.

SPINDLE PROCESS:

Turning before forging

Forging

Annealing

Rough turning & Boring

Toughening

Finish turning

Pre-grinding

Drilling, Tapping, Debarring & Threading

Gas nitrating

Centre grinding

Centre correction

Finish grinding

PATTERN SHOP:

A pattern may be defined as a model of anything, so constructed that it may be used for

forming an impression called mould in sand or other suitable material. This mould, when

filled with molten metal that solidify, forms a reproduction of the pattern and is known as

casting. The process of making a pattern is known as pattern making and the person who

makes the pattern is known as pattern maker.



The skilled pattern maker must combine an ability to reach a blue prints, visualize the

finished products understand each step in the moulding and casting process. He must bridge

the gap between designer and founder and must also have the skill to transmit what he

envisions into the wood or metal replica of the final part.

Functions of Pattern:

A pattern prepares a mould cavity for the purpose of making a casting core prints, runner,

gates, rises are the parts of the pattern. It helps position of cores. A good pattern, prevent all

defects in the castings, properly constructed pattern minimize overall cost of the casting.

SELECTION OF PATTERN MATERIAL:

The following factors assist in selecting proper pattern material

The number of casting to be produced.

The desired dimensional accuracy and surface finish required for the casting.

Nature of moulding process.

Method of moulding.

Shape, complexity and size of the casting.

Casting design parameters and the complexity of the casting part.

Type of moulding materials.

The high probability of changing the casting and hence the pattern is near future,

The chance of repeat orders.

MATERIALS FOR MAKING PATTERNS IN VJ Industries:

Wood

Thermo coal

Metal

Plaster

Plastic



Wax

Araldite resin

ASSEMBLY SECTION:

The main function of the department is to assemble the machines based on rolling plan

applied by sales department to confirm with the performance & quality specified in the

design document. Assembly department will offer the assembled machines for in house

inspection. It will also monitor at different stages of assembly to ensure that a quality product

is delivered to the customer

Purpose:

To assemble the machines as per the rolling plan supplied by sales department.

To assemble the machines to meet design specification.

To complete the assembly of machines as per the dispatch plan.

To evolve systems to make the system flexible to adapt to the changes in the sales

plan.

To improve methods & systems to changing needs for market.

To assemble the pre-assemblies, group assemblies & final assemblies to match with

assembly drawings & specifications of the machines.

To record the non conformities & take corrective actions to prevent recurrence of the

problem.

To interact with departments like production, design, tool design, purchase,

subcontract & sales for continual improvements of the machine.

To complete assembly of machines without any shortcoming & problems for the final

assembly.

Responsibilities of officers in assembling section:

Co-ordinate the activities in the respective assembly areas effectively and efficiently

in line with the units dispatch and production programme.



Maintain discipline and good industrial relations in respective assembly groups.

Co-ordinate the activities in assembly with other section like design, planning etc.

To ensure proper upkeep of assemblies facilities.

Effective leadership in implementation of productivity improvement program.

Implement and sustain procedure relating to ISO 9001.

QUALITY DEPARTMENT

Our culture of quality is a key factor in our success and longevity. We meet the stringent

standards set by industry policy makers, and pride ourselves on delivering outstanding

customer service alongside our high quality services.

Quality is a continuous process that integrates people and technology. It begins with the raw

materials, which we purchase only from vendors who carefully test for structural integrity

and chemical compositions and continues through the contribution that each member of our

operation makes, from Directors to machine operator.

SPC (Statistical Process Control) is performed right at the machining site, insuring in-process

quality control. Our quality laboratory is equipped with two Coordinate Measuring Machines,

and on parts with special accuracy requirements, we use electronic air gaging.

The ultimate test of the quality of our parts is the performance of our products in our

customers applications. As are the high quality ratings we have received from each of our

customers.

QUALITY OBJECTIVES:

Customer satisfaction: By identifying customer requirements and taking appropriate

actions to fulfil the customer satisfaction

Delivery adherence: By identifying the failures in fulfilling the delivery requirements

and taking appropriate actions to fulfil the delivery adherence

Increase in sales: By identification of new customers, increase in existing product

sales, introduction of new products, new territories.



Reduction in purchase: By bulk purchases and alternate sourcing.

ISO awareness: By identifying training needs and providing necessary training and

assessment of training effectiveness.

Rejection: By identification of repeated problems, analysing the same and taking

corrective and preventive actions.

Rework: By identification of repeated problems, analysing the same and taking

corrective and preventive actions.

Customer complaint: By identification of repeated problems, analysing the same and

taking corrective and preventive actions.

LEAN STRATEGY:

VJ Industries corporate commitment and shift to lean manufacturing strategy and program

implementation continues to improve their organization in the areas of cost reduction, quality,

delivery and overall customer's satisfaction.

Lean Benefits and how they affect customers:

Utilizing the Pull System VJ Industries is successful in reducing inventory, lower

scrap and rework while increasing product quality on every project completed.

Better utilization of floor space that allows for more productivity per square foot and

reduces overhead and end product costs.

The Lean process promotes teamwork and generates quality improvement and cost

saving ideas that result in a better and more efficient workplace.

QUALITY CHECK:



At VJ Industries, they consistently upgrade equipment and skills from a quality perspective.

From planning to part packaging, the company always looks for new and better opportunities

to enhance the quality of our product. Each job is well researched and appropriate measuring

systems are put in place with consideration to form, fit and function of the part. Verification

is carried out using CMM (Co ordinate Measuring Machine) or vision systems, surface finish

instruments and other metrology equipment. VJ industry employ traditional quality tools with

every order from contract review, process FMEA, control plans to in-process inspections.

Additionally, they regularly monitor our instrument and operator effectiveness through MSA

(Measurement Systems Analysis).

QUALITY POLICY:

To manufacture and supply of engineering components, meeting customer’s quality

and delivery requirements by continuously improving our quality management system

with employee involvement.

To provide value added products and services, to customers by continually upgrading

technology, quality and reliability

To identify and utilise all opportunities to inculcate quality consciousness by

providing continuous learning facilities to their employee’s towards achievement of

total customer satisfaction

QUALITY CONTROL:



There is a separate department of the quality control in VJ Industries. In this department

when the product is completed then it is sent to quality control department and there they do

raw material inspection, process inspection, finished inspection, assembly.

The instruments, which are used, for these inspections are:

(1) Vernier

(2) Micrometer

(3) Broad-gauge

(4) Pocket Dial

(5) Dial Test Indicator

(6) CMM (Coordinate Measuring Machine)

(7) Roundness Tester

(8) Electro Level

(9) Laser Calibration

(10) Ball Bar Test

MATERIAL HANDLING:

The raw material obtained from suppliers is stored in storeroom. Raw materials are issued to

production department and moved inside the plant area from one process to another for

processing until they are converted into finished product. Material handling is confined to

movements of raw material from store room to shipping section.

There are various departments in “VJ INDUSTRIESPVT. LTD.” for material handling Lift

truck is used for handling the material within the department. It also has got mobile crane

manipulator. An auto maintenance department is set for proper running for this vehicle.

In machine shop a rail is mounted on which trolled is run manually for handling of material.

Overhead crane is put to use to handle hot forgings in the forge shop.

WAREHOUSING/LOGISTIC SERVICES:



At VJ Industries we offer custom warehousing, logistical, and fulfillment services, from our

warehouse. We help customers streamline their operations with our professional inventory

and product management solutions, including real time tracking, receiving, packaging,

sorting, quality checking and testing. We take care of distribution and fulfillment, offering

shipping and special boxing as well as barcode labeling and expedited freight services. We

also offer JIT (Just In Time) deliveries which provide improved efficiency.

OBJECTIVES:

Inventory Management

Distribution

Fulfilment Of Orders

Special Boxing

J.I.T. Deliveries

SERVICES OFFERED:



Quality Check

Sorting

Inventory Management

Shipping

Receiving

Packaging

Testing

Material Handling

Barcode Labelling

PACKAGING:

We pay attention to every detail when delivery goods to you, we ensure you could receive

our affordable machine tools safely.

PROCESS:

Smearing engine oil on linear guide, round orbit, rack etc

Using bubble wrap to wrap the spare parts ordered.



Using stretch film to cover machine body and spare parts etc.

Seat to the wooden case plate covered with felts and supported with steel tubes.

Fixed with wooden block beside of machine body and spare parts feet.

Covering PE (Polyethylene) bag to machine body for double protection from

humidity, tighten this PE bag with stretch film again.

Packing wooden case.

Fixed wooden case with packing strap tightly.

Mark on wooden case and lifting wooden case to container or truck with shipping

note.

HUMAN RESOURCE MANAGEMENT DEPARTMENT



Human resource management (HRM) is the strategic and coherent approach to the

management of an organization's most valued assets - the people working there who

individually and collectively contribute to the achievement of the objectives of the business.

The terms "human resource management" and "human resources" (HR) have largely replaced

the term "personnel management" as a description of the processes involved in managing

people in organizations.

In simple words, HRM means employing people, developing their capacities, utilizing,

maintaining and compensating their services in tune with the job and organizational

requirement.

HR DEPARTMENT STRUCTURE:

The department chart of VJ INDUSTRIES PVT LTD is as under:

GENERAL MANAGER

PERSONNEL MANAGER

ASSISTANTS

CLERKS

TIME KEEPERS

FUNCTIONS:



Human resources management is done by the P & A department, some of the functions which

are done by the P&A are

Recruitment

Selection

Training

Working hours- Eight hours a day

Leaves - (Casual leave, Earned leave, Medical leave, Sick leave, maternity leave,

special leaves - education leave, examination leave)

Wages

Allowances- (shift allowance, house rent allowance, daily allowance, traveling

allowance, child education allowance )

Basic benefits

VARIOUS SECTIONS:

In VJ Industries activities in the HR department can be classified as

Industrial Relations

Personnel

Welfare activities

INDUSTRIAL RELATIONS:

This department can be regarded as the system of rules regulating employment and ways in

which people behave in the organization. Whenever a conflict takes place, it is the duty of

this department to look into the matters and take correct action. The industrial relation officer

acts as a liaison with legal advisors. The company has been enjoying peaceful industrial

atmosphere for as long time. The company has the co-operation of employees in almost all

the activities.

TRADE UNIONS:



Trade unions functions on the basis of two important principles, which are:

1. Unity is strength

2. Equal pay for equal work

The GM of the unit meets the trade union leaders once in every month, to hear them and

appraise the overall situations of the company. It is natural that interest of the management

and trade unions differ on certain issues. In any industry the mass production can be achieved

only by taking into the confidence of the trade union leaders and utilise them in a positive

way and to achieve the target through good industrial relation. The relation between the

management and workers is sound.

VJ INDUSTRIES GREVIENCE REDRESSAL:

The objective is to provide on easily assessable machinery for settlement of grievances of

officers and to adopt measures so as to ensure expeditions. Settlement of grievances of

officers leads to increased satisfaction on the job and resulting improved productivity and

efficiency in the organization.

PROCEDURE:

1. Each unit has a grievance committee consisting of production chief, account chief and

Personal Chief of the unit. The personal chief being the convener of the committee.

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

committee.

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

4. Grievance committee then should call the assigned officer within 15 days of receipt of the

grievance and discuss said grievance with him. Within a week there after the grievance

committee should record its findings.

5. The findings of grievance committee should be communicated to the assigned officer by

the convener with a copy to the Department Head for taking necessary action arise out of the

findings of the grievance committee.



6. If the aggrieved officer is not satisfied with the findings of the grievance committee he

may prefer an appeal to the unit chief. The unit chief should convey his decision within 15

days of the receipt of the appeal. The decision of the unit chief is final.

FUNCTIONS OF HR DEPARTMENT

RECRUITMENT:

Recruitment has been regarded as the most important function of personnel department

because unless the right types of people are hire, the best plans, organizational charts, capital

and control system would not be effective.

Job recruitment is on basis of qualification, experience, age, job responsibility, authority and

salary

The recruitment of management trainees in engineering and other area like finance,

marketing, personnel etc. will be made under the manager of particular department.

Recruitment function includes two methods;

1. Recruitment through advertisement in news papers and magazines.

2. Internal and external sources

SELECTION:

Selection is the process in which candidates for employment are divided into two classes.

Those are to be offered employment and those who are not.

Selection is also said to be a process by which choice of a person or new persons are to be

made out of available all candidates.

In VJ INDUSTRIES PVT. LTD. All the workers are selected under the manager of

particular department. They get selected on the basis of experience and expertise.



TRAINING AND DEVELOPMENT:

In VJ INDUSTRIES PVT LTD. workers are given the training under the supervision of

company’s trained and qualified officer. Here in VJ Industries they have separate training

room. Here the training officer is Mr. Vincent Dabhi.

If the candidate is fresh or not experienced then he has to be put down under the supervision

of other person who has experience of mechanism and matters of machines also taught to the

employee.

PROMOTION:

Promotion is a very important aspect in every organization because almost all the employees

are promoted at one time or the other. Employee’s of early promotion and they work

effectively so that their dream comes true. Personnel management of any organization should

have a clear cut promotional policy to motivate their workers for higher performance and

contribute to the profits.

An integration of the company needs of multi-skills of the present and future with the

aspirations of the workman for an assured career path consistent with their skills had become

imperative in view of the changing technology, product mix, diversification etc in the

company

In VJ INDUSTRIES PVT LTD. promotion is given on the basis of best performance and

experience of employees.

TRANSFER:

Every organization should have just and impartial transfer policy. Which each employee for

successful transfer policies, should know, it is necessary to have a proper job description and

job analysis. Every organization must frame a systematic policy.



The VJ INDUSTRIES PVT LTD. has interdepartmental transfer that is the employees are

transferred from one department to another. It is declared by mutual consultation among

departmental heads. This way the company promotes and transfers the employees.

LEAVE PROCEDURE:

Employees are eligible for earned leave, sick or commuted leave, maternity leave and special

leave. For the leave and its administration the employees are classified under category-

A. Employees covered under ESI

B. Employees not covered under ESI (up to deputy manager)

C. Level of managers and above.

COMMUTTED LEAVE - 10 days for ‘A’ and ‘B’ categories and 7 days for ‘C’ categories is

allowed in each calendar. Year unutilized leave lapses at the end of the calendar year.

Sick leave

‘A’ - 8 days

‘B’ - 10 days

‘C’- 10 days

PERSONAL RECORD:

Personal record means the preservation of information regarding personnel in the

organization. These records are useful for future records.

VJ INDUSTRIES PVT LTD. also keeps the personal records of the employees. These

records contain all the information about employees name, address, age, education,

qualification, and date of appointment, monthly contribution etc. they also maintain

attendance register, salary and bonus register.

TIME KEEPING SYSTEM:

Time seeping system is the main trend in any efficient working organization to increases

punctuality of employees in the unit. Time keeping system means keeping the record of the



time of entry and exit. Generally in many company various kinds of coloured cards are kept

for different group of workers.

Generally following are the purpose of time keeping system.

1. To maintain the personal records of all the employees

2. To keep the records of employee’s presence, absence, overtime and order matter.

3. It makes the operations of the organization smooth and efficient by indication to each

employee their time.

Here in VJ INDUSTRIES PVT. LTD. card punching system for employees time keeping in

which first of all permanent employees has given a card when employees enter, there is time

keeping office. In that they give there give there enter time and exit time.

PERFORMANCE APPRAISAL:

Performance appraisal is the step where the management finds out how effective it has been

hiring and placing employee performance appraisal is the tool to know the organizations

efficiency.

In VJ INDUSTRIES PVT LTD. performance appraisal system is maintained by having

periodical evaluation. If the employee has performed extra ordinary then he is appraised

through an evaluation system. Thus, this system helps the management to make important

decision like determination of qualification and training of workers etc. Hence it brings our

overall efficiency of the worker.

FACILITIES PROVIDED TO EMPLOYEES:

Certain benefits are given to the employees in respect to their work and designation. An

incentive or reward can be anything that attracts a workers attention and stimulates him to

work.

The VJ INDUSTRIES PVT LTD. provides the following facilities to its workers:



1. Transportation facility for staff as well as executives

2. Canteen facility for staff

3. Helmets for service staff

4. Educational facilities

5. Mobile handset for marketing staff

6. Loan on 0% for staff

7. Production Bonus

8. Yearly Bonus

9. Overtime payments

10. Medical facility

11. Festival Sweets



FINANCE DEPARTMENT

Finance is the science of funds management. The general areas of finance are business

finance, personal finance, and public finance. Finance includes saving money and often

includes lending money. The field of finance deals with the concepts of time, money, risk and

how they are interrelated. It also deals with how money is spent and budgeted.

One facet of finance is through individuals and business organizations, which deposit money

in a bank. The bank then lends the money out to other individuals or corporations for

consumption or investment and charges interest on the loans.

Finance is the lifeblood of every business. All the function of management like personnel,

production marketing require finance for their implementation. Financial management is the

activity, which is concerned with helping and improving and controlling of the firms financial

recoveries, finance function is the task of producing funds needed by the enterprise in terms

that are most favourable looking to its objectives; finance is concerned with everything that

takes place in the content of business.

The finance department keeps various finance records of the arguments. It is engaged I

preparing various accounts. This department also makes arrangement for the finance needed

by the unit for day-to-day work. It is engaged in borrowing loans and finance from various

financial institutions. The finance department is also responsible for the payment of interest

and dividend. It prepares the accounts of the company and makes arrangement for loans and

subsidies to fulfil the requirement of finance. Finance is required to purchase the machine and

materials to pay wages and salary to employees and to allow debt facilities to customers.



FINANCE DEPARTMENT CHART:

The following is the departmental structure of VJ INDUSTRIES PVT LTD.

GENERAL MANAGER

FINANCE MANAGER

CHIEF ACCOUNTANT

TREASURER CONTROLLER

MAJOR FUNCTIONS:

Accounting the transactions carried out by the company and to prepare monthly and

annual financial statement.

Arrange finance for working capital requirements, capital addition and other day- to-

day needs.

Working capital management.

Liaison with financial institutions and Banks.

Budgetary control.

VARIOUS SECTIONS:

Every organization irrespective of its size relies on its financial health for its survival. It is

thus no surprise that organization like VJ Industries has a full-fledged account section.



IBS (Inward Bill Section):

The entire bill that requires payment to be made by the company are sent appropriately

through the section. It includes purchase bills, expenses bills, and sundry creditor’s

management.

OBS (Outward Bill Section):

The entire bill that required payment towards the company is sent appropriately from this

section. It includes debtors management, inwards management, invoice generation etc.

FINANCIAL CONCURRENCE:

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

concurrence of finance department.

PROVIDENT FUND:

This section arranges recovery of provident fund from the employee’s salary. The present

statutory minimum recovery is 12%. The employees are allowed to contribute higher

quantum voluntarily. The company can also contribute 12% of each employee’s salary. The

amount contributed by the employee and the employer along with interest is paid at the time

of retirement or resignation or separation of employee.

WAGE SECTION:

This section prepares the payroll every month on the basis of master roll given by the time

office. The pay roll preparation is computerized. This section also deals with advances to

employees including four advances.

CASH SECTION:

This section keeps the cash day work and bank day book. The payment vouchers prepared by

the inward bill section wages and other sections are sent to the cash section for payment. The



salary to the workers and supplementary payroll for the basis to all employers are made by

the cash section. When the payments are received from the customers against invoices or as

advance then the cheque, drafts etc are presented to the bank by this section. Cash section is

responsible for ensuring that the cash credit does not exceed the limit.

COST AND MATERIALS:

This section estimates standard and actual cost of machines manufactured by the company. It

prepares data for the fixation of selling price which is furnished by this section. It maintains

computerized sore ledger and stock statements. It also prepares annual budgets on the basis of

production programmes, sales programmes and capital budgets. This section is responsible

for all MIS and also prepares monitoring reports.

MAIN ACCOUNTS:

This section complies of various transactions accounted by other sections. This section

prepares final account. They also prepares balance sheets, budget for the year.

FINANCIAL PLANNING:

Financial planning is a technique to plan for and control the use of finance, to protect the

financial condition of the firm.

There are two type of financial planning.

Long term financial planning

Short term financial planning

In VJ INDUSTRIES PVT LTD. large amount of capital is required for various purposes.

They have to take decision regarding utilization money in respect of transactions such as for

the purpose of purchasing raw material, readymade spare parts and to earn money by selling

various kinds of products. Here financial planning is done according to their past records,

economic conditions etc.

Factors to be considered while formulating financial plans are as under:



1. Objectives of the company

2. Nature, size of the company

3. Amount of risk method

4. Status of industrial unit

5. Alternative source of finance

6. Capital structure

7. Attitude of management

CAPITALISATION:

Company gives an idea regarding the sum value of the total financial resources available with

a unit in terms of owners capital borrowed capital in addition to reserves and surplus. In legal

terms it refers to the total per value of issued share capital of the company.

According to A.S. Dewing, “The term capitalization is the valuation of the capital includes

the capital, stock and debts.”

Over capitalization: A company is said to be over-capitalized when its earnings are

not sufficient to a fair return on the amount of shares or debentures. In other words

when a company is not in a position to pay dividend, interest of its shares and

debentures at fair rates, it is said to be overcapitalized.

Under Capitalization: Under capitalization is just reverse of over capitalization

where the values of assets are much more then it appears in the books of the company.

MANAGEMENT OF FIXED ASSETS:

Fixed assets mean all assets required for production in business. Fixed assets of a company

are their properties. In other words, permanent capital of the company. The fixed assets have

fixed cost, as it is long-term investment otherwise it may result damage for survival of the

firm. They help the company in the continuous production process.

Fixed assets cannot be easily converted into cash. Fixed assets includes land, building,

furniture, vehicles, machinery other assets.



FIXED ASSETS RS

Factory plots 2,50,00,000

Factory Shed 40,00,000

Factory Building 1,30,00,000

Plant & Machinery 1,70,00,000

Furniture 70,00,000

Vehicles 40,00,000

Other Assets 20,00,000

Total 7,20,00,000

PURCHASE DEPARTMENT



Purchasing refers to a business or organization attempting for acquiring goods or services to

accomplish the goals of the enterprise. Though there are several organizations that attempt to

set standards in the purchasing process, processes can vary greatly between organizations.

Typically the word “purchasing” is not used interchangeably with the word “procurement”,

since procurement typically includes Expediting, Supplier, Quality and Traffic and Logistics

(T&L) in addition to purchasing.

Materials engineering is a genetic term coined for the combined activates of material

planning, processing & stores.

PURCHASE DEPARTMENT CHART:

PURCHASE MANAGER

PURCHASE ASSISTANT

STORE KEEPER STORE KEEPER

MATERIALS PLANNING:

To forecast and plan for material required for production, maintenance, servicing and

spares based on the production program, sales fore cast and request from

maintenance, spares and servicing.

To follow – up with purchase department for shortage items, so as to ensure the

availability of right materials in right time, and issue of the same to the required

department.

Scope:



The scope includes material planning procurement and storage of all materials as per

production requirements. Maintains and spaces requirement for machine tools, foundry and

printing machines.

The details of scope are as shown below:

Material planning & control

Vendor qualification & approval.

Maintaining the list of approved vendors

Vendor performance evaluation in co-ordination with quality assurance department

Co-ordination with vendors for quality problems and corrective actions.

Planning and procurement of materials as per specified requirements.

Review and release of purchase order

Receipt of incoming materials, co-ordination of inspection of the same

Arranging for proper storage with proper identification

Ensuring proper handling & preservation of materials.

Maintaining all relevant documents/records of receipts, issues and storage.

Timely procurement and supply of required materials with prescribed specifications

and quality at the most competitive price and terms.

Fair, consistent and transparent purchase practices.

Continuous search for alternate sources of supply and to develop reliable sources of

supply.

STORE KEEPING:

It is very necessary to store the goods until there is demand for it. For this purpose,

storehouse has to be built. VJ INDUSTRIES PVT LTD. has constructed its storehouse inside

the factory itself wherein the raw material and finished goods are stored.

Functions:

To ensure that all varieties of materials received forms external sources are properly

identified, stored, pre served and protested from damages occurring due to handling or

environmental deterioration and kept under safe custody



To keep proper accounting of all the material transactions

CLASSIFICATION OF MATERIALS:

All purchases should be broadly categorized into revenue and capital. Under revenue, further

categorization shall be into production and non –production items. The production items shall

be categorized ‘A’, ‘B’ and ‘C’ class as per classification adopted by the units/divisions.

PROCEDURES RELATED TO PURCHASE FUNCTION:

Procedure to treat rejected materials

Excess supply

Delivery ahead of schedule

Change in statutory levies

Issue of statutory forms

Price variation/Escalation

Mode of transport

a) Inland purchase

b) Foreign purchase

RESPONSIBILITIES OF PURCHASE DEPARTMENT:

Adherence to guide lines contained in the purchase manual.

Maintenance of an updated vendor registers system.

To issue enquires / tenders, analyse the quotations received and prepare comparative

statements with a view to obtain competitive price to VJ INDUSTRIES.

To conduct negotiation with quoted price.

To ensure fair opportunity to suppliers and competitive prices and terms and assured

quality.



To issue purchase orders in time after obtaining competent authority’s sanction and

follow up for supplies and periodical review of pending purchase orders.

To follow up with suppliers for timely supply and replacement / settlement of claims

and other dues from suppliers or closure of purchase order is ensured.

To co-ordinate and assist finance and inspection department in settlement of bills and

recovery of dues if any.

To submit applications for import clearance and obtain technical clearances and

import licenses where ever applicable.

To enter into annual rate contracts with committed delivery schedules for standard

items, where ever advantageous.

To enter into service contracts for transportation, customs clearance and maintenance

of equipment etc.

To ensure after-sales service is fulfilled by the supplier during warranty and post

warranty period.

To effectively plan and control the inventory level.

To be alert and responsive to the changes in production programme and change in

requirement of material.

To interact frequently with purchase department of other units with a view to sharing

of information regarding price, source of supply, payment terms, vendor rating etc.

To ensure that insurance claims are preferred in time, for items damaged/lost in

transit.

Standardization and computerization of purchase activities and inventory controls.

All relevant data regarding purchase function should be recorded and maintaining, as

required for the internal use as well as providing the information as per present

provision of right to information act.

No purchase orders shall be placed against anticipated customer orders except under

special circumstances for which prior specific approvals of competent authority shall

be taken.

Review of show cause notice from customers, counter claims from vendors and

advance payments for items rejected subsequently.

Minimize dependency on imports.

Serve as an information centre on materials like prices, source of supply,

specifications etc. to all other units/ departments.

Ensures inventory is at an optimum level.



Ensure that the economic and legal interests of the organization are safeguarded at all

lengths.

Ensure that advanced new technologies like usage of internet etc are adopted for more

effective procurement practices.

MARKETING DEPARTMENT



According to the committee of American Marketing Association, “Marketing consists of the

performance of business activities that direct the flow of goods and services from producers

to the consumers.”

Marketing has a very wide meaning. According to Philip Kotler, “Marketing is a managerial

and groups obtain what they need and want through creating, offering, and exchanging

products of value with other.

It is said that without efficient marketing of the goods, even though you create better product,

you cannot sell it.

The VJ INDUSTRIES PVT LTD has been continuously accessing the market scenario in

order to remain competitive and deliver the best value for money to the customers. The

company has been responsive to and indeed anticipated customer’s needs.

MARKETING DEPARTMENT STRUCTURE:

Every company formulates separate marketing department and also keeps an organization

structure for the marketing department to set responsibilities of various personnel. Following

is the organizational chart of marketing department of VJ INDUSRTIES PVT LTD.

GENERAL MANAGER

MARKETING MANAGER

ADVERTISEMENT OFFICER SALES MANAGER

ADVERTISEMENT:



According to the American Marketing association Advertising is defined as, “A paid form of

non personal presentation of ideas, goods or services by an identified sponsor.”

Advertisement has become an integral part. Not only for marketing but also of the entire

economy and creating of demand stimulation of economic growth, rising income, rising

standard of living.

VJ INDUSRTIES PVT. LTD. has adopted the following ways for advertising.

1. Newspaper

2. Magazines related Machines & Tools

3. Exhibitions

SALES PROMOTION:

In a specific sense, sales promotion includes those sales activities an advertising and co-

ordinates them and helps to make them effective such as displays, shows and expositions

demonstrations and other non recurrent selling efforts not in the ordinary routine.

A sales promotion is an important instrument in marketing. Today sales promotion is

necessary and not merely a luxury or connecting link covering the gap between advertising

and personal salesmanship the two wings of promotion.

SALES DEPARTMENT

Sales and servicing activity is a most important function in fulfilling the objectives of the

organization and needs of the customers. It has the activities of selling the machines as per

customer requirement and maintain the customer satisfaction through its after sales activities.

SCOPE:

The scope of the process mapped is sales, servicing and dispatch of VJ INDUSTRIES PVT

LTD machines.

OBJECTIVE:



To create and sustain customers in line with the quality policy of the company and provide

after sales service to achieve total customer satisfaction.

The machines are manufactured only as per the order from the customer. If any order cannot

be accepted, then the company has to be intimated within 7 days. After 7 days, within 10-14

days, VJ INDUSTRIES has to inform the customer’s orders accepted in its legal format.

PROCESS:

The customer gets into contact with the company and specifies all the requirements as to its

productions, delivery date price and other details. These details are then conveyed to the sales

department. The order is discussed in detail with the production department and with

financial department for appropriateness of design time, constraint, design, financial

concurrence etc. After the feasibility of the design is confirmed by both the department, it

gets into Production and after inspection and other formalities are dispatched to the customer

at the required rate.

RESPONSIBLITIES:

Preparation and submission of standard and tooled up officers for CNC lathes.

Interact with customers regarding the offers submitted and provided clarification

required on these offer.

Follow up of offer for the receipt of orders.

Scrutiny of orders and obtaining technical and commercial amendments, if any

required

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

Preparation of tooling layouts and follow up for customers approved in case of tooled

up offers.

Associate with tooling trials and incorporate corrections in tooling layouts if any.

SERVICING:

Responsibilities and authorities of chief of servicing are

Servicing of out of warranty machines on changeable basis

Arranging free replacement spares for rectifying complaints reported during warranty

period of all machines.



Monitoring of customers complaints and provide technical advice/ suggestions/

classifications wherever required.

SAFETY DEPARTMENT



VJ Industries is a company where health and safety, assurance is properly maintained. The

department which helps in maintaining safety has introduced many technical and methodical

ways to reduce the accidents and hazards. For the safety of employees some statutory tests

are made for certain areas such as crane, lift, pressure vessels etc. there are fire extinguishers

placed in several areas for the safety of the workers.

SAFETY DEPARTMENT CHART:

FUNCTIONS:

Safety of the organization

Safety promotion

Prevention and precaution of the fire

Checking of the safety instruments

Fire and safety training to the employees

SAFETY MEASURES:

Sprinkler system for spaying water in case of fire

Insulated sphere and bullets to reduce heat

Deluge system provided for loading and unloading areas of chemical

Safety shower and eye wash system are provided

Fire proofing is done

Two generators of 1000kw are installed

First aid systems are provided


GM

ASSISTANT

SAFETY OFFICER


Fire alarm

Smoke detectors

OBJECTIVES:

To create safe and healthy working environment in the factory and to maintain awareness

among all the employees about the health and safe working habits

POLICIES:

The provisions of various enactments will be complied with for securing health,

safety and desired environmental standards.

The health and safety performance of the employees at different levels will be

reviewed periodically and this will be taken into account for considering career

advancement.

The safety department will periodically assess the risk and implement preventive

measures in consultation with the safety committees.

Necessary instructions will be given to all contractors and outside agencies entering

the premises and they will be bound to obey the same for their safety and health.

Safety and health awareness will be created by displaying slogans and training

programmes.

The safety department will ensure purchase, storage and distribution of quality

personal protective equipment and insist on the usage of the same by the employees

concerned.

Reasons for unsafe actions/conditions:

Lack of knowledge



Lack of education

Lack of training

Physical condition

Psychological condition

Unhealthy body

Instructions for the Employees:

Report promptly and situation affecting the safety of yourself or your fellow

employees.

Entering the factory under the influence of liquors and other intoxicants is strictly

prohibited.

Employees should know the location of the first aid box, fire extinguishers and other

such equipments.

All employees should observe and obey all regulatory signs.

Every employee should consider it as his responsibility to do his part in maintaining

good housekeeping at his job location.

First aid is the immediate and temporary care given to the victim of an accident.

Air hoses, temporary cables of extension etc should not be allowed to lie across

walkways and passages.

Personal protective equipments like goggles, gloves, aprons, safety shoes, helmet,

safety belt etc supplied by the company must be worn while on duty.

An employee sustaining injury on the job however minor it may be, should report it to

his supervisor immediately.



It should be clearly understood that it is the duty of every employee to protect men,

machine and materials of the company.

It should be ensured that all contractors labour is complying with all regulations,

safety codes and safety practices while they are working in the company premises.

All dangerous occurrences like fire, collapsing of any wall, overturning of cranes etc

must be reported by the officer in charge of the section where it has occurred to the

safety department.

The following dress code to be followed

Long pants and short or full sleeved shirts with shirt tails tucked into be used. No

loose clothing is permitted.

Long hair to be tied with a piece of cloth or net.

STRENGTHS

1. Products of VJ INDUSTRIES PVT LTD are comparatively better in quality



2. Well established manufacturing bases

3. Strong technological base.

4. Unit accredited with ISO 9000 and 9001.

5. Dedicated work force.

6. Good strength in application engineering and tooling.

7. Extensive marketing network.

8. Widest range of machine tools.

WEAKNESS

1. The company was not able to retain its skilled employees.

2. Insufficient fund for the company’s expansion plan.

3. VJ INDUSTRIES PVT LTD has to import a lot of valuable machineries from outside.

4. Old plant and machinery.

5. Unhealthy direct or indirect ratio of employees.

6. Lack of young blood in the execution level

7. Red tapism

8. Difficulty in mobilization of funds

OPPORTUNITY



1. VJ INDUSTRIES PVT LTD can enter into CNC machine manufacturing market

which has a good potential.

2. Diversification of products in the future.

3. Growth in auto mobile sector.

4. Growing trend of multinational outsourcing manufactured components from India.

5. Adopt new technology for production and marketing.

6. Expectation of increase in Export.

THREATS

1. High quality products from technically advanced countries.

2. Increasing price of steel which is a major raw material.

3. Competition from second hand imported machinery.

4. Increase in cost of production through material cost.

5. Products are available at the lower price in the domestic and foreign markets.

6. Increasing unhealthy competition.

FINDINGS



1. All departments are computerized. Special training is provided to them.

2. Limited opportunity for job rotation.

3. Safety Measures are efficiently used.

4. Welfare Measures are initiated for employees.

5. Resources are not fully utilized.

6. Promotion is based on the seniority and performance.

7. Good working conditions and welfare facilities for the employees.

8. Decision making is slow.

9. Company is facing the problem of man power shortage.

10. Presently company is not able to take bulk orders.

SUGGESTIONS

1. Replacement of the existing outdated machinery with latest.



2. Employees must be motivated by giving promotion and cash incentives.

3. Avoid the use of costly machines by trainees and temporary labourers, this will help

to reduce scrap and increase the life span of machines.

4. Recruit new technically skilled employees. It may be skilled trainees within the

organization or the engineers with experience from other reputed organization.

5. Proper and regular maintenance of plant and machines should be done.

6. Take effective measures to prevent labour turnover (skilled employees).

7. Make appropriate changes in the products design and features on the basis of new

market trends.

8. Maximum utilization of available resources

CONCLUSION



Globalization and Liberalization has brought us in a competitive environment, where only the

fittest can survive. The success depends upon how an organization can cope up with changes

taken place and how effectively they can use the organization’s resources so as to achieve an

effective output. Management of resources is a vital and central activity in any organization.

Management, whether it is in industry, civil service, defence or in any other discipline is

growing complex day by day.

The study conducted at VJ INDUSTRIES PVT LTD helps to understand complexity of

management functions, apart from class room studies. The study gave an idea about the

performance of management functions which led to its success. The management practices

gave the real picture of functions like planning, organizing, staffing, controlling, co

coordinating etc. The social responsibility of management, business ethics, strategy, decision

making, organization development technique etc gave the image of professional management.

VJ INDUSTRIES PVT LTD is doing great help to nation by providing very important and

essential equipment to various industrial concerns.

BIBLIOGRAPHY



Human Resource and Personnel Management, Aswathappa K(2005), New Delhi: Tata

Mc Graw Hill.

Marketing Management, Philip Kotler & Lane Kevin Keller (2005), 12th Edition,

New Delhi: Prentice Hall of India Pvt, Ltd

Pandey I M (2009), Financial Management, 9th edition, New Delhi: Vikas Publishing

House Pvt Ltd

Departmental Reports

Websites:

www.vjindustries.org

www.imtma.in


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