os sarvesh[1].n. 46
TRANSCRIPT
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ACKNOWLEDGEMENT
Organization runs on values and ethics, at various stages of life an individual faces many
difficulties which result in creating a better future for the individual as well as others.
I express my deepest gratitude to those who suggested me and showed right path to
complete this Organization study. A project of this nature needs co-operation and support from
many, I am fortunate in this regard to complete successfully this Organization study on time.
I take this opportunity to express my profound gratitude to Mr. Malhari K Bhandurge,
Partner, Magna Industries for providing me an opportunity to conduct my project at his
esteemed organization.
SARVESH.A.NAVADGI
BBA 3rd semester
A.S.PATIL COLLEGE OF COMMERCE
INDEX
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SI. NO CONTENTS Page
number
1. Executive summary 3
2. Company Profile 6
3. Product profile 9
4. Organisational Chart(Plant I, II and III) 15
4. Departmental study
• Human resource Department
• Finance Department
• Marketing Department
• Purchase Department
• Production Department
17
30
34
37
39
5. Improvements by Kaizen Theory 44
6. McKinsey 7 S model analysis 47
7. SWOT Analysis 49
9. Findings and Conclusion 51
10. Bibliography 52
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Magna Industries
Executive Summary
Magna Industries is a Private Partnership Firm. This company is basically
engaged in manufacturing Foundry Fluxes and Chemicals in Plant 1, Plant II
and Castings in Plant III.
The Foundry Industry is regarded as an ideal place for investment in Kolhapur
due to availability of abundant raw materials, labour etc.
The company is basically into Industrial market with its customers housed all
over India.
The company follows Kaizen Continuous improvement and 5 S model to
increase the quality of work life and well as overall performance.
The main objective of the company is to serve customers with quality goods.
The company is planning for a new plant where they can assemble the goods
produced in their various plants and deliver finished goods.
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About Magna Industries
a) Magna Industries is a Company Promoted by a team of qualified Metallurgical
Engineers and Chemical Technologist to Manufacture and market, quality foundry
fluxes and chemicals. The combined experience of the promoters exceeds 70 years in
the field of foundry fluxes and chemicals.
The team has necessary expertise to offer best possible products and services. In its
efforts to produce the best of the products the company has semi mechanized
manufacturing facilities in addition to well equipped laboratory and quality control
equipments. Magna industries enjoy support of reputed vendors for supply of quality
raw materials.
b) It is a company having ISO 9001 accreditation from the year 1999 which has built top
quality manufacturing systems, which helps it to deliver quality products consistently.
c) Magna Industries is a company promoted by a team of qualified and experienced
metallurgists and chemical technologist, with an objective of becoming most preferred
product / Solution provider in the field of foundry fluxes and chemicals. “We believe
customer focus is the key to our business success”.
d) Their approach is customer centric. It seeks to deliver tangible technological
improvements that in turn give our customers a strategic business advantage in the
foundry industry. They closely follow customer needs and proactively build their own
capabilities to fulfil their objective of achieving customer delight.
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e) Making a small beginning in the year 1998, now magna industries has become a
preferred brand for various foundry products, in western India. In their efforts to
provide best products, consistently, to their customers they have set up semi automatic
plant, which is being operated by trained and dedicated work force, keeping in mind the
growing quality demands of foundry industry.
Right from the early stages the plant has been ISO 9001 accredited and “Quality” has
become way of life in all their day to day activities.
f) Magna industries enjoy patronage of large number of leading foundries and has
enviable client list which includes 8 QS and 25 ISO certified foundries.
g) DELIVERING VALUE! CONSISTENTLY!!
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Company Profile
1. Name of the company : Magna Industries
2. Type : Partnership firm
3. Registered Office : Plot no 41, Sector C, Shree Laxmi co-op. Industrial estate
Ltd., Hatkanangale, Dist. Kolhapur
4. City : Kolhapur
5. State : Maharashtra
6. Country : India
7. Name of the Partner s : a) Malhari K Bhandurge
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b) Sanjay Karkhanis
c) Sanjay M Jahagirdar
d) Sunil P Battase
8. Weekly Holiday : Monday
9. Contact Number : 0230 2366274
10. Banker : Union Bank of India
IDBI bank
Ichal Janta Bank
Board of Directors (Partners)
• Malhar i K Bhandurge
Graduate in Metallurgical Engineering from College of Engineering, Pune.
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21 Years experience in foundry and foundry process Technology particularly
Molten Metal Technology.
• Sanjay Karkhanis
Graduate in Metallurgical Engineering from IIT Kanpur.
19 Years of experience in Marketing and foundry process particularly
Methoding, Metal filtration, casting defect analysis and prevention.
• Sanjay M Jahagirdar
Graduate in Metallurgical Engineering from College of Engineering, Pune. 19
Years experience in Marketing, foundry defect diagnosis and green sand systemcontrol.
• Sunil P Battase
Graduate in Chemical Engineering from UDCT Mumbai.
19 Years experience in foundry sand binders, ISO 9001 and Business
administration.
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M ission
To exceed our customers’ expectations in quality, delivery, and cost through continuous
improvement and customer interaction
The main mission is to provide high quality products and satisfy the customers thereby.
In this competitive world customers always expect the best.
Vision
To establish a brand image and become a major player in the field of foundry fluxes and
chemicals
Goals and objectives of the company
1. To become the most preferred company in Kolhapur for foundry fluxes and foundry
works.
2. To keep ourselves bridged with the latest changing technology
3. To treat the employees as profit centre and not cost centre
4. To instil amongst its employees a sense of responsibility and to maintain the quality of
work life.
5. To stimulate the skills of the employees as and when needed.
6. To provide employment opportunities.
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Product Profile
Plant I and II
1) Magnaseed - A range of potent inoculants for grey and S.G.Iron
The Product
MAGNASEED is a range of inoculants suitable for grey and S.G.Iron for getting desired chill
reduction, machinability coupled with improvement in mechanical properties.
Application
Traditionally foundries use ferro-silicon, graphite calcium, and barium and rare earth elements
as inoculating agents. These are added to the melt separately or collectively as the need arises.
A balance of these elements is perfectly struck in MAGNASEED an inoculant, which gives
consistent results melt after melt.
An appropriate grade of MAGNASEED can be chosen depending on melting practice, metal
chemistry and desired results.
Features and Benefits
• Perfect Composition: Presence of various elements in the required proportion
makes MAGNASEED most effective inoculants to give improved mechanical
and metallurgical properties.
• Size Grading: Magna Industries is equipped with full fledged granulation
facility, which enables it to exercise precise control on particle size of the product.
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Controlled size grading of MAGNASEED helps in appropriate rate of
dissolution, thereby making it more effective and gives adequate fade
resistance.
• Wide range: MAGNASEED is available in wide range, suitable for different
castings applications depending on mechanical and metallurgical properties
desired by the casting buyer.
2) Magnakol:
A green sand additive with High thermal Stability
1) The Product
The Magnakol is a coal dust substitute for green sand which gives good peel off and
excellent surface finish to the castings.
2) Application
Conventionally foundries have been using Coal Dust and Proprietary Coal Dust
Substitutes to get good surface finish of castings. As compared to conventional coal
dust substitutes, Magnakol range of products exhibit higher thermal stability, thereby
giving superior surface finish of castings at optimum addition levels.
Magnakol is specially designed, keeping in mind growing quality needs of the casting buyers to have castings with excellent surface finishes. Selective raw materials of
consistent quality enable MAGNAKOL to work at lower addition levels consistently.
Magankol is specifically formulated to give optimum lustrous carbon, at casting
temperatures.
3) Features and Benefits
• High Thermal Stability: High thermal stability of magnakol ensures optimum
generation of lustrous carbon coupled with minimum burnout, across depth of
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the mould. This helps to reduce additions of Magnakol to maintain the desired
surface finish of castings.
• Low Ash Content: Low ash content in Magnakol helps the sand system to
minimize the dead clay generation, which enables to reduce new sand addition.
With reduced new sand addition, the Bentonite requirement also goes down
which ultimately reduces the overall green sand system cost.
• Optimum Lustrous Carbon: Optimum lustrous carbon at casting temperatures
imparts excellent surface finish to castings, which reduces fettling costs
substantially.
• Low Bulk Density: Low bulk density of magnakol helps its uniform
distribution in the sand system and also makes it occupy more interstitial spaces
between the sand grains. This ensures adequate cushioning during hot expansion
of the green sand resulting in anti-scabbing properties.
• Consistent Properties: Controlled properties of Magnakol ensure low
fluctuations in physical properties. PROPERTIES of green sand and variations
are kept to the minimum.
• Eco Friendly: Dust damped nature of MAGNAKOL helps to minimize dust
generation thereby keeping working environment clean.
• Services: Magna Industries helps in testing of various sand properties and
establishing control over green sand system which ultimately results in excellent
quality castings with optimization of green sand cost.
• Standard Packing
MAGNAKOL is available in 50 kg. HDPE bags.
• Shelf Life
One year from date of manufacturing.
• Storage Precaution
Magnakol is very stable product and does not suffer from problems like auto
ignition. Magnakol should be stored in well ventilated and covered place.
Exposure to direct sunlight should be avoided. Stacking of Magnakol in several
layers may lead to lumping of product.
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3) Magnaset
Powder Hardener for sodium silicate binder system.
4) Magnakote
A High Refractory water based zircon coating for iron & steel castings.
1) The Product
A versatile high performance water based zircon coating for steel castings and critical cast
iron castings.
2) Application
Magnakote is highly thixotropic water based zircon coating in a creamy consistency. It is
applied in ready to use form and hence requires minimum preparation. The uniform layer
deposition and high refractory filler ensures excellent casting finish for iron & steel
castings.
4) Features and Benefits
• Excellent Surface Finish: Use of high refractory fillers gives excellent
surface finish to castings and reduces sand fusion tendency which also
reduces fettling/ rework considerably.
• Versatile Nature: Magankote is a ready to use water based zircon coating.
Its versatile nature makes it suitable for various coating. Its versatile nature
makes it suitable for various coating applications such as brushing,
spraying & dipping.
• Thixotropic nature: Thixotropic nature of magnakote not only gives
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excellent coverage but also reduces brush marks on casting. This feature
also ensures lower consumption of coating which makes it cost effective.
• Faster Drying: Use of speciality chemicals in Magnakote imparts it fast
drying characteristic. This helps in quicker delivery of cores / Moulds to
moulding line.
4) Standard Packing
MAGNAKOTE-ZW is available in 40 kg Carbuoy.
5) Shelf Life
Six months from date of manufacturing.
6) Storage Precaution
To be stored in a cool & dry place
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Quality systems followed in Magna Industries
• 5 S model
• Kaizen – continuous improvement theory
Quality:
We at Magna Industries, strive to achieve customer delight by providing innovative products of
consistent quality and achieve satisfactory business growth. We will maintain our brand image
through involvement of stakeholders and by adopting continual improvement philosophy.
Quality objectives:
• To provide thrust on development of innovative products to give value additions to
customers.
• To achieve satisfactory business growth through customer satisfaction.
• To provide thrust on continual improvement, involvement of stakeholders and training
of employees.
• To maintain healthy relations with suppliers to ensure consistent incoming material
quality.
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Organisational Chart
Plant I and II
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Plant III
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DEPARTMENTAL PROFILE
Human resource
There are 30 workers in plant I and II and 60 workers in plant III
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The worker class applicants are hired based on their experience level. Reference checks
are also conducted.
The selection of the supervisors is done by the partners of the firm.
Job descriptions of the various posts in the firm
PARTNER
• Define the quality policy and objectives.
• Chairperson for management review meeting.
• Appoint management representative.
• Provide resources to organisation for routine business and expansion activities.
• Overall performance of the organisation.
• Identifying training needs for self and subordinates.
• Participate in contract review.
• To provide customer support.
• Handle & resolve customer complaints
INCHARGE MARKETING
• Member of management review meeting.
• To receive enquiry from customer.
• To review & determine specified & implied requirements of the customer.
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• In case of new product requirement, interact with D & D for design inputs & design
validation.
• Participate in contract review.
• To provide customer support.
• Handle & resolve customer complaints
INCHARGE PURCHASE
• Member of management review meeting.
• Assess the capability of new vendors.
• Maintain the list of approved vendors and sub contractors.
• Vendor approval and capability assessment.
• Preparation purchase orders and necessary follow up for timely receipt.
• Maintain quality records of the department.
• Identify training needs for self and subordinates.
• Maintain good housekeeping.
• Ensure timely receipt of material.
• Vendor rating.
INCHARGE DESIGN & DEVELOPMENT
• Member of management review meeting.
• Collection of Design Inputs and Review Design & development at various stages.
• Preparation of quality plans for incoming, in process and final inspection.
• Preparation of work instructions.
• Development of new product.
• Maintaining quality records of department.
• Identifying training needs for self and sub ordinates.
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INCHARGE PRODUCTION
• Member of management review meeting.
• Monthly Production forecast
• Daily production planning based on production and despatch advice register.
• Follow CAPA jointly with QA for non-conformance in production process.
• Maintain quality records of the department.
• Maintain good housekeeping.
• Identify training needs for self and subordinates.
QA SUPERVISOR AND PROCESS CONTROL SUPERVISOR
• Providing proper guidance to subordinates for manufacturing process.
• Fulfil responsibilities towards inspection and testing.
• Proper handling of machinery and equipments.
• Maintain good housekeeping.
• Maintain quality records of the department.
INCHARGE QUALITY ASSURANCE
• Member of management review meeting.
• Inspection of material as per control plans for incoming, in process and final stage.
• Calibration of instruments / test equipments and maintaining records.
• Maintain instruments.
• Implement statistical techniques.
• Maintaining quality records of department.
• Maintain good housekeeping.
• Making corrective & preventive actions for products and system related non-
conformance and customer complaints.
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• Participate in contract review.
• Identifying training needs for self and sub ordinates.
INCHARGE STORE
• Member of management review meeting.
• Receipt of material to stores.
• Ensure that all materials are kept in stores with proper identification and
appropriate location.
• Stock assessment periodically to detect damage, deterioration.
• Receipt and issue of materials under authorization.
• Maintain quality records of the department.
• Maintain good housekeeping.
• Identify training needs for self and subordinates.
INCHARGE TRAINING
• Member of management review meeting.
• Identification of training needs
• Maintaining training records
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Process flowchart for Training in Magna Industries
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Bonus structure
Bonus Structure for 2007-2008
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Bonus 16%
Performance Bonus 6%
Seniority Bonus
Below 1 year 0%
1 year to 3 years 1%
3 years to 10 years 2%
above 10 years 3%
Overtime Bonus
OT up to 200 Hours 0%
OT 201 Hours to 400 Hours 1%
OT 401 Hours to 600 Hours 2%
OT 601 Hours to 800 Hours 3%
xyz
16% + 6% +
Seniority
abc
16% + 6% +
Seniority
Service Below 6 months 16%
Employee Left the Service 14%
Below 1 month service 0%
Skill matrix sample
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Training Details
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Magna Industries Yearly Training Plan
01-04 compulsory training
Production Incentive CalculationFor Month November-09
after 150 ton to 250 ton Rs.80/- per ton
above 250 ton Rs.100/- per ton
upto 15.1 ton Rs.1200/-
after 15.1 ton to 30 ton Rs.200/- per ton
above 30 ton Rs.250/- per ton
Per ton Rs.250/-
Per ton Rs.100/-
Magnakol upto 150 mt Rs.22/- per ton
150 to 250 mt Rs.28/- per ton
above 250 mt Rs.32/- per ton
Magnaseed D-slag upto 15 mt Rs. 44/- per ton
15 to 30 mt Rs. 52/-
above 30 mt Rs.60/-
Magna Kol upto 150.1 TON Rs.2000/-
after 150 to 250 ton per ton Rs.20/-
above 250 Rs.25/- per ton
MagnaSeed/Set upto 15.1 ton Rs.600/-
15 ton to 30 ton Rs. 40/-
after 30.1 ton per ton Rs.50/-
Sr.
No.
Production. Q A Admin Sales Team workers
1Man power
handling
Lab Testing
activities
Machine
Operations
02Material
Identification
Material
Identification
Material
Identification
Material
Identification
03Product
Knowledge
Product
Knowledge
Product
Knowledge
Product
Knowledge
Product
Knowledge
04Production
planning
Machine
Maintenance
05Communication
skill
Communication
skill
Communication
skill
Communication
skill
Bags Packing
06 ISO awarenessISO awareness ISO awareness ISO awareness ISO
awareness
07In process
Testing
In process
Testing
Basic Account
knowledge
Bags Stacking
08Computer
Operating
Computer
Operating
Computer
Operating
Computer
Operating
5s-/kaizen
related work
09Machine
Maintenance
5s-/kaizen
related work
Account
Packaging
(Excise, Service
Tax, TDS)
105s-/kaizen
related work
5s-/kaizen
related work
5s-/kaizen
related work
11Purchase
Activity
12Despatch
Activity
13Stock
Assessment
14 Banking Sector Knowledge
15
Company
Related Govt.
Rules &
Regulations.
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Marketing
• To receive enquiry from customer.
• To review & determine specified & implied requirements of the customer.
• In case of new product requirement, interact with D & D for design inputs & design
validation.
• Participate in contract review.
• To provide customer support.
• Handle & resolve customer complaints
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PROCESS FLOW CHART FOR NEW ENQUIRY / CONTRACT REVIEW CUSTOMER
RELATEDPROCESSES
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Magnakol Client list
Sr. No. Name of Foundry Type of Molding line
1. M/s. Ghatge Patil Inds,Kolhapur KW High Pressure
2. M/s. Shriram group of Ind, Kolhapur Medium Pressure
3. M/s. Mantri group if Inds,Kolhapur.Sinto Line/Medium
Pressure
4. M/s. Caspro Metal Industrial P. L., Kolhapur Medium Pressure
5. M/s. Mahindra & Mahindra, MumbaiLiquid coal for
Medium Pressure
6. M/s. Mahabal Metals P. Ltd., Sangli Sinto Line
7. M/s. Tyson Industries/Veeresha, Sangli Medium Pressure
8. M/s. Southern Auto Casting, Chennai Medium Pressure
9. M/s. Belgaum Ferrocast Pvt. Ltd., Belgaum Medium Pressure
10. M/s. Gainmax Ferrocast,Kolhapur Medium Pressure
11. M/s. Malati Founders Pvt. Ltd., Kol. Medium Pressure
12. M/s. Victor Enterprises, Belgaum Medium Pressure
13. M/s. Jagdish Iron & Steels, Miraj. Medium Pressure
14. M/s. K & K Foundry, Kolhapur. Medium Pressure
15. M/s. Marvelous Metals Pvt. Ltd., Kolhapur Medium Pressure
16. M/s. Greaves Cotton Ltd., Pune Medium Pressure
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Magnaseed Client list
Sr. No Name of Foundry Magnaseed Grade
1. M/s. Saroj group of Industries, Kolhapur Magnaseed 1(S)
2. M/s. J.P. Foundries, Belgaum Magnaseed – 151(M), 16M
3. M/s. S.B. Reshellers P Ltd, Kolhapur Magnaseed – 156
4. M/s. Shanti Iron & Steel, Belgaum. Magnaseed – 156 (M)
5. M/s. Samir Casting Pvt. L.td., Kolhapur Magnaseed –14
6. M/s. Shri Ganesh Fdy., Ichalkaranji Magnaseed – 156 (M)
7. M/s. Bangalore Malleables, B’lore Magnaseed – 1 S(W)
8. M/s. Supercraft Foundry, Jaysingpur Magnaseed – 1 S (W)
9. M/s. Greaves Cotton Ltd., Pune Magnaseed –BA (N)
10. M/s. Belgaum Ferro cast, Belgaum Magnaseed – 14
11. M/s. Gainmax Ferrocast, Kolhapur Magnaseed – 16 P
12. M/s. Ichalkaranji Metalloy,Ichalkaranji Magnaseed – STR
13. M/s. Precision Camshaft Ltd., Solapur Magnaseed – 1 (S)
14. M/s. Shriram Group of Ind., Kolhapur Magnaseed – Ba (SH)
15. M/s. Krislur Industries, Bhavnagar Magnaseed – 156 (M)
16. M/s. PNP Corporation, Rajkot Magnseed – Ba (R)
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Purchase Department
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PROCESS FLOW CHART FOR PURCHASING
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PROCESS FLOW CHART FOR SUPPLIER ASSESSMENT AND SELECTION
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Production department
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PROCESS FLOW CHART FOR SUPPLIER ASSESSMENT AND SELECTION
List of Few machineries in Magna Industries
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SR
NO.NAME OF MACHINERY PLANT
1 MINERAL PROCESSER (JAW CRUSHER) PLANT-I
2 ROLLER CRUSHER NO.1 PLANT-I
3 ROLLER CRUSHER NO.2 PLANT-I4 SIEVER NO 1 PLANT-I
5 SIEVER NO 2 PLANT-I
6 SIEVER NO 3 PLANT-I
7 SIEVER NO 7 PLANT-I
8 SIEVER NO 8 PLANT-I
9 SIEVER NO 9 PLANT-I
10 MINI JAW CRUSHER PLANT-I
11
GRANULATION UNIT ( Including Roller crusher , siever no 8, siever no 9,Mini jaw
crusher, Bucket elevator)PLANT-I
12 DOUBLE CONE BLENDER PLANT-I
13 BALL MILL NO. 1 PLANT-I
14 BALL MILL NO. 2 PLANT-I
15 PLANATORY MIXER PLANT-I
16 EMULSIFIER PLANT-I
17 GRINDER PLANT-I
18 SITCHING MACHINE PLANT-I
1 SIEVER NO. 5 PLANT-II
2 SIEVER NO. 6 PLANT-II
3 PULVERISER NO. 5 PLANT-II
4 PULVERISER NO. 6 PLANT-II
5 PULVERISER NO. 7 PLANT-II
6 RIBBON MIXER NO.2 PLANT-II
7 RIBBON MIXER NO.3 PLANT-II
8 M3/Magnakol-L Manufacturing System (Including TankT1,Tank2,T3 &T4) PLANT-II
9 HOIST PLANT-II10 SAND SIEVER PLANT-II
11 HOPPER NO 1 PLANT-II
12 HOPPER NO 2 PLANT-II
13 COMPRESSOR PLANT-II
14 SITCHING MACHINE PLANT-II
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PROCESS FLOWCHART
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PROCESS FLOW CHART FOR DESIGN & DEVELOPMENT
Developments by Kaizen Theory adoption
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F2-Granulation unit
(Rotary Siever) previous method
Drawbacks
1) Dusty working atmosphere.
2) Labor oriented work
3) More maintenance cost
(Sieve damage, v-belt, Roller Crusher hopper, Conveyer belt, Material Handling)
4) Trolley handling was difficult
5) Low productivity (3-4Bags crushed per Hr.)
New unit
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Benefits
1) Dusting is reduced
2) Single person can work
3) Maintenance cost is reduced
4) Easy handling of trolley due to modification of trolley wheel structure.
5) Productivity increased
(7-8 bags per hour crushed)
Achievements
1) Min. stock-level updated
2) O.T. hours reduced (min. O.T.)
3) Man power can be used for other work- (5s, used for plant-II production) .
4) Delay reduced
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5) Now they are waiting for another 10-15 mt production.
6) High employee morale.
Admin Office
Previous Arrangement
Latest Arrangement
7 S Mckinsey Model Analysis
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Strategy:
The company follows customer centric strategy. It aims at achieving customer satisfaction by
delivering value much more than promised.
The competitive pressure is dealt by acquiring quality but low cost raw materials and producing
goods at competitive prices
The Marketing department keeps in touch with the customers and gets the feedback about their
needs and hence equalise the needs of the customers with the product.
Structure:
The company has a flat organisational structure which helps in easy communication.
The decion making is centralised with the partners of the firm though some authorities are
given to the managers to handle the production and Human resource.
Systems: Systems “refer to all the rules, regulations and procedure, both formal and informal
that complement the company structures.
Systems, which are followed in Magna Industries, are as follows: -
1) Strict factory rules and co-operative acts are followed.
2) Quality should be maintained at all stages.
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3) Mutual co-operation and respect for all the workers at all levels.
4) Discipline is to be maintained in the premises.
5) Hard work and sincerity.
Style:
Participative leadership style is followed in the organisation. This form of leadership is effectiv
e since the view of the supervisors and managersare taken into consideration and the decision is
made. The views of the supervisors is a summary of all the workers.
Staff
The organisation has well organised staff and all required departments with experts in each
respective fields.
The recruitment is done as and when needed by the supervisors or mangagers.
The worker class is well trained and regularly motivated.
Skills
The company has skilled as well as semi-skilled labours. The skills of the labours and the
supervisors by using the skill matrix method which is followed by the organisation.
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SWOT Analysis
Strenghts
1) The company has manufacturing competence of producing high quality goods
2) The inventories are maintained in well proportion.
3) Low advertisement cost due to excess orders.
4) Satisfied and motivated workforce.
5) Raw materials from the best suppliers
6) Organisational structure is flat. Hence easy communication with the management for
workers.
7) Magna industry partners own many other firms which produce some of the raw
materials which is needed to produce castings, hence minimising raw material cost.
8) Financial management is very accurate
Weakness
1) The product line is very small for plant I and II.
2) Rise in raw material prices.
3) Increasing labour cost directly affects the price of the product.
4) Rejection rates increase if the work force is not motivated on regular basis.
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Opportunities
1) Foundry business is at boom which is a very good opportunity for Plant I and II as
it manufactures foundry fluxes.
2) Magna industry is planning to set up a new plant which will assemble the castings
manufactured in plant III.
Threats
1) Since the foundry industry is at boom, there is a lot of competition and hence the firm
has to price the product at competitive prices
2) Technology shifts are very uncertain and the company has to cope up with the lastest
technology to be in market.
3) Magna industry is a type of firm which supports backward integration for large scale
companies. If there is fall in sales of the LSI’s it indirectly affects the firm.
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Findings
Some of the general findings that could be inferred from the general study of the organisation
are as stated below:
• The company is a partnership firm and fall under SSI sector. The company likes to be
as a SSI and increase the number of firms rather than becoming a Medium Scale
Industry.
• The company has kept itself abreast of the latest technology, both in terms of method of
production and Human resource management.
• The company has shown a healthy pattern in terms of its sales revenue(plant I and II).
• The company has only one method of distributuion channel, i.e. it deals directly with
the customers through marketing department.
• The company has good reputation in markets and own standard quality certifications.
Conclusion
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Magna Industries is doing well with the present system of management and has built up good
relationships with the customers.
The company management are expanding the business which forms a forward integration to the
present firms, which is indeed a very clever step to produce products at very competitive prices.
The human resource department can include some more effective methods of management of
the workers.
Bibliography
1) Official website of magna industries.
www.magnaindustries.com
2) www.wikipedia.com
3) Principles of Marketing, Philip Kotler