salzer switch company internship project
TRANSCRIPT
1
INTERNSHIP REPORT ON ORGANIZATIONAL STUDY AT
SALZER ELECTRONICS LTD
By
ARUN KUMAR K 11MB5028
RENU GOPAL V 11MB5145
II SEMESTER MBA
Guide
Prof. LISSY MATHEW
Internship Report submitted to the University of Mysore in partial fulfillment of the
requirements of II Semester MBA degree examinations – 2012
Ramaiah Institute of Management Studies
#15, New BEL Road, MSRIT Post, M S Ramaiah Nagar
3
Ramaiah Institute of Management Studies
Bangalore - 560054
CERTIFICATE
This is to certify that this Internship Report on Organizational Study at SALZER
ELECTRONICS LIMITED is a bonafide study of ARUN KUMAR K and RENU
GOPAL V carried out under my guidance and supervision.
Place: Bangalore
Date: [Signature of the Faculty Guide]
4
DECLARATION
We hereby declare that this Internship Report on Organizational Study at SALZER
ELECTRONICS LIMITED submitted in partial fulfillment of the requirement for II
Semester MBA Degree examinations 2012 of University of Mysore through Ramaiah
Institute of Management Studies is our original work and not submitted to any other
university. This work has been done under the supervision of Prof. LISSY MATHEW in
Ramaiah Institute of Management Studies, Bangalore.
Place: Bangalore
Date: [Signatures of the Team Members] [Reg. No.]
5
ACKNOWLEDGEMENT
Words are indeed inadequate to convey my deep sense of gratitude
to everybody. This project is an outcome of all the efforts and co-ordination of various
people. F i r s t an d f o r em os t , w e wo u ld l i k e t o ex p r es s ou r s i n cer e
g r a t i t ud e to D r. Mr . PA TTA BHI R AM, Di rec to r , R am ai ah In s t i t u t e o f
M an agem ent S tu d ie s , D r. Y . R AJ A RA M , D ean , R am aiah In s t i t u t e o f
M an agem ent S t ud ie s and Dr . Mrs . MA N ITH A D SH AH , D ean ,
R am aiah In s t i t u t e o f M an agem ent S t ud i e s , for the giving us this opportunity.
I am also grateful to the esteemed organization SALZER ELECTRONICS
LIMITED co-operation during my project. An all the faculty who provided full
support in completing this project successfully.
I would be afflicting myself if I do not profess my sincere appreciation to my
dearest parents, sister and friends who helped me in every step
Place :
Date : Signature of team members
ARUN KUMAR K
RENU GOPAL V
6
CONTENTS
Certificate from the Company II
Certificate from the Faculty Guide III
Declaration IV
Acknowledgement V
1. Industry Profile 01
2. Company Profile 05
3. Organizational Hierarchy 09
3.1.Organizational Chart 10
3.2.Product Profile 11
4. Study of Functional Departments 16
4.1.Production Department 17
4.2.Finance Department 31
4.3.Marketing Department 33
4.4.Human Resource Department 35
4.5.IT Department 39
5. SWOT Analysis 52
6. Summary of Findings 54
7. Conclusions and Suggestions 56
8. Bibliography 58
7
LIST OF TABLES AND FIGURES
1. Fig 3.1 Organization Chart 10
2. Fig 3.2 Products 12
3. Table 4.1 Different Between Relay Assembly and Rotary Assembly 17
4. Fig 4.1 Relay Assembly departments 18
5. Fig 4.2 Rotary Assembly Department 19
6. Fig 4.3 Production Planning – Process Flowchart 26
7. Table 4.2 Raw Material, Manufacturer and Supplier / Dealers 27
8. Fig 4.4 Accounting Flowchart 32
9. Fig. 4.4 Company controls 41
10. Fig. 4.6 Data flow diagram 47
11. Fig. 4.7 Employee Details 48
12. Fig 4.8 Department Details 48
13. Fig. 4.8 Loan Sanction 49
14. Fig. 4.9 Loan Sanction 49
15. Fig. 4.10 Attendance Detail 50
16. Fig. 4.11 Overtime Detail 50
17. Fig. 4.12 Salary Detail 51
18. Fig. 4.13 Loan Payment 51
9
1.1 Industry Profile
In recent years the electronics industry is growing at a brisk pace. Its currently worth
$ 32 billion and according to industry estimates it has the potential to reach $150 billion by
2010. The largest segment is the consumer electronics segment. While is largest export
segment is of components.
The electronic industry in India consists just 0.7% of global electronic industry.
Hence its minuscule by international comparison. However the demand in the indian market
is growing rapidly and investment are following in to augment manufacturing capacity.
The output of electronic hardware industry in India is worth $11.6 billion at present.
India also exporter of a vast range of electronic components and products for the following
segments.
Display Technologies.
Entertainment electronics
Optical storage device
Passive components
Electromechanical components
Telecom equipment
Transmission and signaling equipment
Semiconductor designing
Electronic manufacturing service
1.2 Revolution or analysis of electric industries
Like every other industrial sector in India, the Indian Electrical/Electronics Industry
too is slowly emerging from out of its "protective cover". For far too long has Indian Industry
remained shackled and consequently inward looking. Over the past fifty years there was no
exposure to global players and competition, with the result that the Industry grew up in
sheltered environment, dependent on the Government for everything, from licenses
to protection to tariffs. Each one of these interventions was aimed at securing protection
for oneself and ensuring growth of one’s own organization at the cost of industry and the
nation at large. Lack of global competition encouraged a "cost plus" approach, where every
conceivable cost increase was passed on to the customer.
10
There was thus no motivation to reduce cost.
With deli censing, decontrol and deregulation, Indian Industry has
suddenly been exposed to global competition. Since last decade, India has
witnessed what global players have achieved and what they are capable of achieving.
We are becoming aware of competition on our turf. In
t h i s s cen ar io , eve ry co m p an y co m pl a in s o f i n c r eas ed com p et i t i o n , l ow e
r o rd e r bo ok s and shrinking margins.
The Indian Electrical/Industry is of course further besieged by t h e f ac t t h a t
t h e r e i s a d ea r t h o f bu s i n ess on accou n t o f l a ck o f i nves tm en t i n t h e
p o w er infrastructure. Many organizations in this industry are looking overseas to develop
the export markets owing to reduced demand at home.
A t t h e o u t s e t , i t mu s t b e s t a t ed th a t t h e r ed uced do m es t i c d em an d
i s a t b es t a t em por a r y phenomenon. The power sector in India is bound to
grow and this will undoubtedly boost demand from the Utilities, quite apart from the
industrial demand which will continue to grow with increased industrial output. The
poor financial health of the SEBs is however a damper that cannot be wished
away in the short term. This will continue to plague corporate in the Electrical
Industry, until the SEB restructuring and unbundling brings a turnaround in the
medium term.
Salzer Electronics Ltd company has entered into technical and financial collaboration
with M/s. Plitron Manufacturing Inc., Canada in 1995 for manufacturing Toraidal
Transformers with 50% Buy-Back specialty.
11
The Prestigious ISO 9001 Certification by NQA-UK has been obtained for Design,
Development, Manufacture and Supply of CAM Operated Rotary Switches and Allied
Products. The company has strong Research and Development facility with the full-fledged
laboratory to upgrade the product and set new market trends. In house Research and
Development has been recognized by Ministry of Science and Technology, Department of
Science and Industrial Research, Government of India.
Today, they are market leaders in India for Rotary Switches.
M/s. Larsen & Turbo Limited, the Indian Industrial Giant in Engineering has been
marketing Salzer Switches throughout India since 1993.
Having marketing Tie-up with India’s largest Engineering and Infrastructure
industries such as L&T Ltd. To cater the Indian market through their market network which
covers an area more than 300-400 Stockiest / Dealers. This Company has 40% market share
in Rotary Switch segment. Salzer Electronics is Largest Supplier to Indian Railways.
The competitors are ABB Ltd, Anand Project Ltd, Artech Power Products Ltd, Best
& Crompton Engineering Ltd, Continental Controls Ltd, Crompton Greaves Ltd, Pricol
Technologies Ltd.
13
2.1 Genisis
M/s Salzer Electronics Limited was incorporated under the companies Act, 1956 on
January, 1985 for the manufacture of CAM operated rotary switches and other allied
switches gear products. It has technical collaboration with M/s Salzer Schaltgerate Fabrik
Gmbh, Germany.
2.2 Promoters
The core promoter of Salzer electronics limited, Mr. R Duraisamy, is a qualified
electrical engineer and technocrat entrepreneur with wide experience. He has served with
M/s. Lakshmi Machine Works Limited, the market leader in textile machinery manufacturing
industry for more than 2 decades in various capacities. He had been trained in M/s. REITER
MACHINE WORKS, M/s. BROWN BADEN, and M/s. SORECHER + SCHVE ARROW,
in Switzerland. With his experience gained through his association in companies as
mentioned above, he promoted the pilot project, M/s. Salzer Electronics Limited, in the year
of 1985, in technical collaboration with M/s. Saelzer Schaltgerate Fabrik, Germany, for the
manufacture of CAM operated Rotary Switches.
M/s Salzer Electronics Limited,
Samichettipalayam (post),
Jothipuram,
Coimbatore – 641047.
2.3 Directors of the company
The Directors for Corporate Affairs and Company Secretary is
Mr.S.Baskarasubramanian.
14
2.4 Listing Arrangements
The shares of the company are made with the help of two stock exchanges
1. Coimbatore Stock Exchange Limited,
Trichy Rd,
Coimbatore-5
2. The Stock Exchange,
Dalal Street,
Mumbai-1
2.5 Business Overview
The company is established in the switch gear industry for the manufacture of CAM
Operated Rotary Switches with Latest technology at international standards mainly for
industrial purpose and can have the facilities of taking the multiple outputs as well as
sequence with various programs in all capacities from 6 Amps to 400 Amps.
The company’s products are well received in the International and Local Markets and
all other OEM’s including public sector undertaking are using standardized Salzer switches.
The company is progressing well and is now planning to improve the quality further to
superior standards to expand the export markets.
Recently M/s. Salzer Controls Ltd, one of the group companies, has merged with
Salzer Electronics Ltd. This will facilitate Salzer Electronics Ltd, to further strengthen its
hold in the global markets and also to have size economy, cost reduction better utilization of
human resource and its manufacturing facilities, etc, to achieve the cost effectiveness.
As a corporate citizen with a good track record of profit earning and dividend paying
company since 1991 – 92, the company’s performance is registering an impressive growth in
its turnover consistently.
15
2.6 Marketing
It is one of the largest producers of rotary switches and cable ducts in Asia. The
company is having marketing tie up with M/s L & T, an individual giant, for marketing its
product in the domestic markets. Marketing can be through their wide marketing network
over 500 outlets throughout the country. By these arrangements, the company is enjoying a
major market share in the domestic markets to about 45%-50%.
2.7 Exporters
More than 24% of production is exported. Another 13% has deemed export status.
The company is also having market tie-up arrangements with M/s Crompton Greaves Ltd, an
accredited export house in the country, to sell its products in international markets. The
company presently serves for more than 35 countries in the global market and has already
established its foothold in the highly competitive international markets.
2.8 Company Turnover
Salzer Group has 7 manufacturing industry in all over India. The turnover of the 7
manufacturing industry of salzer group India is 430 crore, except software companies.
18
3.1.1 Organization structure
Salzer Electronics Ltd company maintain Divisional Structure.
Product Structure - A product structure is based on organizing employees and work
on the basis of the different types of products. If the company produces three
different types of products, they will have three different divisions for these products.
Sales and Purchase Structure - Sales and Purchase structure is used to group
employees on the basis of specific market the company sells in. A company could
have Sales or Purchase they use and according to this structure, each would be a
separate division in the structure.
3.1.2 Advantage of company structure
Divisions work well because they allow a team to focus upon a single product or
service, with a leadership structure that supports its major strategic objectives. Having its
own president or vice president makes it more likely the division will receive the resources it
needs from the company. Also, a division's focus allows it to build a common culture and
esprit de corps that contributes both to higher morale and a better knowledge of the division's
portfolio. This is far preferable to having its product or service dispersed among multiple
departments through the organization.
3.1.3 Disadvantage of company structure
This structure results in duplication of resources because, for example we need to
have equipment, for each division. Obviously, it does not support the exchange of knowledge
between people working in the same profession because part of them are working in one
division and the others are working in other divisions
3.2 Product profile
The company is not importing any raw material and the required materials and
components are made indigenously. The company is having well equipped plant and
machinery and a modern tool room to take care of its requirements and the maintenance to
achieve the target production. It also helps in quick development of new products. Salzer is
the only approved supplier for Nuclear Power Corporation for rotary switches.
19
Fig 3.2 Products
3.2.1 Sub contract operations
The senior engineer of sub-contract shall place the sub-contract order on the
approved venders and provisionally approved vendors. The order is placed on the daily
production need priorities. All the sub-contractor orders shall be prepared by assistants.
Sub-contractor and it should be authorized by the Marketing manager.
3.2.2 Manufacturing Facilities
The company has already installed requisite capacity and is having well equipped
plant and machinery’s and a complete tool room to take care of the production requirements,
maintenance to achieve the target production.
20
3.2.3 Research and Development
The company is having full-fledged R&D with testing lab to ensure continuous
improvement in product specifications and utilities, besides new product developments. The
company has been accredited ISO 9002 certification based on the recommendation of
KPMG, USA and subsequently upgraded to ISO 9001 standards for design, development,
manufacturing and supply of CAM Operated Rotary Switches and allied products. Further,
the products are also accredited with International Quality Standards Certifications like CSA,
CE, UL, and VDE.
The Department of scientific & industrial Research under ministry of Science and
Technology, Govt. of India, New Delhi, in response to our application dt.21.01.2002, has
accorded recognition to our In-House R&D unit vide their letter dt.27.09.2002, which will
facilities better interaction and updating of technological advancement being taking place in
the industry. The govt. of India has further renewed the recognition.
Company is contemplating to maintain and continuously improve the quality and
utility of the existing products such as connectors, cable ducts, toroidal transformers;
modular switches etc., with the present capabilities of R&D departments.
The company has erected and commissioned four windmills of 1*225 KW, 2*250
KW and 1*500 KW at Palladam, Coimbatore. The windmills have already started
harnessing power from renewable source wind. The mills could produce around 30.00 Lac
unit of power per annum and the power generated through the windmills be utilized for
captive consumption.
The products of the company are well accepted qualitatively in the highly competitive
export markets. The quality system of the company is in accordance with the guideline of
ISO 9001 to ensure quality in the products and services for both the manufactured and trade
products.
The International Approvals are
CSA (Canadian Standards Association)
UL (Underwriters Laboratory, USA )
CE (Conference Europeanize)
AGET (Association of German Electrical Technologies)
3.2.4 Products Range
21
The company thrust is to manufacture CAM Operated Rotary Switches with
improved version of utility both for domestic as well as industrial purposes. In brief the
switches can be used for taking multiple outputs as well as sequence from single compact
switches ranging from 6 Amps to 400 Amps, with variable programs.
Over the years, it has expanded its product range to include auto mobile switches,
load brake switches, proximity and modular switches, wiring ducts, terminal connectors and
toroidal transformers. The market share for these products is continuously growing as a
result of international approval and innovative design.
The company has been at the forefront or technological advancement catering to the
requirement of the industrial, Domestic and automobile segment. It is an ISO 9001:2000
certified company with government of India recognized R&D center. It produces the best in
quality & value added products complying with international benchmarks.
22
It now has in its fold the following product range to meet the customer’s tailor-made
requirements in additional to the cam operated rotary switches 4 Amps to 400 Amps.
DC switches – 16 Amps-500 Amps
Touch proof switches
Load bread switches
Proximity switches
Modular switches
Relays
Sensors
Terminal connectors
Cable ducts / PVC Channels
Single phase starters
Remote control switches
Phase changeover switches
Toroidal transformers
Foot switches
Besides, the company is also developing automobiles switches to meet the requirement of
the automobile industry.
24
4.1 Production Department
This department which has two production departments
1. Relay Assembly
2. Rotary Assembly.
Table 4.1 Difference of Relay and Rotary Assembly
Relay Assembly Rotary Assembly
AC & DC relays ranging from 3 to 80 Ampere from
1 to 4 pole.
Silver contacts for enhanced electrical life.
Miniature, General purpose, Power & Automotive
relays.
Status indication through LED.
Status indication through LED.
Relay Modules.
ERDA Tested & Complies with JSS standards.
AC Switch Range : 6 Amps - 400 Amps
Touch Proof / Rear Termination / Screw less
Terminal switches
Mountings : Standard front panel / Rear /
22.5 mm / Din rail / Mix & Match
Safety feature: Center Key Lock, Pad
lockable, Door Interlock.
Custom built switching configuration.
DC Switch Range : 16 Amps to 500 Amps up
to 250 Volts DC
25
Fig.4.1 Relay Assembly departments
Rejection
Relay Assembly
Sub Assembly Coil Assembly
Wire Stripping
Coil Resistance Check
Coil Resistance
Check
Accepted Scrap
Finished Goods
Inspection
Cover Fixing
Resistance Value Check
High Voltage Testing
Relay Testing
Relay Wiring
Relay Alignment
Packing
Packing
Dispatch Based On
the Sales Order
Fixed Goods Stores
26
Fig.4.2 Rotary Assembly
Dispatch Based
On the Sales Order
Fixed Goods Stores
Packaging
Screw Assembly
Main Assembly
Stage Assembly
Latching Assembly
Rotary Assembly
27
4.1.1 Production planning and control department
This department describes and plans the method production of components and final
product to suite the customer satisfaction. It applies to all planning activities needed for
manufacturer on the receipt of the order acceptance.
4.1.2 Procedure
The superintendent planning shall receive OA (order acknowledgement) along with
worksheet after reviewing with officer (FGI) and GM. It shall consolidate the OA and
shortage of MSL (minimum stock level) switches on daily base with EDP. For orders
consolidated, one copy of BOM (bill of material) will be prepared by superintendent
planning with EDP. BOM shall be printed on CSR (component requisition slip) and given to
stores by superintendent planning for receiving the materials. Superintendent planning shall
decide the work load to the assembly based on the delivery schedule and prescribes packing.
It shall prepare SA (switches assembly) along with the processing tag and hands it over to
assembly with copy of SA. It receives the material for the CRS given from officer stores
along with CRS. The officer stores shall issue components issue components issue slip for
assembly shortages/rejection. The superintendent production material co-ordination shall
prepare the monthly requirement list in the first week of the every month. The manager
production shall prepare once in six months the MSL for components based on the value and
the consumption of the company. The officer shall plan for the components stock based on
the MSL for component.
4.1.3 Process control
It ensures all activities necessary for the manufacture for the final products which
are planned and controlled in such a way to ensure the satisfaction of the customers. It
applies for all manufacturing operations followed on receipt of order acceptance from sales
department.
28
4.1.4 Procedure
PPC (production planning control) shall carry out planning the manufacture of
components and the final product on receipt of work sheet. Based on the requisition slip
from PPC, production stores shall issue raw materials and components for the manufacture of
components and final product to machine shop assembly tool room maintenance and screen
printing. Machine shop will convert the raw materials into components required for the final
product with the help of machineries and operators based on the process given by planning.
Tool room shall carry out the manufacture and maintenance of tool required for machine
shop, assembly and new components requirements.
Maintenance department shall carry out preventive, break-down and general
maintenance for all machines. The assembly section shall carry out the manufacture for all
machines. The assembly section shall carry out the manufacture of final products based on
CRS along with materials from planning. By the in-process inspection all manufacturing
activities of machine shop, tool room and assembly are controlled. Workers performing the
job in machine job, tool room and assembly maintenance, screen printing shall be trained in
line with company training procedure. It shall be the responsibility of department in-charges
to provide house-keeping practices for good working environment. Screen printing and
soldering shall be special process carried in the manufacturing.
This department ensures consumers satisfaction by reviewing the requirements,
capabilities and the clear definition of agreed requirements. It covers all the activities from
the receipt of an order the consumers and to process the order for standard products and non-
standard products.
29
4.1.5 Procedure followed
Price list
Deputy Manager shall get the authorization of managing director when the change in
price list occurs.
The ruling price list shall be revised as and when the change in input level occurs and
it is also based on competitive price.
Trade discount over the list price will vary from each customer irrespective of
standard products or non-standard products.
Deputy Manager maintains the current price list for standard products and non-
standard products.
Deputy Manager will discuss with R&D (RESEARCH AND DEVELOPMENT) if
there is any special products or non-standard products. Price list will be approved by
the MD/JMD/ED.
4.1.6 Enquiry
Sales department will receive enquiry in the form of letters, e-mail, fax etc. All
enquires will be recorded in a separate ledger held by the sales department. Based on the
enquiry, the DM shall check with the catalogue for its feasibility.
4.1.7 Quotations
If the enquiries received from L&T-ESP, the necessary quotation shall be sent to the
respective branch.
If the enquiries received from the customers, the same will be directed to the
concerned branch of the territory and the necessary prices shall be furnished to the
branch office either in the form of letter or form of quotation.
For contacting sales, fax number, phone, for L&T-ESP available in the sales
department.
All the quotation will be prepared by sales assistance? / Executive sales and approved
by D.M, executive sales shall approve the quotation and later ratified by DM.
30
4.1.8 Orders
L & T orders are downloaded through L & T website by using allotted vender code
password for all branches. Orders shall in the form of customer purchase order, fax, e-mail
and letters and it is recorded in the ledger in sales department. DM will aggregate the order
received as non-standard/special. Sales staff shall prepare order acknowledgement for all
standard and non-standard orders with the help of EDP based on feasibility and it will be
countersigned by sales executive or sales assistant and then it will be approved by DM.
4.1.9 Accepting the Order
The orders are received from customer list in annexure approved by MD/JMD/ED the
order acknowledgement shall be raised. For the orders from L & T, ESP the necessary OA
shall be raised favoring the concerned branch. For the order received the same shall be
directed to the respective branch of L & T-ESP on the covering letter. The copy of OA along
with the worksheet shall be circulated to FINISHED GOODS STORES AND PLANNING.
In the event that the order received is urgent the OA shall be marked as “URGENT
ORDERS” with the red colored rubber stamp. The delivery period shall be incorporated in
OA through EDP by sales staff.
4.1.10 Dispatches
Sales assistant on getting the receipt of the packing slip from the dispatch transfers to
the EDP. The transaction will be regularized by accounts department by preparation of
invoice cum delivery challan. The packing slip will be retained by dispatch department after
the transfer of the data to EDP. The copies of invoice, way bill covering letter shall be
retained by accounts department and sales department will refer the same on requirement.
4.1.11 Stores Department
This department ensures that all material is protected against loss during storage and
damage deterioration. It applies to storage of materials in the defined storage area within the
company itself.
31
4.1.12 Abbreviation
GRN-Goods Received Note, CRS-Company Requisition Slip, CI-Company Issues, RM-
Raw Material Issue, MSL-Minimum Stock Level, and BOM-Bill Of Materials.
4.1.13 Procedure
The officer stores shall receive the bill of material on company requisition slip.
Officer also instructs the stores assistant to collect the material from retrieved rack. Stores
assistant will place ACTAG for every material collected against BOM. For the material that
are not available at the time removal of CRS the officer stores will prepare a shortage list.
Then the officer hands over the shortage list and the material to superintendent planning. For
all CRS given to store superintendent planning shall consolidate list of components to
officer’s stores. Time officer’s stores prepare process cards based on monthly requisition list
in computer and issue process cards to engineer machine shop, senior engineer and sub-
contract.
4.1.14 Indents
The officers stores raises indents through electronic process to processing department
based on BOM taking into consideration the minimum stock level and present value of
components. For other material which is required by the department shall be got from officer
stores through a request letter or oral request.
32
4.1.15 Receipts of Materials
The officer stores shall monitor all inward and outward materials with the help of
offices stores assistant, he shall receive the material from the supplier through the security
department. After verification of material the assistant officer stores shall put the “PUTUP
TAG” for awaiting inspection status. They shall get the GRN prepared in the computer.
Assistant officer stores fill the quantity received in GRN and handover the material with
GRN to superintend quality control for inspection. Stores assistant will place the inward
materials in the retrievable racks. The officer then receives the scrap/rejection from the
engineer machine shop. Monthly remainder of components in assembly will be returned
from assembly to stores. The goods returned by the customer will be handover to customer
service representative. The other material of the factory on receipt shall be in warded to
stores through inspection report by the assistant officer who shall be inspected by the concern
department.
4.1.16 Minimum stock level
If there is any shortage fall officer stores will monitors the position to MSL
(minimum stock level) and will inform assistant manager purchase. The officer stores will
have the MSL list of purchase components.
4.1.17 Issues
The officer stores issues components through component issues for assembly rejection
or shortage based on the concern list given to the superintendent planning by assembly. Raw
materials required for manufacturing the components shall be issued against the process card
duly authorized by officer’s stores. All other materials are issued through issue ledger.
Assistant officer stores shall also send material to other companies through delivery challan
based on the recommendation of the head of the department with the approval of assistant
manager purchase.
33
4.1.18 Stock verification
Physical stock verification shall be carried out once in three months by personnel
from internal control department on random sampling bases and status will be reported to
assistant manager purchase.
Fig.4.3 Production Planning – Process Flowchart
Receipt of Order Acknowledgement
Consolidation of Order Acknowledgement Daily
Preparation of CRS (Common Requisition Slip)
CRS to Stores for Component Collection
Shortage List Along With Filled CRS to Planning
Assembly Work Order to Assembly
Preparation of Monthly Requirement and Minimum stock
Level (MSL)
Follow of Completion of Sales Order
34
Table.4.2 Raw Material, Manufacturer and Supplier / Dealers
S.No DRG. No Manufacturer Dealer / Supplier
1 ABS BLACK
IM11B, IM17A,
SHF50+
BHANSALI ENGINEERING,
RAJASTAN
KWALITY
POLYMERS, STAR
POLYMERS,
SIDHARTH
PLOYMERS.
2 ABS IFB WHITE
IM11B, IM17A,
SHF50+
BHANSALI ENGINEERING,
RAJASTAN
SIDHARTH
PLOYMERS, PUNE
3 ABS GREY
IM11B, IM17A,
SHF50+
BHANSALI ENGINEERING,
RAJASTAN
KWALITY
POLYMERS,
COIMBATORE
4 ABS MILK WHITE
IM11B, IM17A,
SHF50+
BHANSALI ENGINEERING,
RAJASTAN
KWALITY
POLYMERS,
COIMBATORE
5 ABS NATURAL
IM11B, IM17A,
SHF50+
BHANSALI ENGINEERING,
RAJASTAN
KWALITY
POLYMERS,
COIMBATORE
6 ABS RED
IM11B, IM17A,
SHF50+
BHANSALI ENGINEERING,
RAJASTAN
KWALITY
POLYMERS,
COIMBATORE
7 ABS YELLOW
IM11B, IM17A,
SHF50+
BHANSALI ENGINEERING,
RAJASTAN
KWALITY
POLYMERS,
COIMBATORE
8 POLY
CARBONATE
LEXAN
143R805093
SABIC INNOVATIVE
PLASTICS
RELIANT SAGA,
COIMBATORE
9 PC CLEAR
PANLITE L-1225L
TEIJIN POLYCARBONATE
SINGAPORE (P) LTD,
SINGAPORE
CREASAKTHI,
COIMBATORE
10 PC GREY
PC1000 FR GREY
BRAKES INDIA, CHENNAI BRAKES INDIA,
CHENNAI
11
PC WHITE
PC1000 FR WHITE
BRAKES INDIA, CHENNAI BRAKES INDIA,
CHENNAI
35
S.NO DRG. NO DESCRIPTION MANUFACTURER SUPPLIER /
DEALER
1 GF 3H BLACK SI3GF 30%GF-
BLACK
SRF LTD,
CHENNAI
SUMANGALI
PLASTICS,
COIMBATORE
2 GF 3H BLACK N6GF30 –
BLACK
FORMULATED
POLYMERS,
CHENNAI
FORMULATED
POLYMERS,
CHENNAI
3 GF 3H BLACK 73G30L –
BLACK
DUPONT DUPONT
4 GF 3H BLACK GF3H – BLACK GUJARAT
FERTILISER
GUJARAT
FERTILISER
5 GF 3H BLACK NGC 3010 –
BLACK
PI POLYMERS,
PANOLI
CREASAKTHI,
COIMBATORE
6 GF 3H BLACK PA1031 –
BLACK
BRAKES INDIA,
CHENNAI
BRAKES INDIA,
CHENNAI
36
S.NO DRG. NO DESCRIPTION MANUFACTURER SUPPLIER /
DEALER
1 GF 3H
NATURAL
ZYTEL 101L
NC010
DUPONT INDIA
LTD, CHENNAI
CREASAKTHI,
COIMBATORE
2 GF 3H
NATURAL
AKULON
KFKGS6-FR
DSM ENGG. STAR
POLYMERS,
COIMBATORE
3 GF 3H
NATURAL
PA1031 UVFR
(N)
BRAKES INDIA,
CHENNAI
BRAKES
INDIA,
CHENNAI
4 GF 3H
NATURAL
SI3GF 30%GF –
NATURAL
SRF LTD,
CHENNAI
SUMANGALI
PLASTICS,
COIMBATORE
5 M90
NATURAL
CELCON M90 POLYPLASTICS
CO. LTD
KALAISH
TRADING,
COIMBATORE
6 M90
NATURAL
IUPITAL F 20 MITSHUBISI
ENGG.CO
TEXTILE
DYECHEM,
CHENNAI
7 M90
NATURAL
DUROCON M90 POLYPLASTICS
CO.LTD
KALAISH
TRADING,
COIMBATORE
8 ACRYPOL GUJPOL – 876 G GUJARAT
FERTILISER
GUJARAT
FERTILISER
9 ACRYPOL SUMIPEX – LG
8G11AA
SUMITOMO
CHEMICALS,
SINGAPORE
CREASAKTHI,
COIMBATORE
10 PBT ARNITE – TV
420 S BLACK
DSM ENGG. PUNE STAR
POLYMERS,
COIMBATORE
11 BEKLITE ATI – 101 FLOW
MEDIUM
INJECTION
AMITY AMITY
12
BEKLITE
ATO – 142. BK
COMPRESSION
AMITY
AMITY
37
S.NO DRG. NO MANUFACTURER SUPPLIER /
DEALER
1 NYLON 6 BLACK SRF SUMANGALI
PLASTICS
2 NYLON 6 SXXIC W SRF SUMANGALI
PLASTICS
3 NYLON 66 33% SRF SUMANGALI
PLASTICS
4 PBT SRF SUMANGALI
PLASTICS
5 PE ELCER SABIC LUCKY
6 NYLON 6 30% GF SYNERGY SYNERGY
7 6VIN TO. 00000-
204-10
X PRO, INDIA LTD X PRO
8 PA 1031 UVS REL BRAKES INDIA,
CHENNAI
BRAKES INDIA,
CHENNAI
9 NYLON 6 BLUE SRF SUMANGALI
PLASTICS
10 NYLON 6
NATURAL
DSM DSM
11 POLYETHER
SULPHONE
SOLVEY SOLVEY
12 ABS NATURAL
LG CHEMICALS
KWELITY
POLYMER
38
4.2 Finance Department
4.2.1 Accounting department
Accounting department is one which looks after all the financial affairs of the
company. The company follows the double entry system of book keeping and they recognize
income and expenditure on an accrual basis. All the accounts are recorded are maintained in
in CD’s in order to reduce the paper work. Some of the transactions which are below
Rs.2000, no vouchers are prepared. They are entered separately in petty cash book. The bills
are discounted by using the facility offered by L&T Company (i.e.) 75% and the balance of
25% is dealt with outsiders. Presently e-billing facility was introduced. Pre-printed cheques
are used and the company has all its transaction with ICICI bank. In Canara bank, working
capital limit was maintained by the company.
Cash payment voucher
For the purpose of paying in cash the company maintains some of the vouchers
like,
Advance payment
Against bill
Credit type
Through bank
4.2.2 Payment of salary
Employee salaries are usually paid through the bank. In a concerned bank each
and every employees maintains an individual saving account for easy transactions. The
salary is deposited every month in the bank and the employees can withdraw their salary
every month. The payment of salary is given to employees who are working in the
organizations based on the time-rate and 8 hours are fixed time. The workers who are
working in machine shop and tool division, the salary is not based on the time rate. They
have to work on shift basis and over time are also allowed.
40
4.3 Marketing Department
The entire marketing for industrial segment products are being done by L&T in India,
the company does not have a separate distributor network, but the network of L&T is
available for its products. However for our domestic segment-modular Switches SEL is
setting up our own distribution network in the country. At present the company has around
25 stockiest in the three southern states. In the next one-year SEL is planning to create
another 35 stockiest in the western and northern markets.
4.3.1 Marketing Domestics
The company is having a marketing tie-up since 1993 with M/s LARSEN & TURBO
LIMITED, an Industrial giant in switchgear industry, which helps to appreciate its market
share availability throughout India. With the network of more than 300 dealers in India
Salzer’s product availability is enormous.
4.3.2 Marketing-Expert
Having a marketing tie-up with M/s CROMPTON GREAVES LIMITED, an
accredited export house, to service International Market, the export performance of the
company is growing steadily year after year.
Salzer is the largest and only exporter of rotary switches, cable ducts and Toroidal
Transformers. In export front the company is also exporting its products to more than 40
countries in the world penetrating the highly competitive global markets. The major
countries are South America, Egypt, New Zealand, Oman, U.K., Portugal, Uruguay, Syria,
Zimbabwe, Saudi Arabia, Qatar, Greece, and Chile, through Crompton Greaves. Besides the
company is also directly exporting its products to Malaysia, Singapore, Hong Kong, Sri
Lanka and other East Asian countries.
Salzer is successfully competing against all major European brands and it also had
overcome the Chinese threat to a great extent in the world market. Its sales exports works
out to 30% - 35% of the total turnover.
41
4.3.3 Market Size
With the primary data available through the industrial bulletin like IEEMA, the
market size for the switches and its allied products are estimated around Rs.700 Cr. In
respect of the following broad category of switches, though, there have been many
unauthorized regional level of manufacturers, whose contribution could not be quantified.
With the available source the details of the total market size is as follows:
Rotary Switches : 95 Cr.
Cable Ducts : 40 Cr.
Terminal Blocks : 70 Cr.
Modular Switches : 400 Cr.
The market is growing at a rate of 15% to 25% for the year 2003-04, 2004-05 &
2005-06 respectively.
42
4.4 Human Resource Department
4.4.1 Human Resource
Human resource is a process in which the employee of an organization is
continuously helping in the planned manner to sharpen their capabilities that are required to
perform various functions associated with present and expected future roles and to develop
their general capabilities under value to discover and exploit their manner potential for the
organization development process. Human resource management deals with the planning,
organizing, directing, controlling of the procurement, development, compensation,
integration and maintenance of the people for the purpose of contributing the organization.
At the level of organization individual and society goals of human resource managers are
involved in the resource management to contribute towards the accomplishment of goals of
the enterprise.
4.4.2 Human Resource Function
Analyzing the role.
Marketing the role and person.
Developing the role of the person.
Developing self-renewing capability.
The Head of the Human Resource Department is Mr.K.Raman.
43
4.4.3 Objectives
To assess new human resource trends for the improvement of the
organization.
To study about the employees feel about management.
To learn about the employees relationship with their peers.
To prepare personnel at all levels to sharpen their knowledge, skill, attitude,
abilities, to accept greater tasks for strengthening the origin.
To analyze the overall performance of the employees.
To find out the employee motivational factor.
To encourage employees to participate in decision making.
To analyze the overall human resource performance of the company.
Human resource activities can be classified as’
Recruiting.
Training.
Compensation.
Organizational development.
Mr.K.Raman is working as Human Resource Manager in Salzer electronics Ltd for 10
year’s and in present. He has good knowledge about allocating the manpower requirements
in different departments. He is one of the main key for the company to run their process
without any shortage of manpower. In this company among 700 employees are working in
different departments.
4.4.4 Selection Process
The required manpower is been gathered from various departments. Then according
to the information given they scrutinize and make allocation of manpower according to the
field of requirement. They select through the advertisement, their own employees, campus
recruitment, and private company consultancies.
44
4.4.5 Training
The company is providing different kind of training program to all technical and non-
technical employees. It provides various training like demonstration, literature, slide show,
etc., to all the persons in the organization. It is for all performing and self-developing in
occupation for future career development.
4.4.6 Compensation
Based on the performance of the employees in the company, the concern provides
compensation with the benefits and services. Salary, allowances, bonus, incentive, PF, etc.,
are generally comprised as executive remuneration. They scrutinize the manual records for
allocation of compensation.
4.4.7 Policy statements
Corporate policy
“Strive for excellence” is the company does and shares the benefit through the society
As well.
Quality policy
Salzer group of company’s main thrust is consistent quality at every stage of process
to meet the requirements of consumers and to satisfy them with delivery right type of
products at right price with competitive and innovative design. The company strives for
continuous improvement at all levels by implementation and maintenance of quality
management system.
45
4.4.8 Employee welfare
Salzer provides the following welfares to the employees
Canteen -50% subsidy
Med claim – group insurance 50 by 50
First aid – free of cost
Welfare fund – provided for the employee at low interest rate
Trust – educational institution med claims facilities
4.4.9 Ratio of payment
The salary and wages ratios are as follows for the employee
Basic pay – 12%
Employee state insurance – (Gross) 1.75% for the employer
Provident fund – 12%
Employee sate insurance – 45%
4.4.10 Leave
For workers maximum 15 days is offered as cash leave per year. For staff monthly
one casual leave & 5 days if offered as cash leave per year. If the permanent worker doing
over time for 48 hrs. are offered wage as 1.5
Depending on last year working days
Formula= -------------------------------------------------------------
20
46
4.4.11 Welfare amenities
The loan for medical purpose is been given immediately and for all purpose. Time
gap between loans should be a minimum of 1 year. For the educational purpose the company
is providing their employee’s children by rewarding to all standard of best outstanding
students.
The welfare amenities provided by Salzer are as follows
Uniform
Shoes
Noise control measure
Lighting
Exhaust fans
Rest room
4.4.12 Organizational Development
In order to develop the organization the activities such as performance management
i.e. management by objective, measure of performance, potential appraisal is been carried
out.
47
4.5 IT Department (EDP)
The EDP department maintains all department status in software level. Every
department has it unique software to maintain their process for easy and quick access. One
department can access other department functions and process, but they can’t make changes
in it. Managing director can access the status of all departments from this office.
After getting the order acknowledgement, first they will check the FGI and FGS
status in stores department. If the required switch materials are available, it will be sent to
assembly section for assembling process. Delivery challan is created and sent to the finance
department. Finally the product will be delivering to the customers in given time.
In case the switch materials are not available in FGS, they will check whether the
BoM (Bill of Material) are under production process. If the required switch materials are
under production process they will assemble them after production and the products will be
delivered to the customers by FGS. Delivery challan is made after assemble process.
If the BoM are not under production process, they will check the availability of raw
materials for producing the required switch materials. They use two choice of producing
switch materials are producing by themselves or they give order to sub contract. After getting
the switch materials, assembling process will takes place and delivery will be made.
All departments has link with one another through software. Acknowledgement will
be issued to maintenance department, so this department checks the sales process. Finally it
will give information about the sales to check the payment details like debit and credit.
Finally the products are delivered to the customers.
The manager checks the entire department process for avoiding mistakes in the
process of production and sales. EDP department controls all department’s software and
sends the data to manager and managing director to know the current status of all the
departments.
48
Fig. 4.4 Company controls
FGI
Assembly
FGS
Stores
Sub - Contract
Job Orders
Work Order
BOM Generation
Stock at FGS Order Consolidation
Order Acknowledgement
Delivery Challan
Invoice
Finance
Stock at
Stores
Customer
In - House
49
4.5.1 SYSTEM CONFIGURATION
4.5.1.1HARDWARE SPECIFICATION
Processor : CORE2DUO
Ram : 2GB
Hard Disk : 320 GB
Monitor : 15” Samsung
Key Board : 104 Keys
Pointing Device : Logitech Mouse
CD Drive : Sony
4.5.1.2SOFTWARE SPECIFICATION
Operating : Windows XP
Front-End : Microsoft Visual Basic 6.0
Backend : SQL
50
4.5.2 SYSTEM APPLICATION DESIGN
4.5.2.1 INPUT DESIGN:
The input design is link that ties information system into the world of its user. Input
design consists of developing specific procedures for data preparation, step necessary to put
the transaction data which is usable for computing processing.
User friendly screen format can reduce the burden of the end users, who are not
highly proficient in computers an important step in input design is the source. Source
document is the form on which data are the facility to modify the entered data is provided
which will be very useful for the user to change the wrongly entered data. If the entries are
modified, then they will be automatically modified in the corresponding database.
4.5.2.2OUTPUT DESIGN:
Output is only one method by which the user receives the information. The output
must comprise all the necessary information, which the user needs. The output must not
contain any necessary data. Efficient and intelligent output design will surely improve the
relationship between the user and the system.
In online application the information displayed on the screen. Allowing the user to
review the sample output can be extremely important of the quality of the system and in turn
read to the success of the system.
Major form of the output is the hardcopy from the printer. The print outs should be
designed around the output requirements o the user time standards for printed output suggest
the following given each output a specific name or title. Provide a sample of the output
layout, including read where printing may appear and location of each field.
51
4.5.3 DATABASE
4.5.3.1 DESIGN
The key to integrate as automatic design is well structure common database. Without
a common database to share information, data must be recreated and reinterpreted at every
stage of this process.
The basic function involved in a database system related to the information required
by its users is
Defining the data
Inputting the data
Locating the data
Communicating the data
While producing report, efficient database tables are joined using the fieldscontained
in the table to retrieve the necessary information. In database design, several objectives are
considered such as
Redundancy can be reduced
Inconsistency can be avoided
The data can be shared
Conflicting requirements can be balanced
Standards can be enforced
Integrity can be maintained
Usually the centralized data management software package called as database
management system. Within it will be found components, which exist as separate software
packages, such as a complex file handler, an information retrieval system, or a
comprehensive report generator. The organization of data in a database aims to achieve three
major objectives such as data integration and data independence.
52
4.5.4 SYSTEM TESTING AND SYSTEM IMPLEMENTATION
4.5.4.1 System testing
Testing is vital to the success of the system, the system testing makes an assumption
that if all parts of system are correct, then the goal will be successfully achieved, this is
mainly done to eliminate errors.
The various tests is,
Unit testing
Acceptance testing
Integration testing
4.5.4.2 UNIT TESTING
In unit testing, each program is tested individually. So, errors in the unit are
debugged. Sample date is given for unit testing. The unit testing results are recorded for
further reference. During unit testing the functionality of the program unit, validation and
limitation are tested.
4.5.4.3 ACCEPTANCE TESTING
The acceptance testing is the final stage of testing phase. The user does this. The
development is given to the user and tests the system with live data. The various possibilities
of the data are entered response or the system is test. The client signs off acceptance testing
and then we can successfully implement the system.
4.5.4.4 INTEGRATION TESTING
Data can be lost across an interface one module can have an adverse effect on
another, sub functions combined, may not produce the designed major functions, individually
accepted impression, may not produce the designed major functions, individually accepted
impression may be magnified to unexpectable levels, global data structure can present
problems.
53
Integration testing is systematic technique for constructing the program structure
while conducting tests to uncover errors associated with interface. The objective is to take
unit testing to uncover errors associated with interface. The objective is to take modules and
to build program structured that has been dictated by design.
54
Fig. 4.6 Data flow diagram
LOGIN
EMPLOYEE
EMPLOYEE SALARY
OVERTIME
ATTENDANCE
DEPARTMENT
LOAN
EMPLOYEE EMPLOYEE
REPORT
OVERTIME
DEPARTMENT
EMPLOYEE
DETAILS
SALARY
PROCESS
OVERTIME
PROCESS
ALTERNATIVE
PROCESS
DEPARTMENT
LOAN PROCESS
LOAN
EMPLOYEE
USER
60
5.1 Strength
Salzer electronics Ltd is one of the rare unit in India to produce the good quality
switches, rotary switches, ducts, cables.
Management is very stable, that forms strong foundation.
This company got ISO certifications to producing quality product.
It has well equipped quality control department to inspecting the incoming raw
materials and final products.
Highly skilled and committed employees.
5.2 Weakness
Underutilization of resources.
Less co-ordination between different departments.
5.3 Opportunity
It has opportunity to expand production units because of the demand for their quality
products.
Set more branches across nation.
There is growing demand in developing countries for electronics goods like switches,
cables etc.
5.4Threats
Increasing raw material cost due to inflation rates.
Rising number of switches manufacturers in India.
62
6.1 Findings
Strength of SALZER is its Brand Name.
SALZER is willing to take up any challenges customize project and willing to
successfully implement it.
Advertisement costs are too less because they manufacture the products based on the
orders.
SALZER ELECTRONICS has ISO, KEMA, CE, UL and VDE certifications.
Quality assurance department is maintaining the quality of the product & it has
become basis of competition with other companies.
Company is ecofriendly; they recycle the waste water and reuse the same water for
their daily use like washing and gardening.
They have well integrated SAP and use data base such as ORACLE or that co-
ordinate and connects various information of different departments, hence it provides
ready information to the top level management to take immediate decisions.
64
7.1 Conclusion
Salzer Electronics Limited is situated in good location, with an excellent
infrastructure. In this competitive world, it is very important for every student to gain a
practical knowledge about the organization. This internship training has given a view about
the technical, theoretical and practical working of an organization.
We had great time with this company, because we learned number of things about the
management. We learned how they are maintaining the productions, how they are
controlling all departments, order maintenance, sales, functions of human resource
management, workers and staffs relationships. That was very useful to improve my
management knowledge.
I conclude by thanking M/s Salzer Electronics Limited permitting me to carry out this
training successfully in their organization. I am also very thankful to my guide and staffs
who gave me a great support to complete the training successfully.
7.2 Suggestion
Manufacturing cost to be lowered by improving productivity.
An extensive & effective marketing strategy needs to be carried out by the company.
Employee satisfaction & retention of manpower should be checked & ensured.
Company can encourage more women employees.
Provide sign boards within & outside the company premises to facilitate easy
identification of the department.
Can improve the infrastructure of training & development center in order to provide
better environment for the learners & trainees.