Company Overview:

KDS Group:
This group is a well-known one in Bangladesh with major business on export of garments to all parts of the world. It is a true story of success for the group. Established in 1983, with long term vision, dedicated and determination, the group has established itself successfully within a very short period of time and its present annual turnover is about 2200 crore taka. It employs more than 13000 people in its various establishments. The group has got four major divisions, with a number of group companies within each division, as mentioned below. Besides, company has got liaison office in abroad.

Garments Division KDS Garments Industries Ltd Five Star corporation Shaindir Garments HN Garments Ltd Moon Apparels KHS Enterprise KS Apparels KDS Quitting Star Apparels Modern Apparels KDS Washings KDS Textiles Mills Ltd. KDS knitting & Dying Ind. Ltd.

Accessories division KDS Poly Industries Ltd. KDS Plastic Industries Ltd. KDS Printing Industries Ltd. KDS Packaging Industries Ltd. KDS Label Printing Industries Ltd. KDS Cotton Poly Thread Industries Ltd.

Information Technology Division KDS Information Technology Ltd.

Steel Division KY Steel Industries Ltd. KY Steel Mills Ltd. KY CR Coil Industries Ltd.

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Ind. Ltd.

KDS Screen Printing

The Garments and Accessories divisions have integrated vertically all the activities starting from textile fabrication to printing of labels and the group is totally in manufacturing and exporting garments to abroad. Venture in steel business is relatively new for this group but it has become a player to recon with. In 2001the steel division has completed a massive green field project for Cold Roll Steel Production with an annual production capacity of about 150,000 Metric Ton of CR Sheet using German technology, which is the first of this kind en Asia.

KY Steel Mills Ltd:

The company being a member of Steel Division was established in the year 1992 with its factory at kumira in the Chittagong-Dhaka highway about 30Km from Chittagong city, the company is manufacturing corrugated galvanized sheets from Cold Rolled (CR) Sheets of varying thickness. Presently the company has got four manual and one automatic galvanizing line with a total production capacity of about 6000MT of galvanized sheets of various sizes per month.

Bangladesh doesnt have and steel manufacturing plant and accordingly imports processed raw for manufacturing steel based products. CR is one of such raw materials Bangladesh used to import. Recently the country got few Cold Rolled plants which use imported Hot Rolled sheet as raw material. One of them KYCR coil industries Ltd, the Cold Rolled plant of the group now supplies the raw material for KY Steel and thereby completed one of the major integration in the steel based production.

Galvanized corrugated sheet are being widely used in Bangladesh as roofing materials and also for making the sidewalls of the huts. Present annual sales of the company are approximately 60000MT of corrugated sheet. Company has got its liaison office at Dhaka. Sakes are generally done through major dealers. Total number of permanent employees at the factory is about 160 whereas in the office the number is about 60.
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Company profile:
Established Size of facility Market served Major Customers Year 1992 2,80,8000 sq ft 15% of the total market share of Bangladesh Domestic sale through Companys authorized agents Average annual sales Capital investment Material used Number of employee Shift worked Machines Quality $40,000,000 $6,000,000 Cold Rolling Coil(JISG3141) 238 3 Shift 5 Galvanizing lines 212 to 222,J/S G3302

Company Planning:
As a steel company KY steel mill has many plans to accomplish its goals to be the market leader in Bangladesh. The company planning involves the following plans:

Product mix optimization Supply chain design Sourcing strategy Customer service strategy
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Inventory optimization

Order and campaign planning Capacity planning Materials management Order acceptance Batching Routing and schedule creation

Strategic Plans:
Strategic Plans mean plans for long term benefits. KY steel mill is looking forward to becoming the market leader in Steel industry in Bandladesh so certainly it has some strategic plans which will facilitate its goals in long-run. The Strategic plans are as follows:

Shorter lead times Lower production and transportation costs Higher asset/bottleneck utilization to increase productivity Accurate and reliable order acceptance and promise High flexibility in responding to last minute changes and disturbances Superior customer service and delivery performance

Operational Plans:

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Operational plans involve the real actions to accomplish the strategic plans as well as companys short term and Long term goals. KY steel mill is also following some operational plans to accomplish its objectives and goals. These are as follows:To meet the demand for Steel in the country, many Steel factories have been brought to the implementation stage in Bangladesh during the last few years. More than 15 newly established companies have entered the Bangladesh Steel market during the last two years. As a result, severe, unhealthy competition in the Steel sector is expected. To face this challenge of future competition, the companys operational plans are: To promote the quality of Steel, a product which has the most critical bearing on the quality of construction. To commit to producing Steel that consistently achieves a high degree of quality To establish long-lasting relationship with the architects, builders and users of Steel To constantly monitor and control the plant operation and process parameters using a computerized system under the supervision of highly qualified Engineers To continuously technically upgrade the plant in order to perform to the highest possible degree of efficiency and productivity To achieve ISO-9002 classification

The Planning Process:

In steel company like KY steel mill, many types of planning processes are followed for different types of plans. Here we mainly discuss about the production planning process of KY steel Mill.

length and width. The primary raw material for production is Cold rolled sheet and Zinc to

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The product of the KY Steel is Galvanized Corrugated (GC) Sheet of various thickness,

provide anticorrosive coating on that sheet. The cold rolled sheet (later reoffered as CR sheet) is the product of Cold Rolling mill. As mentioned earlier there was no such CR mill on the country and all the GC sheet manufacturers used to import CR sheet as raw material. Recently few indigenous sources are available for CR sheet.

CR sheet are produced from Hot rolled sheets which is the output of full-fledged steel plant. Till dare no such plant is available in the country and everyone manufacturing CR sheet, imports the HR sheet from foreign countries like Japan, Thailand, China and India. Following flowchart shall explain the path of formation of GC sheet starting from the iron ore.

Iron ore/ Limestone

Steel Manufacturing Plant

Hot Rolling Plant

Hot rolled Sheet

Not in Bangladesh

Cold Rolled Sheets

Cold Rolling Plant

Galvanized Corrugated Sheet

Galvanization Plant

Zinc for galvanization

Diagram: Total Planning Process

The manufacturing process starts from the raw materials, which are mainly iron ore lumps and fluxes such as limestone, dolomite etc. Few technological options are available for conversion
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processes; arrows represent the links between them.

of iron into steel products. A schematic diagram has been developed to explain those

Scrap

Iron ore

Sinter plant Coke oven

Pellet Plant

Blast Furnace

Smelting Reduction

Direct Reduction

Basic Oxygen Furnace

Electric Arc Furnace

Ingot

Continuous Casting

Rolling Mills

Hot Rolled Sheet

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Diagram: processes Let us now describe the process in a simpler way. Raw materials i.e. iron ore mixed with limestone etc are charged in a blast furnace where hot air is pumped to melt iron and fluxes at 1600 degree Celsius. The molten metal when cooled and solidified is called pug iron. Molten metal from the blast furnace is taken to steel melting shop where further reduction of impurities is done in oxygen furnace (LD converter). Earlier this is being done in open health furnace, which is a old technology. The crude steel in liquid form is taken in a ladle for further refining or adding of Ferro alloys etc. The liquid steel is then cast into semi-finished products such as billets, blooms, slabs etc. this process s called continuous casting. In earlier technology the liquid steel is first solidified in large blocks called ingots and then rolled into semis. That process used to involve higher energy and waste in re-heating. Once the casting is completed the semi-finished product is ready for rolling. The semis such as billets, blooms, and slabs are heater at 1200 degree Celsius to make metal malleable and then rolled into finished products. There are different rolling mills for different products. Rolling mill for long products such as bars, angles, structural etc. can be part of steel making plant or an independent small scale industry. Flat product rolling mills are capital intensive, as they have to meet strict quality parameters, rolling mill rolls slabs in flat product HR plate/ strip/ coil by process if heating. The thickness of HR sheet cab be further reduced by cold rolling i.e. rolling in CR mill at room temperature, then CR sheet can be Zinc coater in galvanizing plant to make galvanized plates or corrugated sheets, which is the product of KY steel Mills. With this brief idea on the steel making technology, mow the technology of galvanization may be discussed which would be of prime interest for the sales team. At least

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used for making wall of the houses, boundaries etc. being the economic option.

75% of the household uses GC sheets for some application or the other. These sheets are also

Steel id its original form id prone to corrosion. Unprotected steel can be seriously damaged due to such environmental factors as rain, high humidity, wind storm, and extreme temperature. Corrosion transforms steel back to its natural state of iron, which is very fragile and can prove to be deadly id roof and other structures the best way to avoid this phenomenon is through a process called Galvanization. This process consists of dipping steel in melted Zinc at about 450 degree Celsius, temperature at which iron and zinc share great affinity, and allowing an alloy to form where pure zinc prevails to the outside. The final product is a steel surface protected with a zinc coating. Due to the difference of electrochemical potential between zinc and steel a zinc coating can protect steel in such a way that vigorous forces, such as cutting, scratching or piercing, are equally protected against corrosion. This technology is used in the galvanization line and CR sheets are first galvanized and corrugated to get the GC Sheet.

Structure of KY steel mills:

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Departmentalization:
Departmentalization refers to the process of grouping activities into departments. The Departments of KY Steel mill is given below through the following chart.

Departments of KY Steel Mills

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Span of Control:
KY Steel mill follows the flat type of Management structure: Employees

Management

Non - Management

Manager

Officer

Office based

Field force

Commercial

GMS

KEY MANAGEMENT PERSONNEL Rajib Barua, Site Director Sahana Ali, Administrative Assistant (KY STEEL Mills Ltd.) Sayed Nazrul Islam, Head of HR and admin Prodip Kumar Hore, Site Quality Manager Md. Saiful Alam, Site Finance Manager Md. Lokman Hossain, Site Production Manager Anjan Kumar Das, Head of Engineering M.M. Sahanewaz Chowdhury, EHS Manager
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A. F. M. Mizanur Rahman, Plant Head (KY STEEL Steels) Ashraful Rahaman, Planning and Supply Chain Manager Surendra Jagdale, General Manager - Projects Md. Azizul Haque, Plant Head (BISCO) Jasim Uddin Ahmed, Head of Technical Projects Sankar Roy, Group Head T&D

HR Activity:
HR department of KY steel mill involves the following tasks: H.R. Development H.R. Services Compensation Industrial Relations The major functions of this department are as follows: Recruiting and placement Develop as well train up the employees Asserting smooth workflow in the organization. Evaluate the performance of the employees Supervise the factory workers Demand management of labor Offer attracting compensation and benefit packages for the employees Maintain the daily attendance Review the salary structure Review and propose the upcoming budget Perform the administrative activities for smooth functioning
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 Create a good working environment Implemented the disciplinary action Recruitment & Selection Process of KY Steel Mill:
No of specific jobs to be filled Nature and recruitment for specific job

Human Resource planning

Recruitment

Pool of qualified application

Selection

Job Analysis

Recruitment policy of KY Steel Mills:

To achieve the organizational goal effectively KY STEEL Top Management has develop a Recruitment Policy. In accordance with the Recruitment Policy there have some guidelines. The guidelines of the policy are as follows: Ensure the right people in the right place. Combination of skills and resources is a must. Policy is based on EEO. No discrimination against the applicant on the basis of sex, color, region, race, age, national origin or any other factor. Companys policy is always loyal to the Local law. No one who is below 18 years of age can be hired as an employee for KY STEEL Bangladesh on regular, contract or temporary status. The person who is serving in any other companies whether temporary or

That functional heads determines suitable qualification for any post. Absolute confidentiality in HR Recruitment Policy must maintain.

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permanent under any circumstances in any capacity is never recruited.

Training and Development

After recruiting and placing the employees in the right place the next step is to train and develop the human resources acquired recently. Training and Development means changing what employees know how they work, their attitudes toward their work, or their interaction with their co-workers or supervisors. Steps of Training and Development:

Needs assessment

Training and development objectives

Program content Learning principles Actual program

Skills Knowledg e Ability of workers

Evaluation criteria Evaluation

Compensation Management

Remuneration is the compensation an employee receives in return for his or her contribution to the organization. Remuneration occupies an important place in the life of an employee. His or her standard of living, state in the society, motivation loyalty, and productivity

remuneration is significant because of its contribution to the cost of production.

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depend upon the remuneration he or she receives. For the employee to, employee

COMPENSATION AND BENEFITS OF KY STEEL I. Required or mandatory benefits a. Basic salary All employees of KY STEEL will get a basic salary for their involvement of the company, which expressed in terms of money. b. Overtime Overtime is calculated as hours worked after regular working hours at the offices (both Head office & DMOs) and factory. For working in holidays one is entitled to receive Tiffin allowance. c. Medical allowance Every employee/worker is entitled to free medical treatment for them and will include: Free checkup and consultation with doctor. Any sort of medical treatment or pathological tests Any treatment abroad if the employee surely is in need of such facilities and has been certified by a registered physician. Family Medical Expenses including children. d. House Rent House Rent Allowance for non-management personnel is 92% of basic pay with a ceiling of Taka 4700/=. House Rent Allowance for management personnel 50% of their basic pay and there is no ceiling

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e. Annual bonus

All non-management employees are eligible for annual bonus, which is an amount equivalent to 4 months of their basic salary or pay. f. 5% of Total Profit In order to make profit KY STEEL provides 5% of total profit for the operational level employees. II. Voluntary benefit a. Increment In every year there will be a salary increment of KY STEEL on the basis of individual performance. Different grades of employees has different increase rate of increment. b. Bonus The employees of KY STEEL also receive extra remuneration that called bonus. Bonus is paid on the basis of performance, over time, achievement, and target. It is also different for different grades. c. Transport allowance KY STEEL Bangladesh provides pick-up and drop services to its employees with own or rented chartered vehicles. No conveyance will be payable to the employees who fall within a distance (1 km) closest to the office, factory or depot. However, those who do not wish to avail this service can claim a conveyance allowance paid at a monthly rate. d. Performance bonus In order to achieve the organization goal effectively, efficiently, and timely KY STEEL management introduces the performance bonus system. Performance bonus is given on the basis of employees individual as well as group performance. The more the performance the more the performance bonus is

e. Telephone

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given.

A certain amount of telephone expenses is paid to the Manager Grade employees. f. Utility Utility Allowance is paid to employees for assisting them in covering their utility costs. g. Transportation All the MPO of KY STEEL receives transport allowance for their field visit. Also all the employees have got transport allowance for any outdoor official tasks. h. Canteen facility The factory employees and workers get canteen facilities at lunch hour. If any employee working after office hour for more than two hours he/she will Tiffin allowance i. Entertainment allowance All employees other than management personnel are entitled to entertainment allowance calculated as 6% of basic salary. j. Attendance bonus It emphasizes regular attendance and discourages unwanted use of leave facilities. This is awarded to employees who have not absented to himself unauthorized and who has not availed sick leave. III. Retirement benefit a. Group life insurance The company took out Group Insurance Policy covering its employees against total or partial disablement caused by accident and death whilst in

b. Long term service award

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employment.

A gold medal along with a crest and a long service certificate is given after completion of 20 years of continuous service with the company. c. Provident find KY STEEL employees also get the provident fund facilities.

IV.

Time off related benefits a. Leave fare allowance KY STEEL encourages its employees to avail leave facilities the company offers for recreation and avoiding fatigue, which is equivalent to one months basic salary. b. Festival bonus KY STEEL Bangladesh also provides festival bonuses for the employees. Two bonuses at Eid Ul Azha & Eid Ul Fitr for Muslims, two bonuses at Durga Puja & Saraswati Puja for Hindus, two bonuses at Christmas Holidays & Easter Sunday for Christians and bonus at Budhdha Purnima for Buddhists.

V.

Health and insurance related benefits a. Free checkup KY STEEL employees get free checkup and consultation with doctor. b. Diagnostic or Pathological tests All sorts of diagnostic or pathological tests costs will be borne by KY STEEL. c. Aboard treatment Any treatment abroad if the employee surely is in need of such facilities and has been certified by a registered physician KY STEEL will provide the facility.

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d. Major Medical

Major medical is a group insurance plan designed to help employees medical bills incurred because of serious and prolonged illness. KY STEEL employees get this facility. All sorts of medical expenses will be borne by KY STEEL. e. Hospitalization plans In case of hospitalization KY STEEL employees get the hospitalization bill from company. f. Surgical expenses All sorts of surgical expenses will be borne by KY STEEL . VI. Financial, Social, and Recreational benefits a. Domestic help KY STEEL employees are also getting the domestic help. b. Fuel expenses The certain level of fuel expenses also beard by the company. c. Maintenance of Car The Manager Grade employees also get the maintenance cost of their car. d. Children education allowance Children Education Expenses payable to a worker/employee shall be Tk. 400/- per month. e. Education assistance Educational Assistance is paid to non-managerial employees at a time at the beginning of each year for covering the initial schooling expenses for their siblings. f. Night meal allowance

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beyond 10 P.M

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Any employee is entitled to night meal allowance if he is detailed for duty

VII.

Other Allowance There are many other allowances for the employees of KY STEEL especially for the employees working in the factory. Some of them are as below: Fasting Allowance Iftar Allowance Transfer Allowance Lunch Disturbance Allowance Special Tiffin Allowance on Out-Station Duty Taxi fare for overtime duty Uniform Washing of uniform.

Performance management System:

A) Performance Appraise system of KY steel Mill

Job analysis

Setting Performance Standard

Performance Appraisal System

Assessing actual Performance

Performance review Page

Information

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Job analysis

Setting Performance Standard

Performance Appraisal System

Assessing actual Performance

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