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1.1 INTRODUCTION
This report is based on an Organisatioanl Study conducted at Kerala Agro Machinery Corporation Limited (KAMCO), Athani. (KAMCO) was established in the year 1973 as a wholly owned subsidiary of Kerala Agro Industries Corporation Limited (KAIC), Trivandrum for manufacture of agricultural machinery, specifically Power Tillers and Diesel Engines. KAMCO had technical collaboration with KUBOTA, Osaka, Japan. Subsequently KAMCO became a separate Government of Kerala undertaking in 1986. KAMCO has four production plants that are situated in Mala, Palakkad, Kalamassery and Athani. Agriculture is the backbone of our country. Agriculture is no longer what is used to be. Intensive, mechanized operations are fast changing the tempo of agriculture. Agriculture is the base of Indian economy. A large number of populations depend upon the agriculture sector for their lively hood. India needs a very big quantity of food grains to feed her population. So it is high time that we need improved and modern agriculture equipments and their implementation to increase the productivity in agriculture sector. The western countries are now able to produce excess food grains using improved techniques. Now the time has come or had exceeded to step in to the mechanized agriculture Agriculture is considered to be the major activity of most of the people in India. Moreover, 200 million farmers and farm workers have been the backbone of Indians agriculture. In the beginning, the farmers adopted ancient methods for their farming practices. The whole process that is from sowing the seed till harvesting, were all done by the farmers themselves. It was really a time consuming one, which required lot of labour. The cost of production was high and the benefits are not promising. After independence, Indian agriculture has made rapid strides in production of food grains, thus contributed significantly in achieving self-sufficiency in food and thereby avoiding food shortages in our country. Rapid growth of agriculture is essential not only to achieve self-reliance at national level but also for household food security. Kerala Agro Machinery Corporation Ltd (KAMCO) has become the light of the fast changing agriculture operations in our country.
Report on OS at KAMCO
Thus the study mainly includes identification of key results areas of various managerial levels and the background behind the functioning to achieve the objectives laid down at each level that are consistent with the Organizational Objectives. The training helps to study various aspects of an Organization with respect to each departments functioning, the level of people concerned in the department function and thus contributing overall to the progress of the Organization , the training help to get acquainted with the environment surrounding the business, the working culture of the Organization and the practical functioning of each department. The training gets you to know about the various policies of the Organization and its past performance, its present & its future strategies. The main objectives are as follows:-
1. To study the overall functions of a manufacturing organization. 2. To get the practical knowledge about the different departments of an organization. 3. To relate theories with practical. 4. To understand the relationship between the management and the employees. 5. To understand the relationship between the management and the employees.
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1.
Observation:One of the earliest methods of investigation was observation which had the meaning of something known to all observation. This is classified into two ways: Participant Observation When the observer participate observation, which make him a part of the group under study. Non participant Observation -- When the observer does not actually participate in the activities of the group but simply observer from a distance is known as non-participant observation.
2.
Face to face Interview:Conducted face to face interview with different managers and head of different departments.
METHODS USED IN THIS PROJECT: The main technique used to collect data was personal interview with the manager and staffs of the firm. The secondary data was collected from the companys brouchers, websites, company profiles and magazines.
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The growth in adoption of agricultural machinery in the country has been possible due to their local manufactures, villages artisans, tiny units, small scale industries organized medium and large scale sector under take the manufacture of agricultural machinery in India. Traditional hand tools and bullock drawn implements are largely fabricated by village craftsman and power operated machinery by small scale industries.
India is basically an agrarian nation. There are numerous farmers in India who are cultivating in large scale or in small scale. There was not much mechanization in India in the field of agriculture till recently. Economic development without agriculture development creates bottlenecks and generates inflationary pressure. This is what happened in India. Low rate agricultural development results in shortage of food and essential raw materials leading to inflation. Therefore agricultural development is essential to avoid inflation and to ensure with stability.
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State of Kerala has peculiar state of affairs in its agricultural economy. Being a consumer state, it depends largely on agricultural products from the neighbouring states. It has tiny and small farm lands owned by private land owners. Even those available lands are not fully utilized for cultivation, owing to economic reasons. Low productivity coupled with prohibitive cost of cultivation has virtually driven the traditional farmers out of their vocation. Under this scenario, the mechanization of farming is a non-starter proposition in the state. Barring traditional tools and tackles employed by the farmers in the cultivation, there were no motorized or mechanized equipment available in the state. KAMCO was adventurous enough to venture into this bleak scenario, and introduced its power tillers and other medium and small sized mechanical aid of cultivation. The Kerala farmers grabbed this opportunity, and made use of benefits of automation in their fields, which in turn made the entire operations of the KAMCO successful. As of now, KAMCO is the one and only industrial unit in the state which provides machineries to the farming segment as an aid to their cultivation.
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The US will experience gains that will lag the world average due to decelerating growth in economic and agricultural sector output in the country though 2012. Western Europe will post particularly anemic growth through 2012. Farmers in both the US and Western Europe will adversely impacted by continuing trends in favour of free trade and against protagonist measures such as subsidies for domestic farmers and tariffs on agricultural imports.
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Organized sectors confine to manufacture of machines like tractors, engines, milling and dairing equipment. These industries have adopted sophisticated production technologies, and some of them match international standards. The enhanced scope of import of technology (product designs and manufacturing process) by organized sector and entry of foreign investors is likely to accelerate exports. Since cost of production of farm machinery in India is more competitive due to lower labour wages, the importers from various countries will find Indian farm equipment more attractive. Indian products however shall need improvements in quality for gaining major export growth.
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3.1.1. Origin of the Organization The Kerala Agro Industries Corporation Limited (KAIC Ltd) Trivandrum, (Government of Kerala Company) promoted the establishment of Kerala Agro Machinery Corporation Limited (KAMCO). It all began in 1958, when Dr. Rajendra Prasad, the President of India was presented with a Kubota Power Tiller by the Japanese. (M/S. Kubota Limited, Japan, the worlds leading manufacturer of Power Tiller and other agricultural machinery). The machine helped to open up new avenues in farm mechanization for a country predominantly agrarian. It was realized that mechanization of farming operations would be one of the keys to engineering a successful Green Revolution and reliable indigenously manufactured farming equipment became the need of the day. The KAIC ltd entered into technical collaboration agreement with M/S. KUBOTA Limited, Japan in February 1972. On 15.11.1972, the Kerala Industrial and Technical Consultancy Organization Limited (KITCO) were entrusted with the work of M/S KAIC Ltd, which held the entire paid up capital shares in KAMCO. Even though the company was formed as a subsidiary of KAIC Ltd, subsequently the company has made a fully owned Government company by transferring the shares held by KAIC Ltd.
3.1.2. Growth & Development of the organisation A major growth and development of the Organization is that KAMCO has gone to the International Quality Excellence Certificate under ISO 9002 in October 1996. KAMCO is the second public sector under taking in Kerala getting this coveted certificate , and the only public sector undertaking who got ISO 9002 certification justifying the high standards of the products for their three units. From 15.03.2002 onwards
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KAMCO becomes an ISO 9001-2000 registered company by KPMG Quality Registration accredited by the Dutch council for certification.
3.1.3. Present Status and future plans of the Organization Present status of the KAMCO is synonymous with service to the small and marginal farmers of the country. KAMCO through their precision and quality is revolutionizing the small and marginal holdings out the country. Today KAMCO power tiller is the most sought after tiller in India, enjoying over 60% of the market share at national level. The company with its four plants is confidently meeting the demands for KAMCO products in India and abroad. The main markets for the power tiller are at West Bengal, Assam, Tripura, Meghalaya and Manipur. Future plans of the Organization have a number of diversification plans in the anvil. Its proposed to set up Research & Development activities which will hope fully help it to develop new products in the future and live up to its promise, that its products will be A boon for the farmer and gain for the nation. The Quality policy of KAMCO is Total customer satisfaction through quality products and services with improved technology and employee participation. The main products of the company are KAMCO Power Tiller, KAMCO Power Reaper and KAMCO Diesel Engine. KAMCO Power Tiller is a versatile machine used for primary farming operations like tilling, ploughing, weeding, pudding, leveling, hulling, ridging and transporting. KAMCO Power Reaper is a compact small harvesting machine, suitable for harvesting paddy, wheat, barley etc. KAMCO Diesel Engine is used for pumping water at high force. For the last three decades, KAMCO has been meeting the needs and demands of Indian farmers. The logo of KAMCO is Engineering Green Revolution. KAMCO has been successfully engineering the green revolution in India through the manufacture of indigenous and quality agricultural machineries. KAMCO is also importing agricultural equipments like Kubota Combine Harvester and KAMCO Kukge Rice Transplanter. The company is making profit for the last 22 years continuously increasing its production, turnover and profit year after year. KAMCO has established three more units from its internally generated resources. The units are located at Kalamassery in Ernakulam District, Kanjikode in Palakkad District and Mala in Trissur District. The products that are being manufactured at different units of KAMCO are:
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KAMCOs Kalamassery unit was purchased outright from SIDCO during 1990 and converted as a viable Diesel Engine unit.
Palakkad unit produce Power Tiller during the beginning from 1995. The project cost was Rs.4.3 crores. As a Part of diversification activity, the company developed a compact small harvesting machine KAMCO Power Reaper and its production is carried out at Mala unit in Thrissur district. The project cost of the unit was 4.28 crores.
The Company enjoys the position of premier manufacture in the field. The products manufactured are indigenized and there is no imported content in any of the items. The machines have acquired a reputation for quality and reliability. KAMCO is an ISO 9001 organization with the aim of providing quality products at reasonable price to the satisfaction of customer. The Company enjoys all India market through a network of about 45 dedicated dealers. Products are sold on premium at several places. They have acquired a brand preference because of the high quality and reliability associated with each machinery.
Power Tiller is equipment suitable for small farm holdings for basic tilling operations. Instead of conventional ploughing, the tiller breaks the soil into fine parts, which is highly suited for paddy and wheat cultivation. Originally of Japanese design, the machine has been modified later to perfectly suit to Indian conditions.
The company plans to diversify its activities further in acquiring technical knowhow and going into regular manufacture under license, of machines suitable for other agriculture purposes with the small and marginal farmers in mind. KAMCO is an ISO 9001:2000 registered company. The motto of the company is A boon for the farmers and a gain for the nation. The present workforce of the company in Athani unit is 567.
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3.1.4 Unit wise Business Operation The business areas operating in KAMCO are indicated in the matrix given below;
Sl. No. Division / Department 1.0 1.1 1.2 2.0 3.0 3.1 3.2 3.3 4.0 5.0 6.0 Corporate Office Marketing Materials Purchase Production Assembly Pretreatment & Ptg. Machine Shop Maintenance Quality Assurance Engineering * * * * * * * * * * * * * * * * * * * * * Corporate Set Location up Athani * * * * * * * Palakkad Kalamassery Mala
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Store Human Resource Management Human Resource Development Finance Internal Audit Systems * * * * *
* * * * * *
* *
* *
* *
Objectives of KAMCO are to manufacture in India either in collaboration with or otherwise import and trade agriculture machinery like Tractors, Power Reapers, Combine Harvester, Transplanted, Diesel engines, Pump sets, implements accessories and spares thereto. The objectives also include establishment of engineering work shops, repair shops to undertake repairs and serving of agricultural machinery or other machinery equipments implements and tools.
VISION KAMCO, with over three decades of engineering excellence, stands as the no.1 power tiller manufactures in India. Not surprising with four states of the act of production plants, an innovative R&D and stronger quality control system rates one of the best in the country. The technically competent, dedicated management and work force will go on to ensure that KAMCO shall be the leader for several years to come.
MISSION To be innovative, resourceful, and profitable company. To meet customer requirements of quality service and price consistency. To make doing business with us easy, and delightful to our customers.
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To provide an entrepreneurial environment in which employees can respond to the needs of business and service, earn fair rewards and can be satisfied.
To ensure that quality requirements of the product and service offered are maintained at all stages. To create a culture amongst all employees towards total quality concepts productivity through total involvement and commitment of the employees. To create healthy working environment for attainment of quality goals with excellence and make quality a way of life. To detect and prevent non conformance and defects as early as possible and to eliminate them through appropriate changes to the quality management system. To achieve and maintain quality leadership through continuous technology up gradation, improvement in techniques, systems and procedures to meet customers changing needs.
The objectives of the company are to manufacture in India, either in collaboration with or otherwise import and trade agriculture machinery like Tractors, Power Tillers, Power Reapers, combine harvester, Transplanted, Diesel Engines, pump sets, implements, accessories and spares there to. The objectives also include establishments of engineering workshops repair shops to undertake repairs and servicing of agricultural machinery or other machinery, equipments implements and tools.
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Assembly unit was established in 1970 at Athani by M/s Kerala Agro Industries Corporation for the assembly of Kubota power Tillers in technical collaboration with of Kubota Ltd, Japan. The words dealing manufacturer of power Tillers and other agriculture machinery on expiry of the collaboration, KAMCO manufacturers Power Tillers with their own facilities.
3.7. AREA OF OPERATION KAMCO manufacturing facilities include special purpose Machines, specially built General machines and imported machines. The inspection facilities include modern inspection and existing equipment. KAMCO have their own Metrology, calibration and engine test lab, the following are the main activities of the company. a) Manufacturing and marketing of agriculture machines like power tillers, Tractors, power reaper, Diesel
engines etc. b) Power Tiller product at Athani and Palakkad units. Major components bought out from dedicated
vendors in India. There are around 250 vendors now. c) d) e) Kalamassery unit produce Engine for Power Tiller. Power Reaper product at Mala. Trading and manufacturing of other farm machines.
Report on OS at KAMCO
1986 KAMCO has become a government of Kerala undertaking firm. 1992 KAMCO established second unit at Kalamassery in Ernakulam district for manufacturing Diesel Engines. 1995 Witnessed the setting up of third unit of KAMCO at Kanjikode, Palakkad for manufacturing power tillers. 1996 KAMCO won international quality excellence certification of ISO 9002. KAMCO is the second public undertaking getting this covered certificate. And the only one public sector undertaking which has got ISO 9002 certification justifying high standards of products for their three units.
2000 Latest and technically advanced unit was started at Mala, Trissur for producing power reapers. 2002 KAMCO has become a 9001-2000 registered company. 2011 KAMCO started tractor manufacturing.
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1. KAMCO POWER TILLER KMB200 2. KAMCO POWER REAPER 120 3. KAMCO AGRIA 602 DE (06) POWER TILLER 4. KAMCO DIESEL ENGINE MODEL ER 90 5. KAMCO BARBIERI B/30 GARDEN TILLER
Use
KAMCO Power Tiller is a versatile machine primarily used for preparation of land for farming operations. With suitably designed accessories the machine can be used for large number of specific operations like tilling, ploughing, weeding, pumping, puddling, leveling, hulling, ridging etc.
Specifications Model Tiller KMB 200 Type Water-cooled, radiator HP Max RPM Fuel consumption Continuous 12 2000 1.5 liters per hour
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Engine
ER 90
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Fuel tank capacity No. of speeds Reverse Tilling Wheel track Minimum Tire size
Ground clearance Traveling speed Tilling width Tilling depth No. of blades Tilling capacity Overall dimensions Weight Light Unit
203 mm 15 kmph (Max.) 600 mm 190 mm 20 1 hectare/8hrs. L2250 x W: 820 x H: 1030 mm 485 Kg 12 volts, 40 Watts
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Use KAMCO Power Reaper is ideally suited for harvesting of paddy, wheat and similar crops. It harvests and makes windrows at the rate of 3-4 hours per ha. Since the fuel used is kerosene, cost of operation is the lowest and it helps the farmer to harvest his field at the lowest ever cost.
Specifications
Model Dimensions Overall length Overall width Height (Up to Handle) Weight Working Capacity Applicable Plant Height Crop release
KR 120
2320 mm 1490 mm 1090 mm 136 KG 3 -4 hr/hectare (1.2-1.8 hrs/acre) 60-120 cm Right side of machine (viewed from rear)
Engine Type Engine Fuel Rated HP Max. HP R.P.M Specific Fuel Consumption Fuel Tank Capacity Air cleaner Starting Petrol Start, Kerosene run 3.5 3.85 3600 339 gm/H.P hr Kerosene 4 Ltr, Petrol 0.4 liters Oil Bath Type Recoil starting Single Cylinder, 4 stroke, side valve, Air cooled
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Applicability
Operation & Control Main Clutch Harvesting Clutch Dog Clutch Dog Clutch
Cutting Cutting Device Cutting Height Cutting width Reciprocating Knife Bar Adjustable 10-30 Cm grounded level 120 cm
Use
Ideal for paddy /wheat cultivation Inter cultivation Applications Various land preparations at horticultural farms Landscaping Gardening
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Potato harvester
Specifications
330 mm to 1200 mm tilling width Low maintenance Highly fuel efficient Easy operations 2 speed pulley belt drive Engine Displacement Clutch Speeds Starter Air Filter Handle Bar Tiller: Adjustable -33 Cms To 120 Cms Engine Stop Transmission Weight: 67 Kgs Including Rotary Unit By A Security System Acting Automatically By Gear and Chain in Oil Bath Petrol 149 Cc 2 Stroke Electronic Belt Stress 2 Forward Reversible Oil Bath Robust And Easily Adjustable Rotary controls and
Use
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KAMCO ER90 Engine is equipped with Radiator and specially designed die cast multi-blade axial fan. The engine can operate continuously for several hours. It can be used as a prime mover either for stationery or for moving applications.
Specifications
Type Number of Cylinder Bore x Stroke (mm) Displacement (cc) Compression Ratio Continuous Rated Output (HP/rpm) Maximum output (HP/rpm) Specific fuel consumption (G/HP - hr) Maximum torque (kgm/rpm) Cooling System convection) Fuel Lubricating Oil Lubricating System Starting System system Cooling (Ltr) Fuel Tank Capacity (Ltr) Water
20 9/2000 12/2000
195 (At continuous rated output) 4.5/2000 Pressure Radiator type (0.8 Kg/cm2 natural
High Speed Diesel Oil SAE 30 Forced Lubrication with Trochoid Pump
Capacity 3.8
12
Crank Case Oil Capacity 3 (Ltr) Overall dimension (mm) Weight 820 x 512 x 640 (L x W x H) 145 Kg.
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Table 5:
KAMCO BARBIERI B/30 GARDEN TILLER KAMCO produces KAMCO BARBIERI B30 an easy-to-handle garden tiller with Italian technology and design. The powerful HONDA petrol engine ensures efficiency, reduced vibration and noise ,low emission levels and low maintenance. Overall, it is an economy model that offers a safe and comfortable operation. The tiller can be easily dismantled. Also it facilitates easy transport across every kind of ground with the rear wheels which can be easily lowered.
4.2. TECHNICAL SPECIFICATIONS Engine Power Starter Clutch Gear box Transmission Little transport wheel Working width Honda petrol Kw4.0(HP5.5) Recoil starter Engagement and Disengagement 1 forward and 1 reverse chain and belt standard 93 cm
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Soil separation for vegetable cultivation and in orchards and sugarcane fields Spade work in coconut groves
A Board of Directors governs the company. Board of Directors includes Chairman, Managing Director and other directors. The Government of Kerala nominates the Chairman of the Board. The Chief Executive Officer of the company is the Managing Director who shall exercise his powers subject to the overall control and supervision of the board. The Managing Director is the topmost official and the Government has delegated authority to the Managing Director as may be entrusted and delegated to him from time to time by the board. The Managing Director is the operational head of the company supported by General Manager and Deputy General Managers discharging different functions. Managers and Deputy Managers will assist the General Managers and Deputy General Managers. The various departments functioning at KAMCO are Production, Maintenance, Materials and Purchases, Quality Assurance, Engineering (R&D), Finance, Marketing, Systems and Human Resource Management departments.
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4.2.
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Human Resource Management Department Finance Department Marketing Department Materials, Stores and Purchases Department Production Department Quality Assurance Department Systems Department Research & Development Department
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organization. The total employee strength is 567 persons KAMCO has determined and provided adequate resources needed to implement and maintain the quality management system and continually improve its effectiveness in order to enhance customer satisfaction by meeting customer and other requirements.
PERSONAL ASSISTANT
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Vacancies are notified as and when they arise and need to be filled. All the technical and non technical vacancies are notified to PSC. If the PSC are not available in time the same is filled up through employment exchange on temporary basis for a period of maximum one year. For the post like Assistant, Accountant, Office staffs, Typists, Stenographer etc., the people are hired through PSC recruitment. Employment exchange forwards a list of candidates for the required posts in the unit on their notification to the concerned District Employment Offices. The higher posts of officers are advertised in major news papers and simultaneously notified to the employment exchange in accordance with the Government
rules. There is no discrimination based on religion, colour, race etc. Appointments are purely based on merit. Age limit for recruitment of workers is 35 years whereas in the case of officers it is 45 years. Once probable candidates are short listed, the interview dates are communicated. A general check of the credentials of the appearing candidates is carried out. The candidates are then put through a written test and interview. This is followed by a detailed verification of the credentials of selected candidates. The final step in recruitment involves the issue of the appointment letter.
PSC RECRUITMENT
ADVERTISEMENT
EMPLOYMENT EXCHANGE
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INTERVIEW
SELECTION
TRAINING
APPOINMENT
Induction
Once selected candidate are appointed on probation, their paper work is completed including collection of photos, certificates etc. and the issue of identity cards, punching cards etc. The probationary employees are then put through an orientation program where they are familiarized with all aspects of their jobs. They are made aware of the job requirements and given their employee numbers.
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workshops held outside the premises in response to invitations by reputed agencies. On the completion of training, the employees are required to submit a training report. Evaluation reports of the employees who have undergone training are collected from the respective heads of departments after a period of six months. After an assessment of the effectiveness of the training, the report is placed before the HRD Committee. For new recruiters, awareness training or orientation training is given for a period of one week or one month. After this training, orientation report will be collected from each department. After analyzing this orientation report they will give placement to the employees as a trainee under probation. Probation period is for one year. After satisfactory completion of probationary period the employees will be placed in the regular pay scale. In KAMCO there is a personal record sheet containing all the personal information of the newly joining employee.
Performance Appraisal
In the case of officers, performance appraisals are carried out once in a year. Appraisals are made by the 31st of December and are collected by the 15th of January in the following year. In the case of workers, performance appraisal is carried out when they become eligible for a grade change. During the probation and training periods, appraisals are carried out every quarter. The appraisal reports are then placed before the promotion and recruitment committee. In the case of officers, a three stage appraisal is performed. In the first stage, a self appraisal is carried out by them. This is then followed by an appraisal by the departmental head which in turn is followed by an appraisal by the divisional head.
Promotion
Seniority, performance, educational qualifications and general disposition will form the basis for granting promotion. These will be judged with reference to the personal records and periodical performance appraisals of the employees. As per the promotion policy of KAMCO, an employee will be eligible for promotion if he has served in a particular post for at least 3 years, or he will be given promotion when the vacancy occurs. Another aspect is Grade promotion ie, promotions are based on grades of employees. In worker category there will be a grade change after a period of 5 years.
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Seperation.
KAMCO employees retire at the age of 60 years or on attaining superannuation. There is also a Voluntary Retirement Scheme in place. Employees opting for VRS receive a lump sum payment equivalent to one and a half months salary for every year of service or for the remaining service period, whichever is shorter and additional notice pay for three months. Other benefits received on retirement include Provident Fund, Gratuity, Welfare fund etc. Earned leave up to a maximum of 300 days can be encashed. In the case of separation due to disciplinary problems, the employee is dismissed after the conduct of a domestic enquiry, which has to prove him guilty. The Managing Director appoints the enquiry officer and the final separation occurs within six months of the initiation of disciplinary proceedings.
Welfare Measures
The statutory welfare and safety measures provided in The factories Act 1948 are as follows: Drinking water Toilets Washing facilities Canteen Health and Medical facilities Shift Allowance Uniforms and protective clothing Maternity benefits Occupational safety
The non-statutory measures provided by the company are as follows: Educational loans Workers cooperatives Recreation facilities Vocational training Incentives Medical facilities Housing facilities Social insurance such as Gratuity, Provident fund etc. Benevolent fund
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Transportation subsidy
Grievance handling
KAMCO does not have specific grievance handling machinery. Grievances if any may be brought to the notice of the immediate superior. Depending on the seriousness of the grievance, it may or may not be forwarded to the Managing Director, who is the final authority. Managing Director will forward the same to the HRM department for examination as per the rules and precedent. Accordingly the grievance is settled. If it is not settled due to various reason they will take over by the concerned unions and finally the matter will be considered as industrial dispute and referred to the district labour officer for conciliation.
Discipline
As per the standing orders applicable to the workers, no order of punishment shall be made unless the workman concerned is informed in writing of the alleged misconduct and is given a reasonable opportunity to explain the circumstances alleged against him. If the explanation submitted by the concerned workman is found satisfactory by the management, further proceedings against him shall be dropped. If the explanation is found unsatisfactory, he may be charge-sheeted by the management as per the provisions of these standing orders and an impartial domestic enquiry shall be instituted. The most common cases of indiscipline are absenteeism and overstaying of leave.
Industrial Relations
KAMCO has recognized trade unions in all the four units of the company. The management has cordial industrial relations with all of them. The following are the recognized trade unions in the company. o KAMCO Employees Union, Athani. o KAMCO Employees Union affiliated to CITU, Athani. o KAMCO Employees Association affiliated to INTUC, Athani. o KAMCO Employees Federation affiliated to AITUC, Athani.
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Incentives
A production incentive scheme is followed in KAMCO for the benefit of employees, which constitute quarter of the pay packet. Any system of remuneration in which the amount earned is dependent on the result oriented, there by offering the employee an incentive to achieve better results. It aims at increased output, productivity and utilization of resources. This scheme covers all the permanent employees. In KAMCO, incentives are mainly three types: 1) Direct incentives 2) Semi direct incentives 3) Indirect incentives
1. Direct Incentives
It is only for workers who work in Machine shop, Assembly and Painting Booth. After conducting work study, monthly incentive scheme has been implemented.
3. Indirect Incentives
Indirect incentive is paid who are not included in direct and semi direct incentive. Employees in the managerial category also come under this. Indirect incentive is 60% of direct incentives.
Objectives
1. To increase production, productivity and utilization of resources. 2. To increase in earnings of employees. 3. To reduce absenteeism and reward for punctuality. 4. Employee Welfare
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By giving a better working atmosphere, KAMCO is able to keeping a good relation with the employees and thus it helps to increase their productivity. KAMCO providing these facilities to the employees, they are: ESI - Employee State insurance - The employers who have below 7500 salary will get ESI allowance. The employers who do not get the ESI allowance will get Medical Reimbursement facility. Medical Reimbursement facilityThe employer who got treatment in approved
hospitals. This treatment is also getting to their family members. Uniforms- Two pairs of uniform will provide to the technical workers, sweepers and security staffs. Stitching and washing allowance- In KAMCO employees who are provided with uniforms must give washing allowance as Rs.32 for security staff and Rs. 37 for all other eligible employees. Safety Equipments- As part of the occupational safety concerned employees are provided with safety equipments such Mask, Helmet , Safety Shoes, Glouses, Safety Googles. According to eye sight, ear plug, aprons etc and for reviewing the overall safety of the company, KAMCO has set up a good committee also. Milk Allowance In KAMCO, liters of milk will be given to welder and workmen engaged in painting / phosphate plant. Medical Checkup For selected employer in the technical department they provide medical checkup in a year. It depends upon the nature of work. First aid- During the work, if any accident occurs first aid will provide to the workers. Canteen According to Factories Act, 1948 a canteen shall be provided if there are more than 250 workers employed in factory A full fledged canteen is functioning at KAMCO that can cater to all employers on day providing breakfast, lunch, dinner, tea, coffee, snacks etc. It provides food at subsidized rates to the workers and employees working at various shifts. Society- In KAMCO, there exist a cooperative and housing society. There is a provisional store under this society which provides service to the employees and also to the outsiders. Each employee can get the essential commodities from the cooperative store on installments. The members can purchase commodities upto a limit of Rs 2000. The cooperative society also gives scholarship to the students who have secured high marks in S.S.L.C. Examination. The Housing Society gives financial help (loans) to the employees. Recreation club KAMCO have a recreation club. Different journals and news papers are subscribing here for the employees. The employees conducting tour programs from here.
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Report on OS at KAMCO
Housing Subsidy KAMCO is giving an interest subsidy at the rate of 3.75% for a maximum amount of Rs.50000 for housing loan from any financial institutions. Transport Subsidy An amount of Rs. 70 will be given to all employees as Transport subsidy by KAMCO. KAMCO is not having for transportation. The second shift employees are provided with vehicle on contract basis and subsidized coupons will be given from administration department.
Bonus In KAMCO about 85% employees are outside the purview of the Payment of Bonus Act 1965 and those employees who are coming under purview of Bonus Act 1965 are given a maximum bonus of 20%. Those people who are not eligible for bonus are given a production incentive, which is based on total production. These employees are also eligible for the festival advance announced by the Government.
Time Office Time Office plays an important role in the functions of shifts. The worker category is provided with electronic punching card (G1-G7) and for the officers category they uses attendance register instead of punching cards (G8 -G14). Time office performs the job to prepare the attendance and leave of the employees.
For Workers
General shift For Office Staff (On Saturdays) For Security Staff
9am - 5pm 9.30am 5pm 9.30am 1pm 8am 4pm 4pm 12am 12am 8am
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3. Responsibilities Department head of hrm will be responsible to see that the procedure is followed by all officers and staffing department. 4. Procedure 4.1 The recruitment, promotion and pay fixation will be carried out as per the recruitment and promotion rules notified by the company from time to time 4.2 A safety committee is constitutd by the management from time to time.equal number of nominees of management and unions constitute the committee . the committee meets every three months to assess safety requirements as per the factorys act 1948 and recommendations if any to the management for consideration. 4.3 Following welfare schemes are in operation as per special Bye- law prepared for each scheme: 4.3.1 Conveyance advance 4.3.2 Group personal accident insurance scheme through Kerala State Department. 4.3.3 Kamco employees group gratuity-cum-life assurance scheme in association with Life Insurance Corporation of India 4.3.4 Kamco welfare centre
Safety measures
1. Protection of eyes Workmen, who are working in grinding machines, milling machines, lathes and doing welding and fettling are provided with googles for protection of eyes.
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2. Precautions in case of fire Fire extinguishersare provided in all departments. Selected employees based on their age and attitude are given training to use fire extinguishers. A list of trained employees in fire fighting is displayed in the factory premises. 3. Uniforms All eligible workmen are provided with uniform as a safety precaution 4. Shoes and socks All workmen in the factory and plant area are provided with shoes and socks as a safety measure. 5. Excessive weight lifting No person is allowed to lift heavy components. Cranes are provided for lifting the heavy components and these cranes are tested and certified by the competent authority as per factories act 1948. 6. Protection against dust All workmen, working in places where dust is present, are provided with a face mask 7. First aid First aid boxes are provided in production department and employees handling first aid are trained. List of personnel trained in first aid is displayed in the factory premises. 8. Accidents All the accidents are recored and reviewed quarterly by HOD {HRM} and submits a brief report to management, for a corrective and preventive actions. This is also discussed in the management review meeting
The Finance Department deals with the procurement and management of funds. This department controls the over all financial transaction of the company. It controls the receipts and payments of each and every activity for all the divisions. In KAMCO, finance department plays a major role because in public sector only very few companies are earning profit. KAMCO is a multicrore multiunit organization. It means KAMCO have more than one unit on their own fund without any external fund. Surprising thing is that KAMCO is giving dividend and carrying profit for 20 years. The surplus money is invested in the treasury and gets an interest of 67 % from the treasury.
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The Finance Department keeps a record of everything concerning any expense or income. They have no interest on working capital and also no secured or unsecured loans. The advance amount they get for the tillers are sufficient for meeting working capital. In most of the private sectors achievement is always less than budget, but in the case of KAMCO achievement is always greater than the budget. Annual profit of the company is between 8-10 crores. There is no increase or decrease in the share capital. This shows the company have adequate fund for business and also the company dont have secured and unsecured loan. So there is no need of increase or decrease in the share capital. The areas under the purview of the finance department include salary administration, bill processing, statutory payments like taxes, central excise etc, financial administration, costing, internal audits and balance sheet preparation, budgeting, payments and receipts, bank negotiations etc.KAMCO is third among the state owned corporations in terms of both volumes of sales as well as profits
MANAGING DIRECTOR
MANAGER (IA)
ASSISTANT MANAGER
ASSISTANT MANAGER
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Report on OS at KAMCO
SUPERINTENDENT (IA)
SUPERINTENDENT (IA)
ACCOUNTANT
ACCOUNTANT
Report on OS at KAMCO
is reviewed half yearly. If some changes are occurred they are submitted to management/board through a revised budget for approval. 4. Auditing Internal audit is mainly based on corporate functioning. The main function of this department is to ensure that policy decisions of the management is strictly followed by the functional departments and is verified by the internal audit.
5.Costing Costing records are maintained as per the cost accounting rules. They are mainly subjected to cost audit ordered by company law board. Costing department also advices management and departments, which are the potential areas of cost reduction. Mainly costing departments analyses cost of productions on a yearly basis .costing department advices accounts departments the cost of rejection as per warranty claims 6.Statutory transactions Sales tax/income tax/tds certificates/c-form/form-18 etcare issued. They are properly accounted and properly accounted and proper time settlements are made. Salaries and other payments, remittances and recovery etc in the case of employees are done in a time.
Sd no SOURCE OF FUND
2010
2009
2008
2007
(a) Capital
16146000
16146000
16146000 16146000
893643379
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Report on OS at KAMCO
4042045
4203128
4149867
3733896
TOTAL
913831424
a) Gross Block
203099030
b) Less Depreciation
138735242
c) Net Block
63793105
58710694
59237609
61881399
d)Work In Progress
634260
853178
302064
53060
e)project expense
9554370
2055472
1042887
total
73981735
61619344
60582560
61934459
20500000
20500000
20500000
20500000
1) Loose tools
480912
436175
385719
535983
2) Inventories
274284449
3) Sundry Debtors
310320968
409340433
23347323
19852164
17939544
13462907
23921118
16774184 [41]
17581080
31659485 M.E.S.SOCSAMS
Report on OS at KAMCO
1041695203
b) Provision
7088201
7282012
10317844
8146737
222345514
NIL 913831424
NIL
501198
1002394
CAPITAL STRUCTURE
Equity share @ 100 each (161460 Rs 161.46 lakhs in numbers) Fully paid up Entirely held by govt. of Kerala.
It is a corporate function carried out by a separate marketing division. The main functions of the
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marketing department include product marketing, invoicing, customer relations, after sales service, warranty claims, product demonstrations, appointing dealers, advertisement and publicity etc..
KAMCO does not make direct sales to customers. All sales are made through dealers. Dealers are qualified on the basis of sales objectives and their marketing reach. In every state, one of the assigned dealers is the State Agro Industries Corporation. In addition, private dealers are also used. All transportation facilities required by the dealer in ordering their products are arranged by KAMCO. Sales incentives are the main tools used for motivating dealers. Dealers who sell over and above the set sales target for a period qualify for the incentives. KAMCO also bears a part of the advertisement cost incurred by the dealers.
Almost all sales are made against cash advances. In very few cases sales are made against bank guarantees, which again do not exceed 30 days. A companys survival depends upon a better marketing strategies adopted by the companies. If the company is a public sector it is very difficult to survive. Due to political Pressures and other practical difficulties, it will not allow the company for a better free work.
Surviving all these difficulties KAMCO became No: 1 brand in the agricultural machinery market. Due to globalization KAMCO products have to compete with the international products. The product from China is a major threat for the company because of its lower price. But KAMCO is not ready to compromise with the quality of its products for reducing their price. This marketing strategy wins the target. Considering the Indian market now there is only one competitor that is VST, Bangalore. Even facing all these competitions companys marketing department plays a better role for getting good result.
Considering the Indian market 60% of the market share is in the hands of KAMCO. By keeping the quality KAMCO maintains their position. Due to the effect of globalization foreign countries like China and Korea introduce their products in the Indian market. Economically their products are very cheap. But when we consider the quality, KAMCO comes in the first place.
Report on OS at KAMCO
SUPERINTENDENT
ASSISTANT ENGINEER
TECHNICAL ASSISTANT
OFFICE ASSISTNAT
STENO
WORK ASSISTANT
Purpose
The major purposes of the marketing department of KAMCO are the following: To ensure customer requirements are thoroughly understood and differences are resolved before acceptance of the order. Products / implements / accessories / spare parts are delivered to the customers as per the requirements to gain the satisfaction of the customers. Establish and develop dealership network to facilitate proper sales and services for the products marketed by the company. Establish adequate communication with the customers to effectively gauge their feedback and incorporate it to enhance customer satisfaction.
Competitors
During early periods KAMCO ruled the market. In India VST, Bangalore is the major competitor of
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KAMCO.
International market
KAMCO Power Reaper has been exported to Iran and Srilanka recently. And Kamco tillers have been exported to Haiti. The export quantity is not a huge one but still they getting order from these countries. These machines have been well accepted by the customers.
Dealers
The company has 60 dealers all over India. New dealers appointed to cover selected districts in Tamil Nadu, Karnataka, Maharashtra, Orissa and Andhra Pradesh. And in the other states the company has dealerships. The dealers will get Rs.6500 per tiller and want to provide three free services to the customers. The dealers target depends upon the area. If a dealer exceed their target he will get incentives depends upon the excess quantity.
2. Assam
Govt. Assam Agro Industries Development Group Pvt. Chem Trade India Pvt Ltd.
3. Tripura
Govt. Tripura Horticulture group Pvt. KrishishilpaUdyog
4. Meghalaya
Pvt. Stanley Roy Constructions
5.
Kerala
Kerala Agro Industries Corporation.
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Sales Promotion
In International market the sales promotion of the company is only through web sites. In India, all the state Govts have their own dealerships to sell the products. The company gives dealerships to the private groups also.
Advertising
Advertising is also a part of sales promotion. In every budget company allocated nearly rupees 50 lakhs for advertising. Sign boards and news papers are the major channels of advertising. Company also gives some financial helps to the dealers for advertisements.
Price Fixation
Retail price = Dealer price + Margin (inside Kerala) = Dealer price + Margin + Freight (outside Kerala)
Pricing Strategy
The pricing strategy is cost based, ie, by summing the variable cost, material cost and administrative cost.
Market Segmentation
The company targets its products mainly for the middle class section.
Environmental Analysis
As it is a public limited company KAMCO have certain limitations. They cant do more to the environmental protection. The all new DI engine will reduce pollution and it also reduces the fuel consumption than the ordinary engine.
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Company gives best vendor awards for best vendors. It will help the company to get quality products at the right time. The best vendor of 2010 was BOSH industries. Company has regular suppliers and they are ready to give materials as per the requirements of the company. So at present company is not conducting any vendor development programs.
Out of the 300 regular suppliers they are classified into three categories A, B and C. Company gives these grades to the vendors depends upon some factors. They are best quality, giving the materials at the right time and keeping good relations with the company etc. Company has 189 A class vendors i.e. 63% of the suppliers are in this category and 87 B class vendors and the rest of 24 are coming under C class category. If a supplier gets A grade, that means company trusts the vendor. After that company take the same product from the vendor without initial inspection. So the vendor who gets A grade has certain commitment with the company. They want to keep the relationship without any interruption. So they want to give quality goods at right time. By receiving the materials from the vendors, purchase department keeps that materials in the stores and it is handed over to the Quality Assurance department. A corporate purchasing system is
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following in KAMCO. All the other units give their material requirements to the head office (Athani unit) and the head offices purchase department purchases the materials for all the other three units. All item required for the production are classified based on the ABC Analysis. A category components constituting about 70% of total cost of the components. B category components constitute about 20% of total cost of the components. C category components constitute about 10% of total cost of the components Maximum permitted inventory is controlled according to the guidelines given below, based on ABC Analysis. A category Components - Stock for 1 month production B category Components - Stock for 2 month production C category Components - Stock for 3 month production
Purchase procedure
A well defined purchase system exists in the organization. A proposal is placed by the vendors to the company. The proposal will be evaluated the internal audit department and will look in to the entire details of the proposal. If the commission is satisfied, they will place the proposal to the purchase commission which may include Managing Director, purchase manager, finance manager, and marketing manager. If the purchase commission satisfied with the commission it will be placed before the MD for the approval. If the MD approves the proposal, purchase order can be placed to the vendors to supply the materials. The order costing Rs 25000 can be sanctioned by the purchase committee and the matter costing above Rs.1lakh should go through the hands of MD.
The entire payment is paid through the finance department and through the bank. No cash transactions are allowed in the organization. Only some petty cash transactions are made by cash. The purchase department also takes care of the general purchase.
Purchase costing up to Rs 500 can be paid by cash. Above 500 should invite quotations (at least 3 in numbers). And the lowest quotation will be selected and the order may be placed. The suppliers will be awarded for the prompt supply and it is done for the purpose assuring the right materials at right time to the stores so as to ensure an uninterrupted production.
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Purchase proposals are prepared in standard format based on the master purchase plan for all units of KAMCO put together. Purchase orders are released, separately, for each unit of KAMCO after obtaining approvals from concerned authorities. In respective formats & copy of the order is forwarded to the concerned unit.
Follow up with Vendors Order follow up is an important process in the purchasing function. Periodic follow up with the vendor is made to ensure timely delivery. In KAMCO order follow up is done by the concerned staff to which the work is entrusted.
Order Amendment Purchase order amendments in respect of Terms and Conditions, Quantity, price and specification are issued by the materials department when required. The purchase order amendment is signed by the head of materials department.
Performance rating Performance rating is a mix of quality rating and delivery rating and is carried out annually. Quality of the suppliers and delivery are the main factors of performance rating and equal i.e. 50% weight age is given to each.
Deletion of vendors In the case of performance rating of the vendor is found unsatisfactory, Purchase department advices the vendors to take necessary corrective action and is allowed 3 months time for improvement. Their performance is again reviewed after 3 months, and if found unsatisfactory, a report is submitted to the next Management Review Meeting. MRM will decide on delete/continue of the vendor, considering his performance in Kalamassery, Mala & Palakkad Units
Storage Procedure All materials including raw material, components, & production consumables which are received from vendors /such contractors, directly through transports along with dispatch notes are received.
Packaging
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The finished engines dispatched to customer /dealers are packed in separate wooden box for avoiding damage during transit. Spare parts are packed in polythin covers/corrugated card board and are put in a wooden box for dispatch. Farmers Kit: - The item coming in farmers kit is packed in separate card board carton. Tool Kit: - The items coming in tool kit are packed in separate plastic bags.
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MANAGING DIRECTOR
SENIOR MANAGER
(Materials)
DEPUTY MANAGER
(Purchase)
DEPUTY MANAGER
(Materials)
DEPUTY MANAGER
(Stores)
TECHNICAL ASSISTANT
TECHNICAL ASSISTANT
TECHNICAL ASSISTANT
WORK ASSISRANT
GENERAL WORKERS
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The production is the largest department of the company. Under the production department there are mainly two sections: 1) Assembly shop 2) Machine shop
MACHINE SHOP
Company has got a modern machine shop with Special Purpose Machines (SPM), which ensures conformity with prescribed quality standards. Inspection at various stages of manufacturing is carried out, which help in reducing the process rejection to the minimum. The workforce is qualified and fully experienced which makes the right contribution to the process. In machine shop, there is a process chart or written document. The material purchased by the purchase department moves to the store. From there, the material sends to the QA. After that it sends to the machine shop and there, the processes like milling, drilling, turning & boring, grinding etc are doing on the materials. For getting the products, materials are used in the assembly shop. From the machine shop, the finished components are not directly sending to the assembly shop. It will send to the QA department for inspection and will send to the stores thereafter. ASSEMBLY SHOP Assembly is one of the major sections in production department. The finished components are taken from the store and are sent to the assembly as required. The engine assembling is one of the major works in the assembly. After testing the assembled engines, they are sent to the painting section. Through different transmission in the assembly, we get the finished product. In case of the power tiller, here using two types of engines. They are Diesel Engine and DI engine. The assembly consist of two divisions: a) Assembling b) Painting booth. Assembling: The assembly line consists of an engine line, a transmission line and a tiller Transmission and engine assemblies converged to the tiller assembly line. assembly
line, where finished power tiller is produced. The following process takes place in the transmission line: a. T1 : Main Gear Case, Axle Gear Case(Wheel), Axle Shaft, Fourth Shaft etc. b. T2 : Gears are set, Axillaries Gear Case Setting, Brake Setting etc
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c. T3 : Upper cover, Central Gear Case for blade, Clutch Assembly, Brake Lever, Low speed and high speed Lever. After testing, the engines are sent to the painting section.
b)
Painting booth:
assemblies, where Uniblake liquid paints are used. Seven tank system of Pretreatment is employed. Paints and chemicals needed for this system are produced only from wellknown manufacturers. After cleaning the components, it will go for painting through a conveyer belt, and after painting, it will go to the oven through the belt.
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MANAGING DIRECTOR
MANAGER (PRODUCTION)
DEPUTY MANAGER
SHIFT OFFICER
(ASSEMBLY)
SHIFT OFFICER
(MACHINESHOP)
ASSISTANT MANAGER
(MAINTENANCE)
CHIEF MECHANICIS
CHARGE HEAD
CHARGE HEADS
MECHANICS
PAINTERS
OPERATORS
CHARGE HEADS
WORK ASSISTANTS
WORK ASSISTANTS
WORK ASSISTANT
Process 1: Degreasing
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In this process the item or product which is to be cleaned is dipped in the tank with chemical at 60 degree temperature for about 20-25 minutes. Process 2: Water rinsing Here the item is simply rinsed with water for about 2 minutes. Process 3: Acid treatment Again the item is dipped in a solution containing 35% HCL for about 20 minutes. This is mainly done to remove rust. Process 4: The component is again passed through two cold water tanks and rinsed. Process 5: Phosphating Again the item is dipped in a solution containing phosphate content for about 45 minutes. After this process the surface of the component will be completely cleaned. Process 6: Water rinsing The component is washed with water. Process 7: Passivation Here the component is dipped in a solution containing chromic acid for about 20 minutes. After cleaning the components it will go for painting through a conveyer belt and after painting it will go to the oven through the belt. Mainly they are using two colors for painting, one is Ash and the other one is Post office Red. The population of tiller is about two and a half lakhs and the weight of tiller is 430 kgs consisting of 740 components. The final product, tiller is finally checked to see whether there is leak or produces abnormal sound. The maintenance measure followed here is Total Preventive Maintenance (TPM) which is a Japanese concept. Under maintenance department there are two types of maintenance rooms. They are civil maintenance and electrical maintenance. Once in 90 days maintenance is done. Another major aspect of KAMCO is zero down time which leads to continuous production. In this company 67% is considered as minimum productivity for an employee. An employee is considered eligible for getting production incentive only if he crosses this minimum productivity line. During early periods 3000 tillers were produced, but now it has been raised to 5000.
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Production planning is carried out when the production budget is made. Production figures are decided upon at the beginning of the year. Production quotas for each month are to be met. The daily requirement of production is communicated by the Manager (Production) to the shift supervisors. Daily production figures may be flexible as long as the monthly quotas are met.
PRODUCTION CYCLE
T1 E1 T2 E2
T3 E3 TESTING
K1
PAINTING
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K4
M.E.S.SOCSAMS
Report on OS at KAMCO
MANAGING DIRECTOR
ASSISTANT ENGINEER
CHIEF MECHANIC
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MECHANIC
The QA Dept. is responsible for carrying out the Inspection and Testing for all components received against the Quality Plans/ Work Instructions/ Drawings / Flow Process Charts /Check list as appropriate. Consideration has been given to products which need not be inspected if they have been inspected at the Vendors premises by KAMCOs personnel. It is the policy of the company to fix vendors for critical items, where material testing is required such facilities are verified. No on established vendors only. For this purpose, during vendor evaluation material is released to production without inspection and hence no recall
procedure exists in KAMCO. To further assure no bad quality parts get in to the product due to oversight, KAMCO established a Parts call back system when a defect is noticed in the production line. Materials and components from the vendors receive the store department. At that receiving time there occur only the quantities checking as per the order. There is an inward receipt in the hands of the store (IGRR). This IGRR contains the IGRR No:, Delivery Chelan No:, Date , name of the vendor , Quantity, Grade of the vendors etc. With this receipt the store department handed over the components to the quality assurance department. From here start the functions of Q.A department. The major functions of the quality department are testing, acceptance and rejection. In the Q.A department there are specifications of all the components. Q.A thoroughly checks the components, to know these components have all the specifications that are needed for production. Q.A classifies the components into two, critical components and non-critical components. Critical components are crank shaft, all engine parts, gears etc. Non-critical components are nuts, bolts and screws etc. The classification is mainly for ignoring the practical difficulty in checking. Complete inspection occurs in critical components and only sample inspection occurs in the non-critical components. Practical difficulty of checking all the non-critical components is the problem here. From here all the accepted components are gone towards the stocks department. From there the components are taken by the production department as per their
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requirements. Q.A department is equipped with all modern facilities. The company has a calibration cell to check and correct the measurements of all the measuring instruments.
There are mainly two sections in the Quality Assurance department. They are: a. Inplant section b. Bought out section The inplant section deals with the inspection of products from machine shop ,where as the bought out section deals with the testing of finished products which are bought from outside. Assembly Dept. is responsible for line inspection & Testing. No product is allowed to pass through to the next stage until it has been inspected and cleared. Inspection stages & the parameters to be tested. QA Dept. is responsible for final Inspection and Testing carried out on each and every product based on the Quality Plan. The Final Inspection / Testing will take into account all the Inspection and Testing The Flow Process Charts / Quality Plan identifies the
requirements at receiving and in Process. No Product is dispatched without satisfactorily meeting all the specified requirements and approved by QA for dispatch. Records are maintained by QA Department on the performance of the products, on the Inspection and Testing done at the above stages indicating whether they have passed or failed the tests .Records are also available to show the list of authorized Inspectors / Personnel responsible for the release of the product. Tillers are kept for one day running which is considered as the final inspection. By doing so they can test whether there is leak or whether it generates sound more than permissible.
Calibration Cell
Q.A department is equipped with all modern facilities. The company has a calibration cell to check and correct
QUALITY STANDARDS
TREM - (Tractor Emission) ARAI - (Automotive Research Association of India, Pune) diesel engine certification
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CMVR (Central Motor Vehicles Rules) certification for moving vehicle. The company follows trail and error method for improvement.
QUALITY SYSTEMS
Well defined quality system procedures adopted covering all activities to ensure quality of products & customer satisfaction. Improvements are made on regular basis based on the feed back from the customers & dealers Regular interactions with all Venders including site visits to maintain and improve the acceptance level of components KAMCO Power Tiller certified for compliance with Minimum Performance Standards of Govt. of India KAMCO Power Reaper has been tested by SRFMT&TI, Ananthapur of Govt. of India
QUALITY POLICY
Total customer satisfaction through quality products and services with improved technology and employee participation. Comply with the requirements of customers and the applicable statutory / regulatory requirements. The effectiveness of the established quality management system is continually improved to enable achievement of the policy.
QUALITY OBJECTIVES
The major objectives of the quality assurance department are the following: To ensure that quality requirements of the products and services offered are maintained at all stages. To create a culture amongst all employees towards total quality concepts and productivity through total involvement and commitment of all employees. To create a healthy working environment for attaining the quality goals with excellence and to make quality a way of life. To detect and prevent non-conformance and defects as early as possible and to eliminate them through appropriate changes to the Quality Management System.
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To achieve and maintain quality leadership through continuous technology up gradation, improvements in techniques, systems and procedures and to meet customers changing needs.
a. Increased customer satisfaction. b. Acts as a set of discipline. c. Companies own management has greater confidence in its own internal systems.
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d. Brings clarity in roles and responsibilities. e. Helps to revisit the system. f. Brings about quality culture. g. Sets a bench mark. h. More stream lined process, which ensures that dead lines are met. i. Satisfaction for each individual to know that once work is professional and meets a high personal standard. j. Measurable improvements in the over all functioning and quality system of the organization.
Mainly visual and manual methods are adopted for the testing purposes. Some of the gauges and machines used for the testing purposes are venire calipers, venire height gauge, inspection gauge, dial gauge, bevel protractor, plug gauge, micro meter, hardness testing machine, spring testing machine etc. One day test is done for the finished products as per the standard testing conditions specified in the IS 25000 standards
MANAGING DIRECTOR
M.E.S.SOCSAMS
Report on OS at KAMCO
ASSISTANT MANAGET 1
ASSISTANT MANAGET 2
ASSISTANT MANAGET 3
DRAFTS MEN
The product upgradation is done as per the results of the researches conducted by the department. At present researches are going on to develop a product for the harvesting of pokkali, an agro product which is cultivated in water.
The engineering department also comes under the R&D department which deals with the research processes regarding the design and various other aspects of the products. The company is in the process of setting up a separate and more advanced R&D facility as part of its plans to diversify its product line. Plans are on the anvil to diversify into the food processing machinery industry. KAMCO is also looking at producing water pumps and generator engines, the latter in collaboration with KEL who will be the primary customers. The company conducts its R&D activities in association with the Automotive Research Association of India (ARAI), Pune.
At present the whole body of the tiller is made up of aluminum and cast iron. With newer engineering materials evolving world wide, these materials are likely to be replaced by stronger and more flexible materials in the coming decade. Sometimes the department uses the re-engineering where it tries to design a model on a previously existing working model. Company has a plan for diversification. The company plans to produce tractors at the price less than 3 lacs.So it is very useful to small scale farmers in India.
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At present the whole body of the tiller is made up of aluminum and cast iron. With newer engineering materials evolving worldwide, these materials are likely to be replaced by stronger and more flexible materials in the coming decade. Sometimes the department uses the re-engineering where it tries to design a model on a previously existing working model. Company has a plan for diversification. The company plans to produce tractors at the price less than 3 lacs.So it is very useful to small scale farmers in India. The systems department in KAMCO was established during 80`s.Formerly it was known as EDP but now changed to systems. All the four units of the company are connected through internet and all the four units have their servers. In this corporate unit each department is connected through a LAN. The system department uses a customer ERP (Enterprise Resource Planning) package, back-ended with Oracle. Companys system department is not as much developed, so it is not used in any part of production. There is an inbuilt MIS function in this. ERP package is divided into different modules in which, each module is for each department. By the help of these modules, departments can transact the datas and it makes the work easy. The system department uses CD as a backup file to store data. There is LAN in every unit and these are connected each other through BSNL network. As part of the security, each department provides separate user name and password. The maintenance of the system is done by the experts in the system department. The training programmes are: 1. Implementation training is mainly for the experts in system department by the developer. 2. Training to the users by the experts from the system department. 3. Refreshers training to make users aware of all the functions of slow. The future priorities are given to Business Process Reengineering and Internet connectivity to all departments
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MANAGING DIRECTOR
MANAGER
(Information & Security)
Now systems department is doing the work of preparing a cost accounting module and a product cost analysis software for the company. An online integration to make all the four servers into a single server through net is another future plan of this department.
5.
SWOT ANALYSIS
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SWOT analysis has been defined as 'a conceptual framework for a systematic analysis that facilitates matching the external threats and opportunities with the internal weaknesses and strengths of the organization'. SWOT analysis is a well defined study about the strength, weakness, opportunities and threats of the organisation. SWOT analysis is very much helpful in analyzing the strength, weakness, opportunities and threats of the organizations. SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. Once key issues have been identified, they feed into marketing objectives. These data helps the managements to plan, design and develop its future actions.
5.2. WEAKNESS
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1. Focus on only two products mainly: KAMCO focus on only two products, Power tiller and Diesel Engine mainly, out of 5 products. 2. Production is not upto the demand: KAMCO still fail to meet the actual demand in the market, as they manufacture products not depends on the demand, but depends on the budget. 3. Time delay in recruitment and selection: The recruitment is mainly through PSC and thats why time day may occur. 4. Political interference: As KAMCO is a public limited company, lot of political interference can be there. 5. High transportation cost: As all the four units of KAMCO are in Kerala and potential market is in northeast, the transportation cost will be high. 6. Only agricultural based products: KAMCO manufacture only agricultural based products.
5.3. OPPORTUNITIES
1. Only small part of the market is exploiting as huge reservoir of expertise can be used to set up technological collaborations. 2. Accumulated funds can be used in future expansion activities. 3. Government support in financial matters. 4. KAMCO has good exporting opportunities. 5. The trustable brand image makes an opportunity to grow more and to get mote customers. 6. Boom in the farm mechanization.
5.4. THREATS
1. The changing government policies. 2. Earning of agriculture is very less 3. Lack of recognition for farmers 4. High competition from Chinese and Korean product low cost 5. LPG Liberalization, Privatization, Globalization: Liberalization, Privatization,
Globalization opened the Indian market to the global players.These players are coming with highly developed low cost products which may attracts its potential customers.
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6.
6.1. FINDINGS
1. The company environment friendly. 2. Good production facility. 3. 8th profit making company in the undertaking of Kerala govt 4. High demanded product 5. Good industrial relationship. 6. Qualified and skilled workers. 7. Good brand name. 8. Good incentive system. 9. Unique company running with profit for the last 30 years. 10. Political interference.
6.2. SUGGESTIONS
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1. The company should expand export opportunities, so a bit more promotional activities should be included. 2. The company has to engage in production of variety products 3. Introduce new major strategies to the empowering dealers. 4. The company resources should be utilized to the maximum, so that there will be efficiency in its operation. 5. Training facilities should be given to the unskilled workers. 6. Timely promotion must be given to the employees for motivation. 7. Counseling facility should be provided to the employees. 8. Reaching better horizons by fostering new partnerships. 9. The organization should provide better in the recreation facilities to the employees.
6.3. CONCLUSION
The organisational study done at Kerala Agro Machinery Corporation Limited, Athani was undertaken with the objective to get an idea about the administration, management of business firms. It enabled to understand the various functions of each departments of a manufacturing firm and also the problems faced by the public sector undertakings due to the changes in government policy. KAMCO an ISO 9001:2000 company was established in the year 1973 at Athani. KAMCO has different units situated at Kalamassery, Palakkad and Mala. The main products of the company are KAMCO Power Tiller, KAMCO Power Reaper and KAMCO Diesel Engine. In spite of threat from imported and indigenous makes of power tiller, KAMCO Power Tiller continuous to be the preferred choice of farmers attaining the moderate market share for the year. Power Reaper also had been able to catch the imagination of the small farmers. The response for the newly launched KDI Super Power Tiller is very encouraging. Diversification of products and services is an essential prerequisite for success. KAMCO is the 8th profit making company in the government undertaking.
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ABBREVIATIONS
DGM
MGR Sr.MGR Reg.MGR DM AM Area MGR AE TA ACCNT HRM F & CS MKT R&D PURCH MATL STOR ASMBLY MchShop PF
Deputy General Manager Manager Senior Manager Regional Manager Deputy Manager Assistant Manager Area Manager Assistant Engineer Technical Assistant Accountant Human Resource Management Finance & Company Secretary Marketing Research & Development Purchase Material Stores Assembly Machine Shop Provident Fund
GOVT PVT LTD SPM ERP MPS LTS DI ESI CH CM WA SYSTM IA PRODN PA QA MTNC MC & ET SO
Government Private Limited Special Purpose Machines Enterprise Resource Planning Monthly Production Schedule Long Term Settlement Direct Injection Employee State Insurance Charge Head Chief Mechanic Work Assistant Systems Internal Auditor Production Personal Assistant Quality Assurance Maintenance Mechanics & Electricians Shift Officer
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BIBLIOGRAPHY
WEBSITES
www.kamco.co.in www.hinduonnet.com www.agriculturalindustry.com
BOOKS
KOTHARI C.R., RESEARCH METHODOLOGY-METHODS & TECHNIQUES, 2ND EDITION NEW DELHI, WISHWA PRAKASHAN PVT. LTD.
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