INTRODUCTION

In the Indian electronics industry for over 35 years the name O/E/N India Ltd. has been
synonymous with precision, high quality electromechanical components like relays, switches,
trimming potentiometers and allied assemblies.

Since 1969, O/E/N has been market leaders for all products under its manufacturing range and
caters to market segments like industrial instrumentation & controls, automotives, strategic
electronics and high end consumer electronics with emphasis on quality.

The state of the art assembly and manufacturing facilities of O/E/N covering over 18000m 2
spread over 2 suburbs of Cochin and 1 in Peenya in Bangaloru. O/E/N has their own captive tool
design center and well equipped tool room capable of producing high precision tools and
moulds. In-house preproduction pressed metal parts with allied annealing and plating, finishing
plants and moulding shops for moulded plastic parts.

The quality management system of the company is approved to ISO 9001 with automotive
production lines being approved to ISO/TS 16949. The environmental systems of the company
are approved to ISO 14001. Individual products are covered by approvals from defense or
telecom authorities or by UL, CSA or VDE.

R&D laboratory of O/E/N is recognized by the Department of science and technology,

Government of India, and is competent to develop high precision miniature, electromechanical
components and allied subsystems. R&D is geared to work on acquisition of technology as to
transfer technology top business partners.

One of the thrust areas of business is contract manufacturing. O/E/N has got plants identified
under Electronic Hardware Technology Park (EHTP) scheme for duty free inputs for exports.
There are several companies from outside India who utilize O/E/N’s expertise in manufacturing
to produce low cost high quality products.

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 INDUSTRY PROFILE
The Electronics Industry in India took off around 1965 with an orientation towards space and
defense technologies. This was rigidly controlled and initiated by the government. This was
followed by developments in consumer electronics mainly with transistor radios, Black & White TV,
Calculators and other audio products. Colour Televisions soon followed. In 1982-a significant year
in the history of television in India - the government allowed thousands of colour TV sets to be
imported into the country to coincide with the broadcast of Asian Games in New Delhi. 1985 saw
the advent of Computers and Telephone exchanges, which were succeeded by Digital Exchanges in
1988. The period between 1984 and 1990 was the golden period for electronics during which the
industry witnessed continuous and rapid growth.

From 1991 onwards, there was first an economic crises triggered by the Gulf War which was
followed by political and economic uncertainties within the country. Pressure on the electronics
industry remained though growth and developments have continued with digitalization in all sectors,
and more recently the trend towards convergence of technologies.

After the software boom in mid 1990s India's focus shifted to software. While the hardware sector
was treated with indifference by successive governments. Moreover the steep fall in custom tariffs
made the hardware sector suddenly vulnerable to international competition. In 1997 the ITA
agreement was signed at the WTO where India committed itself to total elimination of all customs
duties on IT hardware by 2005. In the subsequent years, a number of companies turned sick and had
to be closed down. At the same time companies like Moser Baer, Samtel Colour, Celetronix etc.
have made a mark globally.

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 COMPANY PROFILE

Established in 1968, O/E/N is the market leader for Electromechanical Components.

Manufacturing plants are located in the suburbs of Cochin, Bangalore and Pune with over 20,000
square meters of factory space. They offer a comprehensive range of products with applications
in most segments of Electronic Industry including Communications, Automotive, Strategic
Industrial Controls, Instrumentation and Consumer Electronics. The quality management
systems of the company is covered by ISO 9001 and ISO/TS 16949 Certification.

HISTORY OF O/E/N

O/E/N India Ltd was formed in 1968 as a joint venture with OAK Electro/Netics
Corporation, USA under the leadership of founder M.D and Late Mr K A Mathew. At the
inception, 45% of the equity shares were held by OAK Industries Inc, USA and 25% by Kerala
State Industrial Development Corporation and balance primarily by the directors and their
associates. The abbreviation O/E/N was devised out of the name of the collaborator.

The OAK group was a pioneer in the field of professional grade rotary switches,
keyboards, and push button switches, miniature and power relays, miniature trimmer
potentiometers, controls and control systems serving many segments of electronic industries-
appliances, manufacturing, industrial, aerospace, military and other fields. Until O/E/N India
went into production, entire requirements of the country for these products were being imported
from the US and the UK. The major customers of these products were Indian PSUs like BHEL,
HAL, ISRO, DRDO, HMT etc.

The company started with OAK designs and eventually added new designs in due course.
The company reached its break even in 1970 and declared its first dividend in the year 1973. In
1980, the company started a sister concern O/E/N Micro Systems to take up manufacturing of
computer peripherals and in 1984 O/E/N Connectors India Ltd in collaboration with FCI

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Connectors, France. By 1985, the company set its second manufacturing plant in Peenya,
Bangaloru and in 2010 the company established its third manufacturing plant at Pune.

Till 1990‟s the company was enjoying a monopoly in the market with no competition
from the local businesses. However with the liberalization policy of the 90‟s, the company was
forced to face severe competition from the global brands. It took some time for the company to
react and change itself from the slow pace culture generated by the monopolistic leadership to
that of a flexible innovation culture needed in midst of a competitive market. The growth of the
company was dampened though losses were avoided.

The company was subsequently merged to the parent company in 2003. FCI also
increased its share in O/E/N Connectors to 51% and then to 65% in 1996. The company realizing
the faults reinstated its position in the early 2000s entering into tie-ups and technological transfer
agreements with major global players to bridge the technological gap. The company had invested
in enriching its core competency in electromechanical sub systems development and had entered
into contract manufacturing. The policy changes reflected more emphasis on value addition and
value creation.

BUSINESS MISSION, VISION & GOALS

Mission

 Attain leadership position

 Create wealth
 Be the best in the business

Vision

 Centre of technological excellence

 Market leader in electromechanical components in country

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 Goals

 To attain a respected presence in the industry

 To build progressive relationships
 To improve organizational strengths
 To fine tune competitive advantage
 To offer unique services
 To undertake customizing of products

1.3. MAJOR CUSTOMERS

 American Power Conversion (APC)

 GE Medical Systems
 TATA Motors
 Mahindra & Mahindra
 Johnson lifts
 JCB India
 ITI Ltd
 Ford India Pvt Ltd
 Bharat Electronics Ltd
 L&T Ltd
 ABB India Ltd
 Hyundai

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 DEPARTMENTS IN O/E/N

The industry is organized into the following departments

HUMAN RESOURCE DEPARTMENT

Human Resource Development (HRD) is the framework for helping employees develops
their personal and organizational skills, knowledge, and abilities. Human Resource Development
includes such opportunities as employee training, employee career development, performance
management and development, coaching, mentoring, succession planning, key employee
identification, tuition assistance, and organization development. O/E/N has a an efficient HRD
department, which is headed by Asst general manager.
HRD as a process occurs within organizations and encapsulates: 1) Training and
Development (TD), that is, the development of human expertise for the purpose of improving
performance, and 2) Organization Development (OD), that is, empowering the organization to
take advantage of its human resource capital. TD alone can leave an organization unable to tap
into the increase in human, knowledge or talent capital. HRD does not occur without the
organization, so the practice of HRD within an organization is inhibited or promoted upon the
platform of the organization's mission, vision and values.
Other typical HRD practices include:
1. Executive and supervisory/management development,
2. new employee orientation,
3. professional skills training,
4. technical/job training,
5. customer service training,
6. sales and marketing training,
7. health and safety training.

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2.1.1. Functions
 Manpower Planning
It involves the planning for the future and finding out how many employees will be needed
in the future and what types of skills should they possess.
It depends on the following factors
The number of people leaving the job
The projected growth in sales
Technological changes
Productivity level of the workers

 Job analysis and Job description

HR Department is also involved in designing the Job analysis and Job description for the
prospective vacancies.
A job analysis is the process used to collect information about the duties, responsibilities,
necessary skills, outcomes, and work environment of a particular job.
Job descriptions are written statements that describe the:
duties,
responsibilities,
most important contributions and outcomes needed from a position,
required qualifications of candidates, and
reporting relationship and co-workers of a particular job.

 Determining wages and salaries

HR Department is also involved in conducting market surveys and determining the wages
and salaries for different position in an organization. These decision may be taken in
consultation with top management and the Finance department.

 Recruitment and Selection

The recruitment and selection is the major function of the human resource departmen
and recruitment process is the first step towards creating the competitive strength and th

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 strategic advantage for the organizations. Recruitment process involves a systemat
procedure from sourcing the candidates to arranging and conducting the interviews an
requires many resources and time.

 Performance Appraisal
Once the employees are recruited, the HR Department has to review their performance on
a regular basis through proper performance appraisals.
Performance appraisal is the process of obtaining, analyzing and recording information about
the relative worth of an employee. The focus of the performance appraisal is measuring and
improving the actual performance of the employee and also the future potential of the
employee. Its aim is to measure what an employee does.
On the basis of performance appraisal the HR Department will set up an action plan for each
employee. If the employees need any training then he provided that.

 Training and Development

HR department is constantly keeping a watch over the employees of the organization. In
order to improve the efficiency level of the employees they have go undergo regular trainings
and development programmes. All trainings and development needs are carried out by this
department. Training might include on the job or off the job training.

 Employee welfare and motivation

Happy employees mean a healthy organization. HR Department conducts various
employee welfare activities which might include employees get together, annual staff parties
etc. HR department also reviews organizational policies and its impact on the motivation of the
employees.

 Addressing employees grievances

HR department is the link between the workers and the management. Employees
grievances related work environment are usually entertained and resolved by the HR
Department.

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 Labour management relations
For the smooth operation of any organization, it is crucial to have good labour management
relations. HR department has to ensure that these relations are cordial. In case of any labour-
management conflict the HR Department will play a vital role in bringing both management
parties to the negotiation table and resolving the issue.
 Implementing organizational policies
HR Department has to coordinate with line manager and see that the organizational
policies are being implemented in a proper manner. Disciplinary action can be initiated against
employees who are not following organizational rules and regulations. All these actions are
conceived and implemented by the HR department.

 Dismissal and redundancy

HR Department has to take firm actions against employees who are not following the
organizational code of conduct, rules and regulations. This can result in the dismissal of the
employee.
Sometimes, an organization may no more require the services of an employee. The
employee may be made redundant. HR Department has to see that organizational and
government regulations are being followed in this process.

To carry out these functions, separate sub-departments have been established with the
HRD department. The HRD department is headed by the Assistant General Manager
(HRD),who is responsible for the efficient working of all the departments under it. The HRD
department is thus responsible for maintaining a good and sustaining relation between the
management and workers and between management and the public. The department frames
various for the welfare and satisfaction of the employees.

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 RESEARCH AND DEVELOPMENT DEPARTMENT

Research and development (R&D) department is mainly involved with the design and
development and the betterment of existing products. Thus, the major objective of R&D is to
develop quality products based on „cutting-edge‟ technology. The company R&D facility operates

over a wide range of electronic research and applications. The facility is a self-contained centre
with well-equipped laboratories and multi-disciplinary team of professional design engineers.

The R&D department is mainly concerned with designing three types of products:
a. Products according to customer specifications.
b. Existing products not available in the market.
c. Existing products with additional features.

2.2.1. Roles and Responsibilities of R&D Section

Prototyping and batch production are the main responsibilities of the R&D department.
The department first receives a New Product Development Request (NPDR). The design
development is based on the Advanced Product Quality Planning (APQP).

The 5 major phases of new product development are:

1. Plan and define the program: This stage is the initial stage in the long process of R&D
department. The initial stage is concerned with identifying what kind of product is to be made
and it is feasibility in creation (financial, conceptual and process).
 Risk analysis and feasibility review.
In this they note all the risk faced by the company during the planning time. It also consist of the
analysis of the different other product with the company‟s product. This is based on consumer
specifications. Risk analysis also consist of the different problems faced by the company in the
recent days, any frequent quality rejections, any launch performance is poor, will the product
requirements be difficult to achieve etc. in feasibility review they look up on a number of
details.
 Contract review check list

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 Define the scope
 R&D: Design the relay, issue drawing etc.
 Marketing: Interaction with customer.
 Tool room: Design and make tools for fabrication.
 Fabrication: Production of parts.
 Manufacturing: Assembly.
 Quality assurance: Ensure the quality of components and products.
 Materials.
 Data from marketing and QAD
 Watermarks, customer plant report and rejections, field return, product analysis, customer
feedback etc.
 Internal quality report, supplier feedback, process capability, problem resolution reports
etc.
 Design goals targeting reliability, life, maintainability, timing and cost.
 Preliminary bill of material.
 Preliminary process flow chart
 Product assurance plan
 First phase review and management support

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2. Product design and development: In this stage, the department usually uses the PRO-E
software to design the finished product. Along with this the product and the tools are also
designed. The manufacturing of the tools also take place in this stage. A review on the
progress of the process is done bringing to an end the second phase of the NPD process.
 Design failure mode and Effect Analysis(DFMEA)
 Analysis of various parts of the relay and problems at the time of manufacturing.
 Design for manufacturability and assembly.
 Design concept, functions and sensitivity to manufacturing variations.
 Manufacturing and assembly process.
 Number of components.
 Material handling.
 Design verification.
 Different dimensions such as length, width, height, NO-terminal, NC-terminal,
coilterminal etc. are verified.
 Design review checklist.
 Prototype build.
 Engineering drawing and specification.
 Drawing specification changes.

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 New equipment‟s tooling and facilities.
 Tool Design.
 Material specification.
 Sheet metal strip procurement.
 Tool manufacturing.
 Gauges/Testing equipment procurement.
 Bill of materials.
 Testing equipment requirements.
 Team feasibility commitments.
 Second phase review and management support.
3. Process, Design and Development: In this phase the process sequence, labour characteristics,
room characteristics etc. are identified and developed. Manufacturing process design output.
 Targets for productivity, process capability and cost.
 Process flow chart checklist.
 Packing standards.
 Flow plan checklist.
 Process FMEA and checklist.

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 Prelaunch control plan and checklist.
 Process instructions.
 Process approval acceptance criteria.
 Data for quality, reliability and measurability.
 Error proofing activities.
 Method of proofing detection and feedback.
 Measurement of system analysis plan.
 Preliminary process capability study plan.
 Packing specifications.
 Third phase review and management support.

4. Product & Process Validation: The validation and testing of the products made are
conducted in this phase along with the final designing of the product. The design made up in

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 this phase goes into the pre-production run in the fifth stage. The relay values, dropout volts,
withstand, life, ampere, etc. are tested validated to the benchmark. A review is conducted after
this phase.
 Production trial run.
 Measurement system evaluation.
 Preliminary process capability study.
 Product approval process.
 Production validation testing.
 Packaging evaluation.
 Production control plan.
 Quality planning and sign off.
 Fourth phase review and management support

5. Feedback Assessment and Corrective Action: A preproduction run for 20,000 to 30,000
units are conducted. For the first three months the R&D team along with production team
would be constantly monitoring the production process and the mistakes are taken care
immediately without any delay.
 Field trials and valuation
 Multiple batch production for confirming the result.
 Samples with PPAP
 Batch production
The average time taken for a new product to be designed and developed is six months.

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 TOOL ROOM

O/E/N has a well equipped modern tool room with all facilities. The specialty is in the
design and manufacture of tools and moulds for electromechanical components. Tool room is
managed by a team of expert engineers in tool design and in manufacturing a group of well trained
tool room makers and mechanics, a well equipped press and molding shop attached to the tool
room provide facility for providing the tool and moulds. Tool room works in four wings:

Tool design
Machining
Tool assembly
Maintenance
The tool room is equipped with CAD facility and a machine shop having the following
special machines in addition to conventional machine tools. The tool room can accept orders for
design and manufacture of the following types of tools and moulds, for fabrication of components
to customers design.
 Press tools – progressive, compound and single operation tools
Injection moulds
Compression moulds
Transfer moulds
Assembly tools
Jigs and fixtures

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Procedure

The drawing for a particular tool will be issued from design section with respect to
the work order. After getting the drawing, the routing for the entire will be done by the shift
supervisors. After routing, the supervisor will hand over the drawing copy to respective
toolmakers for pre-machining the work pieces.
Work piece are taken from raw material store by giving store requisition slip. Then
the work piece will undergo pre-machining. The pre-machining includes shaping, milling, and
surface grinding.
Work piece are then loaded in micron milling and jig boring for pre-drilling holes,
boring, cavity milling, steps, slots etc. to the required dimensions as per the drawing. These work
pieces will handover to tool makers for tapping, relive holes etc. after that work piece will undergo
heat treatment. Heat treatment will help the work piece to become hard.
Heat treated work piece are then taken to further operations like surface grinding,
profile grinding, spark erosion, wire cut and final EDM. After the final operation EDM, the work
piece will take for inspection. The work piece will inspect as per the drawing.

By finishing the inspection the tool makers will assemble the work piece as per the
drawing. The assembled tool will take for trial. Five thousand parts will produce and handover to
QA for inspection. If QA approved the part, then the tool will handover to concern department.
Bench workers are for maintaining and repairing the tools. For each tool and mould
they keep a record. In that record the tool maker will note down the actions that he took for
repairing the tool.

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Operations In Tool Room

1. Cutting: Power hack saw are using for cutting the work piece to required dimension.
2. Shaping: Shaper machine are using for shaping process. Machining of flat work piece to the
required size by keeping 0.5 allowances for further operations.
3. Milling: Vertical and horizontal milling machines are using for this process. We can do
milling and drilling process on this machine.
4. Micron milling: Numerical control milling machine are using for this process. In this machine
e can do drilling, milling, boring etc. with accurate dimensions.
5. Jig boring: Digital Read Out(DRO) is used for maintaining the accurate and perfect output.
Jig boring machine maintain 2 micron accuracy. Drilling and boring of holes to required
dimensions are doing with this machine.
6. Surface grinding: Work pieces are grounded to magnetic chuck for grinding. By grinding the
surface will be smooth. By this machine we can do flat, vertical, horizontal grinding. We can
maintain perpendicularity.
7. Cylindrical grinding: This machine is used to grind the cylindrical work piece like cylinders,
pillars etc.. By this machine we can grind internal and external round work piece.
8. Profile grinding: The image of the work piece is projected to the projector, with the help of
projected image. Flat, vertical, concave and any other irregular forms can be grind to the given
dimension. The accuracy of this machine is 1 micron.
9. Spark erosion: It is a method of drilling holes in hardened work piece by sparking. Before
wire cut the holes for the wire passage are drilling by this method. Brass and copper rods are
using as electrodes for sparking.

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10. WEDM: EDM means Electro Discharge Machine. Stabilized current is used for this process.
Brass, copper with zinc coating wires are using. The required diagram is drawn in computer
and inserts the floppy to the machine. The machine will cut the work piece as per the drawing.
The work piece is dipped in chilled water to avoid over heating of piece.
11. EDM: By sparking the work piece to required dimension. Copper and tungsten are using as
electrode. The work piece is dipped in dielectric fluid to avoid short circuits. Types of metals
used are:-Mild steel, Orvar supreme, Ohns etc.

Tool Room Process Flowchart

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 FABRICATION/PLATING DEPARTMENTS

The main assembly is supported by comprehensive fabrication facilities with power press
for pressed piece parts, a plating plate that handles plating of conventional as well as precious
metals. This has three divisions:
Actual fabrication
Electro plating
Moulding shops

Fabrication Shop
This is the department where all the components are manufactured which includes making
of all the minor and major components of relays and electroplating as per customer requests.
About 90% of the parts such as the armature, yoke, core etc required to manufacture the relays
and switches at O/E/N India Ltd is made by the company itself.
Fabrication refers to build metal structures by cutting, bending and assembling. The cutting part
of a fabrication is via sawing, shearing, or chiseling; torching with handheld torches; and via
CNC cutters. The bending is via hammering (manual or powered) or via press brakes and similar
tools.

ELECTRO PLATING
Plating is an important step which is the final step of fabrication. Plating has different
steps that includes degreasing ,hot soak, water rinse , acid pickling, water rinse, anodic cleaning
,water rinse ,cyanide bath ,copper bath ,water rinse and unloading.
For plating different metals such as copper, nickel, gold, silver, cadmium, zinc, chromium etc.
are used. Plating procedure include
1. Receiving of items along with the production report
2. Items are selected according to the shortage list
3. Plating is done as required by the drawing specification
The plated parts are transferred for inspection .Plating thickness is measured and entered in
the plating process control sheet before transferring the parts. An important factor to be noted is

that O/E/N India Ltd has developed an automatic plating system which is established in the plating
unit. This system was developed by the automation department of O/E/N.

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 ASSEMBLY DEPARTMENT

This department is mainly related to the manufacturing and assembly of relays, switches
and potentiometers. This department works two shifts in a day. Their main objective is to reduce
process scrap and achieve programmed production. The piece parts which is the fabrication unit
outputs and materials which are directly purchased undergone several processes in order to
develop the final product.

Relays
Relays are electromagnetically operated switches. An actuating current on a coil operates
one or more galvanically separated contacts or load circuits. Relays are differentiated based on
materials used, temperature and pressure with standing ability, electrical parameters, type of
moulding etc. Different types of relays such as automotive, industrial etc are developed. The
assembly steps of 73-relay is given below:
● Coil pin insertion
● Coil winding
● Coil lead tinning and hooking
● Welding of terminal 30 with yoke
● Yoke, core and assembly staking
● Staking of terminal 85 and 86 into base
● Staking of NO/NC contact with terminal 87
● Staking of NO/NC contact with terminal 87a
● Staking of base terminal assembly
● Insertion of coil assembly into base assembly
● Soldering of coil terminals and resistor
● Staking of moving contact with contact blade c
● Welding of armature assembly with base assembly
● Cover printing
● Relay-cover assembly

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Potentiometers
As per orders, assembly of potentiometers is undertaken. Therefore the manufacturing of
these are less compared to other products. This product is used in electronic circuits for getting
desired voltage drops. All the parts of the potentiometers are imported.
Procedures inside Assembly Room:
a) Information and scheduling system: This is to provide information on the functioning and
daily targets at the assembly room; There are mainly two types of information boards
inside the assembly room manually written board and digital information boards.
b) Daily meeting at work place: A meeting between supervisor and the assembly workers
happens before each shift to discuss on previous day‟s production. The discussion may
go up to ten minutes.
c) Integration with production planning department.
d) Operation control procedures.

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 QUALITY ASSURANCE DEPARTMENT

Quality assurance (QA) refers to the engineering activities implemented in a quality

system so that requirements for a product or service will be fulfilled. It is the systematic
measurement, comparison with a standard, monitoring of processes and an associated feedback
loop that confers error prevention.

Departmental Structure

Quality products and services to the customers is the primary task but the ultimate aim is to
offer customers improving products and services. The QA department is involved in inspection
of parts, incoming materials and financial products and also in maintenance of quality records.
QA lab facilities are used by other companies too underlining the quality and standards kept by the
company in maintaining its QA department.
Major functions of this department are given below:
Incoming Inspection: Inspection of first sample is done by incoming inspection executive after
receiving reports along with samples. Inspection of vendor supplied parts is done according to
specifications. Criterion for incoming inspection is that if five items randomly taken are qualified

then the entire lot is approved and if three items are rejected the entire lot is rejected. Following
processes are done in incoming inspection
➢ Inspection of raw material
➢ Inspection done during fabrication of parts, samples are tested on an interval of one hour
➢ Inspection of in-house processed parts
➢ Inspection of packing boxes, mould tray
➢ Product specification testing
➢ Parts after plating and processing
➢ Customer supplied parts are tested

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Finished Product Inspection: This process is done to ensure and certify that the required quality
is maintained for finished products. Finished products are tested by checking random samples
offered by product inspectors by subjection appropriate routine life tests as per work instruction
for ensuring product reliability and performance against relevant specifications at regular intervals.

Inspection Modes

Normal Inspection mode: This mode is carried out in early stages of quality inspection.

Normal to tightened Inspection mode: When two out of five or more consecutive lots of a part
gets rejected in normal inspection, there is a switch over to tightened inspection.

Tightened to Normal Inspection mode: When five consecutive lots of a part get accepted
enlightened inspection mode, normal inspection mode is resorted back.

Calibration Section

This section functions within the QA but performs a distinct function. In this section,
chiefly, tools and equipments used in assembly line and QA parts are checked or calibrated.
Calibration means testing the measuring equipment, their precision as well as their conformity.
This helps to check timely decadence and wear and tear of equipment used in product inspection.
In the calibration observation sheet which is tagged along with the tool, the observations are noted

down as “P” or “F” for pass or fail. A colour label is stuck on the equipment after calibration
signifying the following:
Green- O.K
Red- Out of Use
Yellow- Limited Use

In case of yellow, users are to use the equipment carefully and correction in measurement
is made manually. Equipment of various departments is sent for calibration and a copy of the
calibration observation sheet is sent to the concerned department along with the calibrated tool.

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 MATERIAL/PURCHASE DEPARTMENT

The materials purchase department is an important department in O/E/N. The hectic

procedures concerning the purchase of materials, choosing suppliers of materials, etc are decided
by this department. O/E/N India Ltd. Attempts to acquire materials, goods, and services to
accomplish the goals of the company. This process is referred to as purchasing. Though there are
several organizations that attempt to set standards in the purchasing process, processes can vary
greatly between organizations. Purchasing managers and procurement managers guide the
organization‟s acquisition procedures and standards. Purchasing includes activities like discussing
prices, discounts, delivery load time and specifications with supplier, chase data deliveries and
sanction payments to deliveries. They will seek out competitive source and maximize quantity and
quality.

Sections
There are mainly 3 sections for this department:
 Material planning
 Material procurement
 Material utilization

Functions And Procedures

1. Approval of new suppliers: New sources are identified through various inputs like publications,
ads, introductory letters, references through internet, through correspondence etc. A request for
quotation is sent to new sources along with specifications, drawings, samples,

2. supplier evaluation forms etc wherever applicable . On receipt of quotations and other details
offers are evaluated. If required, further correspondence/ negotiations / request for samples is
made and new suppliers for ordering are identified. Trial order is placed with new suppliers
based on terms and conditions. Trial order item receipts are forwarded to QA for evaluation and
inspection report is forwarded to suppliers. Based on acceptance of trial batches, new suppliers
are included in “Approved Suppliers List”.

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3. Supplier monitoring : For suppliers , supplier performance is monitored based on the
following for automotive parts:
 Quality 40%
 Delivery 10%
 Price 15%
 Premium freight incidence 10%
 Customer line description 10%
 Quality issues for customers 10%
 Documentation 5%

For suppliers of non- automotive parts supplier performance is monitored based on

 Quality 40%
 Delivery 25%
 Price 25%
 Responsiveness 10%

Performance rating is done during April and September every year for suppliers made
during the previous six months . Based on rating suppliers are classified into five grades :
Grade A : Rating >=90
Grade B : Rating >=80 and <90
Grade C : Rating >=70 and <80
Grade D :Rating >=60 and <70
Grade E : rating <60
Suppliers belonging to group E are removed from approved suppliers list. Suppliers are
reevaluated every three years based on their performance rating for previous three years. Those

26
 In case of rejection of supplied items suppliers are informed along with inspection
report/Corrective and Preventive Action Report (CPAR) and asked to submit counter measures
and ensure implementation of measures depending on severity of problem. Suppliers are
instructed to present the counter measures for major problems in a meeting at O/E/N. Even
after counter measures if suppliers are rejected no further orders would be placed. Quality
assurance (QA) refers to the engineering activities implemented in a quality system so that
requirements for a product or service will be fulfilled. It is the systematic measurement,
comparison with a standard, monitoring of processes and an associated feedback loop that
confers error prevention.

27
 Finance Department

Finance department is the life blood of the business. So in any organization the most important
department is Finance Department. Without this department no organization can work smoothly.
O/E/N also has an efficient department for Accounts and Finance. Finance department is
concerned with planning and controlling of the firm’s financial resources.

The important objectives of the finance department include:

 Preparation of corporate plans and budgets.


 Financial planning cost control and ensuring uniform and correct observation of
financial disciplines of the company

 Monitoring the progress of budget achievements

 Providing accounting services to all levels ensuring updating of systems procedures
for the same.

 Advising management on funds utilization and its implementation.

 Vetting of all investment proposals, certain of new assets, new posts etc. From the
point of financial feasibility

 Evolve an audit manual

The finance department performs various functions very effectively .the main functions of
the department include:

 To collect all sums due to the company in time as per sales, orders etc

 To make timely payments to creditors, suppliers, contractors, employees,
Government statutory bodies, service providers etc

 Timely dispersant of salary/wages/perks to employees as per agreement, MOU etc

 To assist all types of audit work.

 To prepare MIS as required by the management

 To complete all Budget works.

28
 


 To assist all departments in providing financial administration of all transactions.

 To make proper entries in books of accounts and extracts reports like Trial
balance, P&L A/c , Balance Sheet on a time bound basis

Significant Accounting Polices:

Every organization has its own accounting policies. O/E/N also has its own accounting policies.
The following by the company:

a. Fixed Assets

Fixed Assets are started at cost of acquisition or construction less

depreciation. All costs relating to the acquisition and installation of fixed
assets are capitalized. Assets and liabilities are consistently being recorded
at historical costs of the company and therefore they are not adjusted to
reflect the change in value in the purchasing power of money
b. Investment

All investments are valued at cost.

c. Inventories

 Raw materials ,materials in progress , and stores and spares are

valued at the cost on weighted average method

 Finished goods are valued at cost

 Goods in transit are valued at cost

29
a.sales

Sales are recognized upon delivery of products and are recorded inclusive
of excise duty but are net of trade discount, sales tax return.
b. Depreciation

Depreciation on fixed assets has been provided as per the rates prescribed
in scheduled XIV of the Companies Act of 1956. Under written down
value at any method depreciation on additions and deletions of fixed assets
is calculated on prorate basis
c. Retirement benefits

Gratuity liability is provided on the basis on the company rules prevailing

from time to time. The gratuity fund created to the company has been
approved by the income tax authorities. The net assets enable the fund to
be fully discharged by the company’s obligations in respect of gratuity,
payment of the employees etc.
d. Scraps

Accounting of scraps is done at the time of sales. In finance department,

several sections such as salary/wages, provident fund, loans, over time
allowances, dearness allowances, etc each section is handled by one
person or two
e. Accounting policies

The financial statements are prepared under the historical cost convention
on an accrual basis and in accordance with the mandatory accounting
standards issued by the ICA and relevant provisions of the Companies
Act, 1956.

f. Excise duty

Excise duty has been accounted on the basis of both payments made in
respect of goods cleared as made by provisions made for finished goods
lying in the factory warehouse

g. Research and Development

30
 Capital expenditure on Research and Development is treated as addition to
fixed assets and included in the respective heads under fixed assets.
Revenue expenditure on research and development are charged to profit
and loss account.
h. Proposed Dividend

Dividend proposed by the directors is provided for in the books of account

pending approval at the AGM
i. Contingent Liabilities

Contingent liabilities are not provided for, but disclosed in Notes on

Accounts forming part of accounts
j. Deferred Taxation

Deferred tax asset has been determined taking into account the timing
difference in respect of depreciation and terminal benefits and is
recognized in the profit and loss account

k. Export Incentives

Export incentives in the form of Credit earned under Duty Entitlement

Pass Book Scheme is treated as income in the year of export at the
estimated realizable value/actual credit earned on export during the year.

O/E/N has consistently made profits over the many years of its functioning in spite of
unfavorable conditions. Sales during 2006-07 registered a growth of 33% over the previous year
of 47.12 crores.

Working capital management

O/E/N conducts its financial dealings with Bank of India & Centurion Bank of Punjab. The
banks can realize assets of the company in case payment is not made on time. Term loans have

31
been availed by the company from the banks. Salaries of the employees are given through bank
accounts of employees.

Share Capital Structure:

 Authorized share capital: 10,000,000 equity shares of Rs.10 each.


 Issued, subscribed and paid up capital: 50, 99,260 shares of Rs. 10 each fully paid up.

 Equity shares

 Borrowings from the two above said banks

 Fixed deposits

Investments:

O/E/N held 91905 fully paid up equity shares of FCI OEN Connectors ltd. Promoted by O/E/N
India Ltd. In 1981. The company has since sold above said shares @ Rs. 700/share to M/s FCI
SA, France. It currently holds 7200 equity shares of face value Rs. 10 in Bank of India Ltd. and
2001 equity shares of face value Rs. 10 each in OEN Electronics Pvt. Ltd. and 20000 equity
shares of face value Rs. 10 in Kerala Environ Infrastructure Ltd.

32
MARKETING DEPARTMENT

Marketing office of O/E/N India Ltd is situated at Vytilla, Cochin. Usually orders are taken up to
the 25th of every month and orders coming after the 25th are scheduled for the next month. The
minimum lead time for orders varies from six to eight weeks. There are seven regional offices
for O/E/N, they are:

Regional Sales Offices:

 New Delhi

O/E/N India Limited

76, FIRST FLOOR (REAR SIDE)

SANT NAGAR, NEAR NEHRU
PLACE NEW DELHI - 110 065

 Bangaloru

O/E/N India Limited

KE-204 & 205, SUNRISE
CHAMBERS ULSOOR ROAD

BANGALORU - 560 042


 Chennai

O/E/N India Limited

E-3, SANGATH APARTMENTS,
M.G.R NAGAR VELACHERRY

CHENNAI - 600 042




 Pune

O/E/N India Limited

A1 / 9, KUSUM SOCIETY

HAREKRISHNA MANDIR ROAD

MODEL COLONY

33
 PUNE - 411 016

 Hyderabad

O/E/N India Limited

2nd FLOOR, PLOT NO. 85,
ROAD NO.3

TRIMURTHY HOUSING SOCIETY
MAHENDRA HILLS
SECUNDERABAD - 500 026

Market segmentation of O/E/N

✔ Industrial instrumentation/Controls-30%
✔ Defense-6%
✔ Consumer Electronics-35%
✔ Telecom-4%
✔ Automotive-25%

Authorised Stockists

 Bangaloru:

○ Amar Radio Corporation
11/1 Thiglar Periyanna Lane
Silver Jubilee Park Road, Bangaloru – 560 002
 Mumbai:

○ Brisk Electro Sales Pvt. Ltd.,

394-A, Lamington Chambers

2nd Floor, Lamington Road, Mumbai – 400 004.

34
  Secunderabad:

○ Cosmos Electronics,

Room No.1, 2nd Floor,

Srinath Commercial Complex,

S.D. Road, Secunderabad –500 003.

 Calcutta:

○ Electronics Components & Systems,

32, Ezra Street, 418 Todi Corner,

Calcutta –700 001.

 New Delhi:

○ Indian Technological Products Pvt.Ltd.,

15 Dsidc, Sheme 1, Industrial Complex,

New Okhla Phase 11, New Delhi – 110 020.

○ Kudamm Corporation

D 17, 2nd Floor, Kalkaji, Opp. Nehru Place Bus

Terminal New Delhi - 110 019

 Chennai:

○ Seshasayee Brothers Pvt. Ltd.,

5/1, Krishnamma Lane,

Nungambakkam, Chennai – 600 034

35
Dealers:

➢ New Delhi
➢ Chennai
➢ Cochin
➢ Coimbatore
➢ Hyderabad
➢ Trichy
➢ Pune
➢ Kolkata
➢ Bangaloru
➢ Jaipur
➢ Lucknow
➢ Mangalore
➢ Vishakhapatnam
➢ Jamshedpur

Functions of the marketing department are:

Sales
○ Direct selling
○ Through dealers
Sales promotion
○ Participation in industrial exhibitions
○ Sending catalogues, brochures, etc to companies directly
Ads
○ Industrial directories
○ Technical magazines
○ Websites
Technical support
Agency work: O/E/N undertakes agency work for the following companies
○ Bourns Inc. ,USA

36
 ○ Otto Controls, USA
○ Diptronics Inc, Taiwan
○ Xiamen Hongfa, China
Exports
Customer services
Payment collection
Market planning: Target set for every year is 120% of sales made in the previous year. The
price of the product is based on creditability of the purchasing company as much as quantity
ordered. The sales forecast is based on past trends, seasonal expectations, as well as projected
sales figure of clients, in tandem with data received from regional offices. This forecast is
then passed to production planning department. Colour code used to make forecasts based on
which product line expansion or capacity planning is utilized. Colour code is as follows:
Dark blue: production in trial
Red: new product
Light green: imported
Lavender: outsourced production
Brown: Peenya production
Black: established and mature products developed at Mulunthuruthy
Ensuring Credit Worthiness of Customers: Marketing determines credit worthiness of
customers based on past payment trends and sales turnover of customers. Usually it ranges
from 15-30 days. In case of prestigious clients, it is extended to 60-90 days. In case of new
clients there are different phases of credit collection. Usually an advance of about 15% of
actual price is demanded.
Market promotion/enquiry handling
Advertising
Cataloguing
Mailers
Personal visits
Customer relatives
Intelligence gathering
Receipt and review of enquiry

37
 ➢ Sending quotations
Order processing
➢ Receipt and review of order
➢ Order control processing
➢ Delivery note generation
➢ Dispatch of materials
Payment collection
➢ Credit Payment follow up and cash collection

➢ Receiving and recording payments

After sales services
➢ Reviewing customer complaints
➢ Reviewing lack products in case of rectification
➢ Analysis of customer complaint
➢ Performa Chelan generation
Customer satisfaction evaluation
➢ Questionnaire reviews
➢ Sending questionnaires to customers
➢ Collecting completed questionnaires
➢ Data compilation
➢ Analysis and interpretation
➢ Presentation of reports and action plans
➢ Reports to field staff on specific customer responses
After sales services

38
 PRODUCTS

RELAYS
Relay Basics
Relays are electromagnetically operated switches. An actuating current on a coil operates
one or more galvanically separated contacts or load circuits. The electromechanical relay is a
remote controlled switch capable of switching multiple circuits, either individually,
simultaneously or in sequence.
The primary functions of relay are
1. The galvanic separation of the primary or actuating circuit and the load circuits
2. Single input/multiple output capability
3. Separation of different load circuits for multi-pole relays
4. Separation of ac and dc circuits
5. Interface between electronic and power circuits
6. Multiple switching functions
7. Amplifier function

Application of Relays

Typical applications of relays include laboratory instruments, telecommunication systems,

computer interfaces, domestic appliances, air conditioning and heating, automotive electronics,
traffic controls, lighting controls, building controls etc

Electromechanical Relays

In electromechanical relays, the switching elements are a mechanical contact, actuated by

an electromagnet. This is the most widely used type of design. The principal internal function of
the electromagnet relay is

39
1. Conversion of electrical current (input, coil current) to the magnetic field
2. Conversion of magnetic field into mechanical force
3. This force operates the contacts
4. Contact switch and the conduct electrical current
ELECTROMECHANICAL RELAY DESIGN
The most important components are
Contact system or Secondary side
1. Fixed contact
2. Moving contact (contact being moved between magnetic system to switch)
3. Contact springs (Holding the contact but sufficiently flexible to allow the contacts to move)
Magnetic system
1. Coil ( To generate the necessary magnetic field to actuate the armature and contact)
2. Core ( Highly magnetic permeable concentrates the magnetic field)
3. Yoke ( To establish the magnetic circuit)
4. Armature
5. Return spring ( For quick return of the moving contact to normal condition on removal of the
coil spring)
Mechanical Components
1. Case and Base ( To protect the relay against external influences and for the protection against
electric shock)
2. Insulation ( Within the relay to separate the primary circuit from the secondary side)
3. Actuator (used in the relay to translate the motion of the magnetic system to the contact
system)
4. Pins and terminals ( to connect between the contact system and the load)
5. Mounting devices( Sockets in brackets or PCB)

RELAY CONTACTS

The contacts are the most important element of the relay construction. Contact
performance is influenced by the contact material, voltage and current values applied to the
contacts, the type of load, frequency of switching, ambient atmosphere, form of contact.

40
 The contacts are practically not clean because the surfaces are covered by thin layers of
low conductivity, semiconductor properties or even isolating characteristics. These layers of
oxides, sulphides other compounds will be formed on the surface of metals by absorption of the
gas molecules from the ambient atmosphere within a very short time. The growth of these layers
will be slow down and eventually stopped as the layer itself prevents further chemical reaction.
The resistance of these layers increases with thickness. To get a reliable electrical contact these
layers have to be destroyed. This can be done by mechanical or electro-thermal destruction.

MECHANICAL CLEANING

When the contacts are closing, the metal surfaces will collide and hit against each other
several times (bouncing), causing elastic deformation of the contact area and the mechanical
destruction of thin layers. With high contact pressure also this could be obtained.
The design of the most relays allows the contact surfaces to wipe across each other destroying the
non-conductive films on the contact surfaces. This contact wipe often enough to clean the surface
and to reduce resistance to an acceptable level, as well as keeping the resistance stable throughout
the electrical life of the relay.

ELECTRICAL CLEANING

The low and non-conductive layers can also be destroyed by the effects of

1. Electrical voltage (Fritting)

2. Current ( Heating of contact points)
3. Thermal effects (High temperature due to electrical arc)

Fritting

The term fritting means the electrical breakdown of oxide or foreign layer when a
sufficiently high voltage is applied across a closed contact. Due to the applied voltage and very
short distance between the low potentials a high electric field is generated. This electric field
destroys the thin non-conductive layer and the establishes a metal bride electrically linking the two
surfaces

41
High Currents

High continuous currents and increased contact resistance due to the layers causes heating
of the contact. The layers will eventually be destroyed thermally be destroyed thermally and a
larger effective contact area is created, reducing the constriction resistance

Arc Sparks

Under certain circumstances an electric spark or arc will be generated during contact
making or breaking under load. The extremely high temperature of these arcs may destroy the
contact layers and burn or disintegrate other components or particles in the vicinity of the point of
contact.

BASICS OF RELAY HANDLING

1. Avoid ultrasonic type cleaning of all type of relays

2. To obtain initial performance throughout life, avoid dropping the relay
3. Case of the relays cannot be removed
4. Always apply rated voltage to relay
5. Do not switch voltage and currents that exceeds the designated values
6. Use flux resistant or sealed relays for automatic soldering.

3.7.1. INDUSTRIAL RELAYS Rating: 10 A at 24 VDC/230 VAC

Series 31(1R/2R) Coil: 6-220 VDC, 6-230 VAC
Series 31(3R/4R)

Mounting Style: Plug in

Mounting Style: Solder/Plug in
Contact Form: 2C, 3 C
Contact Form: 1-3 C
Rating: 10 A at 24 VDC/230 VAC
Coil: 6-220 VDC, 6-230 VAC

42
Series 33 CRADLE RELAYS
Series 67

Mounting Style: Panel / Plug in

Contact Form: 2C, 3 C
Rating: 30A at 24VDC/230VAC LCSO Approved
Coil: 6-48 VDC , 115 , 230 VAC Style: Solar/plug in/PC
SIGNAL RELAYS Contact: 2-8C
Series 42 Rating:3.5 and 7A at 24 VDC and 115VAC
Coil AC: 115,230V
Coil DC: Various
POWER RELAYS
Series 26

Mounting Style: PC
Contact Form: 1C
Rating: 1A at 24 VDC / 230VAC
Coil: 12, 24VDC Mounting Style: PC
Series 46 Contact Form: 1C, 2C, 1CK
Rating: Up to16A at 24VDC / 230 VAC
Coil: 6 - 48 VDC
Series 55H

Mounting Style: PC
Contact Form: 2 C
Rating: 2A at 30 VDC /125 VAC
Mounting Style: PC
Coil: 5 - 48 VDC

43
Contact Form: 1A Rating: 40A at 12VDC / 20 A at 24VDC
Rating: 25A at 24VDC/230 VAC Coil: 6 - 48VDC
Coil: 12, 24 VDC Series 35HT
AUTOMOTIVE RELAYS
Series 35

Mounting Style: PC
Contact Form: 1A
Mounting Style: PC Rating: 70A at 12 VDC (Glow Plug Load)
Contact Form: 1A, 1C Coil: 6 - 24VDC
Rating: 20 A at 12 VDC Series 3572
Coil: 6-48 VDC
Series 35H

Mounting Style: PC
Contact Form: 1A, 1C
Mounting Style: PC
Rating: Up to 45A at 12VDC
Contact Form: 1A
Coil: 6-24 VDC

44
 CONCLUSION

O/E/N India ltd is one of the leading manufacturer of relays switches potentiometers etc. Their main
customers are Maruthi, Ford ,Nissan etc. O/E/N India ltd was established in 1968. Their facilities located in
shrubs of cochin and bangalore.11000 square meter factory space. Products of this company found
application in communication, automotive, consumer electronics instrumentation etc.ISO
9001,ISO/TS16949,ISO14001 and OHSAS18001 certified and variety of end use products approvals. They
are the customer link for future. They help to turn/transform customer concepts to product application. The
hard earned reputation for quality products &services had helped them to enhance customer base. Customer
care and satisfaction is part of their work culture. This report gives a detailed study of the organizational
system and functioning of O/E/N India Ltd. The report covers description about various departments
of the company and their functions. The materials purchase department deals with the storage of
materials rights from the raw materials to the finished products and invites quotation and based on
the vendor ratings; get the required quantity and quality of guaranteed materials. The production
department is directly responsible for achieving the target production. Engineering department deals
with the maintenance and calibration of equipments used in the production process. The finance
department deals with the payments and receipts where as the HR department maintains an effective
relationship between management and employees. The QA department ensures quality in products
and processes while the General Service and Process Engineering departments assist the smooth
running of the organization.

45
BIBLOGRAPHY

1. Kotler Philip. Marketing Management Millennium edition

New Delhi: Prentice-Hall of India Pvt.Ltd, 1998.

2. Panneerselvam .R Production and Operations Management Second

Edition New Delhi: Prentice-Hall of India Pvt.Ltd, 2005

3. Dessler Gary Human Resource Management 7th edition New

Delhi: Prentice-Hall of India Pvt.Ltd, 2000.

4. www.oenindia.com

5. www.elcina.org

46