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CHAPTER 1

1.1 Introduction about the Internship:


This internship was carried to have an organizational study at Shanti Iron & Steel,
Udyambag, Belagavi a duration of four weeks. The internship is a platform for
anyone to gain experience in an actual workplace. Internship is a good
opportunity for us to learn, to gain experience and also to make preparation. By
doing my internship in actual work place, it helped me know and discover the
things that actually takes place in a work place. It also helped me to control and
develop my attitude and behaviour in dealing with different kinds of people and
situation.
I learned about the theories in the college, but by doing internship, I learned the
practical approach on dealing the real world. Although it was not much, in some
ways, through the internship I also have learned the qualities that I am lacking as
an individual. The important thing I learned is that to work in any company all
you need is hard work, dedication and patience.
The main aim of this internship was to understand and experience the working
culture of the organization and also apply the theoretical concepts in real life
situation.

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1.2 Industry Profile
Steel is very important for the development of any economy and is been also
considered as the backbone for the human civilization. Steel level is an important
index for level of social development and also the standard of living of the people
in any country. It is a product of a large and technologically complex industry
having strong forward and backward linkages in terms of material flows and
income generation. All major industrial economies are characterized by the
existence of a strong steel industry and the growth of many of these economies
has been largely shaped by the strength of their steel industries in their initial
stages of development.

Iron castings produced in foundries are used in a variety of application. The


major end use market for casting is municipal casting: sanitary pipes and fittings,
automotive applications and engineering components. The industry is also
important for employment, exports, linkage with infrastructure sector, energy and
the environment.

Manufacturing of casting castings in India:

The foundry sector is well recognized as one of the supporting industries for the
machinery and the Automobile industry. With the recent remarkable economic
development in Asia, the production of castings as part of process materials in
every engineering industry has been increased; that of the Asia area is the highest
in the world. However the production of costing per capita is only 8.2kg which is
the lower than world average than 13.6, this fact shows that the production of
castings will surely to increase along with an economic growth not only in the
Asian area, but also in developing countries.

Production of cast Iron and energy consumption:

The term Cast Iron is a general term for “Grey cast iron” and “Spheroid graphic
cast iron castings”. Since cast iron is easy to manufacture and its manufacturing
cost is low and besides it has various physical and chemical properties, it is used
in large amount in metal products in almost all areas of industries.

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CHAPTER 2

2.1 Company Profile:

The Shanti Iron & Steel runs under three partners Mr.Shantilal Porwal,
Mr.Kantilal Porwal and Mr.Santosh Porwal. Shanti Iron & Steel is one of the
largest manufacturers of casted machined oil sumps in India. Company is
expanding its area of operation in all the states.

Table 2.1 Organization Profile


COMPANY : “Shanti Iron & Steel”

ESTABLISHED: 1st July 1974

BUSINESS: Manufacture of “Ready to assemble” graded Iron and


Grey Iron
An ISO 9001-2000 company

CONSTITUTION: Partnership firm

PARTNERS: Mr. Kantilal V. Porwal – Commercial affairs


Mr. Shantilal V. Porwal – Technical Affairs
Mr. Santosh K. Porwal – Marketing

LOCATION: Head Office and Manufacturing plant at


Shanti Iron & Steel 690
Udyambag Belgaum-590008
Karnataka India

E-MAIL: marketing@shantiiron.net

TELEPHONE: 0831-4218303

AREA: 1,69,884 sq. ft

CONSTRUCTED: 30,800 sq. ft

EMPLOYEES: 600

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2.2 Background

Shanti Iron and Steel is an ISO/TS 16949 company started in 1974. It is


indulged in manufacturing and machining of „Ready to Assemble‟ grey iron
castings components, and also a single location integrated foundry and machine
shop. Currently producing 9500 MT per annum fully machine casting and
expanded to 1500 MT per annum.

OBJECTIVES OF THE COMPANY

1. To provide products of high quality and value.


2. To achieve cost effectiveness in machine shops and foundry.
3. To invest in the technology to achieve technological excellence and
competitive edge.
4. Commitment for continuous improvement in process, methods
productivity and quality.
5. To develop employee‟s mutual trust, respect and training.
6. Human resource development.

2.3 Nature of Business

Shanti Iron and Steel is a manufacturing Unit/Supplier of Castings.

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2.4 Vision Mission, Quality Policy:

Vision

The company has a vision for the next ten years to pioneer in supplying casting
of highest value at optimum price, which are sub assembly/parts by itself for
OME‟s in automobile, engineering and industrial applications. It wants to be
“Best single source solution provider” for its entire customer‟s casting
requirements.

Mission

The company wants to help their OEM customer to convert from a design to
production parts in grey iron and ductile iron and help in building their products
in shorter time on continual basis. They strive for operational excellence,
innovation, continual improvement and make exciting place to work and
promote talent of their people to ultimate deliver higher customer satisfaction.

Quality Policy

Shanti Iron and Steel will strive continually to improve the effectiveness of the
quality management system through involvement and innovation of the
employees so as to meet the customer requirements, to satisfy internal customer
and enhance external customer satisfaction.

Quality Objective

 Reduce wastage
 Reduce in variation
 Reduce customer rejection

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Health, Safety and Environment Policy

At Shanti Iron & Steel, it is our policy to provide and maintain safe working
conditions and practices that will protect environment through pollution
prevention, resource conservation and health & safety of all the stake holders.
No activity will be considered complete, unless it is performed in a manner safe
to environment and occupational health.

Integrate Environment, Safety and Health Measures in all our Processes.

Comply with all applicable legal requirements of Safety and Environment


management.
Commitment towards Continual improvement through Training & Resource
Provision.
Achieve Zero accident level.
Adopt ZERO TOLERANCE towards any deviation for Safety and Environment.
Heading towards ECO FRIENDLY processes.

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2.5 Product and Service
Shanti Iron and Steel always is providing better products through its resources,
which will result in high productivity and better quality. The product range
consists of the following items, which are explained below with the help of the
diagrams

Product Production Range

 Grey Iron and Ductile Iron


 Wall thickness 4.5m – 50m
 Machined casting 80%, Ready to assemble 70%

Engine Parts

Exhibit 2.1 Cylinder Oil sump

Exhibit 2.2 Cover-Diesel Engine Part

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Exhibit 2.3 Housing- Compressor Part

Exhibit 2.4 Gear Case -Elevator Part

Exhibit 2.5 RH-Tractor Engine part

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2.6 Ownership pattern

PARTNERS

MR. KANTILAL MR. SHANTILAL MR.SANTOSH


PORWAL PORWAL (VICE PORWAL (MD)
(CHAIRMAN) CHAIRMAN)

Chart 2.1 Ownership Pattern


Shanti Iron and Steel is owned by five partners are the directors of the company,
the main three partners look after the operations and marketing developments.
The other two are the sleeping partners.
Mr. Kantilal Porwal is the Chairman and also looks after the financial aspects of
the company.

Mr. Shantilal Porwal is the Vice Chairman and also operational aspects of the
company.

Mr. Santosh Porwal is the Managing Director of the company.

Customers

 Addison‟s & Co.


 Atlas Copco
 New Holland Fiat Ltd.
 Kirloskar Oil Engines Ltd.
 TACO Hendrickon
 VST Tellers & Tractors

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Exporting Countries

 Italy
 Belgium
 Germany
 Finland
 Brazil
 China

Competitors

 Ashok Iron and Steel


 Prabhat Castings
 Techno Systems
 Reliance Engineering Group
 Renuka metals
 Abhishek Alloys
 K.T.N Group

2.7 Activity carried by SIS

New Enquiry: - The customer visits personally or uses any other media like
telephone, fax, email or letter to convey the order to the company. At the receipt
of new enquiry from the customers and log details in enquiry, the foundry
manager will collect all information from the customer and log details in enquiry
register.

Based on the information collected, foundry manager in consultation with the


technical partner conducts a feasibility study for:

Technical aspects

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Delivery aspects

1. If the enquiry turns profitable then the action plan will be made and recorded
in the enquiry register, if feasibility study does not turn to be attractive the
same is updated in the enquiry register.
2. If the feasibility study is accepted, a quotation is prepared and follow up is
made.
3. At the receipt of the order from the customer the foundry and technical
manager will review the order as against the quotation.
4. If any discrepancy arises the same will be resolved for the customer.
5. The Company receives purchase order else a verbal commitment. New
product development will be initiated as per as per product realization chart.
6. The purchase orders are of two types direct order and repeat order types.On
receipt of the purchase order it will be updated in the inward register by clerk
and forwarded to the P&D assistant for reviewing std. weight and rate register.
7. After clearance from the P&D assistant a soft copy is created and sent to
foundry manager.
8. Next the foundry manager with the consultation of the planning and dispatch
department conducts schedule feasibility study and prepare activity chart for
production.
9. If any amendment is received by the customer, are studied by the technical
manager and if feasible then it will be noted as per the customer and updated
in the inward register.

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Introduction to the Foundry

Exhibit 2.6 Foundry

A foundry is a factory that produces metal castings. Metals are cast into shapes by
melting them into liquid, pouring the metal in a mold, and removing the mold material
or casting after the metals has solidified as it cools. The most common metals
processed are aluminum and cast iron.

Introduction to the machine shop

Exhibit 2.7 Machine Shop

A machine shop is a room, building or company where machining is done. In a


machine shop, machinists use machine tools and cutting tools to make parts, usually
of metal. The parts produced can be the end product of the factory, to be sold to
customers in the machine industry or any others.

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2.8 Departments in SIS

Departments in any company play a vital role in the development of the company.
These departments manage all the operations of the company. They are as
follows:

 Production Department

 Machining Department

 Testing Department

 Store and Material Handling Department

 Maintenance Department

 Packing and Dispatch Department

 Purchase Department

 Human Resource Department

 Marketing Department

 Accounts Department

 Quality Department

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PRODUCTION DEPARTMENT

Production is a process of converting raw materials into finished goods or semi-


finished goods. Production is important for every company. Production manager is
responsible for the whole production system and even for quality. Production
manager with consultant with technical do the production planning and control.

Responsibilities of a production manager

 Preparing monthly and weekly plan based on customer‟s schedule.


 Plan and arrange the raw materials, man power and other facilities required to
meet the schedule.
 Preparing production realization timing chart for new production
development.
 Analyzing and taking action for reducing reduction.
 Take actions to increase productivity.
 Approval of preventive and correction action for customer complaint.
 To reduce wastage.
 To solve problems faced by the supervisors.

PRODUCTION PROCESS

The production department is sub-divided into:

1. Pattern shop
2. Moulding and sand plant
3. Core shop
4. Fettling
5. Melting
6. Painting

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Production is an art of converting raw materials into finished or semi-finished
goods.

The steps involved in the production process of Shanti iron and steel is as follows:

Raw materials: - incoming raw materials are tested at the laboratory.

Sand Plant: - Green sand mould is prepared. In green sand 85% is reused and
15% fresh sand with 5% additives and water is used.

Moulding: -Moulding is done in two ways

Hand mould: hand mould is done for bigger and heavier casting.

Machine mould: It is done when one batch of machine mould is 500 pieces.

Core making: - Core made manually and it includes oil sand, no bake CO2 and
shell core.

Melting: - in cupola coke is mixed with pig iron, scarp, mild steel, manganese and
lime stone depending on the requirement and is heated at a temperature up to
1400 C, once it reaches that temperature they pour in the moulds made and
temperature is checked again and it should be between 1350 to 1450 C it takes
about 4 to 5 hours to cool down. The capacity of cupola is 7 tones. Once it cools it
is sent to next section called fettling.

Fettling: - fettling is a process where in the casting is cleaned with help of two
machines knock out machine and shot blast machine. The activities like chopping
of extra parts, grinding and inspection is done to check if it meets the
specifications.

Stress relieving

Painting: - Spray painting or primer paint as customer specifications. After


painting the casting is sent to next department ie, machining department.

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MACHINING DEPARTMENT

Shanti Iron and Steel has a conventional machine shop where in the machining is
done

TYPES OF MACHINES USED

Special Purpose Machines (SPM)

1. Vertical Lathe
2. Horizontal Lathe
3. Grinding Machines
4. Vertical Boring
5. Horizontal Boring
6. CNC Machine
7. VNC Machine
8. HMC Machine

Scheduling:-

Shanti Iron and Steel industry uses 2 types of scheduling operations for a
production according to customer requirement.

1. Job Operation: It refers to the manufacturing of the products on the basis of the
orders. They scheduled as per the requirement of the customers. These operations
involve the production of the products I low volume. There is considerable
variation in the materials used, set time etc. in performing these jobs.

Following customers of the industry are given prioritized for job operations:

 Atlas Copco ltd.


 Fourness Engineering (India) ltd
 Lokesh Machines ltd

2. Repetitive Operation: It normally involves mass production of the product.


Therefore, there are few variations in the production process. In these operations,
the labor is trained and the equipment design for a narrow range of applications.
The uniformity of processing and the allocations of labor resources are closely, in
to minimize the flow of inventory.
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REJECTION SECTION: In machine shop there is a rejection section where in
rejected jobs are taken and evaluated the reason for their rejection. They go to the
root cause and try to solve it. There is a team who does all the evaluation and
report is created and sent to the technical partner.

TESTING DEPARTMENT (LAB)

The material received from vendor is inspected as per sampling method


mentioned in material specification. The material inspection report is prepared by
the inspection authorities.

1. Incoming raw- material is tested


2. Castings are tested at every stage
3. Finished products are tested

STORE AND MATERIALS HANDELING DEPARTMENT

Objectives

 To store and handle materials properly so as to eliminate the possibility of


damage.
 To reduce wastage throughout supply chain.
 One time procurement.
 Quick delivery of item to end-user.
 To play procure materials and services confirming to specified requirements.
 Store and preserve the materials till they are issued for use.

Responsibility

1. Have to maintain minimum stock level.


2. Have to issue material on request without delay.
3. Handling of materials: - all casting and raw materials are handles by using
monorails and small crane trolley. The molten metal is handled b using hand
labels.
4. Storage of materials and ensure proper condition of raw materials.
5. All finished goods are packed as per contractual requirement.
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MAINTENANCE DEPARTMENT

Objectives

 To ensure that no machine is idle.

Responsibility

1. To attend break down of any machine.


2. To ensure enough spares are available.
3. To ensure smooth work flow.
4. Maintenance of the whole building.
5. To ensure all safety materials are in good condition.

DISPATCH DEPARTMENT

The responsibility of dispatch department to dispatch the finished goods to their


destinations. The raw castings are directly sent to the customers. The raw castings
are sent to customers.

The products are

 Cleaned thoroughly with kerosene


 Machined surface is applied with rust preventive oil.
 Critical and fragile areas covered with plastic rings, wrapped in VCI paper or
plastic sheet.
 Finally packed in wooden boxes.

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PURCAHSE DEPARTMENT

The purchase officer is responsible for the purchase department.

The purchase department receives the monthly and individual purchase


requirements from store describing the material grade/type or other precise
specification. In case of incomplete requisitions the purchase officer gets
clarification from stores/use department

To keep track of individual material requisition these are serially numbered and
kept in a separate file from purchase register.

The purchase order specifying the SIS material specification no. Name of the
materials grade or type, order quality, delivery schedules and terms and condition
is prepared and countersigned by purchasing assistant. If any deviation in the
purchase material is observed, the same is communicated to the vendor in writing.

HUMAN RESOURCE DEPARTMENT

HRD is the department, which handles the most delicate section of the the
company. The HRD manager is in charge of the whole department.

Responsibilities

1. Recruiting people in the organization


2. Handles all policy matters regarding HRD
3. Selection procedure
4. Maintain discipline in the company
5. Training
6. Attendance

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Organization Process

Table 2.2 Organization Process


SHIFTS TIMING
1st Shift 8.30 am to 5 pm
2nd Shift 4.30 pm to 1 am
3rd Shift 1 am to 9 am
General Shift 8.30 am to 5 pm

MARKETING DEPARTMENT

Marketing is the business function that identifies customer needs and wants,
determines which target market the organization can serve the best and design
appropriate products, provide services and set programmed to serve the market
however marketing in much more than an isolated business function. It is the
philosophy that guides the entire organization.

Functions

1. Market their products through personal visit with the help of product catalogue
2. Getting orders from the company
3. Quoting prizes for their services
4. Getting payment terms from their customer and also credit term.

At SIS they focus on marketing their products to a particular section of industry,


the casting section. They have a fixed number of customers. In foundries and
machine shops customer gives order on the basis of the company has. Advanced
technology also adds as a feature.

SIS has various ways of marketing

 Personal visit
 Yellow pages
 E-Business

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ACCOUNTS DEPARTMENT

Accounts department is the department which is responsible for the various


accounting functioning of the company.

Objectives

1. To provide account and complete systematic information of financial


activities.
2. To maintain all the books of account and other financial documents.
3. To prepare periodic financial statements have the company like profit and
loss account and balance sheet.

Accounts department is responsible for passing the bills to send cheques& cash to
the party. They maintain double entry system of book keeping. The complete
accounting system in SIS is computerized. Following are the following
documents:

1. Purchase account
2. Vouchers
3. Sales register
4. Bills receivable
5. Bills payable
6. Journal
7. Ledger

They prepare financial statements i.e. trading, profit and loss statement & balance
sheet so that they can know their position at any given point of time.

1. Purchase account: Postings is done in the personal accounts everyday from the
purchase book. At the end of the week month the total of the purchase of book is
debited to the purchase account in the ledger.

2. Sales Book: It is meant for recording all sales of goods. It is also known as the
sales or day book. It should be noted that the book records only sales of goods on
credit. The cash sales are recorded in the cash while sales of the articles other than
goods on credit are recorded in the journal.

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3. Vouchers: The Company has two vouchers, they are

i. Bank Payment voucher


ii. Cash payment voucher

4. Invoice: They have an INVOICE CUM delivery challan.

5. Bills receivable and bills payable book: Where the number of bills received or
bills issued is large, would lead to saving of time if, instead of journalizing
each receipt of bill, we were to maintain suitable register and record the
transactions there. Two books would be required-

Bills Receivable Book (BR)

Bills Payable Book (BP)

QUALITY DEPARTMENT

Objectives

1. Maintain consistent and correct appraisal of quality of the product at all the
stages of manufacturing till the product is dispatched. Such that the
required quality is achieved, maintained and improved.
2. Develop necessary competence in the department for meeting specific
quality requirements.
3. Reduce wastage in all in-house activity.
4. Reduction in variation.

Facilities provided by SIS

 Safety Conditions
 Drinking water and rest rooms
 Medical facilities
 Canteen facilities
 Leave facilities
 Bonus payments
 Insurance scheme

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2.9 Awards/Certificates

EXHIBIT 2.8 Best Delivery EXHIBIT 2.9 Productivity

EXHIBIT 2.10 Significant Delivery EXHIBIT 2.11 NSIC Certificate

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EXHIBIT 2.12 ISO 14001:2004 EXHIBIT 2.13 ISO/TS

EXHIBIT 2.14 TUV CERTIFICATE

2.10 Future Growth and Prospects

 New Computer Numerical Control (CNC) machine to be installed in the


machine shop.
 Installation of HTML in the foundry.

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CHAPTER 3
MCKENSY’S 7S FRAMEWORK

EXHIBIT 3.1 Mckensy’s 7s

STRUCTURE

EXHIBIT 3.2 Organization Structure

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SYSTEM

Inventory Control System: Usually a firm has to maintain several types of inventories.
It is not possible to keep the same degree of items over all the items. The firm should
pay maximum attention to those items whose value is highest.

The company uses the ERP system for the inventory management which helps in
planning their future production schedules accordingly. It helps to track the payments
and flow of finances. ERP system enables the most efficient stocking methods for the
inventory and also helps improve all the internal operations.

STRATEGY

The company has a strategy “To be the first choice for the customers in ready to
assemble castings”.

The company strategies or objectives are

1. To provide products of high quality and value.


2. To achieve cost effectiveness in machine shops and foundry.
3. To invest in the technology to achieve technological excellence and
competitive edge.
4. Commitment for continuous improvement in process, methods productivity
and quality.
5. To develop employee‟s mutual trust, respect and training.
6. To reduce wastage throughout supply chain.
7. Human resource development.

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SHARED VALUES

With the vision of being vision for the next ten years to pioneer in supplying casting
of highest value at optimum price.

The company is been able to build a long lasting relationships with the customers
based on trust and mutual benefit.

It also charted a challenging career for the employees with opportunities for
advancements and awards.

STYLE

The management of SIS is employee oriented. They receive feedback from the
workers and decide on the change in the strategies. It follows

1. Top down approach


2. Bottom up approach

In the top down approach the management plans the activities and sends it to the
every department, to know whether it is suitable or not and with the consultation
decisions are taken.

In the bottom up approach all the departments of SIS plan the activities or recommend
certain policies for their convenient and sends it to the management for approval thus
decisions are made. In this approach the management takes decisions without
consulting the departments.

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STAFF

The people in the organization are very dedicated and work towards the improvement
of the organization. The skill levels of the workers are work oriented and they
specialize in their respective field of work. Most of the workers are well experienced
and well trained.

There are totally 500+ employees. The duties and the responsibilities of the
employees differ based on the job that is performed by them.

SKILLS

The company as a whole is skilled. The steps taken to improve the skills of the
employees are as follows

1. On Job training
 Training for the newly joined employees for 3-5 days.
 Induction training to newly joined employees.
2. Off Job training
 Class room training

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CHAPTER 4
SWOT ANALYSIS

4.1 SWOT ANALYSIS

STRENGTH:

 SIS is export oriented.


 On time salary.
 Latest technology equipment.
 Experienced staff.
 Good relationship in all categories.

WEAKNESS:

 The company is in position where they need man power but it is not able to
find the required man power.
 There are vacancies but not able to track the right person for the right job.

OPPORTUNITIES:

 High demand.
 Permanent and new customers.
 Better network of customers and working conditions labor.

THREATS:

 Stiff competition from China and other countries.


 Environment policy and restrictions.
 Competitive prices.

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CHAPTER 5

5.1 LEARNING EXPERIENCE

In the four week internship I was able to understand that the subjects that we had
studied were actually put into practice such as the various HR policies that are
made for the employees.

Training and development was also an important section of the HR department


where the newly joined employees were given the training facilities in the
company.

I also learned the recruitment procedure that takes place in the company on a
smaller scale and the various joining formalities that the company takes into
consideration when hiring the employees in their company.

The project offered scope to apply some of the concepts related to SWOT
Analysis and Mckensy‟s 7s framework elaborated in the Management course
undertaken in college.

There was a good working culture in the organization where in all the members
of department are in a good relation with each other.

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BIBLIOGRAPHY

Webliography

 https://www.shantiiron.net

 shodhganga.inflibnet.ac.in>bitstream

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