1

ACKNOWLEDGEMENT

Organization runs on values and ethics, at various stages of life an individual faces many difficulties which result in creating a better future for the individual as well as others. I express my deepest gratitude to those who suggested me and showed right path to complete this Organization study. A project of this nature needs co-operation and support from many, I am fortunate in this regard to complete successfully this Organization study on time. I take this opportunity to express my profound gratitude to Mr. Malhari K Bhandurge, Partner, Magna Industries for providing me an opportunity to conduct my project at his esteemed organization.

SARVESH.A.NAVADGI BBA 3rd semester A.S.PATIL COLLEGE OF COMMERCE

INDEX

SI. NO 1. 2. 3. 4. 4. Executive summary Company Profile Product profile

CONTENTS

Page number 3 6 9 15

Organisational Chart(Plant I, II and III) Departmental study Human resource Department Finance Department Marketing Department Purchase Department Production Department

17 30 34 37 39

5. 6. 7. 9. 10.

Improvements by Kaizen Theory McKinsey 7 S model analysis SWOT Analysis Findings and Conclusion Bibliography

44 47 49 51 52

Magna Industries
Executive Summary
Magna Industries is a Private Partnership Firm. This company is basically engaged in manufacturing Foundry Fluxes and Chemicals in Plant 1, Plant II and Castings in Plant III. The Foundry Industry is regarded as an ideal place for investment in Kolhapur due to availability of abundant raw materials, labour etc. The company is basically into Industrial market with its customers housed all over India. The company follows Kaizen Continuous improvement and 5 S model to increase the quality of work life and well as overall performance. The main objective of the company is to serve customers with quality goods. The company is planning for a new plant where they can assemble the goods produced in their various plants and deliver finished goods.

About Magna Industries

a) Magna Industries is a Company Promoted by a team of qualified Metallurgical

Engineers and Chemical Technologist to Manufacture and market, quality foundry fluxes and chemicals. The combined experience of the promoters exceeds 70 years in the field of foundry fluxes and chemicals. The team has necessary expertise to offer best possible products and services. In its efforts to produce the best of the products the company has semi mechanized manufacturing facilities in addition to well equipped laboratory and quality control equipments. Magna industries enjoy support of reputed vendors for supply of quality raw materials.

b) It is a company having ISO 9001 accreditation from the year 1999 which has built top

quality manufacturing systems, which helps it to deliver quality products consistently.

c) Magna Industries is a company promoted by a team of qualified and experienced

metallurgists and chemical technologist, with an objective of becoming most preferred product / Solution provider in the field of foundry fluxes and chemicals. We believe customer focus is the key to our business success.

d) Their approach is customer centric. It seeks to deliver tangible technological

improvements that in turn give our customers a strategic business advantage in the foundry industry. They closely follow customer needs and proactively build their own capabilities to fulfil their objective of achieving customer delight.

e) Making a small beginning in the year 1998, now magna industries has become a

preferred brand for various foundry products, in western India. In their efforts to provide best products, consistently, to their customers they have set up semi automatic plant, which is being operated by trained and dedicated work force, keeping in mind the growing quality demands of foundry industry. Right from the early stages the plant has been ISO 9001 accredited and Quality has become way of life in all their day to day activities.

f) Magna industries enjoy patronage of large number of leading foundries and has

enviable client list which includes 8 QS and 25 ISO certified foundries.

g) DELIVERING VALUE! CONSISTENTLY!!

Company Profile

1. Name of the company : Magna Industries

2. Type : Partnership firm

3. Registered Office : Plot no 41, Sector C, Shree Laxmi co-op. Industrial estate

Ltd., Hatkanangale, Dist. Kolhapur

4. City : Kolhapur

5. State : Maharashtra 6. Country : India

7. Name of the Partners : a) Malhari K Bhandurge

b) Sanjay Karkhanis c) Sanjay M Jahagirdar d) Sunil P Battase

8. Weekly Holiday : Monday 9. Contact Number : 0230 2366274 10. Banker : Union Bank of India IDBI bank Ichal Janta Bank

Board of Directors (Partners)

Malhari K Bhandurge Graduate in Metallurgical Engineering from College of Engineering, Pune.

21 Years experience in foundry and foundry process Technology particularly Molten Metal Technology.

Sanjay Karkhanis Graduate in Metallurgical Engineering from IIT Kanpur. 19 Years of experience in Marketing and foundry process particularly Methoding, Metal filtration, casting defect analysis and prevention.

Sanjay M Jahagirdar Graduate in Metallurgical Engineering from College of Engineering, Pune. 19 Years experience in Marketing, foundry defect diagnosis and green sand system control.

Sunil P Battase Graduate in Chemical Engineering from UDCT Mumbai. 19 Years experience in foundry sand binders, ISO 9001 and Business administration.

Mission
To exceed our customers expectations in quality, delivery, and cost through continuous improvement and customer interaction The main mission is to provide high quality products and satisfy the customers thereby. In this competitive world customers always expect the best.

Vision
To establish a brand image and become a major player in the field of foundry fluxes and chemicals

Goals and objectives of the company

1. To become the most preferred company in Kolhapur for foundry fluxes and foundry works. 2. To keep ourselves bridged with the latest changing technology 3. To treat the employees as profit centre and not cost centre
4. To instil amongst its employees a sense of responsibility and to maintain the quality of

work life. 5. To stimulate the skills of the employees as and when needed. 6. To provide employment opportunities.

10

Product Profile
Plant I and II
1) Magnaseed - A range of potent inoculants for grey and S.G.Iron

The Product MAGNASEED is a range of inoculants suitable for grey and S.G.Iron for getting desired chill reduction, machinability coupled with improvement in mechanical properties. Application Traditionally foundries use ferro-silicon, graphite calcium, and barium and rare earth elements as inoculating agents. These are added to the melt separately or collectively as the need arises. A balance of these elements is perfectly struck in MAGNASEED an inoculant, which gives consistent results melt after melt. An appropriate grade of MAGNASEED can be chosen depending on melting practice, metal chemistry and desired results. Features and Benefits

Perfect Composition: Presence of various elements in the required proportion makes MAGNASEED most effective inoculants to give improved mechanical and metallurgical properties.

Size Grading: Magna Industries is equipped with full fledged granulation facility, which enables it to exercise precise control on particle size of the product.

11

Controlled size grading of MAGNASEED helps in appropriate rate of dissolution, thereby making it more effective and gives adequate fade resistance.

Wide range: MAGNASEED is available in wide range, suitable for different castings applications depending on mechanical and metallurgical properties desired by the casting buyer.

2) Magnakol:
A green sand additive with High thermal Stability
1) The Product

The Magnakol is a coal dust substitute for green sand which gives good peel off and excellent surface finish to the castings.
2) Application

Conventionally foundries have been using Coal Dust and Proprietary Coal Dust Substitutes to get good surface finish of castings. As compared to conventional coal dust substitutes, Magnakol range of products exhibit higher thermal stability, thereby giving superior surface finish of castings at optimum addition levels. Magnakol is specially designed, keeping in mind growing quality needs of the casting buyers to have castings with excellent surface finishes. Selective raw materials of consistent quality enable MAGNAKOL to work at lower addition levels consistently. Magankol is specifically formulated to give optimum lustrous carbon, at casting temperatures.
3) Features and Benefits

High Thermal Stability: High thermal stability of magnakol ensures optimum generation of lustrous carbon coupled with minimum burnout, across depth of

12

the mould. This helps to reduce additions of Magnakol to maintain the desired surface finish of castings.

Low Ash Content: Low ash content in Magnakol helps the sand system to minimize the dead clay generation, which enables to reduce new sand addition. With reduced new sand addition, the Bentonite requirement also goes down which ultimately reduces the overall green sand system cost.

Optimum Lustrous Carbon: Optimum lustrous carbon at casting temperatures imparts excellent surface finish to castings, which reduces fettling costs substantially.

Low Bulk Density: Low bulk density of magnakol helps its uniform distribution in the sand system and also makes it occupy more interstitial spaces between the sand grains. This ensures adequate cushioning during hot expansion of the green sand resulting in anti-scabbing properties.

Consistent Properties: Controlled properties of Magnakol ensure low fluctuations in physical properties. PROPERTIES of green sand and variations are kept to the minimum.

Eco Friendly: Dust damped nature of MAGNAKOL helps to minimize dust generation thereby keeping working environment clean. Services: Magna Industries helps in testing of various sand properties and establishing control over green sand system which ultimately results in excellent quality castings with optimization of green sand cost.

Standard Packing MAGNAKOL is available in 50 kg. HDPE bags. Shelf Life One year from date of manufacturing. Storage Precaution Magnakol is very stable product and does not suffer from problems like auto ignition. Magnakol should be stored in well ventilated and covered place. Exposure to direct sunlight should be avoided. Stacking of Magnakol in several layers may lead to lumping of product.

13

3)

Magnaset
Powder Hardener for sodium silicate binder system.

4) Magnakote
A High Refractory water based zircon coating for iron & steel castings. 1) The Product A versatile high performance water based zircon coating for steel castings and critical cast iron castings. 2) Application Magnakote is highly thixotropic water based zircon coating in a creamy consistency. It is applied in ready to use form and hence requires minimum preparation. The uniform layer deposition and high refractory filler ensures excellent casting finish for iron & steel castings. 4) Features and Benefits

Excellent Surface Finish: Use of high refractory fillers gives excellent surface finish to castings and reduces sand fusion tendency which also reduces fettling/ rework considerably.

Versatile Nature: Magankote is a ready to use water based zircon coating. Its versatile nature makes it suitable for various coating. Its versatile nature makes it suitable for various coating applications such as brushing, spraying & dipping.

Thixotropic nature: Thixotropic nature of magnakote not only gives

14

excellent coverage but also reduces brush marks on casting. This feature also ensures lower consumption of coating which makes it cost effective.

Faster Drying: Use of speciality chemicals in Magnakote imparts it fast drying characteristic. This helps in quicker delivery of cores / Moulds to moulding line.

4) Standard Packing

MAGNAKOTE-ZW is available in 40 kg Carbuoy.

5) Shelf Life

Six months from date of manufacturing.

6) Storage Precaution

To be stored in a cool & dry place

15

Quality systems followed in Magna Industries

5 S model Kaizen continuous improvement theory

Quality: We at Magna Industries, strive to achieve customer delight by providing innovative products of consistent quality and achieve satisfactory business growth. We will maintain our brand image through involvement of stakeholders and by adopting continual improvement philosophy. Quality objectives:

To provide thrust on development of innovative products to give value additions to customers. To achieve satisfactory business growth through customer satisfaction. To provide thrust on continual improvement, involvement of stakeholders and training of employees. To maintain healthy relations with suppliers to ensure consistent incoming material quality.

16

Organisational Chart
Plant I and II

17

Plant III

18

DEPARTMENTAL PROFILE

Human resource

There are 30 workers in plant I and II and 60 workers in plant III

19

The worker class applicants are hired based on their experience level. Reference checks are also conducted. The selection of the supervisors is done by the partners of the firm.

Job descriptions of the various posts in the firm

PARTNER

Define the quality policy and objectives. Chairperson for management review meeting. Appoint management representative. Provide resources to organisation for routine business and expansion activities. Overall performance of the organisation. Identifying training needs for self and subordinates. Participate in contract review. To provide customer support. Handle & resolve customer complaints

INCHARGE MARKETING Member of management review meeting. To receive enquiry from customer. To review & determine specified & implied requirements of the customer.

20

In case of new product requirement, interact with D & D for design inputs & design validation. Participate in contract review. To provide customer support. Handle & resolve customer complaints

INCHARGE PURCHASE

Member of management review meeting. Assess the capability of new vendors. Maintain the list of approved vendors and sub contractors. Vendor approval and capability assessment. Preparation purchase orders and necessary follow up for timely receipt. Maintain quality records of the department. Identify training needs for self and subordinates. Maintain good housekeeping. Ensure timely receipt of material. Vendor rating.

INCHARGE DESIGN & DEVELOPMENT

Member of management review meeting. Collection of Design Inputs and Review Design & development at various stages. Preparation of quality plans for incoming, in process and final inspection. Preparation of work instructions. Development of new product. Maintaining quality records of department. Identifying training needs for self and sub ordinates.

21

INCHARGE PRODUCTION

Member of management review meeting. Monthly Production forecast Daily production planning based on production and despatch advice register. Follow CAPA jointly with QA for non-conformance in production process. Maintain quality records of the department. Maintain good housekeeping. Identify training needs for self and subordinates.

QA SUPERVISOR AND PROCESS CONTROL SUPERVISOR

Providing proper guidance to subordinates for manufacturing process. Fulfil responsibilities towards inspection and testing. Proper handling of machinery and equipments. Maintain good housekeeping. Maintain quality records of the department.

INCHARGE QUALITY ASSURANCE

Member of management review meeting. Inspection of material as per control plans for incoming, in process and final stage. Calibration of instruments / test equipments and maintaining records. Maintain instruments. Implement statistical techniques. Maintaining quality records of department. Maintain good housekeeping. Making corrective & preventive actions for products and system related nonconformance and customer complaints.

22

Participate in contract review. Identifying training needs for self and sub ordinates.

INCHARGE STORE

Member of management review meeting. Receipt of material to stores. Ensure that all materials are kept in stores with proper identification and appropriate location. Stock assessment periodically to detect damage, deterioration. Receipt and issue of materials under authorization. Maintain quality records of the department. Maintain good housekeeping. Identify training needs for self and subordinates.

INCHARGE TRAINING

Member of management review meeting. Identification of training needs Maintaining training records

23

Process flowchart for Training in Magna Industries

24

Bonus structure Bonus Structure for 2007-2008

25

Bonus Performance Bonus Seniority Bonus Below 1 year 1 year to 3 years 3 years to 10 years above 10 years Overtime Bonus

16% 6%

0% 1% 2% 3%

OT up to 200 Hours 0% OT 201 Hours to 400 Hours 1% OT 401 Hours to 600 Hours 2% OT 601 Hours to 800 Hours 3% 16% + 6% + xyz Seniority 16% + 6% + abc Service Below 6 months Employee Left the Service Below 1 month service Seniority 16% 14% 0%

Skill matrix sample

26

Training Details

27

Magna Industries Yearly Training Plan 01-04 compulsory training Sr. Production. No. Man Incentive Calculation Lab Testing Production power 1 For Month November-09 handling activities Material Material 02 after 150 Identification Rs.80/- per ton ton to 250 ton Identification Product Product above 250 ton Rs.100/- per ton 03 Knowledge Knowledge Production 04 upto 15.1 ton Rs.1200/planning after 15.1Communication Communication ton to 30 ton Rs.200/- per ton 05 skill above 30 skillRs.250/- per ton ton ISO awareness 06 ISO awareness In process Per ton Rs.250/07 Testing Computer Per08 Rs.100/ton Operating In process Testing Computer Operating 5s-/kaizen Machine Material Identification Product Knowledge Product Knowledge Operations Material Identification Product Knowledge Machine Maintenance Bags Packing ISO awareness Bags Stacking Computer Operating 5s-/kaizen related work

QA

Admin

Sales Team

workers

Communication skill ISO awareness Basic Account knowledge Computer Operating Account Packaging (Excise, Service

Communication skill ISO awareness

Magnakol upto 150 mt Rs.22/- per work Machine related ton 09to 250 mt Rs.28/- per ton 150 Maintenance above 250 mt Rs.32/- per ton

Tax, TDS) 5s-/kaizen Magnaseed D-slag upto 15 mt Rs. 44/- per ton5s-/kaizen 10 15 to 30 related work mt Rs. 52/related work above 30 mt Rs.60/Purchase 11 Activity Despatch Magna Kol upto 150.1 TON Rs.2000/12 after 150 to 250 ton per ton Rs.20/Activity Stock above 250 Rs.25/- per ton 13 Assessment MagnaSeed/Set upto 15.1 ton Rs.600/Banking Sector 1514 to 30 ton Rs. 40/ton Knowledge after 30.1 ton per ton Rs.50/Company 15 Related Govt. Rules & Regulations.

5s-/kaizen related work

28

29

Marketing
To receive enquiry from customer. To review & determine specified & implied requirements of the customer. In case of new product requirement, interact with D & D for design inputs & design validation. Participate in contract review. To provide customer support. Handle & resolve customer complaints

30

PROCESS FLOW CHART FOR NEW ENQUIRY / CONTRACT REVIEW CUSTOMER RELATEDPROCESSES

31

Magnakol Client list

Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

Name of Foundry
M/s. Ghatge Patil Inds,Kolhapur M/s. Shriram group of Ind, Kolhapur M/s. Mantri group if Inds,Kolhapur. M/s. Caspro Metal Industrial P. L., Kolhapur M/s. Mahindra & Mahindra, Mumbai M/s. Mahabal Metals P. Ltd., Sangli M/s. Tyson Industries/Veeresha, Sangli M/s. Southern Auto Casting, Chennai M/s. Belgaum Ferrocast Pvt. Ltd., Belgaum M/s. Gainmax Ferrocast,Kolhapur M/s. Malati Founders Pvt. Ltd., Kol. M/s. Victor Enterprises, Belgaum M/s. Jagdish Iron & Steels, Miraj. M/s. K & K Foundry, Kolhapur. M/s. Marvelous Metals Pvt. Ltd., Kolhapur M/s. Greaves Cotton Ltd., Pune

Type of Molding line

KW High Pressure Medium Pressure Sinto Line/Medium Pressure Medium Pressure Liquid coal for Medium Pressure Sinto Line Medium Pressure Medium Pressure Medium Pressure Medium Pressure Medium Pressure Medium Pressure Medium Pressure Medium Pressure Medium Pressure Medium Pressure

32

Magnaseed Client list

Sr. No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. Name of Foundry M/s. Saroj group of Industries, Kolhapur M/s. J.P. Foundries, Belgaum M/s. S.B. Reshellers P Ltd, Kolhapur M/s. Shanti Iron & Steel, Belgaum. M/s. Samir Casting Pvt. L.td., Kolhapur M/s. Shri Ganesh Fdy., Ichalkaranji M/s. Bangalore Malleables, Blore M/s. Supercraft Foundry, Jaysingpur M/s. Greaves Cotton Ltd., Pune M/s. Belgaum Ferro cast, Belgaum M/s. Gainmax Ferrocast, Kolhapur M/s. Ichalkaranji Metalloy,Ichalkaranji M/s. Precision Camshaft Ltd., Solapur M/s. Shriram Group of Ind., Kolhapur M/s. Krislur Industries, Bhavnagar M/s. PNP Corporation, Rajkot Magnaseed Grade Magnaseed 1(S) Magnaseed 151(M), 16M Magnaseed 156 Magnaseed 156 (M) Magnaseed 14 Magnaseed 156 (M) Magnaseed 1 S(W) Magnaseed 1 S (W) Magnaseed BA (N) Magnaseed 14 Magnaseed 16 P Magnaseed STR Magnaseed 1 (S) Magnaseed Ba (SH) Magnaseed 156 (M) Magnseed Ba (R)

33

Purchase Department

34

PROCESS FLOW CHART FOR PURCHASING

35

PROCESS FLOW CHART FOR SUPPLIER ASSESSMENT AND SELECTION

36

Production department

37

PROCESS FLOW CHART FOR SUPPLIER ASSESSMENT AND SELECTION

List of Few machineries in Magna Industries

38

SR NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14

NAME OF MACHINERY MINERAL PROCESSER (JAW CRUSHER) ROLLER CRUSHER NO.1 ROLLER CRUSHER NO.2 SIEVER NO 1 SIEVER NO 2 SIEVER NO 3 SIEVER NO 7 SIEVER NO 8 SIEVER NO 9 MINI JAW CRUSHER GRANULATION UNIT ( Including Roller crusher , siever no 8, siever no 9,Mini jaw crusher, Bucket elevator) DOUBLE CONE BLENDER BALL MILL NO. 1 BALL MILL NO. 2 PLANATORY MIXER EMULSIFIER GRINDER SITCHING MACHINE SIEVER NO. 5 SIEVER NO. 6 PULVERISER NO. 5 PULVERISER NO. 6 PULVERISER NO. 7 RIBBON MIXER NO.2 RIBBON MIXER NO.3 M3/Magnakol-L Manufacturing System (Including TankT1,Tank2,T3 &T4) HOIST SAND SIEVER HOPPER NO 1 HOPPER NO 2 COMPRESSOR SITCHING MACHINE

PLANT PLANT-I PLANT-I PLANT-I PLANT-I PLANT-I PLANT-I PLANT-I PLANT-I PLANT-I PLANT-I PLANT-I PLANT-I PLANT-I PLANT-I PLANT-I PLANT-I PLANT-I PLANT-I PLANT-II PLANT-II PLANT-II PLANT-II PLANT-II PLANT-II PLANT-II PLANT-II PLANT-II PLANT-II PLANT-II PLANT-II PLANT-II PLANT-II

39

PROCESS FLOWCHART

40

41

PROCESS FLOW CHART FOR DESIGN & DEVELOPMENT

Developments by Kaizen Theory adoption

42

F2-Granulation unit (Rotary Siever) previous method

Drawbacks 1) Dusty working atmosphere. 2) Labor oriented work 3) More maintenance cost (Sieve damage, v-belt, Roller Crusher hopper, Conveyer belt, Material Handling) 4) Trolley handling was difficult 5) Low productivity (3-4Bags crushed per Hr.)

New unit

43

Benefits 1) Dusting is reduced 2) Single person can work 3) Maintenance cost is reduced 4) Easy handling of trolley due to modification of trolley wheel structure. 5) Productivity increased (7-8 bags per hour crushed) Achievements 1) Min. stock-level updated 2) O.T. hours reduced (min. O.T.) 3) Man power can be used for other work- (5s, used for plant-II production) . 4) Delay reduced

44

5) Now they are waiting for another 10-15 mt production. 6) High employee morale.

Admin Office
Previous Arrangement

Latest Arrangement

7 S Mckinsey Model Analysis

45

Strategy: The company follows customer centric strategy. It aims at achieving customer satisfaction by delivering value much more than promised. The competitive pressure is dealt by acquiring quality but low cost raw materials and producing goods at competitive prices The Marketing department keeps in touch with the customers and gets the feedback about their needs and hence equalise the needs of the customers with the product. Structure: The company has a flat organisational structure which helps in easy communication. The decion making is centralised with the partners of the firm though some authorities are given to the managers to handle the production and Human resource. Systems: Systems refer to all the rules, regulations and procedure, both formal and informal that complement the company structures. Systems, which are followed in Magna Industries, are as follows: 1) 2) Strict factory rules and co-operative acts are followed. Quality should be maintained at all stages.

46

3) 4) 5)

Mutual co-operation and respect for all the workers at all levels. Discipline is to be maintained in the premises. Hard work and sincerity.

Style: Participative leadership style is followed in the organisation. This form of leadership is effectiv e since the view of the supervisors and managersare taken into consideration and the decision is made. The views of the supervisors is a summary of all the workers. Staff The organisation has well organised staff and all required departments with experts in each respective fields. The recruitment is done as and when needed by the supervisors or mangagers. The worker class is well trained and regularly motivated.

Skills The company has skilled as well as semi-skilled labours. The skills of the labours and the supervisors by using the skill matrix method which is followed by the organisation.

47

SWOT Analysis
Strenghts
1) The company has manufacturing competence of producing high quality goods

2) The inventories are maintained in well proportion. 3) Low advertisement cost due to excess orders. 4) Satisfied and motivated workforce. 5) Raw materials from the best suppliers 6) Organisational structure is flat. Hence easy communication with the management for workers. 7) Magna industry partners own many other firms which produce some of the raw materials which is needed to produce castings, hence minimising raw material cost. 8) Financial management is very accurate

Weakness

1) The product line is very small for plant I and II. 2) Rise in raw material prices. 3) Increasing labour cost directly affects the price of the product. 4) Rejection rates increase if the work force is not motivated on regular basis.

48

Opportunities
1) Foundry business is at boom which is a very good opportunity for Plant I and II as

it manufactures foundry fluxes. 2) Magna industry is planning to set up a new plant which will assemble the castings manufactured in plant III.

Threats
1) Since the foundry industry is at boom, there is a lot of competition and hence the firm has to price the product at competitive prices 2) Technology shifts are very uncertain and the company has to cope up with the lastest technology to be in market.
3) Magna industry is a type of firm which supports backward integration for large scale

companies. If there is fall in sales of the LSIs it indirectly affects the firm.

49

Findings
Some of the general findings that could be inferred from the general study of the organisation are as stated below: The company is a partnership firm and fall under SSI sector. The company likes to be as a SSI and increase the number of firms rather than becoming a Medium Scale Industry. The company has kept itself abreast of the latest technology, both in terms of method of production and Human resource management. The company has shown a healthy pattern in terms of its sales revenue(plant I and II). The company has only one method of distributuion channel, i.e. it deals directly with the customers through marketing department. The company has good reputation in markets and own standard quality certifications.

Conclusion

50

Magna Industries is doing well with the present system of management and has built up good relationships with the customers. The company management are expanding the business which forms a forward integration to the present firms, which is indeed a very clever step to produce products at very competitive prices. The human resource department can include some more effective methods of management of the workers.

Bibliography

1) Official website of magna industries. www.magnaindustries.com

2) www.wikipedia.com

3) Principles of Marketing, Philip Kotler