INTERNSHIP REPORT ON ORGANIZATIONAL STUDY AT SALZER ELECTRONICS LTD

By

ARUN KUMAR K RENU GOPAL V

11MB5028 11MB5145

II SEMESTER MBA

Guide

Prof. LISSY MATHEW

Internship Report submitted to the University of Mysore in partial fulfillment of the requirements of II Semester MBA degree examinations 2012

Ramaiah Institute of Management Studies #15, New BEL Road, MSRIT Post, M S Ramaiah Nagar
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Bangalore 560054

Ramaiah Institute of Management Studies Bangalore - 560054

CERTIFICATE

This is to certify that this Internship Report on Organizational Study at SALZER ELECTRONICS LIMITED is a bonafide study of ARUN KUMAR K and RENU GOPAL V carried out under my guidance and supervision.

Place: Bangalore Date: [Signature of the Faculty Guide]

DECLARATION

We hereby declare that this Internship Report on Organizational Study at SALZER ELECTRONICS LIMITED submitted in partial fulfillment of the requirement for II Semester MBA Degree examinations 2012 of University of Mysore through Ramaiah Institute of Management Studies is our original work and not submitted to any other university. This work has been done under the supervision of Prof. LISSY MATHEW in Ramaiah Institute of Management Studies, Bangalore.

Place: Bangalore Date: [Signatures of the Team Members] [Reg. No.]

ACKNOWLEDGEMENT

Words are indeed inadequate to convey my deep sense of gratitude to everybody. This project is an outcome of all the efforts and co-ordination of various people. First and foremost, we would like to express our sincere

gratitude to Dr. Mr. PATTABHIRAM, Director, Ramaiah Institute of Management Studies, Dr. Y. RAJARAM, Dean, Ramaiah Institute of Management Studies and Dr. Mrs. MANITHA D SHAH, Dean,

R a m a i a h I n s t i t u t e o f M a n a g e m e n t S t u d i e s , for the giving us this opportunity.

I am also grateful to the esteemed organization SALZER ELECTRONICS LIMITED co-operation during my project. An all the faculty who provided full support in completing this project successfully.

I would be afflicting myself if I do not profess my sincere appreciation to my dearest parents, sister and friends who helped me in every step

Place : Date : Signature of team members ARUN KUMAR K RENU GOPAL V

CONTENTS

Certificate from the Company Certificate from the Faculty Guide Declaration Acknowledgement 1. Industry Profile 2. Company Profile 3. Organizational Hierarchy 3.1.Organizational Chart 3.2.Product Profile 4. Study of Functional Departments 4.1.Production Department 4.2.Finance Department 4.3.Marketing Department 4.4.Human Resource Department 4.5.IT Department 5. SWOT Analysis 6. Summary of Findings 7. Conclusions and Suggestions 8. Bibliography

II III IV V 01 05 09 10 11 16 17 31 33 35 39 52 54 56 58

LIST OF TABLES AND FIGURES

1. Fig 3.1 Organization Chart 2. Fig 3.2 Products 3. Table 4.1 Different Between Relay Assembly and Rotary Assembly 4. Fig 4.1 Relay Assembly departments 5. Fig 4.2 Rotary Assembly Department 6. Fig 4.3 Production Planning Process Flowchart 7. Table 4.2 Raw Material, Manufacturer and Supplier / Dealers 8. Fig 4.4 Accounting Flowchart 9. Fig. 4.4 Company controls 10. Fig. 4.6 Data flow diagram 11. Fig. 4.7 Employee Details 12. Fig 4.8 Department Details 13. Fig. 4.8 Loan Sanction 14. Fig. 4.9 Loan Sanction 15. Fig. 4.10 Attendance Detail 16. Fig. 4.11 Overtime Detail 17. Fig. 4.12 Salary Detail 18. Fig. 4.13 Loan Payment

10 12 17 18 19 26 27 32 41 47 48 48 49 49 50 50 51 51

1. INDUSTRY PROFILE
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1.1 Industry Profile

In recent years the electronics industry is growing at a brisk pace. Its currently worth $ 32 billion and according to industry estimates it has the potential to reach $150 billion by 2010. The largest segment is the consumer electronics segment. While is largest export segment is of components. The electronic industry in India consists just 0.7% of global electronic industry. Hence its minuscule by international comparison. However the demand in the indian market is growing rapidly and investment are following in to augment manufacturing capacity. The output of electronic hardware industry in India is worth $11.6 billion at present. India also exporter of a vast range of electronic components and products for the following segments. Display Technologies. Entertainment electronics Optical storage device Passive components Electromechanical components Telecom equipment Transmission and signaling equipment Semiconductor designing Electronic manufacturing service

1.2 Revolution or analysis of electric industries

Like every other industrial sector in India, the Indian Electrical/Electronics Industry too is slowly emerging from out of its "protective cover". For far too long has Indian Industry remained shackled and consequently inward looking. Over the past fifty years there was no exposure to global players and competition, with the result that the Industry grew up in sheltered environment, dependent on the Government for everything, from licenses to protection to tariffs. Each one of these interventions was aimed at securing protection for oneself and ensuring growth of ones own organization at the cost of industry and the nation at large. Lack of global competition encouraged a "cost plus" approach, where every conceivable cost increase was passed on to the customer.
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There was thus no motivation to reduce cost.

With deli censing, decontrol and deregulation, Indian Industry has suddenly been exposed to global competition. Since last decade, India has witnessed what global players have achieved and what they are capable of achieving. We are becoming aware of competition on our turf. In

this scenario, every company complains of increased competition, lowe r o r d e r b o o k s a n d shrinking margins.

The Indian Electrical/Industry is of course further besieged by t h e f a c t t h a t there is a dearth of business on account of lack of investment in the p o w e r infrastructure. Many organizations in this industry are looking overseas to develop the export markets owing to reduced demand at home.

At the outset, it must be stated that the reduced domestic demand i s a t b e s t a t e m p o r a r y phenomenon. The power sector in India is bound to grow and this will undoubtedly boost demand from the Utilities, quite apart from the industrial demand which will continue to grow with increased industrial output. The poor financial health of the SEBs is however a damper that cannot be wished away in the short term. This will continue to plague corporate in the Electrical Industry, until the SEB restructuring and unbundling brings a turnaround in the medium term.

Salzer Electronics Ltd company has entered into technical and financial collaboration with M/s. Plitron Manufacturing Inc., Canada in 1995 for manufacturing Toraidal

Transformers with 50% Buy-Back specialty.

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The Prestigious ISO 9001 Certification by NQA-UK has been obtained for Design, Development, Manufacture and Supply of CAM Operated Rotary Switches and Allied Products. The company has strong Research and Development facility with the full-fledged laboratory to upgrade the product and set new market trends. In house Research and

Development has been recognized by Ministry of Science and Technology, Department of Science and Industrial Research, Government of India. Today, they are market leaders in India for Rotary Switches.

M/s. Larsen & Turbo Limited, the Indian Industrial Giant in Engineering has been marketing Salzer Switches throughout India since 1993. Having marketing Tie-up with Indias largest Engineering and Infrastructure industries such as L&T Ltd. To cater the Indian market through their market network which covers an area more than 300-400 Stockiest / Dealers. This Company has 40% market share in Rotary Switch segment. Salzer Electronics is Largest Supplier to Indian Railways. The competitors are ABB Ltd, Anand Project Ltd, Artech Power Products Ltd, Best & Crompton Engineering Ltd, Continental Controls Ltd, Crompton Greaves Ltd, Pricol Technologies Ltd.

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2. COMPANY PROFILE
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2.1 Genisis
M/s Salzer Electronics Limited was incorporated under the companies Act, 1956 on January, 1985 for the manufacture of CAM operated rotary switches and other allied switches gear products. It has technical collaboration with M/s Salzer Schaltgerate Fabrik Gmbh, Germany.

2.2 Promoters
The core promoter of Salzer electronics limited, Mr. R Duraisamy, is a qualified electrical engineer and technocrat entrepreneur with wide experience. He has served with M/s. Lakshmi Machine Works Limited, the market leader in textile machinery manufacturing industry for more than 2 decades in various capacities. He had been trained in M/s. REITER MACHINE WORKS, M/s. BROWN BADEN, and M/s. SORECHER + SCHVE ARROW, in Switzerland. With his experience gained through his association in companies as

mentioned above, he promoted the pilot project, M/s. Salzer Electronics Limited, in the year of 1985, in technical collaboration with M/s. Saelzer Schaltgerate Fabrik, Germany, for the manufacture of CAM operated Rotary Switches.

M/s Salzer Electronics Limited, Samichettipalayam (post), Jothipuram, Coimbatore 641047.

2.3 Directors of the company

The Directors for Corporate Affairs and Company Secretary is Mr.S.Baskarasubramanian.

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2.4 Listing Arrangements

The shares of the company are made with the help of two stock exchanges 1. Coimbatore Stock Exchange Limited, Trichy Rd, Coimbatore-5

2. The Stock Exchange, Dalal Street, Mumbai-1

2.5 Business Overview

The company is established in the switch gear industry for the manufacture of CAM Operated Rotary Switches with Latest technology at international standards mainly for industrial purpose and can have the facilities of taking the multiple outputs as well as sequence with various programs in all capacities from 6 Amps to 400 Amps. The companys products are well received in the International and Local Markets and all other OEMs including public sector undertaking are using standardized Salzer switches. The company is progressing well and is now planning to improve the quality further to superior standards to expand the export markets.

Recently M/s. Salzer Controls Ltd, one of the group companies, has merged with Salzer Electronics Ltd. This will facilitate Salzer Electronics Ltd, to further strengthen its hold in the global markets and also to have size economy, cost reduction better utilization of human resource and its manufacturing facilities, etc, to achieve the cost effectiveness.

As a corporate citizen with a good track record of profit earning and dividend paying company since 1991 92, the companys performance is registering an impressive growth in its turnover consistently.

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2.6 Marketing
It is one of the largest producers of rotary switches and cable ducts in Asia. The company is having marketing tie up with M/s L & T, an individual giant, for marketing its product in the domestic markets. Marketing can be through their wide marketing network over 500 outlets throughout the country. By these arrangements, the company is enjoying a major market share in the domestic markets to about 45%-50%.

2.7 Exporters
More than 24% of production is exported. Another 13% has deemed export status. The company is also having market tie-up arrangements with M/s Crompton Greaves Ltd, an accredited export house in the country, to sell its products in international markets. The company presently serves for more than 35 countries in the global market and has already established its foothold in the highly competitive international markets.

2.8 Company Turnover

Salzer Group has 7 manufacturing industry in all over India. The turnover of the 7 manufacturing industry of salzer group India is 430 crore, except software companies.

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3. ORGANIZATIONAL HIERARCHY
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Fig. 3.1 Organization Chart

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3.1.1 Organization structure

Salzer Electronics Ltd company maintain Divisional Structure. Product Structure - A product structure is based on organizing employees and work on the basis of the different types of products. If the company produces three

different types of products, they will have three different divisions for these products. Sales and Purchase Structure - Sales and Purchase structure is used to group employees on the basis of specific market the company sells in. A company could have Sales or Purchase they use and according to this structure, each would be a separate division in the structure.

3.1.2 Advantage of company structure

Divisions work well because they allow a team to focus upon a single product or service, with a leadership structure that supports its major strategic objectives. Having its own president or vice president makes it more likely the division will receive the resources it needs from the company. Also, a division's focus allows it to build a common culture and esprit de corps that contributes both to higher morale and a better knowledge of the division's portfolio. This is far preferable to having its product or service dispersed among multiple departments through the organization.

3.1.3 Disadvantage of company structure

This structure results in duplication of resources because, for example we need to have equipment, for each division. Obviously, it does not support the exchange of knowledge between people working in the same profession because part of them are working in one division and the others are working in other divisions

3.2 Product profile

The company is not importing any raw material and the required materials and components are made indigenously. The company is having well equipped plant and machinery and a modern tool room to take care of its requirements and the maintenance to achieve the target production. It also helps in quick development of new products. Salzer is the only approved supplier for Nuclear Power Corporation for rotary switches.
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Fig 3.2 Products

3.2.1 Sub contract operations

The senior engineer of sub-contract shall place the sub-contract order on the approved venders and provisionally approved vendors. The order is placed on the daily production need priorities. All the sub-contractor orders shall be prepared by assistants. Sub-contractor and it should be authorized by the Marketing manager.

3.2.2 Manufacturing Facilities

The company has already installed requisite capacity and is having well equipped plant and machinerys and a complete tool room to take care of the production requirements, maintenance to achieve the target production.

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3.2.3 Research and Development

The company is having full-fledged R&D with testing lab to ensure continuous improvement in product specifications and utilities, besides new product developments. The company has been accredited ISO 9002 certification based on the recommendation of KPMG, USA and subsequently upgraded to ISO 9001 standards for design, development, manufacturing and supply of CAM Operated Rotary Switches and allied products. Further, the products are also accredited with International Quality Standards Certifications like CSA, CE, UL, and VDE. The Department of scientific & industrial Research under ministry of Science and Technology, Govt. of India, New Delhi, in response to our application dt.21.01.2002, has accorded recognition to our In-House R&D unit vide their letter dt.27.09.2002, which will facilities better interaction and updating of technological advancement being taking place in the industry. The govt. of India has further renewed the recognition. Company is contemplating to maintain and continuously improve the quality and utility of the existing products such as connectors, cable ducts, toroidal transformers; modular switches etc., with the present capabilities of R&D departments. The company has erected and commissioned four windmills of 1*225 KW, 2*250 KW and 1*500 KW at Palladam, Coimbatore. The windmills have already started

harnessing power from renewable source wind. The mills could produce around 30.00 Lac unit of power per annum and the power generated through the windmills be utilized for captive consumption. The products of the company are well accepted qualitatively in the highly competitive export markets. The quality system of the company is in accordance with the guideline of ISO 9001 to ensure quality in the products and services for both the manufactured and trade products. The International Approvals are CSA UL CE

(Canadian Standards Association) (Underwriters Laboratory, USA ) (Conference Europeanize)

AGET (Association of German Electrical Technologies)

3.2.4 Products Range

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The company thrust is to manufacture CAM Operated Rotary Switches with improved version of utility both for domestic as well as industrial purposes. In brief the switches can be used for taking multiple outputs as well as sequence from single compact switches ranging from 6 Amps to 400 Amps, with variable programs.

Over the years, it has expanded its product range to include auto mobile switches, load brake switches, proximity and modular switches, wiring ducts, terminal connectors and toroidal transformers. The market share for these products is continuously growing as a result of international approval and innovative design.

The company has been at the forefront or technological advancement catering to the requirement of the industrial, Domestic and automobile segment. It is an ISO 9001:2000 certified company with government of India recognized R&D center. It produces the best in quality & value added products complying with international benchmarks.

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It now has in its fold the following product range to meet the customers tailor-made requirements in additional to the cam operated rotary switches 4 Amps to 400 Amps. DC switches 16 Amps-500 Amps Touch proof switches Load bread switches Proximity switches Modular switches Relays Sensors Terminal connectors Cable ducts / PVC Channels Single phase starters Remote control switches Phase changeover switches Toroidal transformers Foot switches Besides, the company is also developing automobiles switches to meet the requirement of the automobile industry.

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4. STUDY OF FUNCTIONAL DEPARTMENTS

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4.1 Production Department

This department which has two production departments 1. Relay Assembly 2. Rotary Assembly.

Table 4.1 Difference of Relay and Rotary Assembly

Relay Assembly Rotary Assembly

AC & DC relays ranging from 3 to 80 Ampere from 1 to 4 pole.

AC Switch Range : 6 Amps - 400 Amps

Touch Proof / Rear Termination / Screw less Silver contacts for enhanced electrical life. Terminal switches

Mountings : Standard front panel / Rear / Miniature, General purpose, Power & Automotive relays. Safety feature: Center Key Lock, Pad lockable, Door Interlock. Status indication through LED. Custom built switching configuration. 22.5 mm / Din rail / Mix & Match

Status indication through LED.

DC Switch Range : 16 Amps to 500 Amps up to 250 Volts DC

Relay Modules.

ERDA Tested & Complies with JSS standards.

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Fig.4.1 Relay Assembly departments

Relay Assembly

Sub Assembly

Coil Assembly

Wire Stripping

Coil Resistance Check

Rejection
Scrap

Coil Resistance Check

Accepted

Relay Alignment

Relay Wiring

Relay Testing

High Voltage Testing

Resistance Value Check

Cover Fixing

Packing

Finished Goods Inspection

Packing

Fixed Goods Stores

Dispatch Based On the Sales Order

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Fig.4.2 Rotary Assembly

Rotary Assembly

Latching Assembly

Stage Assembly

Main Assembly

Screw Assembly

Packaging

Fixed Goods Stores

Dispatch Based On the Sales Order

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4.1.1 Production planning and control department

This department describes and plans the method production of components and final product to suite the customer satisfaction. It applies to all planning activities needed for manufacturer on the receipt of the order acceptance.

4.1.2 Procedure
The superintendent planning shall receive OA (order acknowledgement) along with worksheet after reviewing with officer (FGI) and GM. It shall consolidate the OA and shortage of MSL (minimum stock level) switches on daily base with EDP. For orders consolidated, one copy of BOM (bill of material) will be prepared by superintendent planning with EDP. BOM shall be printed on CSR (component requisition slip) and given to stores by superintendent planning for receiving the materials. Superintendent planning shall decide the work load to the assembly based on the delivery schedule and prescribes packing. It shall prepare SA (switches assembly) along with the processing tag and hands it over to assembly with copy of SA. It receives the material for the CRS given from officer stores along with CRS. The officer stores shall issue components issue components issue slip for assembly shortages/rejection. The superintendent production material co-ordination shall prepare the monthly requirement list in the first week of the every month. The manager production shall prepare once in six months the MSL for components based on the value and the consumption of the company. The officer shall plan for the components stock based on the MSL for component.

4.1.3 Process control

It ensures all activities necessary for the manufacture for the final products which are planned and controlled in such a way to ensure the satisfaction of the customers. It applies for all manufacturing operations followed on receipt of order acceptance from sales department.

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4.1.4 Procedure
PPC (production planning control) shall carry out planning the manufacture of components and the final product on receipt of work sheet. Based on the requisition slip from PPC, production stores shall issue raw materials and components for the manufacture of components and final product to machine shop assembly tool room maintenance and screen printing. Machine shop will convert the raw materials into components required for the final product with the help of machineries and operators based on the process given by planning. Tool room shall carry out the manufacture and maintenance of tool required for machine shop, assembly and new components requirements.

Maintenance department shall carry out preventive, break-down and general maintenance for all machines. The assembly section shall carry out the manufacture for all machines. The assembly section shall carry out the manufacture of final products based on CRS along with materials from planning. By the in-process inspection all manufacturing activities of machine shop, tool room and assembly are controlled. Workers performing the job in machine job, tool room and assembly maintenance, screen printing shall be trained in line with company training procedure. It shall be the responsibility of department in-charges to provide house-keeping practices for good working environment. Screen printing and soldering shall be special process carried in the manufacturing.

This department ensures consumers satisfaction by reviewing the requirements, capabilities and the clear definition of agreed requirements. It covers all the activities from the receipt of an order the consumers and to process the order for standard products and nonstandard products.

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4.1.5 Procedure followed

Price list Deputy Manager shall get the authorization of managing director when the change in price list occurs. The ruling price list shall be revised as and when the change in input level occurs and it is also based on competitive price. Trade discount over the list price will vary from each customer irrespective of standard products or non-standard products. Deputy Manager maintains the current price list for standard products and nonstandard products. Deputy Manager will discuss with R&D (RESEARCH AND DEVELOPMENT) if there is any special products or non-standard products. Price list will be approved by the MD/JMD/ED.

4.1.6 Enquiry
Sales department will receive enquiry in the form of letters, e-mail, fax etc. All enquires will be recorded in a separate ledger held by the sales department. Based on the enquiry, the DM shall check with the catalogue for its feasibility.

4.1.7 Quotations
If the enquiries received from L&T-ESP, the necessary quotation shall be sent to the respective branch. If the enquiries received from the customers, the same will be directed to the concerned branch of the territory and the necessary prices shall be furnished to the branch office either in the form of letter or form of quotation. For contacting sales, fax number, phone, for L&T-ESP available in the sales department. All the quotation will be prepared by sales assistance? / Executive sales and approved by D.M, executive sales shall approve the quotation and later ratified by DM.

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4.1.8 Orders
L & T orders are downloaded through L & T website by using allotted vender code password for all branches. Orders shall in the form of customer purchase order, fax, e-mail and letters and it is recorded in the ledger in sales department. DM will aggregate the order received as non-standard/special. Sales staff shall prepare order acknowledgement for all standard and non-standard orders with the help of EDP based on feasibility and it will be countersigned by sales executive or sales assistant and then it will be approved by DM.

4.1.9 Accepting the Order

The orders are received from customer list in annexure approved by MD/JMD/ED the order acknowledgement shall be raised. For the orders from L & T, ESP the necessary OA shall be raised favoring the concerned branch. For the order received the same shall be directed to the respective branch of L & T-ESP on the covering letter. The copy of OA along with the worksheet shall be circulated to FINISHED GOODS STORES AND PLANNING. In the event that the order received is urgent the OA shall be marked as URGENT ORDERS with the red colored rubber stamp. The delivery period shall be incorporated in OA through EDP by sales staff.

4.1.10 Dispatches
Sales assistant on getting the receipt of the packing slip from the dispatch transfers to the EDP. The transaction will be regularized by accounts department by preparation of invoice cum delivery challan. The packing slip will be retained by dispatch department after the transfer of the data to EDP. The copies of invoice, way bill covering letter shall be retained by accounts department and sales department will refer the same on requirement.

4.1.11 Stores Department

This department ensures that all material is protected against loss during storage and damage deterioration. It applies to storage of materials in the defined storage area within the company itself.
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4.1.12 Abbreviation
GRN-Goods Received Note, CRS-Company Requisition Slip, CI-Company Issues, RMRaw Material Issue, MSL-Minimum Stock Level, and BOM-Bill Of Materials.

4.1.13 Procedure
The officer stores shall receive the bill of material on company requisition slip. Officer also instructs the stores assistant to collect the material from retrieved rack. Stores assistant will place ACTAG for every material collected against BOM. For the material that are not available at the time removal of CRS the officer stores will prepare a shortage list. Then the officer hands over the shortage list and the material to superintendent planning. For all CRS given to store superintendent planning shall consolidate list of components to officers stores. Time officers stores prepare process cards based on monthly requisition list in computer and issue process cards to engineer machine shop, senior engineer and subcontract.

4.1.14 Indents
The officers stores raises indents through electronic process to processing department based on BOM taking into consideration the minimum stock level and present value of components. For other material which is required by the department shall be got from officer stores through a request letter or oral request.

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4.1.15 Receipts of Materials

The officer stores shall monitor all inward and outward materials with the help of offices stores assistant, he shall receive the material from the supplier through the security department. After verification of material the assistant officer stores shall put the PUTUP TAG for awaiting inspection status. They shall get the GRN prepared in the computer. Assistant officer stores fill the quantity received in GRN and handover the material with GRN to superintend quality control for inspection. Stores assistant will place the inward materials in the retrievable racks. The officer then receives the scrap/rejection from the engineer machine shop. Monthly remainder of components in assembly will be returned from assembly to stores. The goods returned by the customer will be handover to customer service representative. The other material of the factory on receipt shall be in warded to stores through inspection report by the assistant officer who shall be inspected by the concern department.

4.1.16 Minimum stock level

If there is any shortage fall officer stores will monitors the position to MSL (minimum stock level) and will inform assistant manager purchase. The officer stores will have the MSL list of purchase components.

4.1.17 Issues
The officer stores issues components through component issues for assembly rejection or shortage based on the concern list given to the superintendent planning by assembly. Raw materials required for manufacturing the components shall be issued against the process card duly authorized by officers stores. All other materials are issued through issue ledger. Assistant officer stores shall also send material to other companies through delivery challan based on the recommendation of the head of the department with the approval of assistant manager purchase.

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4.1.18 Stock verification

Physical stock verification shall be carried out once in three months by personnel from internal control department on random sampling bases and status will be reported to assistant manager purchase.

Fig.4.3 Production Planning Process Flowchart

Receipt of Order Acknowledgement

Consolidation of Order Acknowledgement Daily

Preparation of CRS (Common Requisition Slip)

CRS to Stores for Component Collection

Shortage List Along With Filled CRS to Planning

Assembly Work Order to Assembly

Preparation of Monthly Requirement and Minimum stock Level (MSL)

Follow of Completion of Sales Order

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Table.4.2 Raw Material, Manufacturer and Supplier / Dealers

S.No 1 DRG. No ABS BLACK IM11B, IM17A, SHF50+ Manufacturer BHANSALI ENGINEERING, RAJASTAN Dealer / Supplier KWALITY POLYMERS, STAR POLYMERS, SIDHARTH PLOYMERS. SIDHARTH PLOYMERS, PUNE KWALITY POLYMERS, COIMBATORE KWALITY POLYMERS, COIMBATORE KWALITY POLYMERS, COIMBATORE KWALITY POLYMERS, COIMBATORE KWALITY POLYMERS, COIMBATORE RELIANT SAGA, COIMBATORE

ABS IFB WHITE IM11B, IM17A, SHF50+ ABS GREY IM11B, IM17A, SHF50+ ABS MILK WHITE IM11B, IM17A, SHF50+ ABS NATURAL IM11B, IM17A, SHF50+ ABS RED IM11B, IM17A, SHF50+ ABS YELLOW IM11B, IM17A, SHF50+ POLY CARBONATE LEXAN 143R805093 PC CLEAR PANLITE L-1225L PC GREY PC1000 FR GREY PC WHITE PC1000 FR WHITE

BHANSALI ENGINEERING, RAJASTAN BHANSALI ENGINEERING, RAJASTAN BHANSALI ENGINEERING, RAJASTAN BHANSALI ENGINEERING, RAJASTAN BHANSALI ENGINEERING, RAJASTAN BHANSALI ENGINEERING, RAJASTAN SABIC INNOVATIVE PLASTICS

10 11

TEIJIN POLYCARBONATE SINGAPORE (P) LTD, SINGAPORE BRAKES INDIA, CHENNAI BRAKES INDIA, CHENNAI

CREASAKTHI, COIMBATORE BRAKES INDIA, CHENNAI BRAKES INDIA, CHENNAI

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S.NO 1

DRG. NO GF 3H BLACK

DESCRIPTION SI3GF 30%GFBLACK N6GF30 BLACK 73G30L BLACK GF3H BLACK NGC 3010 BLACK PA1031 BLACK

MANUFACTURER SRF LTD, CHENNAI FORMULATED POLYMERS, CHENNAI DUPONT GUJARAT FERTILISER PI POLYMERS, PANOLI BRAKES INDIA, CHENNAI

GF 3H BLACK

3 4 5 6

GF 3H BLACK GF 3H BLACK GF 3H BLACK GF 3H BLACK

SUPPLIER / DEALER SUMANGALI PLASTICS, COIMBATORE FORMULATED POLYMERS, CHENNAI DUPONT GUJARAT FERTILISER CREASAKTHI, COIMBATORE BRAKES INDIA, CHENNAI

35

S.NO 1 2

DRG. NO GF 3H NATURAL GF 3H NATURAL GF 3H NATURAL GF 3H NATURAL M90 NATURAL M90 NATURAL M90 NATURAL ACRYPOL ACRYPOL

DESCRIPTION ZYTEL 101L NC010 AKULON KFKGS6-FR PA1031 UVFR (N) SI3GF 30%GF NATURAL CELCON M90

MANUFACTURER DUPONT INDIA LTD, CHENNAI DSM ENGG.

BRAKES INDIA, CHENNAI SRF LTD, CHENNAI POLYPLASTICS CO. LTD MITSHUBISI ENGG.CO POLYPLASTICS CO.LTD GUJARAT FERTILISER SUMITOMO CHEMICALS, SINGAPORE DSM ENGG. PUNE

IUPITAL F 20

DUROCON M90 GUJPOL 876 G SUMIPEX LG 8G11AA ARNITE TV 420 S BLACK ATI 101 FLOW MEDIUM INJECTION ATO 142. BK COMPRESSION

8 9

SUPPLIER / DEALER CREASAKTHI, COIMBATORE STAR POLYMERS, COIMBATORE BRAKES INDIA, CHENNAI SUMANGALI PLASTICS, COIMBATORE KALAISH TRADING, COIMBATORE TEXTILE DYECHEM, CHENNAI KALAISH TRADING, COIMBATORE GUJARAT FERTILISER CREASAKTHI, COIMBATORE STAR POLYMERS, COIMBATORE AMITY

10

PBT

11

BEKLITE

AMITY

12

BEKLITE

AMITY

AMITY

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S.NO 1 2 3 4 5 6 7 8 9 10 11 12

DRG. NO NYLON 6 BLACK

MANUFACTURER SRF

NYLON 6 SXXIC W SRF NYLON 66 33% PBT PE ELCER NYLON 6 30% GF 6VIN TO. 00000204-10 PA 1031 UVS REL NYLON 6 BLUE NYLON 6 NATURAL POLYETHER SULPHONE ABS NATURAL SRF SRF SABIC SYNERGY X PRO, INDIA LTD BRAKES INDIA, CHENNAI SRF DSM SOLVEY LG CHEMICALS

SUPPLIER / DEALER SUMANGALI PLASTICS SUMANGALI PLASTICS SUMANGALI PLASTICS SUMANGALI PLASTICS LUCKY SYNERGY X PRO BRAKES INDIA, CHENNAI SUMANGALI PLASTICS DSM SOLVEY KWELITY POLYMER

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4.2 Finance Department

4.2.1 Accounting department
Accounting department is one which looks after all the financial affairs of the company. The company follows the double entry system of book keeping and they recognize income and expenditure on an accrual basis. All the accounts are recorded are maintained in in CDs in order to reduce the paper work. Some of the transactions which are below Rs.2000, no vouchers are prepared. They are entered separately in petty cash book. The bills are discounted by using the facility offered by L&T Company (i.e.) 75% and the balance of 25% is dealt with outsiders. Presently e-billing facility was introduced. Pre-printed cheques are used and the company has all its transaction with ICICI bank. In Canara bank, working capital limit was maintained by the company.

Cash payment voucher For the purpose of paying in cash the company maintains some of the vouchers like, Advance payment Against bill Credit type Through bank

4.2.2 Payment of salary

Employee salaries are usually paid through the bank. In a concerned bank each and every employees maintains an individual saving account for easy transactions. The salary is deposited every month in the bank and the employees can withdraw their salary every month. The payment of salary is given to employees who are working in the

organizations based on the time-rate and 8 hours are fixed time. The workers who are working in machine shop and tool division, the salary is not based on the time rate. They have to work on shift basis and over time are also allowed.

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Fig 4.4 Accounting Flowchart

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4.3 Marketing Department

The entire marketing for industrial segment products are being done by L&T in India, the company does not have a separate distributor network, but the network of L&T is available for its products. However for our domestic segment-modular Switches SEL is setting up our own distribution network in the country. At present the company has around 25 stockiest in the three southern states. In the next one-year SEL is planning to create another 35 stockiest in the western and northern markets.

4.3.1 Marketing Domestics

The company is having a marketing tie-up since 1993 with M/s LARSEN & TURBO LIMITED, an Industrial giant in switchgear industry, which helps to appreciate its market share availability throughout India. With the network of more than 300 dealers in India Salzers product availability is enormous.

4.3.2 Marketing-Expert
Having a marketing tie-up with M/s CROMPTON GREAVES LIMITED, an accredited export house, to service International Market, the export performance of the company is growing steadily year after year. Salzer is the largest and only exporter of rotary switches, cable ducts and Toroidal Transformers. In export front the company is also exporting its products to more than 40 countries in the world penetrating the highly competitive global markets. The major

countries are South America, Egypt, New Zealand, Oman, U.K., Portugal, Uruguay, Syria, Zimbabwe, Saudi Arabia, Qatar, Greece, and Chile, through Crompton Greaves. Besides the company is also directly exporting its products to Malaysia, Singapore, Hong Kong, Sri Lanka and other East Asian countries. Salzer is successfully competing against all major European brands and it also had overcome the Chinese threat to a great extent in the world market. Its sales exports works out to 30% - 35% of the total turnover.

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4.3.3 Market Size

With the primary data available through the industrial bulletin like IEEMA, the market size for the switches and its allied products are estimated around Rs.700 Cr. In respect of the following broad category of switches, though, there have been many unauthorized regional level of manufacturers, whose contribution could not be quantified.

With the available source the details of the total market size is as follows: Rotary Switches Cable Ducts Terminal Blocks Modular Switches : 95 Cr. : 40 Cr. : 70 Cr. : 400 Cr.

The market is growing at a rate of 15% to 25% for the year 2003-04, 2004-05 & 2005-06 respectively.

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4.4 Human Resource Department

4.4.1 Human Resource
Human resource is a process in which the employee of an organization is continuously helping in the planned manner to sharpen their capabilities that are required to perform various functions associated with present and expected future roles and to develop their general capabilities under value to discover and exploit their manner potential for the organization development process. Human resource management deals with the planning, organizing, directing, controlling of the procurement, development, compensation, integration and maintenance of the people for the purpose of contributing the organization. At the level of organization individual and society goals of human resource managers are involved in the resource management to contribute towards the accomplishment of goals of the enterprise.

4.4.2 Human Resource Function

Analyzing the role. Marketing the role and person. Developing the role of the person. Developing self-renewing capability.

The Head of the Human Resource Department is Mr.K.Raman.

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4.4.3 Objectives
To assess new human resource trends for the improvement of the organization. To study about the employees feel about management. To learn about the employees relationship with their peers. To prepare personnel at all levels to sharpen their knowledge, skill, attitude, abilities, to accept greater tasks for strengthening the origin. To analyze the overall performance of the employees. To find out the employee motivational factor. To encourage employees to participate in decision making. To analyze the overall human resource performance of the company. Human resource activities can be classified as Recruiting. Training. Compensation. Organizational development.

Mr.K.Raman is working as Human Resource Manager in Salzer electronics Ltd for 10 years and in present. He has good knowledge about allocating the manpower requirements in different departments. He is one of the main key for the company to run their process without any shortage of manpower. In this company among 700 employees are working in different departments.

4.4.4 Selection Process

The required manpower is been gathered from various departments. Then according to the information given they scrutinize and make allocation of manpower according to the field of requirement. They select through the advertisement, their own employees, campus recruitment, and private company consultancies.

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4.4.5 Training
The company is providing different kind of training program to all technical and nontechnical employees. It provides various training like demonstration, literature, slide show, etc., to all the persons in the organization. It is for all performing and self-developing in occupation for future career development.

4.4.6 Compensation
Based on the performance of the employees in the company, the concern provides compensation with the benefits and services. Salary, allowances, bonus, incentive, PF, etc., are generally comprised as executive remuneration. They scrutinize the manual records for allocation of compensation.

4.4.7 Policy statements

Corporate policy Strive for excellence is the company does and shares the benefit through the society As well. Quality policy Salzer group of companys main thrust is consistent quality at every stage of process to meet the requirements of consumers and to satisfy them with delivery right type of products at right price with competitive and innovative design. The company strives for continuous improvement at all levels by implementation and maintenance of quality management system.

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4.4.8 Employee welfare

Salzer provides the following welfares to the employees Canteen -50% subsidy Med claim group insurance 50 by 50 First aid free of cost Welfare fund provided for the employee at low interest rate Trust educational institution med claims facilities

4.4.9 Ratio of payment

The salary and wages ratios are as follows for the employee Basic pay 12% Employee state insurance (Gross) 1.75% for the employer Provident fund 12% Employee sate insurance 45%

4.4.10 Leave
For workers maximum 15 days is offered as cash leave per year. For staff monthly one casual leave & 5 days if offered as cash leave per year. If the permanent worker doing over time for 48 hrs. are offered wage as 1.5 Depending on last year working days Formula= ------------------------------------------------------------20

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4.4.11 Welfare amenities

The loan for medical purpose is been given immediately and for all purpose. Time gap between loans should be a minimum of 1 year. For the educational purpose the company is providing their employees children by rewarding to all standard of best outstanding students. The welfare amenities provided by Salzer are as follows Uniform Shoes Noise control measure Lighting Exhaust fans Rest room

4.4.12 Organizational Development

In order to develop the organization the activities such as performance management i.e. management by objective, measure of performance, potential appraisal is been carried out.

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4.5 IT Department (EDP)

The EDP department maintains all department status in software level. Every department has it unique software to maintain their process for easy and quick access. One department can access other department functions and process, but they cant make changes in it. Managing director can access the status of all departments from this office.

After getting the order acknowledgement, first they will check the FGI and FGS status in stores department. If the required switch materials are available, it will be sent to assembly section for assembling process. Delivery challan is created and sent to the finance department. Finally the product will be delivering to the customers in given time.

In case the switch materials are not available in FGS, they will check whether the BoM (Bill of Material) are under production process. If the required switch materials are under production process they will assemble them after production and the products will be delivered to the customers by FGS. Delivery challan is made after assemble process.

If the BoM are not under production process, they will check the availability of raw materials for producing the required switch materials. They use two choice of producing switch materials are producing by themselves or they give order to sub contract. After getting the switch materials, assembling process will takes place and delivery will be made.

All departments has link with one another through software. Acknowledgement will be issued to maintenance department, so this department checks the sales process. Finally it will give information about the sales to check the payment details like debit and credit. Finally the products are delivered to the customers.

The manager checks the entire department process for avoiding mistakes in the process of production and sales. EDP department controls all departments software and sends the data to manager and managing director to know the current status of all the departments.

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Fig. 4.4 Company controls

Order Acknowledgement

Order Consolidation

Stock at FGS

Delivery Challan

BOM Generation
Invoice Work Order Finance

Stock at Stores

Assembly

Customer

FGI
Job Orders FGS In - House Sub - Contract

Stores

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4.5.1 SYSTEM CONFIGURATION 4.5.1.1HARDWARE SPECIFICATION

Processor Ram Hard Disk Monitor Key Board Pointing Device CD Drive : CORE2DUO : 2GB : 320 GB : 15 Samsung : 104 Keys : Logitech Mouse : Sony

4.5.1.2SOFTWARE SPECIFICATION
Operating Front-End Backend : Windows XP : Microsoft Visual Basic 6.0 : SQL

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4.5.2 SYSTEM APPLICATION DESIGN 4.5.2.1 INPUT DESIGN:

The input design is link that ties information system into the world of its user. Input design consists of developing specific procedures for data preparation, step necessary to put the transaction data which is usable for computing processing. User friendly screen format can reduce the burden of the end users, who are not highly proficient in computers an important step in input design is the source. Source document is the form on which data are the facility to modify the entered data is provided which will be very useful for the user to change the wrongly entered data. If the entries are modified, then they will be automatically modified in the corresponding database.

4.5.2.2OUTPUT DESIGN:
Output is only one method by which the user receives the information. The output must comprise all the necessary information, which the user needs. The output must not contain any necessary data. Efficient and intelligent output design will surely improve the relationship between the user and the system. In online application the information displayed on the screen. Allowing the user to review the sample output can be extremely important of the quality of the system and in turn read to the success of the system. Major form of the output is the hardcopy from the printer. The print outs should be designed around the output requirements o the user time standards for printed output suggest the following given each output a specific name or title. Provide a sample of the output layout, including read where printing may appear and location of each field.

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4.5.3 DATABASE 4.5.3.1 DESIGN

The key to integrate as automatic design is well structure common database. Without a common database to share information, data must be recreated and reinterpreted at every stage of this process. The basic function involved in a database system related to the information required by its users is Defining the data Inputting the data Locating the data Communicating the data While producing report, efficient database tables are joined using the fieldscontained in the table to retrieve the necessary information. In database design, several objectives are considered such as Redundancy can be reduced Inconsistency can be avoided The data can be shared Conflicting requirements can be balanced Standards can be enforced Integrity can be maintained

Usually the centralized data management software package called as database management system. Within it will be found components, which exist as separate software packages, such as a complex file handler, an information retrieval system, or a comprehensive report generator. The organization of data in a database aims to achieve three major objectives such as data integration and data independence.

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4.5.4 SYSTEM TESTING AND SYSTEM IMPLEMENTATION 4.5.4.1 System testing

Testing is vital to the success of the system, the system testing makes an assumption that if all parts of system are correct, then the goal will be successfully achieved, this is mainly done to eliminate errors. The various tests is, Unit testing Acceptance testing Integration testing

4.5.4.2 UNIT TESTING

In unit testing, each program is tested individually. So, errors in the unit are debugged. Sample date is given for unit testing. The unit testing results are recorded for further reference. During unit testing the functionality of the program unit, validation and limitation are tested.

4.5.4.3 ACCEPTANCE TESTING

The acceptance testing is the final stage of testing phase. The user does this. The development is given to the user and tests the system with live data. The various possibilities of the data are entered response or the system is test. The client signs off acceptance testing and then we can successfully implement the system.

4.5.4.4 INTEGRATION TESTING

Data can be lost across an interface one module can have an adverse effect on another, sub functions combined, may not produce the designed major functions, individually accepted impression, may not produce the designed major functions, individually accepted impression may be magnified to unexpectable levels, global data structure can present problems.

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Integration testing is systematic technique for constructing the program structure while conducting tests to uncover errors associated with interface. The objective is to take unit testing to uncover errors associated with interface. The objective is to take modules and to build program structured that has been dictated by design.

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Fig. 4.6 Data flow diagram

USER

LOGIN

EMPLOYEE EMPLOYEE DETAILS EMPLOYEE EMPLOYEE REPORT

LOAN

LOAN DEPARTMENT DEPARTMENT LOAN PROCESS DEPARTMENT

EMPLOYEE

ALTERNATIVE PROCESS

ATTENDANCE

OVERTIME

OVERTIME PROCESS

OVERTIME

EMPLOYEE

SALARY PROCESS

SALARY

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4.3.4 Screen Shot

Fig. 4.7 Employee Details

Fig 4.8 Department Details

Fig. 4.8 Loan Sanction

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Fig. 4.9 Loan Sanction

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Fig. 4.10 Attendance Detail

Fig. 4.11 Overtime Detail

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Fig. 4.12 Salary Detail

Fig. 4.13 Loan Payment

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5. SWOT ANALYSIS
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5.1 Strength
Salzer electronics Ltd is one of the rare unit in India to produce the good quality switches, rotary switches, ducts, cables. Management is very stable, that forms strong foundation. This company got ISO certifications to producing quality product. It has well equipped quality control department to inspecting the incoming raw materials and final products. Highly skilled and committed employees.

5.2 Weakness
Underutilization of resources. Less co-ordination between different departments.

5.3 Opportunity
It has opportunity to expand production units because of the demand for their quality products. Set more branches across nation. There is growing demand in developing countries for electronics goods like switches, cables etc.

5.4Threats
Increasing raw material cost due to inflation rates. Rising number of switches manufacturers in India.

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6. SUMMARY OF FINDINGS
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6.1 Findings
Strength of SALZER is its Brand Name. SALZER is willing to take up any challenges customize project and willing to successfully implement it. Advertisement costs are too less because they manufacture the products based on the orders. SALZER ELECTRONICS has ISO, KEMA, CE, UL and VDE certifications. Quality assurance department is maintaining the quality of the product & it has become basis of competition with other companies. Company is ecofriendly; they recycle the waste water and reuse the same water for their daily use like washing and gardening. They have well integrated SAP and use data base such as ORACLE or that coordinate and connects various information of different departments, hence it provides ready information to the top level management to take immediate decisions.

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7. CONCLUSIONS AND SUGGESTIONS

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7.1 Conclusion
Salzer Electronics Limited is situated in good location, with an excellent infrastructure. In this competitive world, it is very important for every student to gain a practical knowledge about the organization. This internship training has given a view about the technical, theoretical and practical working of an organization. We had great time with this company, because we learned number of things about the management. We learned how they are maintaining the productions, how they are

controlling all departments, order maintenance, sales, functions of human resource management, workers and staffs relationships. management knowledge. I conclude by thanking M/s Salzer Electronics Limited permitting me to carry out this training successfully in their organization. I am also very thankful to my guide and staffs who gave me a great support to complete the training successfully. That was very useful to improve my

7.2 Suggestion
Manufacturing cost to be lowered by improving productivity. An extensive & effective marketing strategy needs to be carried out by the company. Employee satisfaction & retention of manpower should be checked & ensured. Company can encourage more women employees. Provide sign boards within & outside the company premises to facilitate easy identification of the department. Can improve the infrastructure of training & development center in order to provide better environment for the learners & trainees.

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8. BIBLIOGRAPHY
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Reference
K, Human Resource Management, Ashwathappa www.salzergroup.net

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