Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
INTRODUCTION
1.1 INTRODUCTION
This report is based on an Organisational Study conducted at Kerala Agro
Machinery Corporation Limited (KAMCO), Athani. (KAMCO) was established in the year
1973 as a wholly owned subsidiary of Kerala Agro Industries Corporation Limited (KAIC),
Trivandrum for manufacture of agricultural machinery, specifically Power Tillers and Diesel
Engines. KAMCO had technical collaboration with KUBOTA, Osaka, Japan. Subsequently
KAMCO became a separate Government of Kerala undertaking in 1986. KAMCO has four
production plants that are situated in Mala, Palakkad, Kalamassery and Athani.
Agriculture is the backbone of our country. Agriculture is no longer what is used to be.
Intensive, mechanized operations are fast changing the tempo of agriculture. Agriculture is the
base of Indian economy. A large number of populations depend upon the agriculture sector for
their lively hood. India needs a very big quantity of food grains to feed her population. So it is
high time that we need improved and modern agriculture equipments and their implementation to
increase the productivity in agriculture sector. The western countries are now able to produce
excess food grains using improved techniques. Now the time has come or had exceeded to step
in to the mechanized agriculture
Agriculture is considered to be the major activity of most of the people in India.
Moreover, 200 million farmers and farm workers have been the backbone of Indians agriculture.
In the beginning, the farmers adopted ancient methods for their farming practices. The whole
process that is from sowing the seed till harvesting, were all done by the farmers themselves. It
was really a time consuming one, which required lot of labour. The cost of production was high
and the benefits are not promising.
After independence, Indian agriculture has made rapid strides in production of food
grains, thus contributed significantly in achieving self-sufficiency in food and thereby avoiding
food shortages in our country. Rapid growth of agriculture is essential not only to achieve selfreliance at national level but also for household food security. Kerala Agro Machinery
Corporation Ltd (KAMCO) has become the light of the fast changing agriculture operations in
our country.
To study the overall functions of KAMCO and to understand the duties and
company
To understand the hierarchical structure followed in the organization
To conduct swot analysis of the company
To find out world ,national and state scenario of Kamco
To determine the function, procedure, policies and programs of various departments in
organization
1.3 Methodology
The data were collected from both primary and secondary sources. The primary data were
collected by way of unstructured interviews with the department heads and informal
discussions with the employees of the organization. The secondary data were collected from
company records, Journals, Annual Reports, Organizational manual, company website,
Internet, and Library.
The chapter refers to swot analysis i.e., strength, weakness, threats and opportunities of the
organization.
Chapter 7
The sixth chapter includes observations and conclusion of the organizational study conducted Kamco
Ltd. At Athani
CHAPTER 2
INDUSTRY PROFILE
The growth in adoption of agricultural machinery in the country has been possible due to
their local manufactures, villages artisans, tiny units, small scale industries organized medium
and large scale sector under take the manufacture of agricultural machinery in India. Traditional
hand tools and bullock drawn implements are largely fabricated by village craftsman and power
operated machinery by small scale industries.
The US will experience gains that will lag the world average due to decelerating growth
in economic and agricultural sector output in the country though 2012. Western Europe will post
particularly anemic growth through 2012. Farmers in both the US and Western Europe will
adversely impacted by continuing trends in favour of free trade and against protagonist measures
such as subsidies for domestic farmers and tariffs on agricultural imports.
collaboration, today the Indian farm machinery industries meet the bulk of the requirement of
mechanization imports and also exports.
The manufacture of agricultural machinery in India is quiet complex comprising of
village artisans, tiny units, small scale industries, state agro-industrial development corporations
and organized tractor, engine and processing equipment industries. Traditional hand tools and
bullock drawn implements are largely fabricated by village craftsmen (blacksmith and
carpenters) and small scale industries. The small scale industries depend upon public institutions
for technological support. These industries however upgrade these designs and production
processes with experience.
Organized sectors confine to manufacture of machines like tractors, engines, milling
and dairing equipment. These industries have adopted sophisticated production technologies, and
some of them match international standards. The enhanced scope of import of technology
(product designs and manufacturing process) by organized sector and entry of foreign investors
is likely to accelerate exports. Since cost of production of farm machinery in India is more
competitive due to lower labour wages, the importers from various countries will find Indian
farm equipment more attractive. Indian products however shall need improvements in quality for
gaining major export growth
produces 96% of the country's national output of pepper. The important spices are cardamom,
cinnamon, clove, turmeric, nutmeg and vanilla.
Agricultural machines increases productivity of land and labour by meeting timeliness of
farm operations and increases work out-put per unit time. To provide broad-base technological
services to the farmers by efficient supply of inputs including agricultural tools, implements and
machinery and for extending custom hiring facilities, the government of India, through a
centrally sponsored scheme promoted the establishment of 17 State Agro Industries Corporations
(SAICs), one each in the major States of the country as joint ventures during 196570. Noteable
change in Kerala agriculture is that the emergence of cash crops. Whatever may be the changes
KAMCO machineries helps farmers of Kerala in easy and suitable farming. But in comparison
between other states, Kerala is in back of queue.
10
CHAPTER 3
COMPANY PROFILE
11
12
Producers in the same industry in the domestic market are:1. VST TILLERS LTD, BANGLORE
2. BULL AGRO IMPLEM ENTS, COIMBATHORE
3. ASB GROUP, NEW DELHI
4. SOVZA SIFANG AGRO ENG.PVT.LTD, MAHARASHTRA
5. BANWAIT TRADE SERVICES, PUNJAB
13
Vision
KAMCO, with over three decades of engineering excellence, stands as the no.1 power
tiller manufactures in India. Not surprising with four states of the act of production plants, an
innovative R&D and stronger quality control system rates one of the best in the country. The
technically competent, dedicated management and work force will go on to ensure that
KAMCO shall be the leader for several years to come.
Mission
To be innovative, resourceful, and profitable company.
To meet customer requirements of quality service and price consistency.
To make doing business with us easy, and delightful to our customers.
To provide an entrepreneurial environment in which employees can respond to the needs
of business and service, earn fair rewards and can be satisfied.
Total customer satisfaction through quality product and services with improved
14
The objectives of the company are to manufacture in India, either in collaboration with or
otherwise import and trade agriculture machinery like Tractors, Power Tillers, Power Reapers,
combine harvester, Transplanted, Diesel Engines, pump sets, implements, accessories and spares
there to. The objectives also include establishments of engineering workshops repair shops to
undertake repairs and servicing of agricultural machinery or other machinery, equipments
implements a
Manufacturing and marketing of agriculture machines like power tillers, Tractors, power reaper,
Diesel engines etc.
15
Power Tiller product at Athani and Palakkad units. Major components bought out from dedicated
vendors in India. There are around 250 vendors now.
1973 -KAMCO has established as a wholly owned subsidiary of KAIC (Kerala Agro
power reapers.
2002 KAMCO has become a 9001-2000 registered company.
2011 KAMCO started tractor manufacturing.
16
Product Profile
1.
2.
3.
4.
Specifications
Model
Horse Power
Wheel Track
KMB 200 Di
12
Maximum 930 mm
Tyre size
Ground clearance
Number of speeds
Minimum 690 mm
6.00*12
203 mm
Forward-6
Backward-2
Tilling -4
Traveling speed
15 km/hr
17
No of blades
Tilling width
Tilling depth
Tilling capacity
Overall dimensions
Weight
20
600 mm
190 mm
1 hectare/8 hr
L:2250*W:820*H:1030mm
485 kg.
ENGINE
Model
Type
DI 120
Direct injection, horizontal, Four Stroke, Diesel
Horse Power
RPM
Fuel Tank Capacity
Capacity
KAMCO Power Reaper is ideally suited for harvesting of paddy, wheat and
similar crops. It harvests and makes windrows at the rate of 3-4 hours per ha.
Since the fuel used is kerosene, cost of operation is the lowest and it helps the
farmer to harvest his field at the lowest ever cost.
Specifications
Model
Dimensions
KR 120
Overall length
2320 mm
18
Overall width
Height (Up to Handle)
Weight
Working Capacity
Applicable Plant Height
Crop release
1490 mm
1090 mm
136 KG
3 -4 hr/hectare (1.2-1.8 hrs/acre)
60-120 cm
Right side of machine (viewed from rear)
Engine
Type
Engine
Fuel
Rated HP
Max. HP
R.P.M
Specific Fuel Consumption
Fuel Tank Capacity
Air cleaner
Starting
Travel
Forward speed
Reverse
Applicability
59.0 m/min
50 m/min
Dry field & Wet field
Dog Clutch
Dog Clutch
Cutting
Cutting Device
Cutting Height
Cutting width
19
Details:
Use
KAMCO ER90 Engine is equipped with Radiator and specially designed die cast
multi-blade axial fan. The engine can operate continuously for several hours. It
can be used as a prime mover either for stationery or for moving applications.
Specifications
Type
Number of Cylinder
Bore x Stroke (mm)
Displacement (cc)
Compression Ratio Continuous Rated
Output (HP/rpm)
Maximum output (HP/rpm)
Specific fuel consumption
(G/HP - hr)
Maximum torque (kgm/rpm)
Cooling System
convection)
Fuel
Lubricating Oil
Lubricating System
Starting System
system
Cooling
Water
20
9/2000
12/2000
195 (At continuous rated output)
4.5/2000
Pressure Radiator type (0.8 Kg/cm2 natural
with
Capacity 3.8
(Ltr)
Fuel Tank Capacity (Ltr)
12
Crank Case Oil Capacity 3
(Ltr)
Overall dimension (mm)
Weight
20
Trochoid
Pump
Table 3:
Tilling
Riding/Furrowing
Soil separation for vegetable cultivation and in orchards and sugarcane fields
Spade work in coconut groves
21
Organisational Structure
A Board of Directors governs the company. Board of Directors includes
Chairman, Managing Director and other directors. The Government of Kerala nominates the
Chairman of the Board. The Chief Executive Officer of the company is the Managing Director
who shall exercise his powers subject to the overall control and supervision of the board. The
Managing Director is the topmost official and the Government has delegated authority to the
Managing Director as may be entrusted and delegated to him from time to time by the board.
The Managing Director is the operational head of the company supported by General Manager
and Deputy General Managers discharging different functions. Managers and Deputy Managers
will assist the General Managers and Deputy General Managers.
Board of Directors
1
2
3
4
5
6
7
8
9
- Chairman
- Director
-Director
-Director
-Director
-Director
- Director
-Director
-Managing Director
Bankers
Union Bank of India
Federal Bank of India
22
GM (Unit)
GM (Head Office)
DGM
Dgm
Manager
Manager
Manager
Kalamss
ery
Mala Unit
Palakkad
Unit
Deputy
Manager
uty
Deputy
Manager
Assistant
Manager
DGM
Qa&R
&Dddd
Manager
Marketi
ng
Manager
Production
Deputy
Manager
Deputy
Manager
Deputy
Manager
Assistant
Manager
Assista
23
nt
Manag
Assista
nt
Manage
Manage
r
Deput
y
Mana
ger
Assistant
Superintend
Assistant
Manager
ent
Finanac
DG
M
HRM
Manager
Deputy
Manager
Ma
nag
er
De
put
ASSIST
y
ANT
As
Ma
sist
nag
ant
Ma
Superinte
nag
ndent
Superint
Assis
er
endent
tant Assistant
Assistant
Manager
CHAPTER 4
DEPARTMENT DETAILS
24
25
Deputy General
Manager
26
Manager [HR]
(Establishment)
PF/Gratuity
Assistant Manager
[HR]
Assistant Manager
[Medical/ESI etc)
Functions Of HRD
Assistant
Manager
Assistant Manager
[Hr]
(Establishment
matters)
Personal
Assistant
27
Vacancies are notified as and when they arise and need to be filled. All the technical and
non technical vacancies are notified to PSC. If the PSC are not available in time the same
is filled up through employment exchange on temporary basis for a period of maximum
one year. For the post like Assistant, Accountant, Office staffs, Typists, Stenographer etc.,
the people are hired through PSC recruitment.
candidates for the required posts in the unit on their notification to the concerned District
Employment Offices. The higher posts of officers are advertised in major news papers
and simultaneously
PSC Recruitment
Advertisement
Employment
EXCHANGE
Interview
Selection
Training
APPOINMENT
28
The training need is identified only for those whose work directly affects the
29
For new recruiters, awareness training or orientation training is given for a period of one
week or one month. After this training, orientation report will be collected from each department.
After analyzing this orientation report they will give placement to the employees as a trainee under
probation. Probation period is for one year. After satisfactory completion of
probationary period the employees will be placed in the regular pay scale. In KAMCO there is a
personal record sheet containing all the personal information of the newly joining employee.
Performance Appraisal
In the case of officers, performance appraisals are carried out once in a year. Appraisals
are made by the 31st of December and are collected by the 15th of January in the following year.
In the case of workers, performance appraisal is carried out when they become eligible for a grade
change. During the probation and training periods, appraisals are carried out every quarter. The
appraisal reports are then placed before the promotion and recruitment committee. In the case of
officers, a three stage appraisal is performed. In the first stage, a self appraisal is carried out by
them. This is then followed by an appraisal by the departmental head which in turn is followed by
an appraisal by the divisional head.
Promotion
Seniority, performance, educational qualifications and general disposition will form the
basis for granting promotion. These will be judged with reference to the personal records and
periodical performance appraisals of the employees.
As per the promotion policy of KAMCO, an employee will be eligible for promotion if
he has served in a particular post for at least 3 years, or he will be given promotion when the
vacancy occurs. Another aspect is Grade promotion ie, promotions are based on grades of
employees. In worker category there will be a grade change after a period of 5 years.
Seperation.
30
Drinking water
Toilets
Washing facilities
Canteen
Health and Medical facilities
Shift Allowance
Uniforms and protective clothing
Maternity benefits
Occupational safety
Educational loans
Workers cooperatives
Recreation facilities
Vocational training
Incentives
Medical facilities
Housing facilities
31
Grievance handling
KAMCO does not have specific grievance handling machinery. Grievances if any may be
brought to the notice of the immediate superior. Depending on the seriousness of the grievance, it
may or may not be forwarded to the Managing Director, who is the final authority. Managing
Director will forward the same to the HRM department for examination as per the rules and
precedent. Accordingly the grievance is settled. If it is not settled due to various reason they will
take over by the concerned unions and finally the matter will be considered as industrial dispute
and referred to the district labour officer for conciliation.
Discipline
As per the standing orders applicable to the workers, no order of punishment shall be made
unless the workman concerned is informed in writing of the alleged misconduct and is given a
reasonable opportunity to explain the circumstances alleged against him.
If the explanation submitted by the concerned workman is found satisfactory by the
management, further proceedings against him shall be dropped. If the explanation is found
unsatisfactory, he may be charge-sheeted by the management as per the provisions of these
standing orders and an impartial domestic enquiry shall be instituted.
The most common cases of indiscipline are absenteeism and overstaying of leave.
Industrial Relations
KAMCO has recognized trade unions in all the four units of the company. The management
has cordial industrial relations with all of them. The following are the recognized trade unions in
the company.
o KAMCO Employees Union, Athani.
32
o
o
o
o
Incentives
A production incentive scheme is followed in KAMCO for the benefit of employees,
which constitute quarter of the pay packet. Any system of remuneration in which the amount
earned is dependent on the result oriented, there by offering the employee an incentive to achieve
better results. It aims at increased output, productivity and utilization of resources. This scheme
covers all the permanent employees.
In KAMCO, incentives are mainly three types:
1) Direct incentives
2) Semi direct incentives
3) Indirect incentives
1. Direct Incentives
It is only for workers who work in Machine shop, Assembly and Painting Booth. After
conducting work study, monthly incentive scheme has been implemented.
2. Semi- Direct Incentives
This incentive is paid for the employees in the Maintenance, Quality Assurance,
Engineering Stores, Charge hands and Chief Mechanics. Semi direct incentive is 80% of direct
incentives. It is also paid in monthly.
3. Indirect Incentives
Indirect incentive is paid who are not included in direct and semi direct incentive.
Employees in the managerial category also come under this. Indirect incentive is 60% of direct
incentives.
33
Objectives
1. To increase production, productivity and utilization of resources.
2. To increase in earnings of employees.
3. To reduce absenteeism and reward for punctuality.
4. Employee Welfare
By giving a better working atmosphere, KAMCO is able to keeping a good relation
with the employees and thus it helps to increase their productivity. KAMCO providing these
facilities to the employees, they are:
ESI - Employee State insurance - The employers who have below 7500 salary will get
ESI allowance. The employers who do not get the ESI allowance will get Medical
Reimbursement facility.
Medical Reimbursement facility- The employer who got treatment in approved
hospitals. This treatment is also getting to their family members.
Uniforms- Two pairs of uniform will provide to the technical workers, sweepers and
security staffs.
Stitching and washing allowance- In KAMCO employees who are provided with
uniforms must give washing allowance as Rs.32 for security staff and Rs. 37 for all other
eligible employees.
Safety Equipments- As part of the occupational safety concerned employees are provided
with safety equipments such Mask, Helmet , Safety Shoes, Glouses, Safety Googles.
According to eye sight, ear plug, aprons etc and for reviewing the overall safety of the
34
that can cater to all employers on day providing breakfast, lunch, dinner, tea, coffee,
snacks etc. It provides food at subsidized rates to the workers and employees working at
various shifts.
Society- In KAMCO, there exist a cooperative and housing society. There is a provisional
store under this society which provides service to the employees and also to the outsiders.
Each employee can get the essential commodities from the cooperative store on
installments. The members can purchase commodities upto a limit of Rs 2000. The
cooperative society also gives scholarship to the students who have secured high marks in
S.S.L.C. Examination. The Housing Society gives financial help (loans) to the
employees.
Recreation club KAMCO have a recreation club. Different journals and news papers
are subscribing here for the employees. The employees conducting tour programs from
here.
Housing Subsidy KAMCO is giving an interest subsidy at the rate of 3.75% for a
maximum amount of Rs.50000 for housing loan from any financial institutions.
Transport Subsidy An amount of Rs. 70 will be given to all employees as Transport
subsidy by KAMCO. KAMCO is not having for transportation. The second shift
employees are provided with vehicle on contract basis and subsidized coupons will be
Time Office
Time Office plays an important role in the functions of shifts. The worker category is
provided with electronic punching card (G1-G7) and for the officers category they uses
attendance register instead of punching cards (G8 -G14). Time office performs the job to prepare
the attendance and leave of the employees.
35
7am - 3pm
11am - 7pm
General shift
9am - 5pm
9.30am 5pm
(On Saturdays)
9.30am 1pm
8am 4pm
4pm 12am
12am 8am
383
Office staffs
56
Contract Employees
12
Apprentices
43
TOTAL
494
Table6:No.of employees
Procedures For HRM Department
1. Purpose
To ensure right candidate are recruited as per requirement
To ensure that employees safety is managed effectively
To ensure that employees welfare is managed effectively
2. Scope
Covers all personnel
3. Responsibilities
Department head of hrm will be responsible to see that the procedure is followed by all
officers and staffing department.
4. Procedure
4.1 The recruitment, promotion and pay fixation will be carried out as per the recruitment
and promotion rules notified by the company from time to time
36
4.2
4.3
Safety measures
1. Protection of eyes
Workmen, who are working in grinding machines, milling machines, lathes and doing
welding and fettling are provided with googles for protection of eyes.
2. Precautions in case of fire
Fire extinguishersare provided in all departments. Selected employees based on their age
and attitude are given training to use fire extinguishers. A list of trained employees in fire
fighting is displayed in the factory premises.
3. Uniforms
All eligible workmen are provided with uniform as a safety precaution
4. Shoes and socks
All workmen in the factory and plant area are provided with shoes and socks as a safety
measure.
5. Excessive weight lifting
No person is allowed to lift heavy components. Cranes are provided for lifting the heavy
components and these cranes are tested and certified by the competent authority as per
factories act 1948.
6. Protection against dust
All workmen, working in places where dust is present, are provided with a face mask
7. First aid
First aid boxes are provided in production department and employees handling first aid
are trained. List of personnel trained in first aid is displayed in the factory premises.
37
8. Accidents
All the accidents are recored and reviewed quarterly by HOD {HRM} and submits a brief
report to management, for a corrective and preventive actions. This is also discussed in
the management review meeting
Industrial Relation
KAMCO have five recognized trade unions. The management has cordial relations with
all of them. As KAMCO is a government owned company so the trade union authorities are
higher as compared to the private company. The trade unions are as follows
KAMCO Employees Union(CITU)
KAMCO Employees Association (INTUC)
KAMCO Employees Federation (AITUC).
KAMCO Employees Centre (UTUC)
KAMCO Employees Union (which has no political affiliation).
As a part of its labour welfare measures, KAMCO provides both statutory and non
statutory welfare measures.
Greivence Handling And Discipline
o KAMCO does not have specific grievance handling machinery. Grievances if any
may be brought to the notice of the immediate superior. Depending on the
seriousness of the grievances, it may or may not be forwarded to the MD who is
the final authority. A grievance once redressed cannot be put up before a
committee of appeals. Cases of indiscipline are treated in the following manner.
o A memorandum or show cause notice is issued to the employee.
o If the reply received is not satisfactory a charge sheet is issued.
o Again if the employee is unable to respond satisfactorily an enquiry is carried out.
38
39
The Finance Department deals with the procurement and management of funds. This
department controls the over all financial transaction of the company. It controls the receipts and
payments of each and every activity for all the divisions. In KAMCO, finance department plays a
major role because in public sector only very few companies are earning profit. KAMCO is a
multicrore multiunit organization. It means KAMCO have more than one unit on their own fund
without any external fund. Surprising thing is that KAMCO is giving dividend and carrying
profit for 20 years. The surplus money is invested in the treasury and gets an interest of 6-7 %
from the treasury.
The Finance Department keeps a record of everything concerning any expense or income.
They have no interest on working capital and also no secured or unsecured loans. The advance
amount they get for the tillers are sufficient for meeting working capital. In most of the private
40
sectors achievement is always less than budget, but in the case of KAMCO achievement is
always greater than the budget. Annual profit of the company is between 8-10 crores. There is no
increase or decrease in the share capital. This shows the company have adequate fund for
business and also the company dont have secured and unsecured loan. So there is no need of
increase or decrease in the share capital. The areas under the purview of the finance department
include salary administration, bill processing, statutory payments like taxes, central excise etc,
financial administration, costing, internal audits and balance sheet preparation, budgeting,
payments and receipts, bank negotiations etc.KAMCO is third among the state owned
corporations in terms of both volumes of sales as well as profits
Senior Manager
(Cost & Finance)
Assistant
Manager
1. Wages/Payroll
2. Bills
Superindent
41
3. Sales Tax
SUPERENDENT
4. Costing
Accountant
2.
Management of receipts.
3.
Management of payments.
4.
Management of Assets
5.
Management of Units
6.
Auditing.
7.
Costing.
8.
Statutory transactions
9.
MIS
1.
42
Budget Control of the company is exercised by the costing department based on the
expenses statement of various departments.
2.
Management of receipts.
Payment from dealers/customers received through marketing dept. is acknowledged by
issuing proper receipts. Customer wise/ dealer wise accounting is adopted. There will be a debit
outstanding and it must be informed to marketing department once in a month for further action.
Insurance freight outward, bank negotiations etc are accounted and maintained to arrive at cost
of sales. Daily cash sales proceeds in the sail counter and other receipts are verified and
accounted.
3.
Management of payments.
Subject to the availability of the funds, payment commitments are honored on the due
dates. Statutory remittance, payments to employees, various payments against service rented and
payment to suppliers constitute the out flow of funds. All the payments are supported by
approved vouchers. Payments are passed mainly on the basis of IGRR. Advance payments are
settled with in a time of 45 days. Non receipts or delayed receipts etc. are bought to the notice of
stores for remedial action. Payments are usually done by Cheque/DD.
4.
Management of Assets
Finance department ensure that the entire assets of the company are utilized to the most
efficient manner and they are secured against all possible risks. For that Finance department
maintain the records of all assets including Plant & Machinery, Fixed Assets, Furniture and
Fittings of the company. To assess the plant utilization break down and preventive maintenance
cost of the company assets is analyzed.
43
5.
Management of Units
All the units are under corporate control from head office. Unit inspections are carried
out by periodic intervals and policy derivations if any are bought to the notice of corrective
action.
Funds required for all units are arranged by the finance department based on budget
sanction and to the requirements of units. Internal audit department is vested with corporate
function. This department audits the account of units and confirms the compliances.
6.
Auditing
Internal auditing is mainly based on corporate functioning. Internal audit mainly takes
care for the CARO requirements of companies Act. It acts as a watch dog for an entire
Organization. The main function of this dept is to ensure the policy decisions of the mgt are
strictly followed by the functional departments and is verified by the internal audit.
8. Costing.
Costing records are maintained as per the cost accounting rules .They are mainly
subjected to cost audit ordered by company law board. Mainly costing department. Analyze cost
of production on a yearly basis. Costing departments advices accounting department. The cost
rejections are as per warranty claims.
9.Statutory transactions.
Sales Tax/ Income Tax/ TDS certificate/C form/ Form 18 etc are issued. They are
properly accounted and proper time settlements are made. Salaries and other payments,
remittance and recovery Travelers Cheque in the case of employees are done in time.
10. MIS Management Information System.
44
The reports like Bank balance position, Consolidated Receipts and payments, Monthly operation
report, Internal audit report, Statement of stock rejection, Negotiation documents, Pending
Clearance , Reconciliation statement of dealers and Vendors etc are give to the management for
proper control and policy formulation
45
The finance department deals with the procurement and management of funds. This department
controls the receipts and payments of each and every activity for all the divisions. In KAMCO
,finance department plays a major role because in public sector only very few companies are
earning profit .KAMCO have more than one unit established with their own fund. Surprising
thing is that KAMCO is giving dividend and making profit for 22 years. The surplus money is
invested in the treasury and gets an interest of 7-8% from the treasury .The finance department
keeps record of everything concerning income or expenses.
4.3.Marketing Department
The main
functions of the marketing department include product marketing, invoicing, customer relations,
46
after sales service, warranty claims, product demonstrations, appointing dealers, advertisement
and publicity etc..
KAMCO does not make direct sales to customers. All sales are made through dealers.
Dealers are qualified on the basis of sales objectives and their marketing reach. In every state,
one of the assigned dealers is the State Agro Industries Corporation. In addition, private dealers
are also used. All transportation facilities required by the dealer in ordering their products are
arranged by KAMCO. Sales incentives are the main tools used for motivating dealers. Dealers
who sell over and above the set sales target for a period qualify for the incentives. KAMCO also
bears a part of the advertisement cost incurred by the dealers. Almost all sales are made against
cash advances. In very few cases sales are made against bank guarantees, which again do not
exceed 30 days.
Major dealers in India
1.
West Bengal
Govt. West Bengal Agro Industries Corporation
Pvt. Friends Machinery and spares ltd.
2.
Assam
Govt. Assam Agro Industries Development Group
Pvt. Chem Trade India Pvt Ltd.
3.
Tripura
Govt. Tripura Horticulture group
Pvt. KrishishilpaUdyog
4.
Meghalaya
Pvt. Stanley Roy Constructions
5.
Kerala
Kerala Agro Industries Corporation.
Marketing Department Hierarchy
47
Superintendent
Assistant Engineer
Technical
Assistant
Chief
Mechanic
Mechanic
Office
Assistnat
Steno
Work Assistant
Peon
Driver
Figure 5 : Marketing Department Hierarchy
Purpose
48
The major purposes of the marketing department of KAMCO are the following:
Competitors
During early periods KAMCO ruled the market. In India VST, Bangalore is the major
competitor of KAMCO.
International market
KAMCO Power Reaper has been exported to Iran and Srilanka recently. And Kamco
tillers have been exported to Haiti. The export quantity is not a huge one but still they getting
order from these countries. These machines have been well accepted by the customers.
Dealers
The company has 60 dealers all over India. New dealers appointed to cover selected
districts in Tamil Nadu, Karnataka, Maharashtra, Orissa and Andhra Pradesh. And in the other
states the company has dealerships. The dealers will get Rs.6500 per tiller and want to provide
three free services to the customers. The dealers target depends upon the area. If a dealer exceed
their target he will get incentives depends upon the excess quantity.
Sales Promotion
49
In International market the sales promotion of the company is only through web sites. In
India, all the state Govts have their own dealerships to sell the products. The company gives
dealerships to the private groups also.
Major sales promotional activities
1. Customer training
2. Demonstration
3. after sales services
Advertising
Advertising is also a part of sales promotion. In every budget company allocated nearly
rupees 50 lakhs for advertising. Sign boards and news papers are the major channels of
advertising. Company also gives some financial helps to the dealers for advertisements.
Price Fixation
Retail price = Dealer price + Margin (inside Kerala)
= Dealer price + Margin + Freight (outside Kerala)
Pricing Strategy
The pricing strategy is cost based, ie, by summing the variable cost, material cost and
administrative cost.
Market Segmentation
The company targets its products mainly for the middle class section.
Environmental Analysis
As it is a public limited company KAMCO have certain limitations. They cant do more to the
environmental protection. The all new DI engine will reduce pollution and it also reduces the
fuel consumption than the ordinary engine.
50
51
52
other units give their material requirements to the head office (Athani unit) and the head offices
purchase department purchases the materials for all the other three units.
All item required for the production are classified based on the ABC Analysis. A
category components constituting about 70% of total cost of the components. B category
components constitute about 20% of total cost of the components. C category components
constitute about 10% of total cost of the components
Maximum permitted inventory is controlled according to the guidelines given below,
based on ABC Analysis.
A category Components - Stock for 1 month production
B category Components - Stock for 2 month production
C category Components - Stock for 3 month production
Material Department Hierarchy
Managing Director
Senior Manager
(Materials)
Deputy Manager
(Purchase)
Deputy Manager
(Materials)
Assistant Engineer
(Purchase)
Technical Assistant
Deputy Manager
(Stores)
Assistant Manager
(Stores)
Technical Assistant
53
Technical Assistant
Work Assisrant
Figure 6 : Materials Department Hierarchy
General Workers
Purchase procedure
A well defined purchase system exists in the organization. A proposal is placed by the
vendors to the company. The proposal will be evaluated the internal audit department and will
look in to the entire details of the proposal. If the commission is satisfied, they will place the
proposal to the purchase commission which may include Managing Director, purchase manager,
finance manager, and marketing manager. If the purchase commission satisfied with the
commission it will be placed before the MD for the approval. If the MD approves the proposal,
purchase order can be placed to the vendors to supply the materials. The order costing Rs 25000
can be sanctioned by the purchase committee and the matter costing above Rs.1lakh should go
through the hands of MD.
The entire payment is paid through the finance department and through the bank. No cash
transactions are allowed in the organization. Only some petty cash transactions are made by cash.
The purchase department also takes care of the general purchase.
Purchase costing up to Rs 500 can be paid by cash. Above 500 should invite quotations
(at least 3 in numbers). And the lowest quotation will be selected and the order may be placed.
The suppliers will be awarded for the prompt supply and it is done for the purpose assuring the
right materials at right time to the stores so as to ensure an uninterrupted production.
Purchase Order approvals
54
Purchase proposals are prepared in standard format based on the master purchase plan for
all units of KAMCO put together. Purchase orders are released, separately, for each unit of
KAMCO after obtaining approvals from concerned authorities. In respective formats & copy of
the order is forwarded to the concerned unit.
55
on delete/continue of the vendor, considering his performance in Kalamassery, Mala & Palakkad
Units
Storage Procedure
All materials including raw material, components, & production consumables which are
received from vendors /such contractors, directly through transports along with dispatch notes
are received.
Packaging
The finished engines dispatched to customer /dealers are packed in separate wooden box for
avoiding damage during transit. Spare parts are packed in polythin covers/corrugated card board
and are put in a wooden box for dispatch.
Farmers Kit: - The item coming in farmers kit is packed in separate card board carton.
Tool Kit: - The items coming in tool kit are packed in separate plastic bags.
56
57
Machine Shop
Company has got a modern machine shop with Special Purpose Machines (SPM),
which ensures conformity with prescribed quality standards. Inspection at various stages of
manufacturing is carried out, which help in reducing the process rejection to the minimum. The
workforce is qualified and fully experienced which makes the right contribution to the process.
In machine shop, there is a process chart or written document.
58
The material purchased by the purchase department moves to the store. From
there, the material sends to the QA. After that it sends to the machine shop and there, the
processes like milling, drilling, turning & boring, grinding etc are doing on the materials. For
getting the products, materials are used in the assembly shop. From the machine shop, the
finished components are not directly sending to the assembly shop. It will send to the QA
department for inspection and will send to the stores thereafter.
Assembly Shop
Assembly is one of the major sections in production department. The finished
components are taken from the store and are sent to the assembly as required. The engine
assembling is one of the major works in the assembly. After testing the assembled engines, they
are sent to the painting section. Through different transmission in the assembly, we get the
finished product. In case of the power tiller, here using two types of engines. They are Diesel
Engine and DI engine. The assembly consist of two divisions:
a) Assembling
b) Painting booth.
a) Assembling: The assembly line consists of an engine line, a transmission line and a tiller
assembly line. Transmission and engine assemblies converged to the tiller assembly
line, where finished power tiller is produced.
The following process takes place in the transmission line:
a. T1 : Main Gear Case, Axle Gear Case(Wheel), Axle Shaft, Fourth Shaft etc.
b. T2 : Gears are set, Axillaries Gear Case Setting, Brake Setting etc
c. T3 : Upper cover, Central Gear Case for blade, Clutch Assembly, Brake Lever,
Low speed and high speed Lever.
After testing, the engines are sent to the painting section.
b) Painting booth: In Kamco, there is a modern painting system for the components and
assemblies, where Uniblake liquid paints are used. Seven tank system of Pretreatment is
59
employed. Paints and chemicals needed for this system are produced only from wellknown manufacturers. After cleaning the components, it will go for painting through a
conveyer belt,
60
Managing Director
Manager (Production)
Deputy MANAGER
Shift Officer
(Assembly)
Chief Mechanic
Mechanics
Painters
Operators
61
Charge Heads
Process 1: Degreasing
In this process the item or product which is to be cleaned is dipped in the tank
with chemical at 60 degree temperature for about 20-25 minutes.
Process 2: Water rinsing
Here the item is simply rinsed with water for about 2 minutes.
Process 3: Acid treatment
Again the item is dipped in a solution containing 35% HCL for about 20 minutes.
This is mainly done to remove rust.
Process 4: The component is again passed through two cold water tanks and rinsed.
Process 5: Phosphating
Again the item is dipped in a solution containing phosphate content for about 45
minutes. After this process the surface of the component will be completely cleaned.
Process 6: Water rinsing
The component is washed with water.
Process 7: Passivation
Here the component is dipped in a solution containing chromic acid for about 20
minutes.
After cleaning the components it will go for painting through a conveyer belt and after
painting it will go to the oven through the belt. Mainly they are using two colors for painting, one
is Ash and the other one is Post office Red.
62
The population of tiller is about two and a half lakhs and the weight of tiller is 430 kgs
consisting of 740 components. The final product, tiller is finally checked to see whether there is
leak or produces abnormal sound.
The maintenance measure followed here is Total Preventive Maintenance (TPM) which is
a Japanese concept. Under maintenance department there are two types of maintenance rooms.
They are civil maintenance and electrical maintenance. Once in 90 days maintenance is done.
Another major aspect of KAMCO is zero down time which leads to continuous production.
In this company 67% is considered as minimum productivity for an employee. An
employee is considered eligible for getting production incentive only if he crosses this minimum
productivity line. During early periods 3000 tillers were produced, but now it has been raised to
5000.
Production planning is carried out when the production budget is made. Production
figures are decided upon at the beginning of the year. Production quotas for each month are to
be met. The daily requirement of production is communicated by the Manager (Production) to
the shift supervisors. Daily production figures may be flexible as long as the monthly quotas are
met.
63
PRODUCTION CYCLE
T1
E1
T2
E2
T3
K1
E3 Testing
K2
Engineering
Testing
K3
Painting
K4
Engine MOULDING
(Tiller Finishing)
64
Painting
65
Managing Director
Assistant Engineer
Chief Mechanic
Mechanic
66
The QA Dept. is responsible for carrying out the Inspection and Testing for all
components received against the Quality Plans/ Work Instructions/ Drawings / Flow Process
Charts /Check list as appropriate. Consideration has been given to products which need not be
inspected if they have been inspected at the Vendors premises by KAMCOs personnel. It is the
policy of the company to fix vendors for critical items, where material testing is required
on
established vendors only. For this purpose, during vendor evaluation such facilities are verified.
No
material is released to production without inspection and hence no recall procedure exists
in KAMCO. To further assure no bad quality parts get in to the product due to oversight,
KAMCO established a Parts call back system when a defect is noticed in the production line.
Materials and components from the vendors receive the store department. At that
receiving time there occur only the quantities checking as per the order. There is an inward
receipt in the hands of the store (IGRR). This IGRR contains the IGRR No:, Delivery Chelan
No:, Date , name of the vendor , Quantity, Grade of the vendors etc. With this receipt the store
department handed over the components to the quality assurance department.
From here start the functions of Q.A department. The major functions of the quality
department are testing, acceptance and rejection. In the Q.A department there are specifications
of all the components. Q.A thoroughly checks the components, to know these components have
all the specifications that are needed for production.
Q.A classifies the components into two, critical components and non-critical components.
Critical components are crank shaft, all engine parts, gears etc. Non-critical components are nuts,
bolts and screws etc. The classification is mainly for ignoring the practical difficulty in checking.
Complete inspection occurs in critical components and only sample inspection occurs in the noncritical components. Practical difficulty of checking all the non-critical components is the
problem here. From here all the accepted components are gone towards the stocks department.
From there the components are taken by the production department as per their requirements.
Q.A department is equipped with all modern facilities. The company has a calibration cell to
check and correct the measurements of all the measuring instruments.
67
There are mainly two sections in the Quality Assurance department. They are:
a. Inplant section
b. Bought out section
The inplant section deals with the inspection of products from machine shop ,where as the
bought out section deals with the testing of finished products which are bought from outside.
Assembly Dept. is responsible for line inspection & Testing. No product is allowed to pass
through to the next stage until it has been inspected and cleared.
Quality Plan identifies the Inspection stages & the parameters to be tested.
QA Dept. is responsible for final Inspection and Testing carried out on each and every
product based on the Quality Plan. The Final Inspection / Testing will take into account all the
Inspection and Testing requirements at receiving and in Process. No Product is dispatched
without satisfactorily meeting all the specified requirements and approved by QA for dispatch.
Quality Standards
TREM - (Tractor Emission)
ARAI - (Automotive Research Association of India, Pune) diesel engine certification
CMVR (Central Motor Vehicles Rules) certification for moving vehicle.
The company follows trail and error method for improvement.
Quality Systems
Well defined quality system procedures adopted covering all activities to ensure quality
of products & customer satisfaction.
Improvements are made on regular basis based on the feed back from the customers &
dealers
68
Regular interactions with all Venders including site visits to maintain and improve the
acceptance level of components
KAMCO Power Tiller certified for compliance with Minimum Performance Standards of
Govt. of India
KAMCO Power Reaper has been tested by SRFMT&TI, Ananthapur of Govt. of India
Quality Policy
Total customer satisfaction through quality products and services with improved
technology and employee participation.
Comply with the requirements of customers and the applicable statutory / regulatory
requirements. The effectiveness of the established quality management system is
continually improved to enable achievement of the policy.
Quality Objectives
The major objectives of the quality assurance department are the following:
To ensure that quality requirements of the products and services offered are maintained at
all stages.
To create a culture amongst all employees towards total quality concepts and productivity
through total involvement and commitment of all employees.
To create a healthy working environment for attaining the quality goals with excellence
and to make quality a way of life.
To detect and prevent non-conformance and defects as early as possible and to eliminate
them through appropriate changes to the Quality Management System.
69
70
Managing Director
71
Assistant Manager 1
Assistant Manager 2
Assistant Manager 3
Drafts Men
The product upgradation is done as per the results of the researches conducted by the
department. At present researches are going on to develop a product for the harvesting of
pokkali, an agro product which is cultivated in water.
The engineering department also comes under the R&D department which deals with the
research processes regarding the design and various other aspects of the products. The company
is in the process of setting up a separate and more advanced R&D facility as part of its plans to
diversify its product line. Plans are on the anvil to diversify into the food processing machinery
industry. KAMCO is also looking at producing water pumps and generator engines, the latter in
72
collaboration with KEL who will be the primary customers. The company conducts its R&D
activities in association with the Automotive Research Association of India (ARAI), Pune.
At present the whole body of the tiller is made up of aluminum and cast iron. With newer
engineering materials evolving world wide, these materials are likely to be replaced by stronger
and more flexible materials in the coming decade. Sometimes the department uses the reengineering where it tries to design a model on a previously existing working model. Company
has a plan for diversification. The company plans to produce tractors at the price less than 3
lacs.So it is very useful to small scale farmers in India.
At present the whole body of the tiller is made up of aluminum and cast iron. With newer
engineering materials evolving worldwide, these materials are likely to be replaced by stronger
and more flexible materials in the coming decade. Sometimes the department uses the reengineering where it tries to design a model on a previously existing working model. Company
has a plan for diversification. The company plans to produce tractors at the price less than 3
73
lacs.So it is very useful to small scale farmers in India. The systems department in KAMCO was
established during 80`s.Formerly it was known as EDP but now changed to systems. All the four
units of the company are connected through internet and all the four units have their servers. In
this corporate unit each department is connected through a LAN. The system department uses a
customer ERP (Enterprise Resource Planning) package, back-ended with Oracle. Companys
system department is not as much developed, so it is not used in any part of production. There is
an inbuilt MIS function in this. ERP package is divided into different modules in which, each
module is for each department. By the help of these modules, departments can transact the datas
and it makes the work easy. The system department uses CD as a backup file to store data. There
is LAN in every unit and these are connected each other through BSNL network. As part of the
security, each department provides separate user name and password. The maintenance of the
system is done by the experts in the system department. The training programmes are:
1. Implementation training is mainly for the experts in system department by the
developer.
2. Training to the users by the experts from the system department.
3. Refreshers training to make users aware of all the functions of slow.
The future priorities are given to Business Process Reengineering and Internet connectivity to all
departments
Managing Director
Deputy General
Manager
(Finance & Company
Security)
74
Senior
Manager
(Systems)
Manager
(Information &
Security)
Data Entry
Operators
Data Entry
Operators
Now systems department is doing the work of preparing a cost accounting module and a
product cost analysis software for the company. An online integration to make all the four servers
into a single server through net is another future plan of this department.
75
CHAPTER 5
SWOT ANALYSIS
SWOT Analysis
76
SWOT analysis has been defined as 'a conceptual framework for a systematic analysis that
facilitates matching the external threats and opportunities with the internal weaknesses and
strengths of the organization'. SWOT analysis is a well defined study about the strength, weakness,
opportunities and threats of the organisation. SWOT analysis is very much helpful in analyzing the
strength, weakness, opportunities and threats of the organizations. SWOT analysis is a tool for
auditing an organization and its environment. It is the first stage of planning and helps marketers
to focus on key issues. Once key issues have been identified, they feed into marketing
objectives.
These data helps the managements to plan, design and develop its future actions.
SWOT Analysis based on organizational study
5.1. Strengths
1. Environmental Friendly :
Wastes like Aluminium and Iron chips can be recycled to new products.
2. Brand Image:
KAMCO has a good brand image. The products of KAMCO seldom fails or require
maintenance.
3. Financially sound:
KAMCO has a fixed deposit of more than 35 crores and has been running in profit for the
last 30 years.
4. Good marketing network:
KAMCO has 60 trusted dealers in 23 states.
5. Effective power utilization in production department:
KAMCO has been following an overlapped-shifting system for the last 3 years, thereby
4hrs of mixed time-shift per day. This result in the usage of only 70% of the earlier, saves
1.5 lakhs.
6. Good management and punctual workers:
KAMCO follows electronic punching system for the workers so that they are available at
the right time at the right place.
7. Transparent incentive scheme:
KAMCO has a special incentive scheme which divides three types as Direct, Semi-Direct
and Indirect Incentive schemes.
77
5.2. Weakness
1. Focus on only two products mainly:
KAMCO focus on only two products, Power tiller and Diesel Engine mainly, out of 5
products.
2. Production is not upto the demand:
KAMCO still fail to meet the actual demand in the market, as they manufacture products
not depends on the demand, but depends on the budget.
3. Time delay in recruitment and selection:
The recruitment is mainly through PSC and thats why time delay may occur.
4. Political interference:
As KAMCO is a public limited company, lot of political interference can be there.
5. High transportation cost:
As all the four units of KAMCO are in Kerala and potential market is in northeast, the
transportation cost will be high.
6. Only agricultural based products:
KAMCO manufacture only agricultural based products.
5.3. Opportunities
1. Only small part of the market is exploiting as huge reservoir of expertise can be used to
set up technological collaborations.
2. Accumulated funds can be used in future expansion activities.
3. Government support in financial matters.
4. KAMCO has good exporting opportunities.
78
5. The trustable brand image makes an opportunity to grow more and to get mote
customers.
6. Boom in the farm mechanization.
5.4. Threats
1.
2.
3.
4.
5.
with highly developed low cost products which may attracts its potential customers.
6. Growth of private enterprises in the sector
79
CHAPTER-6
OBSERVATIONS AND CONCLUSION
80
Observations
.
1. Good production facility.
2. 8th profit making company in the undertaking of Kerala govt
3. High demanded product
4. Good industrial relationship.
5. Qualified and skilled workers.
6. Good brand name.
7. Good incentive system.
8. Unique company running with profit for the last 30 years.
9. Political interference.
81
Conclusion
82
Bibliography
Websites:
o
o
o
o
o
o
o
o
http://www.kamcoindia.com/html/companyinfo.htm
http://www.kamcoindia.com/html/Kamco_index.htm
http://www.sourcing.indiamart.com/agriculture
http://www.enterpreneurswebsite.com/2011/02/26/agriculture_industry_of_india
http://www.economywatch.com/agriculture
http://www.en.wekipedia.org/wiki/agriculture_in_india
http://www.keralaagro.com/tiller.html
http://www.keralaagro.com/reaper.html
83