CONTENTS SLNO 1 TITLE INDUSTRY PROFILE Pg no 7 2 COMPANY PROFILE 12 3 ORGANISATIONAL STRUCTURE 20 4 PRODUCT PROFILE 26 5 FUNCTIONAL STRUCTURE 32 6 MICROSCOPIC STUDY OF FINANCE DEPARTMENT 56 7 SWOT ANALYSIS 70 M. P. Birla Institute Of Management 1 8 BIBLOGRAPHY 77 Industry profile M. P. Birla Institute Of Management Page 2 INDUSTRIAL PROFILE An industrial which has undergone a radical shift in its paradigm thinking, the Indian machine tools industry is now recognized as a provider of cost- effective high quality lean manufacturing solutions.
The industry resiliently supports all its users to enhance productivity as well as improve competitiveness, for the betterment of the customer. Being an integral sector, growth of the machine tool has an immense bearing on the entire economy, especially India? s manufacturing industry and is even more crucial for development of the company? s strategic segments such as defence, railways, space & atomic energy. World over too, industrialized advanced countries have created niches on the back of a well, indigenous machines tools have the highest impact on capital output ratios.
Machines tools consumption of Rs. 100crores truly support the advancement of the country? s engineering sector, output of which to be worth over Rs. 150000crores. 1. 1 HISTORICAL BACKGROUND Machine tools were manufactured as early as 1890, but were poor in quality and lacked standardization. After 1930 machine tools of a reasonably good quality began to be produced in India principally by P N DATTA & COMPANY in Calcutta. Cooper engineering works at Satara & The Indian Machinery Company at Dasnagar near Calcutta.
These enterprises, which were the pioneer of the machine tools making in India, Made mostly sliding, surfacing and screw cutting lathe of the head stock types. However all the enterprises suffered from the absence of the ready, Market for then products, mainly because of competition from established Manufactured in England. M. P. Birla Institute Of Management Page 3 The Outbreak of the 2nd world war India became the main base of supply & production of the war materials for the British & the ally? s army in the east. There was tool, although, import of machines tools continued on a reduced scale.
Throughout 1936 & 1940 the situation became increasing more precarious. In 1941 the government of India passed the machine tools control over whose main object was to make an inventory of machine tools that could be obtained in India & Regulate & improve production so as to meet the needs of the ordinance factories & other war industries. The machines tools control laid the foundation of machine tool industry in India. 1. 2 MANUFACTURING RANGE The Indian machine tools industry manufactures almost the complete range of metal cutting & forming tools.
Customized in nature, the products from the Indian basket comprise conventional machine tools as well as Computer Numerical Controlled machines (CNC). There are other variants offered by Indian manufactures too, including special purpose machines, Robotics, handling systems & TPM friendly machines & provide further value additions at lower & lower cost to meet specific requirements of users. Based on perception of the current trends and demands, CNC segment could be the driver of growth for the machine tool industry in India. . 3 CURRENT TRENDS A slowdown in the Indian company since mid-1999 had its fallout on prospects of Indian machine tool manufactures. The Indian machine tools industry is facing lack of adequate business opportunities that has stemmed from sluggish in the home market of all user industries. 1. 4 EXPORT PERFORMANCE In the view of an imminent slowdown in the Indian economy, most Indian machine tool manufacturers focused on potential overseas marketers for business opportunities. M. P. Birla Institute Of Management Page 4
Indian machine tools are currently exported to over 50 countries major one being USA, Italy, Brazil, Germany & the Middle eastern countries Lathes And Automates, Presses, Electro discharge machines from Indian basket are generally favored in overseas markets primarily due to their cost competitiveness as compared to that available elsewhere. The visions of Indian machine tool industry are now step out and establish a relative presence in other potential markets. World over market leaders have been those who have looked to increase their presence beyond their national frontiers. 1. INDUSTRY STRUCTURE Machine tool industry in India comprises about 450 manufactures with 150 units in the organized sector. Ten major companies of the industry contribute almost 70% of production of India. And over three quarters of total machines total production in the country comes out of ISO certified companies. Many machines tool manufacturers have also obtained CE marketing Certification, in keeping with the requirements of the European markets. The industry has an installed capacity of over Rs. 10000 million & employees a workforce totaling 65,000 skilled and unskilled.
Bangalore is considered as hub for the Indian machine industry. The city for instance house HMT Machines Tools LTD, a company that manufactures nearly 32% of the total industry? s output. Machines tool industry in India is scattered all over the country. The hub of manufacturing activities however is concentrated in places like Bangalore, Jalandhar & Ludhiana in Punjab. 1. 6 MACHINE TOOLS Machines tools industry is in a position to export general purpose & a standard machine tool to even industrially advanced countries. During last our decades, the machine tool industry in India has established a sound base & there are around 160 machine tool manufactures in the organized sectors as also 400 units in the small ancillary sector. M. P. Birla Institute Of Management Page 5 The industry however lacks in engineering capability to undertake very high precision CNC machines. Some companies have taken manufacture of CNC machines, but there is an upgrade R&D in this field. Indian machine tools are manufactured to the international standard of quality, precision & reliability.
A number of collaborations have also been approved for bringing in the latest technology in the field of modern machines tools and the industry is now exporting conventional as well as CNC high tech machine tools. In the field of R&D, central manufacture technology institute, Bangalore has been doing research for more appropriate designed machine tools. There is a gap in technology for special purpose machines & even some categories of CNC. Import of technology is encouraged to bridge a gap. M. P. Birla Institute Of Management Page 6 Company profile M. P. Birla Institute Of Management Page 7 PROFILE OF THE COMPANY 2. INTRODUCTION TO HMT Dr. S. M. Patel started HMT limited as a HINDUSTAN MACHINE TOOLS LTD in 7th February 1953 in technical and financial collaboration with OERLIKON, machine tools works for Switzerland. The first product produced by machine tools was H22 lathe on 6th October late of government of India bought the shares held by OERLIKON transforming HMT as a government of India undertaking. Hindustan Machine Tools ltd Bangalore is one of the major machine tool Factory in India. It is located at Bangalore having 16 factories 24 divisions and 29000 employees in 10 different states. M. P. Birla Institute Of Management
Page 8 2. 2 INTRODUCTION TO MACHINE TOOLS LTD HMT Ltd the pioneer in machine tool industry in India and infrastructure of a diversified range of products has incorporated “HMT machine tool ltd” as its fully owned subsidiary on 9th august 1999. HMT machine tool ltd (HMT – MBX) is a multi – unit, multi – location, multi – technology Company manufacturing a wide variety of „STATE – OF-THE-ART machine tools. HMT machine tools ltd has its location at 5 location, with each unit specialized in a „particular family of machines. The sales and services network is spread across the length and breadth of the country.
All the manufacturing units of HMT machine tools are ISO 9001 certified. HMT factory which is located in Bangalore it covers area of 103 acres, colony area 278 acres, Industry area 22 acres. Totally it occupies 403 acres. HMT is giving benefits other salary to their employees like, medical benefits, canteen facility, conveyance allowance, education facility etc. PROFILE OF THE ORGANIZATION ? ? ? ? ? ? ? ? ? ? BACKGROUND & INCEPTION VISION & MISSION ORGANIZATIONAL STRUCTURE ACCOLADES PRODUCT PROFILE MAJOR COLLABROATIONS AREA OF OPERATION COMPETITORS INFORMATION INFRASTRUCTURAL FACILITY FUTURE ACTIVITIES
M. P. Birla Institute Of Management Page 9 2. 3 BACKGROUND & INCEPTION Pandit Jawaharlal Nehru, inaugurated HMT’s First Manufacturing Unit (Machine Tools, Bangalore) Hindustan machine tools are a public limited company started in 1955 & first output is given in 1955. HMT ltd was incorporated as HMT LTD on 07/03/1953 has branched into 16 factories, 24 divisions and 29,000 employees in 10 different states. Jawaharlal Nehru inaugurated HMT & remarked it, as “HMT is gift to country & jewel of country”. M. P. Birla Institute Of Management Page 10 2. 4 OBJECTIVES: ? To build mother machines. To produce needs of country like agriculture, transportation & defence. ? To encourage the modernization of Indian industry through supply of engineering goods and services of world class excellence. ? To maintain technological leadership through continuous efforts to update production technology & manufacturing methods. ? To globalize operations by developing a mix of international markets and business. ? To ensure a satisfactory return on capital employed to meet growth needs & aspirations of our stakeholders, to present an active, pleasant & productive working environment. To improve & sustain quality of work life for employees of country. ? To develop & retain human skills & talents necessary for corporate growth & performance excellence in all functions. ? To achieve sustainable competitive advantage through value edge and technological leadership in products & services of company. 2. 5 NATURE OF THE BUSINESS CARRIED HMT ltd, the pioneer in machine tools industry in India & manufactures of a diversified range of products has incorporated “HMT MACHINE TOOLS LIMITED” as its fully owned subsidiary on 9th august 1999. HMT MACHINE TOOLS LIMITED” (HMT-MTL) is a multi unit, multi location, Multi technology Company manufacturing units at five locations with each unit specialized in a particular family of machines. The sales & services network is spread across the length and breadth of the country. As leading manufacturer of machine tools in India HMT-MTL provides the best of products in terms of technology, productivity and cost effectiveness comprehensiveness customer support services including application engineering, customer and after sales services. All the manufacture units of HMT-MTL are ISO 9001 certified. M. P. Birla Institute Of Management Page 11 . 6 CORPORATE VISION To be leading Global Engineering CONGLOMERATE focused on CUSTOMER DELIGHT in our fields of endeavour. 2. 7 CORPORATE MISSION ? To established as one of the world? s premier company in the engineering field having strong international competitiveness. ? To achieve market leadership in India through ensuring country satisfaction for supplying internationally competitive products & services. ? To achieve sustained growth in the earning of the group on behalf of shareholders. M. P. Birla Institute Of Management Page 12 2. 8 CORPORATE STRENGTHS Various Strategies of HMT ? ? ? ? ? Creation of strategic alliances.
Development of brand equity. Provision of strategic planning inputs. Interface with regulatory agencies. Creation and maintenance of data warehouse with suitable corporate informational data for the use of all subsidiaries. M. P. Birla Institute Of Management Page 13 HMT Office ? ? ? Corporate Office: Bellary Road-Bangalore, Karnataka. Regional office: Hyderabad, Jammu, Bangalore. Manufacturing Unit: Bangalore, Kalamssary, Ajmer, Pinjur, Hyderabad. M. P. Birla Institute Of Management Page 14 ORGANISATIONAL STRUCTURE M. P. Birla Institute Of Management Page 15 3. 1 ORGANIZATIONAL STRUCTURE GM (MBX) DGM (CNC) JGM (PSB) GM (P) PRODUCTION
GM (F) FINANCE FINANCE HRM SECURITY TRAINING CANTEEN JGM (HRM) SALES ENGG. JGM(S) DESIGN DEVELOPMEN T JGM (DD) ENGG. SUBCONT RACT COMP’R & MIS QUALITY & INSPECTI ON JGM (QI) JGM(E) BALL SCREW TOOL ROOM PROGRES S AGM (PR) (MFG ) JGM ASSEMBLY JGM (AY) PLANT SERVICE DGM (PS) TRAIL SERVICING SPARES (TS) & FOUNDARY JGM (F) DGM HOSPITAL CMO MATERIAL & STORES JGM (M) M. P. Birla Institute Of Management Page 16 Board of Directors Subsidiaries of H. M. T MTL M. P. Birla Institute Of Management Page 17 Today, HMT comprises six subsidiaries under the ambit of a Holding Company, which also manages the Tractors Business directly.
In India HMT is built on a strong foundation of technical know how acquired from world leaders in machine tools such as OERLIKON, GILDMEISTER, LIEBHERR, FRITZWERNER, PEGARD & SIEMENS. HMT? S broad range of machine tools covers General Purpose Machines, Special Purpose Machines CNC Machines to meet the application needs of every engineering industry. HMT? S units have ISO 9001 certification confirms to national standards for quality. HMT is the backbone of Indian engineering industry supplying varieties of machine to suit the needs of various industries.
By acquiring state of art technology from time to time, HMT started manufacturing watches, Tractors, Die casting, plastic moldings and Food processing machinery. The new addition to HMT is HMT INTERNATIONAL, which is providing services across the globe. H. M. T’s Corner Stone Quality Customer Service Technology and R&D Infrastructure M. P. Birla Institute Of Management Page 18 3. 2 HMT’s Quality Policies ? To maintain quality leadership in all PRODUCTS & SERVICES. ? Total customer satisfaction through Quality Goods and Services. ? Commitment of management to Quality. To create a culture amongst all Employees towards total quality concept. ? Total quality through performance leadership. 3. 3 Customer Services ? Wide marketing network manned by qualified & trained sales & service engineers ? Service outlet at customer doorsteps in major industrial locations. ? Critical spare parts available at Field Offices. ? Customer training programs on Macaronis in addition to normal machine oriented training for machine tools. Manufacturing Units supplement customer support for tooled-up and high technology machine tools. ? Customer Component manufacture to suit customers? needs. . 4 INFRASTRUCTURE ? CNC Machines for Metal Cutting & Metal Forming. ? CNC Coordinate Measuring Machines. ? Heat Treatment Facilities. ? Precision Measuring & Inspection Facilities. ? Facilities for calibration of Measuring & Testing equipments. M. P. Birla Institute Of Management Page 19 3. 5 TECHNOLOGY AND R&D HMT has imbibed a wide range of technologies as a result of its diversification strategies to be a truly multi technology company. Research & Development efforts in the above technology areas are a continuous and ongoing process at the Design & Development Centers of all HMT? s manufacturing units.
In each area of HMT? s business domain, well-established research & testing facilities with experienced engineers to man them are in position. Extensive use is made of in-house CAD facilities for designing products. HMT is synonymous with excellence in precision engineering in India. HMT is built on a strong foundation of technical know how acquired from world leaders in machine tools, such as ORELIKON, MANURCHON, GLIDE MEISTER, LEE BEER, RINO BERADI, FRITZ WEMER REGARD. In Bangalore, the HMT (MTB) unit produces the following products and provides various services: ? Machine tools. ? Watches. ? Tractors. Printing Machinery. ? Pressures die casting and Plastic injection molding machine. ? Precision Ball Screw. ? Dairy Machinery ? Reconditioning Services. M. P. Birla Institute Of Management Page 20 PRODUCT PROFILE M. P. Birla Institute Of Management Page 21 4. 1 Machine tools The machine tools produced by HMT now cover almost the full spectrum of general – purpose machine tools as well as sophisticated machine like CNC grinders, and CNC turret, punch press and automated equipment like FMC & FMS, HMT? S customers for machine tools are from the following sectors. ? Automobile and auto ancillary industries ?
Railways ? Defense ? Agriculture machinery ? Mining and metals ? Industrial machinery ? Power equipments General Purpose Machines ? ? ? ? ? Lathe machine (turning machines) Drilling and boring machines Shaping machines Grinding machines Radial drilling machines Special Purpose Machines ? ? ? Heavy duty lathes Gear cutting machines Multi spindle and single automatic lathes. M. P. Birla Institute Of Management Page 22 CNC Machines ? ? ? ? ? ? ? ? ? CNC turning center. CNC slant bed turning center. CNC turn mill center. CNC twin spindle chucker. CNC vertical drilling and boring machine. CNC special purpose machine.
CNC cylindrical grinding machine. CNC internal face grinding machine. CNC gear hobbling machine. *The above mentioned machines tools are manufactured in two or three different Sizes according to the need of customers. 4. 2 Watches The first watch factory was setup in Bangalore in early 1960? s. HMT then produced barely 15000 watches, but now the watch production around 7 millions with 2 factories in Bangalore, one each in Srinagar, Tumkur and Ranibagh. The watch range models include hand wound mechanical watches to top – lien quartz and analog and digital watches. HMT has so far sold over 75 million.
The following are the various models manufactured by H. M. T ? Ladies watches. ? Gents watches. ? Hand wound and automatic watches. ? Pocket watches. ? Quartz watches. ? Analog alarm watches. ? Digital alarm watches. ? Electro luminescent watches M. P. Birla Institute Of Management Page 23 4. 3 Tractors The agricultural sector in India felt the need for modern farming method. This promoted HMT to start the manufacture of tractors at Pinjore. As with other major diversification of HMT, bulk of the equipment for the manufacture of tractors was produced by HMT itself – a natural result considering HMT?
S excellent capabilities in machine tools manufacturing. Reputed as one of the top tractor manufacturer in India, HMT has a sustained high production level and market acceptance. It is alone of the brand leaders in the country today. HMT manufactures of 25, 35, 45, 59, 57 HP capacities. 4. 4 Pressure Die Casting & Plastic Injection Molding Machine. As a pioneer of industrial technology HMT identified this area in 1970 and had a tie up with Buhler of Switzerland one of the most respected in this field in the world.
Today with it wide range of Die – casting and injection molding machine HMT is well poised to provide the necessary support to the emerging mass production culture. Recently HMT has also had tie up with Reihauser of the West Germany for the manufacture of large capacities plastic extrusion machinery. 4. 5 Printing Machine Printing machinery division is the part of machine tool business group in keeping with its spirit of indignation and with a view of assist in the country plan for the eradication of illiteracy in the country HMT diversified into the field if printing of machines in 1972 and located factory in Kalamassary (Kerala).
In collaboration with societal Napoleon of Italy HMT manufactures some of the best offset and letters press machines its wide range comprise single and four color printing machine. M. P. Birla Institute Of Management Page 24 4. 6 Precision Machine HMT manufactures wide range of ball screw used in various CNC machine tools and various engineering application. The company installed a ball screw division at Bangalore in 1986 in collaboration with CARL ZESSIS JEAN of Russia. This ball screw has high mechanical efficiency superior positioning accuracy with a low wear and long life.
This manufacturing range covers Ball Screws in size depending upon the size. Precision Ball Screw have wide application in machine tools as mechanical tools as mechanical feed elements industrial robots material handling equipment, nuclear reactors rail roads equipment, medical equipment, printing and paper machinery. 4. 7 Dairy Machine Collaborating with VEB FORTSCHRITT LAND machine of Russia HMT makes sophisticated machinery for the Indian diary industry at Aurangabad since 1980. Product range covers the following: ? Centrifugal cream separator. ? Plate heat exchangers. ? Chillers. Pasteurizes. ? Continuous butter making machinery. 4. 8 Reconditioning HMT? S reconditioning expertise offers a comprehend sieve package for reconditioning of old and run down machines providing new lease of life to old machines about to be scraped. HMT? S superiors technical know how and immense reservoir of machine tool manufacturing engineering and maintaining experience make a HMT? S reconditioning absolute and total. M. P. Birla Institute Of Management Page 25 Following are the benefits of HMT? s reconditioning can bring: ? A good extended life span for old machine ?
Reconditioning costs around half of a new machine there by practically a new machine at half of the cost. ? Reconditioned machine acquiring and acquiring degree very close to the original. M. P. Birla Institute Of Management Page 26 FUNCTIONAL STRUCTURE M. P. Birla Institute Of Management Page 27 5. 1 Various Departments under HMT 5. 1. 1 Human Resource Department: HRM is planning, organizing, directing and controlling of the procurement, development, compensation, integration and maintenance of people for people the purpose of contribution to organization, individual, social goals.
HR needs to be given a strong emphasis, as it is the quality of human factor in his organization, which determines its effectiveness. Objectives of Human Resource in HMT ? To attract and retain best available young talent in the country in engineering and other areas like finance, marketing and personal. ? To maintain effective coordination between HRM and other departments. ? HRM department helps in motivating the employees in attaining individual goals and in retune will lead to attain the organizational goals. ? A qualified applicant for specific type of job. To ensure the above objectives by eras of a systematic scheme of centralized recruitment this will be regular and effective. Scope The recruitment of professional trainees in engineering and other professional areas like finance, marketing, personnel etc. , induction level of executives that is PS 3 for centrally pooled requirement of units. Recruitment of senior executive at level of corporate cadre like PS 7 as per need of unit. M. P. Birla Institute Of Management Page 28 Various Departments under HRM Hierarchy M. P. Birla Institute Of Management Page 29 Establishment Section
Establishment section of HMT MBX involved with the activities like recruitment, selection, promotion, and performance appraisal record of day-to-day activities as well as manpower adjustments. The selection is basically involved with establishment activities. Recruitment and Selection It is process of selection for prospective employee and stimulating and encouraging them for job in an organization. Selection is process of putting right person to right job according to job specification of organization. Procedure or Recruitment Rules 1. Corporate personnel directorate will engage recruitment. 2.
It is centralized recruitment by following two methods: ? ? Campus recruitment. Recruitment through opens all India advertisement. plan in 3. Not less than 50% of vacancies projected and approved in manpower operational PS 3 for engineering graduates and in various disciplines. 4. Campus recruitment for post of executives in PS 3 for engineering graduate or post graduate in technical areas or postgraduate diploma holder from recognized institution only. 5. Mode of selection by group discussion and personal interview by above committee. 6. All India advertisement will be released every year, inviting application from candidates? ossess degree in engineering with minimum marks of 60% who will be for written test. 7. The result of written test candidate in the ratio 1:6 will be called for interview and group discussion. 8. Selected candidate will undergo induction training for period of a year. M. P. Birla Institute Of Management Page 30 eligible 9. For selection of senior executive at level of corporate cadre will be taken up by corporate personal directorate once in 4 months in April August and December in calendar year. 10. Recruitment was done for last time in 1992 & now days HMT is planning to recruit fresh blood.
Induction Policy ? After selection of qualified candidate they undergo management trainee induction program for a period of one year. ? ? In one year 3 months are at MDI and remaining months at respective units. Purpose of induction program is to acclimatize them into company? s working system and culture. MDI Structure of Induction program ? ? ? First month- Classroom training to give brief knowledge of the Company. Second month- in plant training at HMT to understand shop floor situations. Third month- rotation through R&D, CSB, HMB, CNC, SWCD and head office of different groups. Next Nine Months ? ?
Fourth-sixth month- Rotation between sections of units. Seventh- twelve month- on job training in particular section. The unit chief decides on which section the trainee has to be placed. During nine months trainee has a mentor to guide him and after completion of training period he will be given a functional designation and placed on probation period for a year. After this stage trainee will be confirmed on his job. M. P. Birla Institute Of Management Page 31 Training and Development Training is the art of increasing the knowledge & skill of an employee for doing a particular job-By TRIPATI & EDWIN.
B. FLIPPO. “Training involves changing of skills knowledge, attitude or social behavior”. By DAVID. DE. CENZO & S. P. ROBBINSON. Development covers not only those activities, which improve job performance, but also those, which bring about growth of personality, help individuals in the progress towards maturity & actualization of their potential capacities. So they become not only good employees but better men & women. Training Procedure at HMT (MBX) ? Training calendar: The training program in HMT is conducted according to the annual training calendar prepared every year for all categories of workers. Identification of training needs: ? Training needs shall be identified by respective needs of department ? Training shall be planned, implemented & reviewed ? There shall also be general orientation awareness & knowledge based training program including induction program to the trainees in a new areas & freshly recruited personnel. ? Training program for personnel working areas of special purpose ? Selection of trainees: Head of all function shall identify training needs &inform to HRD along with the list of their department, such nominated employees will be informed to attend the training program. M. P.
Birla Institute Of Management Page 32 ? Selection of training institute HMT is in touch with some of the leading training institutions & this institution will be asked to conduct the training program at suitable data. Training Institutes of HMT Name of the institute HMT institute Indian institute of science Indian institute of management Institute of man power management & training National productivity council Management study centre National center of labors management Administrative staff college of India management development Place BENGALURU BENGALURU BENGALURU BENGALURU BENGALURU CHENNAI MUMBAI HYDERABAD
M. P. Birla Institute Of Management Page 33 Types of Training Provided by HMT (MBX) ? Apprenticeship training: Training is for period of 3years. Those who apply for apprentice should have passed S. S. L. C on the date of report. The report says that there are 91 trainees are paid a stipend of 820/- to 1090/-. ? Graduate training: Training is given for graduates such as B. A, B. COM, and B. E in mechanical & others. The period of graduate s training is for a year and they get a stipend of 1970/- PM. ? Sandwich training: Diploma students are eligible for taking sandwich training. It is for one year.
Students are from various colleges. They are given 3 months basic training & they have their classes. After completing basic training they will be send to different department for 15days or 1 month and they get stipend of 1140/- Performance Appraisal at HMT (MBX) An accepted system of performance appraisal is a great asset in the development of human resources in the organization. It helps to assess its managerial strengths & weakness. Such system should also make an effective tool of growth for individuals as well as contribute to an increasing reorganization of identity between the organization & the people in it.
Performance appraisal method followed in HMT (MBX) for PS grade is performance appraisal method. For the officers under the cadre PS 1 to 6 i. e. supervisor 7 executive to AGM? s performance appraisal method is applied. The appraisal rating done mainly on two factors: 1. Job performance factor. 2. Managerial ability factor. M. P. Birla Institute Of Management Page 34 1. Job performance factor: ? Job knowledge ? Quality of work ? Target fulfilments ? Cost/time control ? Safety consciousness 2. Managerial ability factor ? Planning & organization ? Problem analysis & decision making ? Interpersonal skills ?
Self motivation ? Commitment ? Responsiveness to change/ innovation ? Developing subordinates ? Management of human resources ? Positive discipline Performance and Transfer Policy ? Promotions are channels, which are structured on attendance, performance appraisal, and induction levels. ? The main objective is to organize a system of promotion consistent with skills and opportunities for various categories of workmen in the company. ? To provide planned growth for different categories of workman. ? To develop workforce with multi skill employees who match the future needs of organization. Transfer is a normally part of exposure and growth in any multiunit company. ? All employees of HMT are liable for transfer from one place to another. M. P. Birla Institute Of Management Page 35 The objective is to fulfill the company need for a total executive in a multiunit, multiproduct. Welfare Department It plays a vital role in HMT. HMT being a PSU will have to raise their standards with respect to safety health and welfare of its employees, the welfare activities of HMT can broadly classified as follows. I. Welfare measures inside the workplace. II.
Welfare measures outside the workplace. 1. Welfare Measure Inside The Work Place A. Working conditions: ? ? ? Cleanliness, neighborhood, safety. House keeping, maintaining of lawns, passages and doors. Providing safety equipments such as helmets, goggles and first-aid equipments. Safety training programs for supervisors and workers to avoid accident. All machineries are examined periodically to ensure their safe working. Six safety committees constitute to discuss safety related problem and to take corrective measures for prevention of accidents. ? Employees are provided with uniforms every year.
Company is incurring around 14-15 lakhs p. a for this purpose. B. HMT provides number of amenities to its employees in addition to meeting the statutory obligations under various labor organizations: ? Canteen- Canteen is managed by welfare department; it is incurring 96 lakhs p. a to provide hygienic food to its employees. ? Transport- Company has a fleet of 65 buses besides Vans and Cars to provide transportation facilities to its employees. M. P. Birla Institute Of Management Page 36 ? Township-A self-contained township with modern facilities has been provided for the benefit of employees.
There are around 1676 houses of various types of allotment to employees and allotment is based on seniority and grade eligibility. ? Medical-A 200-bed hospital with all modern facilities is established in the township to take care of medical needs of employees residing in township and surrounding areas. However, if employees are not covered under ESI (Employees State Insurance Corporation) the company will provide medical facilities. As to say, if the salary is Rs. 10000 or less, the employees will get ESI benefits. And if the salary is above Rs. 10000 they will get company? s medical facilities.
C. ESI (Employees State Insurance Corporation) Benefits: ? Medical benefits: Around 1. 61% from employee? s salary and 4. 75% from company will be deducted and transferred to ESI. ? Leave: 90 days medical leave per year is provided to each employee. ? Maternity leave: 84 days leave (6 weeks before delivery and 6 weeks after delivery) will be provided to women employees. ? Disablement benefits: On the basis of severity of injury benefit will be provided. ? Wealth: Benefits like PF, ESI, and Wealth Relief Found will be provided to each employee, 12% will be deducted from employer and employee? salary, 8. 33% towards PF, 3. 66% towards Pension. Compensation for Employment (Injury not covered under the Workmen? s compensation act) In view of amendment to workmen? s compensation Act, by amendment act of 22 of 1984 which regulates compensation for employment injury in respect of employees not covered under ESI Act and workmen compensation Act is here by withdrawn with immediate effect consequently, the provision of amended workmen? s Act are made applicable to employees who are now not covered under ESI Act & workmen? s compensation Act. M. P.
Birla Institute Of Management Page 37 2. Welfare Measure outside the Workplace HMT provides benefits outside the workplace such as- Roads, lightening, recreation, paygrounds, school, nursery, family residence, bachelor? s room, co-operative loans, transports facilities (buses), financial grants. General Information With Respect to HRM ? PUNISHMENT: Normally when employee is proven to be guilty for his/her job, punishment will be given. Employees/Management will also be given chance to submit their evidence before the officer to prove their statement.
The officer may be external or internal person. Neither pay nor work till termination/dismissal. ? EMPOWERMENT: It is giving full authority to perform a specific task to the employee or group of employees. Normally it is not practiced in HMT. ? RETRENCHMENT: It is permanent removal of employee from the organization when there is no production or any economical instability. It is not practiced in HMT as it is a public sector and it is considered as a social obligation. ? LEGAL ASPECTS: It comes into picture when any dispute occurs within employees.
Then it is carried to labor commission court or consultation officers for negotiation or may be directed to civil court. If they are not satisfied they can file grievance to tribunal office. M. P. Birla Institute Of Management Page 38 Industrial Relation In HMT (MBX), Industrial relations deal with either the relationship between the state and employers and workers in an organizational themselves. This helps to resolve from any kind of disputes like: misunderstanding, difference of opinions, (or) conflict that arises between an employer and his workmen.
Therefore a high level of understanding and positive relationship between them, can alone lead to the achievement of organizations objectives. Hence industrial relation plays an important role. 5. 1. 2 Planning Department Function on Planning ? ? ? ? ? ? Receiving of orders or design documents from design department. Drawings were being observed and study these to choose the material type and to note the sequence of operations. Fixing of the operation time for each sequence of operation and carrying of operation timings in different machineries.
Deciding the estimated load for every machine. Send the approved letter and details to the production department for the production of components. Estimating the amount of money required for the production Procedure Methods of Planning ? Planning of material: Under this the planning department plans about the relative materials, which are required to be used in production. It also checks the availability of equipments. M. P. Birla Institute Of Management Page 39 ? Planning of process: Under this the planning department plans the sequence of perations to be performed for production in time very easily and in a structured pattern to be followed for smooth flow of operations without excess consumption. ? Planning of tools: In this process the planning department takes the decisions regarding the tools, which will be used for production, and tools will also be produced internally. ? Planning of machineries: This is the process of planning where they plan about the type of machines required and optimum allocation of machines for the smooth flow of operations, without any interruption. ? Estimation ? To set performance target ?
Machines loading and scheduling ? To set up standards and to study machine utilization and labor performance ? Information regarding the rate of production ? It provides a standard for comparison ? Information regarding delivery data to customer ? Provides information in helping the management in techniques like value engineering and programmed evaluation review technique A) Estimation of time: It represents the time, which incurred to produce a product. This is done by the workstudy etc. By this planning department can know the amount of time required for the production of a particular component.
B) Estimation of cost: It consists of direct material cost, direct labor cost, expenses of overhead, and overhead as per the percentage of prime cost or production cost. In addition to the above cost M. P. Birla Institute Of Management Page 40 elements, the product cost includes the cost of the following special items: i. e. development cost, engineering cost, special tool cost, pattern cost etc. Various Departments under Planning: o Design department. o Engineering department. o Process production department. o Inspection. o Assembly line. o Trials and testing. Delivery to customer. M. P. Birla Institute Of Management Page 41 5. 1. 3 Production Department: 1. Hierarchy J. G. M D. G. M A. G. M MANAGER DEPUTY MANAGER FOREMAN SUPERVISORS JUNIOR SUPERVISORS WORK GRADE EMPLOYEES HTC Division: HTC division means High Technical Center. As most of operations were done through computer numerically controlled machines, so it is very well known as the high technical center. There are 50 employees working under this division. This division consists of two types of machines, i. e. 1. Vertical machine 2. Horizontal machine
Vertical machines function vertically, i. e. all kinds of drilling, milling, shaping, etc is done through in vertical direction. In HMT there are 3 vertical machining centers are available in M. P. Birla Institute Of Management Page 42 HMT division. These vertical machining centers are produced by HMT for in house manufacturing. Horizontal machines are the machines, which are doing the operation horizontally. There are 8 vertical machining centers are available in HMT. There is one imported horizontal machine also available, which is imported from England and known as KTM machines.
TOOL ROOM: Tool room is a store house of all kind of tools, which are used during the milling, grinding, spinning, turning etc, during production. The tools are normally fitted to the machines so that it can be able to give a required shape and size to product. ROUND DIVISION: Rounds are the section where the machining of components with round shape is being done. It may be of 10 to 700 die meters. There are 35 employees working under rounds division. Basically this section produces the round shaped components. NON-ROUND DIVISION:
Non-Round Division is just the opposite of the round division as round division involved in production of round shape products, as same like that non- rounds division involved in production of round shape products. There are 16 employees working under the non-round division. GEAR DIVISION: Gear division produces the components, which were used for house production of 31 machines working together, and to handle all these types of function there are 22 employees working. M. P. Birla Institute Of Management Page 43 DIE CASTING DIVISION: HMT? S Die casting machines carters to wide range of applications.
From simple components to high precision industrial components, these machines take care of most dye casting needs. HMT offers a range of nine models with locking forces ranging from 80 to 1100 tones to cover a wide range of pressure dye casting of aluminum and zinc components built to high standards, these machines are subject to stringent performance testing using advanced testing devices to ensure productivity and reliability. SPINDLE DIVISION: Spindle division involved with the production of different types of spindles. In this division there are 19 workmen and 4 staffs were heading this unit.
There are different kind of machineries involved such as, turning, milling mills, keyway milling, thread milling, drilling, cylindrical grinding, internal grinding, spine grinding, centre grinding, CNC turning etc. ASSEMBLY DIVISION: Assembly selection involved with the assembly of different parts and components, so that it can build a complete machine. In this section the machine tool parts were being assembled together to give a complete shape to product or machine. In this division there are almost 100 employees working. BALL SCREW DIVISION: HMT? s Ball screw division is the first to indigenize production of precision ball screws.
This unit was started on 1989 with collaboration with Zeiss, Germany. Ball screws are used in machine tools to convert rotary motion to linear motion and vice versa. Ball screw is a M. P. Birla Institute Of Management Page 44 machine tool component for translating rotary motion to linear movement used for present day CNC machine tools. FACTORS FOR SELECTION: ? Degree of accuracy required ? Services load conditions ? Desired service life ? Stiffness ? Permissible clearance or desired preload ? Critical speed ? Bucking load APPLICATIONS: ? Machine tools ? Industrial robots ?
Nuclear application and weapon system ? Transport and space system To produce above components there are different kinds of machine are available which are used in this division are keyway milling, gear cutting, radial drilling, CNC thread milling, straightening machine, internal grinding, surface grinding, vertical drilling, heat treatment machines, cylindrical grinding machines, thread grinding machine, CNC milling machine etc. FOUNDRY: Foundry is the place where they put the raw materials or scrap into the Furnace and according to the frame size to produce the components. There may be of big or small size.
These components are normally of heavy parts. There will be 1400 degree Celsius, it is the M. P. Birla Institute Of Management Page 45 largest foundry in south Asia and it has the capacity to molt 5. 5 tons, and silicon sand brought from the Godavari river basin from AP. Cooling period 36 hours in 20 degree Celsius. The wage grade people are working in this division. In foundry the first procedure is to make the frame of a product by which they can produce the required component. After the production of the component they cut it on to different sizes and then send it to the shop floor for further operation.
INSPECTION: Inspection is one of the important activities, which is done at the time of production of a particular component and at the final production of a machine. The inspection is done after each and every process of a product, so that no error can arise in later period. Things used for inspection purpose: ? ? ? ? ? Micrometer Micromat Extension depth gauge Verinier Pitch micrometer Tessa Bevel protractor Plug gauges Vermoer caliper Dial test indicator MAINTENANCE DEPARTMENT: Maintenance section is very important as for as plant is concerned.
The maintenance is varied from machines to machines because all machines have different features and different functional qualities. M. P. Birla Institute Of Management Page 46 Process of maintenance: ? ? ? ? ? ? Putting the machine into operation Refreshing the axis Manual operations Job operations Traverse in increments Traversing to machine home position Maintenance of CNC is done by considering all the factors such as general, voltage stabilizers, CNC systems, switches, electrical cabinet, drives, AC servo motors, F/B devices etc. These services are done every quarterly, monthly or yearly.
The preventive maintenance may be of daily, 200 hours, 500 hours, 1000 hours, 2000 hours, 4000 hours, 800 hours it is also done for electrical also. Safety precautions are on general and housekeeping, operation and services and maintenance. PRECISION MACHINERY DIVISION: This division of HMT MBX produces the small components for robotics applications as well as for CNC machines. There are 150 employees working in three shifts in these divisions. As it is involved in CNC or Robotics components, so the accuracy level is very high, due to which they were maintaining the perfect accuracy level.
The accuracy level may goes to 1 micron. So it? s a very sensitive job. For this HMT have kept machines like that which can produce the required product with a perfect accuracy. M. P. Birla Institute Of Management Page 47 5. 1. 4 Sales Department: Joint General Manager (2) Deputy General Manager (2) Manager (1) Supervisor (2) Clerk (2) Functional of Sales Department: Head of Sales Sales Engineering Sales Execution Heads of Sales: Engineering/Sales Execution Sections shall be responsible in their respective areas. Heads of Sales shall be responsible for the overall activities.
Each individual employee shall be responsible with the scope of resources available to him to implement and maintain Quality Systems and Quality Policy requirements. During the absence of Head of Sales, the Unit Chief decides as to who shall be in charge of these functions. M. P. Birla Institute Of Management Page 48 Sales Engineering: Sales engineering prepares the Annual operation plan (AOP) for Sales based on the Marketing Forecast/ Past Trend. Sales Engineering plans and controls the activities such as submission of offer to customer and converts them into orders. Sales Execution: Sales Execution activities start with receipt of order.
On receipts of order, they coordinate to build Machines / Procure /Manufacture and ensure delivery of the machine to customer. It has direct interaction with Design in case of special machine to customer. Pre Order Contract Review: Purpose: To ensure that the required no. of units is capable of building the machine to meet the customer requirements Scope: Applicable to Unit products. The enquiries are received in any mode Telecom / Fax /Email /Website / Letter directory from customer or through Marketing / HMT (international). If requirement is for basic machine, it will be reviewed with reference to unit? capacity to meet the customer requirement and offer submitted. If any clarification required, it will be obtained from customer and offer submitted. Post Order Stage: ? The Purchase Order on receipt will be scrutinized with respect to offer, checklist and price list for General Purpose Machines. ? For any deviation / discrepancies noticed, it is taken up with marketing / customer and resolved mutually. M. P. Birla Institute Of Management Page 49 ? The allotment order will be issued to the Head of concerned Assembly (Mechanical & Electrical), Inspection, Material Engineering, planning and progress. ?
For Tooled up machines / Special purpose machines, the applicable machine layout, tool layout, Fixture layout, etc. shall be sent for customer approval / reference as per contract. The approved layouts shall be available in designs. ? After the contract is technically / commercially clear, Order Acceptance is released to customer. M. P. Birla Institute Of Management Page 50 MICROSCOPIC STUDY OF FINANCE DEPARTMENT M. P. Birla Institute Of Management Page 51 Finance Department Objectives: ? ? PROFIT MAXIMIZATION WEALTH MAXIMIZATION Functions of Finance Departments: The various functions on Finance departments are: ? ? ? ? ? ? ? Planning of funds. Acquisition of funds. Allocation of funds. Investment of funds. Dividend decision. Recording of the transaction. Preparing of financial statements. Evaluation of financial performance. Planning of Funds: Planning of funds is a careful estimate made by the manager about the total funds required which includes both fixed and working capital requirements. This estimation is done by a keen observation over physical activities of the factory. The working capital requirements in HMT are more. In the year 2008-2009 the total budgeted amount is Rs. 124crores but sanctions are made as follows: ? 52crores from government. 10crores from head office. Page 52 M. P. Birla Institute Of Management ? ? ? 2crores from other HMT divisions. 12lakhs from bill discounting. 5crore from capital profits. Acquisition of Funds: The HMTMBX will acquire the fund from different sources like: ? UCO [united commercial bank] which is consortium of 9 banks that provides secured loan by hypothecation of assets like inventories, machineries etc. ? Government of India: it will provide funds only for capital expenditure and VRS. ? Debtors receivable ? Loan from head office. ? Sale of scrap:[this years profit from sale of scrap is Rs83,00,000]
Allocations of Fund in HMT (MBX) are made as follows: ? ? ? ? Material planning (Machines tools) – 50% Salary (basic pay +DA+DP+ allowances+ amenities) – 30% Other expenses (electricity, miscellaneous expenses etc. ) – 15% Interest payments – 5% Investment Decision: Investment decisions comprises of investment in capital assets, investment in current assets which is based on the inventory and credit proposals purchased by HMT and by studying requirements of working capital. The investment in capital assets is done after a careful study over the profitability, safety, liquidity and solvency factor of those assets.
Currently there is no investment made by the HMTMBX. M. P. Birla Institute Of Management Page 53 Dividend Decision: Dividend decision involves the determination of the percentage of profits to be paid to its shareholders. This percentage is decided after considering the factors such as market price of the shares the trend in earnings, the tax position and the profitability use of funds. Currently the HMTMBX is not making any profits and hence no dividends. Recording of the Transactions: Each and every transaction that takes place daily has to be recorded properly for the purpose of having better control over the funds and for optimize them.
All the transactions are recorded in journal and then posted to the ledger. The information stored in ledger will be used to prepare the financial performance. The financial statement includes “trading a/c and income statement” and the “balance sheet”. Preparing of the Financial Statements: The company prepares various financial statements like trading and profit or loss account, balance sheet, cash budget, cash flow, fund flow. Evaluation of Financial Performance: The financial performance evaluated by comparing budgeted statement and actual statement by using comparative BS, ratio analysis.
Various Sections under Finance department: ? ? ? ? ? INWARD BILL SECTION (IBS) OUTWARD BILL SECTION (OBS) WAGE SECTION CASH AND PROVIDENT FUND SECTION MAIN ACCOUNTS Page 54 M. P. Birla Institute Of Management Inward Billing Section: This section mainly deals with the purchases. There is inland purchase and imports in the company. The payment for purchases is made by this section. The purchase department gives the quotation for goods. When the order is accepted by the company, the purchase department will send the purchase order to IBS. The material inward slip is received by IBS from the stores.
The IBS also receives the invoices or bills from the suppliers. M. P. Birla Institute Of Management Page 55 The materials purchased are classified into various groups: Group 1 – Stores and Spares. Group 2 – Purchase of raw materials. Group 3 – Capital items. Group 4 – Export machinery. Group 5 – Foreign purchases. Group 6 – Miscellaneous expenditure/payment towards freight. Group 7 – Electrical parts. Objectives of IBS: ? ? ? To see the entire material brought in is accounted properly. Payment is realized only when the supplier supplies the materials or components.
To see if central value added tax, excise duty are accounted properly or not. Modes of Payments: The payment for the purchase is made by1. Advance payment. 2. Sundry creditor? s payment. 3. Payment through bank. 4. Payment through letter of credit. M. P. Birla Institute Of Management Page 56 Out Ward Billing Section Outward billing section is also known as Centralized Billing Section. In OBS the customers deal with making payment to the company. When the customer of HMT wants the finished product produced by the company, the customer will raise the purchase order. The company will make an enquiry regarding the vailability of the product and accept the order given by the customer and prepare a delivery voucher which includes consignee name, quality, designation of material, spare parts, price, goods carrier, notes details, parties name and address, PAN no. , ECC no. , service tax sales tax etc. will be furnished. It also deals with sale of machinery, spares, accessories, CNC, foundry, casting, reconditioning, repairs, maintenance etc. and filing of statutory returns is also undertaken. OBS Activities: 1. Accounting of customer? s payment towards advances, outward bills balance payment. 2.
Preparation of sales journals and statement at the end of month. 3. Preparation of ledgers which contains information about deposits, withdrawals etc. 4. Preparation of invoices along with the delivery voucher and purchase order. 5. Letter of credit is also made in case of credit sales to the outsiders, when the bank guarantees for advance payment, security deposit etc. Further OBS Accounts for the following: a. Bank guarantees b. Indemnity bond c. Bills for discounting d. Accounting for telegraphic transfer e. Accounting for funds transfer to others f. Providing necessary journals, schedules etc for auditing. g.
These are sent to Main accounts section for further processing. M. P. Birla Institute Of Management Page 57 Wages Section: Wage section is the section, which deals with the employee? s benefits and other activities with regard to company services towards the employees. It is the section, which helps to keep a better relation between union and management. It deals with any grade and handles the task of basic pay, DA, HRA etc. There are three punching times: a. In punch. b. Lunch punch. c. Out punch. Functions of wages section: i. Time keeping ii. Salary payment to employees iii. Incentives payment iv. Provident Found (PF) v.
Dearness Allowance (DA) vi. Pension vii. Income tax viii. LIC ix. Advances x. Medical polices This section deals mainly with the attendance record, salary payments and incentives payments. There are two types of incentives and they are: ? ? ? Direct areas incentives for workers grade Indirect areas incentives for officers grade Salary includes basic wages, DA, retaining allowances and cash value of food concession, admissible if any. The salary is considered on the basis of past service, M. P. Birla Institute Of Management Page 58 pension able service, widow pension and withdrawals benefit, as written in constitution.
Cash Section: Cash section is one of the important sections in finance department. This department handles all cash dealings. It generates funds for the company and utilizing the funds through proper investment. Cash section deals with: ? Payment made by cash and cheque. ? Receipts and payments of cash. ? The activities through UCO bank, local UCO branch, Punjab national bank. ? Preparation of petty cash book. Cash dealings: 1. Physical cash dealing 2. Booking section Physical cash dealing It includes: ? ? ? Payment of wages and bonus to casual labors. Receiving cash from bank. Making cash payments. M. P.
Birla Institute Of Management Page 59 Booking section It undertakes the issue of cheques towards various payments to suppliers, statutory bodies, salaries to PS group. This section operates the bank accounts by the authorized joint signature identified by the head office. Cash Receipts: Receipt vouchers are received by cash section from OBS in three copies and the copy is: 1. Retained by cash section 2. Given to the concerned section 3. Given to the customer Cash Payments: Payment vouchers are received by cash section from IBS in three copies and the copy is: 1. Sent to concerned section 2. Given to supplier 3.
Retained by cash section Cash section should submit its report on quarterly basis for auditing. Every month end, the reconciliations are checked in cash section and the salary is credited to the employee? s saving bank account under cash section. M. P. Birla Institute Of Management Page 60 Main Accounts Section: The main function of this section is to consolidate all the activities of other sections such as IBS, OBS, wages etc and arriving at the trial balance, preparing P&L account and balance sheet, reports and budgeted statement. In this section, there are three types of audit done. They are as follows: 1. Internal audit 2.
Statutory audit 3. Government audit Significant accounting policies: The financial statements are prepared as of a going concern under the historical cost convention on accrual basis of accounting and in accordance with the mandatory accounting standard issued by the Institute of Chartered Accountants of India to the extent applicable: 1. Fixed assets. 2. Depreciation. 3. Investments. 4. Inventories. 5. Development and commissioning. 6. Deferred revenue expenditure. 7. Revenue recognition. 8. Foreign currency recognition. 9. Borrowing cost. 10. Leases. 11. Retirement benefits. 12. Warranty. 13. Special tool. 14. Research and development cost. 5. Others. Main accounts section deals with the major activities of the company. M. P. Birla Institute Of Management Page 61 Balance Sheet as on 31st march 2009-10: NO PARTICULARS SCHEDULE AMOUNT 31-03-2009 1 LOANS SECURED LOANS UNSECURED LOANS HMT MACHINE TOOLS CURRENT A/C TOTAL 1. 1 1. 2 74286798 138717907 157727765 370732470 107537612 142712385 135162149 385412146 AMOUNT 31-03-2010 2 FIXED ASSETS GROSS BLOCK LESS: DEPRECIATION NET BLOCK 2. 1 980176332 780832916 199343416 1048523770 803939747 244584023 MACHINERY AND EQUIPMENT IN TRANSIT CAPITAL WORK-IN-PROGRESS 0 12269912 53053863 565750 CURRENT 3 ADVANCES ASSETS, LOANS AND
INVENTORIES SUNDRY DEBTORS CASH AND BANK BALANCES OTHER CURRENT ASSETS LOANS AND ADVANCES 3. 1 3. 2 3. 3 3. 4 3. 5 38572007 176227001 734224 3334605 171751593 286754600 156213186 4025465 2893088 177240578 737767430 LESS: 4 CURRENT LIABILITIES & 627126917 PROVISIONS CURRENT LIABILITIES PROVISIONS 4. 1 4. 2 285520803 293127485 246487666 293430741 Page 62 M. P. Birla Institute Of Management 578648288 5 NET CURRENT ASSETS HMT MACHINE TOOLS CURRENT A/C TOTAL 5. 1 0 370732470 539918407 87208510 0 385412146 Profit and Loss account for the year ended 31st march 2008-09: SL. N O PARTICULARS SCHEDUL E AMOUNT 31-03-2009 AMOUNT 31-03-2008 EARNINGS SALES (-) EXCISE DUTY NET SALES 6. 1 480030182 46182011 433848171 749145908 82703710 666442198 TRANSFER TO PLANT OTHER INCOMES CHARGES RECOVERED INTER (CR) ACCRETION/(DECRETION)TO WIP/FINISHED STOCK/SCRAP TOTAL 6. 4 55919864 608548962 -113926823 604556918 FACTORY TRANSFER 8711211 3084179 6. 3 104513464 3398792 46987145 1970219 7 LESS: OUTGOINGS: MATERAILS PERSONNEL DEPRECIATION EXPENSES 7. 3 7. 1 7. 2 232793494 299876973 17430105 94276334 232768231 316328487 14958672 70857861 Page 63 M. P. Birla Institute Of Management INTEREST CHARGES PAID VRS COMPENSATION CO/OFF LESS: EXPENDITURE 7. 4 1548942 29302958 29133719 372467 31411816 70643865 ALLOCATED TO JOBS DONE FOR INTERNAL USE 6. 2 2018410 4011465 TOTAL 716284595 740129934 PROFIT/LOSS BEFORE PRIOR PERIOD ADJUSTMENTS AND EXTRA -107735633 1355731016 ORDINARY ITEMS LESS: PRIOR PERIOD 7. 5 ORDINARY 7. 6 46812125 0 -13569643 -5011622 ADJUSMENTS ADD: EXTRA ITEMS(EOI) PROFIT(+)/LOSS(-) BEFORE TAX LESS:FRINGE BENEFIT TAX -74493151 -2494135 -140584638 -2310234 PROFIT(+)/LOSS (-)AFTER TAX (TRANSFERRED TO MACHINE TOOL DIRECTARIATE A/C) -76987286 -142894872 M. P. Birla Institute Of Management Page 64 SWOT ANALYSIS M. P. Birla Institute Of Management Page 65 SWOT Analysis Strengths: ? Good brand image. Proven track record of customer satisfaction and goodwill. ? Skilled manpower. ? Well-Established manufacturing unit. ? Huge infrastructure facilities. ? First reputed machine tool has good quality image Inland and International. ? Diversification process has been carried out effectively like. 1. HMT Machine tools. 2. HMT Watches. 3. Chinar Watches. 4. Bearings. 5. Tractors. 6. Praga Tools. ? HMT branches have been setup in a different states: 1. Bengaluru. 2. Hyderabad. 3. Kalamassery. 4. Ajmer. 5. Pinjore. ? In-house R&D. ? Apprenthship programme conducted every year and certified to competitive technical exams.
M. P. Birla Institute Of Management Page 66 Weakness: ? Delay in implementing new systems. ? Surplus manpower in some divisions. ? It is facing financial crisis and has been incurring losses since 1993. ? No internal control. ? Management is not given more powers to take timely decision. ? Wide range of machines in the organization has left to non-concentration. ? Wide gap in communication. ? The employees do not know the annual target of HMT. ? Immediate planning and execution is not carried out. Opportunities: ? Bulk requirement of machine tools like speed/automated presses, forging likes etc for defence production. Modernization of railways and plants. ? Renovation and upgrading of Machine tools. ? Increased export requirement for HMT? s range of metal firming tools in countries like Africa and high technology machines by advanced countries like USA. ? HMT can deliver its products very faster to the customer by speeding up the production process. ? Boom In the infrastructure to benefit HMT entry into earth moving machines or higher HP tractors. M. P. Birla Institute Of Management Page 67 Threats: ? The company has to face severe competition from both international as well as domestic market. Competitors offering high technology machines through collaboration up gradation of existing products and resorting of flexible prices. ? HMT is lagging behind in current trend technology as compared to MNC players. ? Increasing competition with entry of new manufacturing countries China the prominence of Taiwan and republic of Korea. ? Rise of „Regional? distributors selling on „Stock and Sale? basis, on behalf of foreign manufacturers. M. P. Birla Institute Of Management Page 68 FINDINGS AND CONCLUSION The findings in HMT can be noted as follows: I. Improper utilization of available infrastructure facilities.
II. The demand of machine is huge but they cannot deliver the machine when the customer requires. III. Over employment for existing level of activity. IV. Research and Development is closed. V. Old machines are used for manufacturing. VI. Many talented employees left the jobs through VRS. VII. Employees? records are not completely computerized. VIII. The unit has maintained up to date records and submit it to respective authorities. IX. Sources of raw material is not near, this leads to high transportation cost. X. VRS is the main reason for loss, many highly talented employees gone through VRS. XI.
Government policy effects the performance of the company. XII. Some divisions are improving such as foundry. M. P. Birla Institute Of Management Page 69 SUGGESTIONS Based on the findings the suggestion are as follows: 1. Management should outsource some of the operation to reduce the overhead cost. 2. Involving even the functional and operational staff in management decision. 3. Management must develop a second line development in order to avoid the threats of lack of specialized person. 4. 5. 6. 7. 8. 9. Cater the needs of the customer with prompt delivery. Focus on people, product, process, cost reduction and quality improvement.
Introduce new HR approaches. Provide unutilized buildings for rental. Organizational restructuring. Provide attractive salary to retain the talented employees. 10. The company should reduce inefficiency, idle time and absenteeism. 11