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1 1. INTRODUCTION The main aim of the organizational study is to acquire the knowledge regarding the functional as well as the management aspects of an organization. It helps us to familiarize with a  business organization and the different department in the o rganization and their functioning. The organizational study is at The TRAVANCORE COCHIN CHEMICALS LTD, Kochi, Kerala. The TCC Ltd is a Public sector undertaking owned by the Government of Kerala situated at Udyogamandal in the Cochin Industrial belt. The factory and the registered office are located at 20km from the Cochin International Airport and 15km from the Ernakulam Railway station. Incorporated in 1951, TCC is one of the oldest chlor-alkali units in the subcontinent. Today it has a production capacity of 85000 MT caustic soda/annum. The company supports a large number of industrial units of strategic importance by supplying basic chemicals with continuous efforts for up gradation of technology and  professional management.TCC is located on the banks of river Periyar, one of the finest waterways in Kerala, and is recogn ized as an artery for its coastal trade and commerce. The word 'business' is actually derived from the idea of 'busy-ness'. This idea accurately describes most organizations: they are busy organizing resources, producing, selling, managing  people and keeping track of finances. The people running the business have to organize people, money, materials and machines to produce a good or service to sell or give to their customers. The discussion I instigated was with a worker who works for Mars. His job is a sales development manager which involves him being part of a sales team which is the final connection between Mars and its marketplace. Their key responsibility is to manage business relationships with retailers, providing brands to consumers. Sales teams translate brand strategies into practical promotions that build sales at retail level. 1. What is the legal structure of the organization? Mars is an incorporated business; this means it has a separate legal identity from its owners.

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1. INTRODUCTION

The main aim of the organizational study is to acquire the knowledge regarding the

functional as well as the management aspects of an organization. It helps us to familiarize with a

 business organization and the different department in the organization and their functioning.

The organizational study is at The TRAVANCORE COCHIN CHEMICALS LTD,

Kochi, Kerala. The TCC Ltd is a Public sector undertaking owned by the Government of Kerala

situated at Udyogamandal in the Cochin Industrial belt. The factory and the registered office are

located at 20km from the Cochin International Airport and 15km from the Ernakulam Railway

station. Incorporated in 1951, TCC is one of the oldest chlor-alkali units in the subcontinent.

Today it has a production capacity of 85000 MT caustic soda/annum.

The company supports a large number of industrial units of strategic importance by

supplying basic chemicals with continuous efforts for up gradation of technology and

  professional management.TCC is located on the banks of river Periyar, one of the finest

waterways in Kerala, and is recognized as an artery for its coastal trade and commerce.

The word 'business' is actually derived from the idea of 'busy-ness'. This idea accurately

describes most organizations: they are busy organizing resources, producing, selling, managing

 people and keeping track of finances. The people running the business have to organize people,

money, materials and machines to produce a good or service to sell or give to their customers.

The discussion I instigated was with a worker who works for Mars. His job is a sales

development manager which involves him being part of a sales team which is the final

connection between Mars and its marketplace. Their key responsibility is to manage business

relationships with retailers, providing brands to consumers. Sales teams translate brand strategies

into practical promotions that build sales at retail level. 1. What is the legal structure of the

organization? Mars is an incorporated business; this means it has a separate legal identity from

its owners.

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The chemical industry comprises of the companies tha tproduce industrial chemicals. It is

central to the modern world economy, converting raw materials such as oil, natural gas, air,

water, metal and minerals into more than70,000 different products. Chemicals are used to make a

wide variety of consumer goods, as well as thousands of inputs to agriculture, manufacturing,

construction and service industries. The chemical industry itself consumes26% of its own output.

Major industrial consumers include rubber and plastic products, textiles, apparel, petroleum

refining, pulp and paper and primary metals. The chemical industry has shown rapid growth for 

more than 50 years. As accepted by chemical engineers, the chemical industry involves the use

of chemical processes such as chemical reactions and refining methods to produce a wide variety

of solid, liquid and gaseous materials. Salt is one of the oldest and most popular condiments.

What is relatively unknown, however is that salt is also the raw material for one of the most

 potentially profitable chemical industries in the country- Chlor alkali. The Chlor alkali industry

faces a threat from the imported products. The chlor alkali industry in India is around 60 years

old. It began with a modest capacity of a few thousand tonnes per annum andhas since grown

into a 2.24 million tone per annum capacity industry. In the process of manufacturing chlo ralkali

some bye products are assured. For each tone of caustic soda, 860 kg of chlorine and 25 kg of 

hydrogen will be produced. Some amount of chlor produced is combined with hydrogen to make

hydrochloric acid. Caustic soda, Hydrochloric acid, Chlorine is basic chemicals and are usedby

almost all industries

Organizational studies encompass the study of organizations from multiple viewpoints,

methods, and levels of analysis. For instance, one textbook divides these multiple viewpoints

into three perspectives: modern, symbolic, and postmodern. Another traditional distinction,

  present especially in American academia, is between the study of "micro" organizational

 behaviour ² which refers to individual and group dynamics in an organizational setting ² and

"macro" strategic management and organizational theory which studies whole organizations and

industries, how they adapt, and the strategies, structures and contingencies that guide them. Tothis distinction, some scholars have added an interest in "meso" scale structures - power, culture,

and the networks of individuals and units in organizations ² and "field" level analysis which

study how whole populations of organizations interact.

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Whenever people interact in organizations, many factors come into play. Modern sciences,

organizational studies seek to control, predict, and explain. There is some controversy over the

ethics of controlling workers' behavior, as well as the manner in which workers are treated (see

Taylor's scientific management approach compared to the human relations movement of the

1940s). As such, organizational behaviour or OB (and its cousin, Industrial psychology) have at

times been accused of being the scientific tool of the powerful. Those accusations

notwithstanding, OB can play a major role in organizational development, enhancing

organizational performance, as well as individual and group performance satisfaction

commitment.

Organizational studies, sometimes known as organizational science, encompass the

systematic study and careful application of knowledge about how people act within

organizations. Organizational studies sometimes is considered a sister field for, or overarching

designation that includes, the following disciplines: industrial and organizational psychology,

organizational behavior, human resources, and management. However, there is no universally

accepted classification system for such subfields.

PUR POSE

The study was conducted with the help & support of the employees of different departments

of TRAVANCORE COCHIN CHEMICALS. It is done during the period from 30th May to 23th

July as a part of the partial fulfillment of the Masters of Business Administration Degree. This

report summarizes the following department's activities which include Operations/Production,

Marketing, Finance, Training & Development, Human Resource Department, Materials, Project,

Systems, Engineering, Technical, Security Department.

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2. INDUSTRY PROFILE

Chemical Industry in General 

The chemical industry comprises of the companies that produce industrial chemicals.Chemicals are used to make a wide variety of consumer goods, as well as thousands of inputs to

agriculture, manufacturing, construction and service industries. The chemical industry itself 

consumes 26% of its own output. Major industrial customers include rubber and plastic products,

textiles, apparel, petroleum refining, pulp and paper and primary metals.

Specialty chemicals are a category of relatively high valued, rapidly growing chemicals

with diverse end product markets. They include electronic chemicals, industrial gases, adhesives

and sealants as well as coatings, industrial and institutional cleaning chemicals and catalysts.

Chemicals in the bulk petrochemicals and intermediates are primarily made from Liquefied

Petroleum Gas (LPG), natural gas and crude oil. Typical large volume products include ethylene,

  propylene, benzene, toluene, xylene, methanol, VinylChlorideMonomer (VCM), styrene,

 butadiene and ethylene oxide.

Other derivatives and basic industrials include synthetic rubber, surfactants, dyes and

 pigments, turpentine, resins, carbon black, explosives and rubber products contribute about 20%

of the basic chemicals external sales. Inorganic chemicals (about 12% of the revenue output)

include salt, chlorine, caustic soda, soda ash, acids (such as nitric, phosphoric and sulphuric )

titanium dioxide and hydrogen peroxide. Fertilizers (about 6% of the revenue output) include

 phosphates, ammonia and potash chemicals. Consumer products include direct product sale of 

chemicals such as soaps, detergents and cosmetics.

Chemical industry is highly heterogeneous with following major sectors.

y  Petrochemicals.

y  Inorganic chemicals.

y  Organic chemicals.

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y  Fine & Specialties.

y  Bulk Drugs.

y  Agrochemicals.

y  Paints & Dyes.

Indian Chemical Industry

The Indian Chemical Industry is a significant component of the Indian economy with

revenues at about USD 28 billion. Indian Chemical Industry contributes about 6.7% of Indian

GDP and 10% of total exports. The industry contributes around 20% of national revenue by way

of various taxes and levies. Volume of production by chemical industry positions India as third

largest producer in Asia (next to China and Japan). The chemical industry accounts for about

13% share in the manufacturing output. The industry is a vital part of the agricultural and

industrial development in India and has key linkages with several other downstream

industries such as automotive, consumer durables, engineering, food processing etc. With the

current levels of performance the Indian Chemical Industry ranks twelfth in the world

  production of chemicals. The chemical industry has achieved a growth rate of 8.6% over the

last few years making it one of the fastest growing sectors in India. This industry¶s growth rate

has been twice the Asian growth rate over the last five years. But the asset creation has been

the lowest. The Indian Chemical Industry is faced with multiple challenges. It is emerging

from a protected environment into a highly competitive global market. At the same time the

domestic market shows a path to maturity with a high demand potential for chemical end-

 products. In terms of consumption, Indian chemical industry itself is its largest consumer; as the

 basic chemicals undergo several processing to manufacture downstream chemicals. The industry

accounts for approximately one-third of the total consumption. Gujarat is the major contributor 

to the basic chemical as well as petrochemical production with 54% and 59% share, in all India

  production, respectively. Other major states producing basic chemicals include Maharashtra

(9%), Tamilnadu and Uttar Pradesh (6% each). Other major states producing petrochemicals

include Maharashtra (18%), West Bengal (12%), Uttar Pradesh (4%) and Tamil Nadu (3%).

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India is also an importer of chemical products. India¶s chemical imports are either for the

 purpose of further processing in the chemical industry or for usage as intermediates in other 

manufacturing sector. India has been sourcing its imports mainly from China (20% of India¶s

total chemical imports), followed by USA (8%), Saudi Arabia (6%), Singapore, Morocco and

Germany (5% each).The Government has been announcing a number of measures to improve the

competitiveness of the Indian chemical industry. These include: abolition of industrial licensing

to most of the chemical sub-sectors, excepting a small list of hazardous chemicals. The

Government is also continuously reducing the list of reserved chemical items for production in

the small scale sector, thereby facilitating greater investment in technology up gradation and

modernization. The Government has initiated policies for setting up of integrated Petroleum,

Chemicals and Petrochemicals Investment Regions (PCPIR). Such an initiative is likely to attract

major investment, both domestic and foreign, into the regions, which would have enabling

infrastructure that would provide conducive and competitive environment for setting up of 

manufacturing units. PCPIR would reap the benefits of co-siting, networking and greater 

efficiency through use of common infrastructure and support services. Such an industrial

complex would boost manufacturing activities, augment exports and generate employment.

Government is a signatory to Chemicals Weapons Convention, which is an universal,

non-discriminatory, multilateral Disarmament Treaty that bans the development, production,

acquisition, transfer, use and stockpile of all chemical weapons. India has passed the Chemical

Weapons Convention Act, 2000, which has come into force in 2005.Indian Chemical Council

(ICC ± also known as Indian Chemical Manufacturers Association) is the nodal point / signatory

representing India under the Responsible Care Initiative. ICC has prepared codes, guidance notes

for implementation of process safety, employee health and safety, pollution prevention,

emergency response and product safety. ICC is continuously interacting with regulatory bodies

on various issues like emergency preparedness, and safe transportation of hazardous chemicals.

Indian chemical firms have in place technical agreements with multinational firms to

keep abreast of the technological development in the global chemical industry, and to explore

 possibilities of adapting the technology to meet the specific requirements of the Indian market.

Such a strategy helped the firms to have continuous up gradation in technology, resulting in a

wide and superior product portfolio. Strategies have also been adopted by Indian chemical firms

to cut down cost of production through leveraged buy-out for sourcing cost efficient raw

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materials and solutions for energy efficiency. Some Indian chemical firms are engaged in

continuous research and development activities to innovate new applications to increase end user 

segments. Consolidation through buy-outs of brands and business is another strategy adopted by

Indian chemical firms. Indian chemical firms are leveraging their manufacturing expertise and

enter into contract manufacturing with multinational firms. These include custom manufacturing

and private labeling.

CHALLENGES AND STRATEGIES

CHALLENGES

Indian chemical sector has grown a long way since its early days of independence. The

sector has grown from a small-scale sector to multi-dimensional sector, which is taking on the

challenges of globalization. There are few factors, which hinders the growth of the industry.

These include:

High prices of basic feed stock 

Basic raw materials constitute major portion of cost of production (30% to 60%) in the

chemical industry. Indian chemical industry either uses natural gas or crude oil as feedstock for 

manufacturing process. The fluctuations in oil prices therefore affect the growth projections of 

the firms. At times, the manufacturers are unable to pass-on the cost escalation (occurring due to

sudden increase in oil prices) to end consumers. Cost optimization is thus critical for the

chemical units, as their margins may go under pressure during oil crisis.

Low Level of ICT interface

Globally, information technology is being extensively used in several areas like chemical

 processing and manufacturing. Application of information technology in the chemical sector is

mainly for equipment design, chemical engineering, and process simulation that have helped in

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reducing product and process development time. Information technology is also increasingly

used in the area of R&D, especially in collaborative research. The usage of information

technology in Indian chemical industry is relatively lower, as most of the units are in the small-

scale sector.

Low Level of Brand Development

Indian chemical producers, excepting a few large producers, generally sell their products

as generic products without brand development. There is also low level of interest amongst small

scale producers for brand development, product development as also market development.

Low Level of Common Infrastructure

In general, due to its very nature, the chemical / petrochemical industry requires certain

 basic infrastructure facilities, both in the process chain as also in the supply chain. In the process

chain, the critical infrastructure requirements include a common effluent treatment plant, and an

effective green belt segregating the industrial units from human settlements. In the supply chain,

the critical infrastructure requirements include a good port, chemical storage terminal, and

adequate berthing facilities. In the above context, it is being felt that the production and export

earnings of this sector would receive a quantum jump if an industrial estate dedicated to the

chemical industry could be set up. At present, each unit has to create specialized facilities on its

own which leads to duplication of efforts and investment. If chemical units are clustered in close

 proximity, the required infrastructure could be vertically integrated resulting in cost reduction.

Environmental Regulations

Safety, health and environment protection issues are becoming important concerns for the

Indian chemical industry. As with other industries, the chemical industry needs to comply with

regulations such as Occupational Safety and Health and Process Safety Management regulations.

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Environmental safety, occupational safety and process management safety can easily be met if a

firm is manufacturing large volume of single chemical. But it may not be relatively feasible for 

the firms who manufacture low volume and large number of chemicals in a single plant.

Dumping / Import Competition

The chemical industry is the second largest industry that has attracted large number of 

anti-dumping actions in the world.

STRATEGIES

Focus on Core Competence

Chemical products trade is increasingly getting specialized all over the world. Innovation

is increasingly becoming an important factor to focus on core competence and to become

manufacturers to focus on select business segments where competitive advantage exists. Such

strategies would help Indian chemical manufacturers to establish relationship with their 

customers in profitable segments and exit non-competitive segments.

Strengthening Technological Competence

Indian chemical industry should strive for continually improving its production processes

and products by investing resources in technology development. Technological development

may be achieved by the chemical industry at two levels. In the bulk products segment, the

chemical industry should undertake process innovation with the objective of reduction in cost of 

 production. In addition, the industry needs to invest in technological resources that would lead to

specialized product development. Liberalization process has already increased the possibility of 

intra-firm transfer of technology and management practices in the form of consolidation within

the economy as also from developed countries through foreign direct investment.

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Improving Basic Management Capabilities

Indian chemical industry has a good record of management expertise. This could be

further leveraged with techniques such as Good Manufacturing Practices, Good Laboratory

Practices, Total Quality Management, Total Production Management and Risk Management. The

Principles of Good Laboratory Practices have been developed to promote the quality and validity

of test data used for determining the safety of chemicals and chemical products. Such practices

would result in quality improvement and lower cost, thereby improving competitiveness.

Adhering to Environmental Norms

Chemical substances are used in manufacture of consumer items such as paint, glue,

insect spray, cosmetics and household cleaners, chemical producers have the responsibility in

 promoting safe management of substances ± starting from design in production to end-use, and

their final disposal (hazardous waste).Environmental regulations were the principal reason for 

the relocation of manufacturing facilities from developed to developing countries. To garner a

greater share in world chemicals market, Indian chemical industry needs to address various

developmental issues such as sustainable chemistry, adherence to safety and health and risk 

management.

Focus on R&D

Research and Development in the chemical sector may be undertaken in areas such as:

Product development;

Process innovation; Equipments for production; and

Research related to application/safe use of chemicals.

The basic chemical sector should focus on process innovation and product development

and strengthen their competitiveness through improvements based on performance and quality of 

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 products. Firms in knowledge based chemical sector should focus on R&D with the objective of 

achieving product leadership and process innovations. The petrochemical sector should focus on

application R&D, as new applications have to be identified to increase use and application of 

 polymers.

Collaboration

The chemical industry needs to enhance their collaborative efforts in order to improve

competitiveness. Collaboration amongst players in the chemical industry could happen both at

cluster level (for sharing of common infrastructure) as also at firm level (for sharing of 

knowledge and technology).Collaboration with firms across borders for technology and

investment would also give a boost to the industry. In addition, the players should also achieve

greater level of industry-institutional partnership for knowledge development and sharing.

Increasing ICT interface

Chemical firms in India can gain a lot by making their manufacturing process IT-enabled.

Information Technology (IT) can bring a good change in entire process cycle from technology,

engineering and procurement to manufacturing, by integrating them with business processes in

all these areas. This will eventually result in higher efficiency for the industry. Increasing use of 

IT to transact business will also help the sector, as most of the products in the chemical sector are

commoditized.

Consolidation

The new trend in chemical industry is competing through consolidation. Chemical firms,

through mergers and alliances are now achieving economies of scale all over the world.

Consolidation helps the chemical industry in reduction of cost in their procurement and

  production. Such consolidation exercises also provide for reduction in overheads, marketing

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expenses, increased efficiencies in supply chain management, and enhanced presence in various

regions.

Industry - Academia Linkages

For transforming ideas into new products, partnership between industry and academia is a

must. Thus, Indian chemical industry should leverage the potential of educational and research

institutions to source intellectual as well as human capital. Such linkages may be effectively used

for setting up of in-house R&D facility or for outsourcing R&D activities. The educational

institutions could play a greater role for development of Indian chemical industry by offering

courses and conducting research proactively. The research and academic institutions may also

open local offices within chemical clusters to facilitate greater level of interactions.

Marketing and Promotion

Indian chemical industry should increasingly focus on marketing and promotion to

achieve greater share in global chemical trade. The industry may endeavour to concentrate more

on issues such as brand building, export promotion and market development. These aspects can

 be easily tackled through adoption of superior process technologies and adhering to quality and

environmental standards.

Setting up of Chemical Parks or Mega Chemical Estates

In order to address the issue of capacity expansion and for creation of common

infrastructure, the chemical industry, in association with the Government may establish exclusive

Chemical Parks ± a concept similar to the Software / Hardware Technology Park. It is also

important to consider establishment of exclusive Chemical Zones on the lines of Special

Economic Zones to give a fillip to the industry. In such Parks / Zones, the industry may be

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encouraged to set up mega chemical plants that could contribute to increased production as well

as employment generation. The Government has already initiated policies for setting up of 

integrated Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR).

De-reservation of Select Chemical Production

Many chemical products are still reserved for production under small-scale sector.

However, cost competitiveness as well as technological compliance cannot be achieved without

operating under scale economies. Most of the firms operating at the global level are big ones and

enjoy economies of scale. De-reservation of chemical products reserved for production under 

small-scale sector can be a good measure to support the globalization efforts of the industry.

Creation of Modernization Fund

A modernization fund on the lines of technology up gradation fund established for the

textile sector may be created to strengthen the technological competence of the industry.

Increasing Consumption Levels of Chemicals 

Per capita chemical consumption in India is low as compared to world standards

(estimated to be one-tenth of world average).Increasing consumption level in the domestic

market would ignite the prevailing latent demand. This could be achieved through increasing

applications through R&D and enhancing the knowledge of end consumers. The industry, thus,

has a major role in increasing the per capita consumption level in the domestic market.

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MAJOR CHEMICAL GROUPS AND SUB-SEGMENTS PRODUCED IN INDIA

Alkali  Such as Soda ash, Caustic soda, and Liquid Chlorine.

Inorganic chemicals  Such as Aluminum fluoride, Calcium carbide, Carbon black,

Potassium chlorate, Sodium chlorate, Titanium dioxide and Red

 phosphorous.

Organic chemicals  Such as Acetic acid, Acetic anhydride, Acetone, Phenol, Methanol,

Formaldehyde, Nitrobenzene, Citric acid, Maleic Anhydride, Penta-

Erithritol, Aniline, Chloro methanes, ONCB, PNCB, MEK,

Acetaldehyde, Ethanolamine¶s, Ethyl acetate and Ortho nitro toluene.

Pesticides  Pesticides and insecticides registered under the Insecticide Act of 

1968.

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Dyes and dyestuff   Such as Azo dyes, Acid direct dyes, Basic dyes, Fast colour bases,

Ingrain dyes, Oil soluble (solvent dyes), Optical whitening agents,

Organic pigment colours, Pigment emulsion, Reactive dyes, Sulphur 

dyes, Vat dyes, Food colours and Napthols.

Petrochemicals Such as Synthetic fibers, Fibre intermediates, Polymer, Elastomers,

Surfactants and Performance plastics. 

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3. COMPANY PROFILE

HISTORY

Seshasayee brothers established the Travancore Mettur Chemicals in 1951(Under IndianCompanies Act 1956) in joint venture with Fertilizers and Chemicals Travancore

Ltd(FACT).Commercial production was started in 1954 with a capacity of 20 TPD Caustic soda.

It has the distinction of manufacturing unique product named Rayon Grade Caustic Soda. When

financial problems happened to the company the then Travancore-Cochin government provided

financial aid and it was taken over by the government. Thus it got renamed as Travancore

Cochin Chemicals and subsequently after the independence it was taken over by the Govt of 

Kerala and it became a public ltd company. At present its production capacity is 175 TPD

Caustic soda and it plans to expand its capacity to 225 TPD Caustic soda. About 50 corers is

needed for the expansion which will take 2-3 years to complete. The company undertook 

expansions in 1961,1964 and 1975 using Mercury cell technology. As Mercury cell technology

is creating problems the company went for the latest technology which resulted in the shifting of 

the company¶s technology from Mercury cell technology to Membrane cell technology which is

an environment friendly technology. Membrane cell technology was commissioned in 1997 with

technical help of ASAHI Glass Co Ltd in Japan. The products of TCC are Caustic soda,

Chlorine, Hydrochloric acid and Sodium Hypo Chlorite. The raw materials used for the

 production of these products are Common salt, Electricity and Water. About 60% of production

cost is spend by TCC for Electricity. When Mercury cell technology was used there was a

requirement of 3700 units of electricity for producing 1 TPD Caustic soda. But due to the

introduction of Membrane cell technology the consumption got reduced to 2600 units of 

electricity for the production of 1 TPD Caustic soda. Common salt is brought mainly from the

salt pans of Tuticorin in Tamilnadu. Water needed for the production is met from the river 

Periyar. At present TCC¶s strength is about 800 workers which comprises of 700 employees

and 100 managerial staff.TCC is accredited with ISO 9001:2008 certification in 2006 and

company is planning to go for ISO 14000 certification.TCC is the only public ltd company

manufacturing Caustic soda in India. TCC¶s competitors are all private companies.TCC has

decided to join hands with Indian Space Research Organization (ISRO).Sodium per chlorate is

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used as fuel in rockets. Sodium chlorate is the essential raw material for making Sodium

 perchlorate.TCC and ISRO has signed the deal for the production and supply of Sodium chlorate.

COMPANY INFO 

Company name : THE TRAVANCORE COCHIN CHEMICALS LIMIT

Type : A Government Company

  Nature of business : Manufacturer, Exporter 

  Number of Employees : more than 1000 People

Turnover : US$ 10-25 Million (or Rs. 40-100 Crores Approx.)

Major Markets : Indian Subcontinent

Year of Establishment : 1951

City : Kochi

Province/ State : Kerala

Country/ Region : India

Company Contact : THE TRAVANCORE COCHIN CHEMICALS LIMITED 

Add: Post Bag No. 4004, Udyogamandal, Kochi, Kerala, India

Tel No : 91-484-2545011/2548583

Products : Caustic soda, Chlorine, Hydrochloric acid,

Sodium Hypo Chlorite

Website : www.tcckerala.com

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3.2 Initial Investment for the company

Investors Amount ( in corers)

Government of Kerala 11.90

KSIDC 8.11

FACT 6.50

Mettur Chemicals Ltd 3.50

TOTAL 30.01

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3.3 Present Capital Information

3.4 Mission Statement

       Supply quantity and quality chemicals at competitive prices to customers.

      

Customer satisfaction and concern for environment & safety.

       Utmost level of conservation of all resources.

       Cost effectiveness in all operations.

       Regular Up gradation of technologies used in processing.

Investors % of shares

Government of Kerala 80

KSIDC 17

FACT 2

Mettur Chemicals Ltd 1

TOTAL 100

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3.5 Achievements

The major achievements are:

1981 Best performance Award for Safety in the State from Directorate of Factories

and Boilers, Government of Kerala

1987 Award for best Performance in Safety in India under Chemical Industries group

from National Safety council.

1988-89 Best Pollution Control Award under group ³Heavy Inorganic Industries´ in

Kerala from Kerala State Pollution Control Board.

1988-90 Prize for Productivity from Kerala State Productivity Council.

1993 Best Performance Award for Energy Conservation in the State of Kerala under 

group  ³Chemical and Fertilizers above 3000KVA´ from Government of 

Kerala.

1994-95 &

1995-96

Best Performance Award for the Productivity in the State of Kerala under the

group ³Large Industries´ from Kerala State Productivity Council.

1996 Best Performance Award for Energy Conservation in the State of Kerala under 

group ³Major Industries´ from Energy Management Centre, Government of 

Kerala.

1998 Performance Award for Energy Conservation under the group ³Chlor-Alkali

Sector´ from Ministry of Power, overnment of Kerala.

2003 Kerala State Energy Conservation Award in appreciation of the outstanding

achievements towards energy conservation and management.

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3.6 Major Customers of TCC

  Hindustan Unilever Ltd (HUL) Kochi, Kerala.

  Indian Rare Earths Ltd (IRE) Udyogamandal, Kerala.

 

Tamilnadu Paper Mills Ltd Pugalur, Tamilnadu.

  Pigments India Ltd Chalakudy, Kerala.

  Indian Oil Corporation (IOC) Ernakulam, Kerala.

  Mysore Paper Mills Ltd Bhadravathy, Karnataka.

  Fertilizers and Chemicals Travancore Ltd (FACT) Udyogamandal, Kerala.

  Travancore Titanium Products Ltd Trivandrum, Kerala.

  Kerala Minerals and Metals Ltd (KMML), Kollam.

 

Hindustan Zinc Ltd [all units].  Hindalco Ltd Ernakulam, Kerala.

  Hindustan Newsprint Ltd (HNL) Kottayam, Kerala.

  Kerala Chemicals and Proteins Ltd (KCPL) Kochi, Kerala.

  Hindustan Organic Chemicals Ltd (HOC) Ambalamugal, Kerala.

  Kerala Water Authority (KWA) Trivandrum, Kerala.

  Hindustan Insecticides Ltd (HIL) Udyogamandal, Kerala.

  National Thermal Power Corporation (NTPC) [all units].

 

Binani Zinc Ltd Edayar, Kerala.

  Steel Authority of India Ltd (SAIL) [all units].

3.7 Major Competitors of TCC

Chemfab Alkalies Ltd, Pondicherry. 

Andhra Sugars Ltd, Andhra Pradesh. 

DCW Ltd, Mettur. 

Kothari Petrochemicals Ltd. 

SPIC, Chennai. 

Sree Rayalseema Alkalies & Allied Chemicals Ltd, Andhra Pradesh. 

Chemplast Ltd, Mettur. 

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3.8 Management & Board of Directors

There are 5 directors for the company. As the major shareholder, Government of Kerala

nominates the Board of Directors. Professionals and Bureaucrats serve as Board members. The

Managing Director is the only fulltime director in the board. The principal Secretary of the

Industrial Department is the Chairman.

Chairman K Sreenivasan IAS (Principal Secretary of Industrial Dept)

Managing Director V Muralidharan Nair 

Board of Directors

M R Ramachandran (nominee from KSIDC)

  N Thomas (nominated director)

 N I Paulose (retd official nominated by govt)

Company Secretary Smt Susan Abraham

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3.9 Products & Production Capacity

Products Production capacity (in tons per annum)

Caustic Soda Lye 63,875

Caustic Soda Flakes 36,500

Liquid Chlorine 26,280

Commercial Hcl 1,41,255

Sodium Hypochlorite 16,425

3.10 Industries served by TCC products

Caustic Soda Soap, Paper, Textile, Fertilizers, Drugs and Pharmaceuticals, Vanaspathi,

Engineering, Petroleum and Chemicals.

Chlorine Paper, Textile, Insectides, Water Purification, Drugs, Pharmaceuticals,

Mineral Processing, Sugar Fine Chemicals and Rubber.

Commercial Hcl acid Fertilizing, Engineering, Mineral Processing, Starch, Oessin and Plastics.

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ORGANISATIONAL STRUCTURE

MD

GMT

DGM (PJ)

DFC

CS & IA

AGM

(OP)

AGM

(E)

AGM

(E & I)

AGM

(M)

AGM

(HR)

AGM

(MT)

AGM

(PJ)

AGM

(T)

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MD- Managing Director  

GMT- General Manager Technical 

DGM (PJ)-Deputy General Manager (Project) 

DFC-Deputy Finance Controller 

CS & IA-Company Secretary & Internal Auditor  

AGM (OP)-Assistant General Manager (Operations) 

AGM (E)-Assistant General Manager (Engineering) 

AGM (E & I)-Assistant General Manager (Electrical & Instrumentation) 

AGM (M)-Assistant General Manager (Marketing) 

AGM (HR)-Assistant General Manager (Human Resources) 

AGM (MT)-Assistant General Manager (Materials) 

AGM (PJ)-Assistant General Manager (Project) 

AGM (T)-Assistant General Manager (Technical) 

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4. OBJECTIVES OF THE TRAINING

The objectives of the training are as follows:

y  To familiarize with the organizational climate and culture. 

y  To understand the organizational structure and various functional departments. 

y  To make an analysis of organizational performance. 

y  To have an exposure of the work environment. 

y  To realize the extent to which the theory matches with practices inside an organization. 

To understand the extent to which the theory matches with the actual practices seen in the

organization. 

y  To study the relevance of TCC in the chemical industry field in India. 

y  To get clear idea regarding the products and their products 

Soft Skills Development

More and more corporations around the world recognize that, in order to gain a

competitive advantage, they need to make sure their people know how to handle themselves at

work and how to relate with their customers and peers. Most B-Schools cultivate soft skills to

students and we take them one step higher in Internship Program. 

Personality Development

In today's world academic knowledge alone is not sufficient to grow and excel in life.

Today it is no longer possible to get a job on the basis of your qualification. It helps students

with personality development during the course of internship program through.

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5.  SCOPE OF THE TRAINING

The study is mainly based on the details collected from each department. It provides a  better understanding at functional level of each department i.e. Purchase, Materials,

Production, Marketing, Finance and Human Resource Management. Each and every activity

of the company has been studied very carefully with the data available. Apart from that I

gained knowledge of the functioning of different departments and their interrelationship with

each other.

This study helped me familiarize with the manufacturing of emissions control and ride

control products for the automotive industry. This report will be helpful for the company in

order to find their weakness and buildup their strengths.

All internship opportunities are of the tactical and strategic level. Internship offers cover 

wide range of management specializations. For instance: marketing, sales management, HR,

operations, finance and IB. All internship projects are carefully selected for future scope,ensuring that grow rapidly from the internship level to that of a corporate leader.

y  Limited to understanding the various departments and their functions. 

y  To understand the extent to which management theory matches with the actual practices

seen. 

y  Attain information regarding the Strengths, Weakness, Opportunities and Threats of 

various departments. 

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6. FUNCTIONAL DEPARTMENTS

The organizational chart is a graphic means of showing major departments and divisions

of the enterprise and lines at formal authority. Departmentation is important for a well organized

company. In this organization this is well structured. 

The various departments functioning in TCC are:

 Operations/Production Department.

 Marketing Department.

 Materials Department.

 Engineering Department.

 Human Resource Department.

 Training & Development Department.

 

Technical Department.

 Systems Department.

 Project Department.

 Finance Department.

 Security Department.

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6.1 OPERATIONS/PRODUCTION DEPARTMENT

Assistant GeneralManager

(Operations)

Plant Manager -I Plant Manager-II

Deputy Manager

(Production)-I

Deputy Manager

(Production)-II

Senior Engineer

(Production)-I

Senior Engineer

(Production)-II

Plant Engineer-I Plant Engineer-II

Executive Trainee-I Executive Trainee-II

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Operational department is the most important department of TCC. This department

carries out the manufacturing of all the products. The company carries out continuous production

system; hence this department plays a very crucial role in TCC.

PRODUCTION PROCESS

Production is the process of converting raw materials into finished goods. It is the process

of adding values to raw materials. Layout in TCC is product layout. All the sections and

departments are based on these activities of production layout. Company carries out a continuous

 production system.

PRODUCTS MANUFACTURED

  Caustic soda lye.

  Caustic soda flakes.

  Hydrochloric acid.

  Chlorine.

 

Sodium hypo chlorite.

STAGES IN PRODUCTION PROCESS

Brine preparation and primary purification.

Secondary brine purification.

Electrolysis.

Chlorine treatment.

HCL synthesis.

Caustic fusion.

Soda bleaches preparation.

Objectives

  Reduce non confirming products. 

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  Maximize the availability of electrolyze operation. 

  Optimizing the specific consumption of electricity, furnace oil and purification chemical. 

Duties and Responsibilities of Operations Manager

  Head of the operations department fixes monthly target of the product based on

the market requirement. 

  He is responsible for the modification in the production process and responsible

for the effluent charges. 

  Operations Manager has the administrative control over the operations

department. 

  Operations Manager is the designated emergency controller during any hazardous

incident that is leakage or emission of any toxic gas or liquid. 

Duties and Responsibilities of Plant Manager

  Custodian of plant. 

  Plant Manager will plan production activities to meet the production of target set

 by the Operations Manager. 

  Plant Manager has the administrative control of personnel working in the plant. 

  Plant Manager Co-ordinates with other managers for the smooth functioning of 

the plant. 

 Plant Manager is responsible for the material consumption.

 

  Plant Manager will plan the shut down activities and carry out maintenance work 

of plants. 

6.2 MAR K ETING DEPARTMENT

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Assistant General Manager

(Marketing)

Sales Manager

Deputy Manager (Marketing)

Assistant Sales Officer

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The marketing department is headed by marketing manager and reports directly to themanaging director . 

.

Duties and Responsibilities of Marketing Manager 

 Marketing Manager is directly responsible for sales and distribution of the products. 

  Marketing Manager is responsible for the customer satisfaction.

  He is responsible for organizing and co-ordinating various aspects of marketing

including sales forecasting, advertising, sales promotion and transport.

  Marketing Manager is responsible for implementing product policy.

  He has a crucial role in price fixation.

  Marketing Manager has responsibilities regarding after sales service and complaint

handling.

Sections

The marketing departments have been divided into 2 sections:

y  The supply section (issue).

y

 

The documentation section (documentation).

Functions of the Supply section

  Preparation of schedules of dispatch and the actual dispatch.

  Execution of the sales offers.

  Maintain daily stock registers.

 Informing parties about the dispatch affected.

  Performing after sales services.

  Manufacturing stability in sales so as to boost credibility with the buyers.

Functions of the Documentation section

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  Preparation of sales quotation/tenders, letters and amendments.

  Maintenance of sales offers register book and other necessary information.

 

Keeping records of the buyers.

  Keeping proper documentation for buyer complaints and the after sales service provided.

  Preparation of sales budget, sales plan and monthly allotment correspondence with

 parties.

  The major markets are in Kerala, Tamilnadu and certain portions of Karnataka except for 

caustic soda flakes. All their products are mostly sold in stock in South India. There is a

demand for caustic flakes from Mumbai.

THE MAR K ETING MIX

The major markets are in kerala, Tamil nadu and certain portions of 

Karnataka expert for caustic soda flakes. All their products are mostly sold in stock in south

India. There is a demand for caustic soda flakes from Mumbai.

1. PRODUCTS

TCC manufactures industrial products namely, caustic soda lye, caustic soda flakes,

liquefied chlorine, commercial hydrochloric acid and soda bleach. The industries served through

these products are soap, paper, insecticides pharmaceuticals, starch chemicals, minerals, minerals

 processing,

disinfectant, textiles, rubber, water purification, drugs, petroleum etc. The

only branded product is soda bleach, in the name µ¶ECO CLEAN¶¶.

.

2. PRICE

The company has adopted a differential pricing policy. An open body namely AMAI

(alkali manufactures association of India) fixes ceiling price for a p price for a particular period.

Generally this price is fixed by adding up the basic price (cost of production + sales tax + excise

duty + freight charges + a small percentage of profit). Price concessions are also given to long

distance customers, taking into consideration their freight element.

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Approximately price for the products are as follows:

PRODUCTS PRICE

      

Caustic soda : Rs. 21100/tone

       Caustic soda flakes : Rs. 23100/tone

       Liquid chlorine : Rs 9800/tone

       Commercial hydrochloric acid : Rs 3500/tone

       Sodium hypochlorite : Rs 3000/tone

3. PLACE

Channels include direct selling to customers. For caustic soda, there are agencies outside

kerala for marketing. There are two dealers in Tamil nadu. The entire functions are done from

the company office at udyogamandal and there is no marketing office outside the company. The

dispatch takes place within the company premises.

4. PROMOTION

The products of the company are industrial products. Since TCC is the only producer of 

the above- mentioned products in the state, there is no real competition in the local market. The

customers are aware of the existence of the company. The actual marketing factor of the product

is the price offered by TCC. The customer accepts the offer only if the price offered by our 

company is the lowest among the bids made. TCC generally does not give importance regarding

advertisement of their products. However, the company advertises in trade journals like chemical

magazine once in a while. The promotional activities include regular press releases, creation of 

documentary etc. promotional activities are generally done through company websitewww.tcckerala.com

6.3 MATERIALS DEPARTMENT

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Material is an important factor of production. Materials department of TCC

  plays an important role in reducing cost and increasing the profit. Going with the technical

changes, it has a computerized purchases inventory control system. The main materials used in

the industry are given a 10 digit code to avoid complexities in handling. The materialsdepartment is divided into two:

PURCHASE DEPARTMENT

Assistant General Manager

(Materials)

Manager (Purchases)

Deputy Manager

(Purchases)

Assistant Purchase

Officer

Manager (Stores) Manager

(Inventory Control)

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The department handles the purchase activities of TCC. The various raw

materials needed for the production are procured by this department. The materials are

  purchased at the right time in right quantity from the suppliers. Materials are procured as

  per the request of inventory control section.

STEPS IN PURCHASING

  Purchase Indent: indenter raises materials procurement request (MPR) to the

inventory section.

  If the material is not available, the form is sent to the purchase department.

  Enquiring: purchase department send enquiry to the approved vendors on the

receipt of purchase indent.

  Receiving quotation: quotation are received and opened by a committee which

contains a member of purchase department, one from finance and one from the

internal audit.

  Preparation of comparative statement:

  Quotation is tabulated and purchase department prepare comparative statement. It is

send to indenter.

 

Approval: it is verified by the audit section.

  Concurrence from the audit department is obtained.

  Purchase order: file is send to the concerned party.

Store and inventory control department

Stores department stores the raw materials of about 6000 items stored which

includes raw materials, chemicals, electronic goods, equipment, spares etc. The various items are

given 10 digit codes for easy handling. It has computerized system of material handling. 

STEPS IN RECEIVING MATERIALS

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  Visual Inspection: To first check the purchase order. Only after this the material is

received and stored.

 

Preparation of receiving reports.

  Inspection report: check whether the material is real. Inspection is done by DMIC

inspection report.

  Payment: indenters check the material, receiving and inspection report is dispatched to

accounts department.

  Preparation of rejection report: if the materials is not in proper condition, goods

rejection report is prepared. It is send to the purchase department. They inform this

to the supplier. New supply is done only after this.

Inventory Control

Inventory control is an essential function of stores department. It helps to reduce

cost and increase profit of organization. Codification is done by DMIC. For controlling the

inventory, certain levels of inventory such as maximum, minimum and reorder level are

 prepared. When the stock reaches the reorder level purchase request is made.

Objectives of Inventory Control

  Unwanted piling of inventory is prevented.

  Materials codification to avoid duplication.

  To determine the item to be stored.

  To keep suitable record.

  To determine which and how much to replenish.

  To disclose obsolete items.

6.4 ENGINEERING DEPARTMENT

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FUNCTIONS

Assistant General Manager

(Engineering)

Chief Engineer

(Utilities& Statutes)

Chief Engineer

(Maintenance)

Deputy Manager

(Utilities &Statutes)

Deputy Manager

(Maintenance)

Senior Engineer

(Maintenance)

Executive Trainee

Chief Engineer

(Mechanical)

Executive Trainee

Senior Engineer

(Mechanical)

Deputy Manager

(Mechanical) 

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  Providing different utilities on request including statutory services.

  Provide operation and transportation for automobile workers.

  Provide service like welding, machinery painting and salt changing.

  Statutory research and development of equipments and tools.

  Maintain two or more workshops for fabrication and machinery.

MECHANICAL MAINTENANCE SECTION

Mechanical section is found to be the backbone of TCC. All type of manual maintenance

is handled by this section and look forward to maintain the machinery in the best possible

manner and ensure healthy and sound flow of works with in the organization.

The engineering department has been divided into four departments:

y  Electrical department.

y  Mechanical department.

y  Instrumentation department.

y

 

Civil department.

Electrical department

There are two functions for this department:

  Ensuring uninterrupted power supply.

  Man Management.

Mechanical department 

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All types of manual maintenance is handled by this section and maintains

the machinery in the best possible manner and ensures healthy and sound flow of works

within the organization.

Objectives

  To ensure all equipment engaged in production are in good condition.

  To cut down time of critical equipment.

  To reduce cost due to the inefficiency in equipment handling.

Instrumentation department

The main functions of instrumentation department are:

  Plant processing operation and control of plant and equipment.

  Keeping record for it.

  The maintenance of equipments.

Civil department

The main functions of civil department are:

  Maintenance of existing building.

  Roof maintenance work.

  Painting and Insulation.

 Tender issue for civil works.

  Preparing Materials Procurement Requirement (MPR) of steel sheet cement and other 

construction material except sand.

6.5 HUMAN RESOURCE DEPARTMENT

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Human resource is considered as the most vital asset of an organization. TCC has a well

defined employee power. It helps the organization to perform well in the market. Human

resources department is headed by manager, HRD, who organizes the training programs for 

workers and managerial staff. The manager HRD is responsible only for training and

Assistant General Manager

(Human Resources)

Medical Officer Chief Security Officer Manager

(Human Resources Welfare)

Deputy Manager

(Catering Service)

Assistant Personnel Officer

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development. MHRD does not come under the personnel department for workers and managerial

staff.

The main functions of Human Resource department are:

  Manpower planning.

  Recruitment.

  Welfare functions (including statutory and Non-statutory welfare measures).

  Grievance Handling- As per the provisions of Industrial Dispute Act and as per 

Factories Act.

  Industrial Relations.

  Public Relations.

 

Job Description.

  Training.

  Staffing.

  Performance Appraisal.

  Wage and Salary Administration.

  Promotional Policy.

6.6 TRAINING AND DEVELOPMENT DEPARTMENT

Conventional 'training' is required to cover essential work-related skills, techniques and

knowledge, and much of this section deals with taking a positive progressive approach to this

sort of traditional 'training'. Importantly however, the most effective way to develop people is

quite different from conventional skills training, which let's face it many employees regard quite

negatively. They'll do it of course, but they won't enjoy it much because it's about work, not

about themselves as people. The most effective way to develop people is instead to enablelearning and personal development, with all that this implies.

So, as soon as you've covered the basic work-related skills training that is much described

in this section - focus on enabling learning and development for people as individuals - which

extends the range of development way outside traditional work skills and knowledge, and creates

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far more exciting, liberating, motivational opportunities - for people and for employers. Rightly

organizations are facing great pressure to change these days - to facilitate and encourage whole-

 person development and fulfillment - beyond traditional training.

The functions of the Training and Development department are:

  Identifying training needs.

  Imparting the required training.

  Maintaining the training records.

VARIOUS TRAINING PROGRAMMES

GENERAL TRAINING

In order to provide this type of training, one has to determine what would be the trainee¶s

growth potentials, up to what level he can grow in the organization etc. A performance

appraisal has to be done to evaluate his present performance. Training is given on the basis of 

appraisal.

NEED BASED TRAINING

 Need based training will be done o the basis of determining the level of knowledge and

skill one requires for a particular job. Next is to find out how many employees have to be given

this training. On the basis of these needs training is given to the employees.

CUSTOMER TRAINING

Customers are given training on handling of chlorine and other products in various situations.

INDUCTION TRAINING

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It is the training provided to the newly recruited employees to familiarize with the

activities, rules, policies of the organization. It is also done to introduce the new employees to

the other employees of the organization.

TECHNOLOGY TRAINING

Company provides advanced training for workers to cope up with the technological

changes. Feed back is obtained from employees and the effectiveness of the training programme

is ascertained after a period of 2-3 months.

PERSONALITY DEVELOPMENT PROGRAMES

Personality development programmers are conducted in a regular time period for the

development of both workers and manager.

INTERNAL TRAINING

y  The HRD department has the provision for conducting training. The HRD centre has a

hall which can accommodate around 40-50 people and has a public address system and a

LCD projection.

Every month, 3 day training programmers, is held for workers. The workers educationcenter, under the lab our industry conduct. This programmer¶s are conducted on contact

 basis, which is recorded annually. 20-25 workers from various sections are selected every

month. 4-5 officers from WEC conduct the training programmers and towards the end

fixes the date for the programmes of next month in consultation with the manager HRD 

EXTERNAL TRAINING PROGRAMMES

TCC staffs send for external training based on the intimations; received from the external

agencies. An officer has been send to madras, Trivandrum and other places. On an average TCC

spends more than one and half lakh rupees in a year on training needs.

6.7 TECHNICAL DEPARTMENT

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The Technical department has been divided into two departments:

y  Technical Service Section.

y  Safety and Pollution Control.

       Technical Service Section

The main functions of this section are:

  Production calculation and reporting.

  Production stock comparison.

      

Safety Section

The main functions of this section are:

  Safety Induction.

  Safety Inspection and Auditing.

Assistant General Manager

(Technical Service)

Chief Engineer

(Fire & Safety)

Chief Engineer

(Technical Service)

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  Safety Training.

  Safety Awareness Programmes.

6.8 SYSTEMS DEPARTMENT

Systems department is one of the upcoming departments of TCC. It has come into

existence in the year 2006. As it is faster in company, it has not fully implemented in all

departments, but the implementation work is going on. This department is under the control of 

  project department. Manager systems are directly reported to the manager projects. 115

computers and 75 printers are there in TCC.

Official website of TCC and through all the maintenance and complaint, handling procedures aredone

Objectives

  Website management.

  Up gradation, maintenance and changes are done by manager systems.

There are two main servers in TCC 

  Database server  

  Application server  

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6.9PROJECT DEPARTMENT

C

Deputy General Manager

(Projects)

Assistant General Manager

(Projects)

Chief Engineer

(Project)-I

Chief Engineer

(Project)-II

Assistant General Manager

(Systems)

Deputy Manager

(Systems)

Senior Engineer

(Systems)

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Project department is an independent department. The main functions of this department

are the execution of new projects for the company.

The main functions of this department are:

  Planning feasibility study and implementation of new projects.

  Preparation of detailed report.

  Preparation of feasibility reports if approved by the management.

  Invitation of tenders through advertisements.

  Evaluation of tenders.

  Agreement.

  Execution.

  Hand over new projects to operations departments.

New projects in discussion

Sale of drinking water- TCC has a water treatment plant with excess capacity.

Serious discussions are going on regarding the sales of water in total area at a

reasonable rate.

New projects in consideration

  Development of a new rutile plant.

  Linking the whole organization with a network.

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6.10 FINANCE DEPARTMENT

Deputy Finance Controller

Deputy Finance

Manager

(Costing)

Deputy Finance

Manager

(Cash)

Deputy Finance

Manager

(Marketing Records)

Deputy Financial

Manager

(Confidential &

Provident Fund)

Assistant Accounts

Officer

(Bills)

Senior Accounts

Officer

(General Finance)

Assistant Accounts

Officer

(Establishments)

Senior Accounts

Officer

(Costing)

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Travancore Cochin chemicals limited has an efficient finance department headed by the

finance manager and he is assisted by the deputy manager, finance. Finance manager is

responsible for shaping the fortunes of the company, preparing budgets, raising funds, keeping

different accounts etc. TCC is having management information system to assist the finance

department. The finance department itself is divided into different sections like general accounts,

costing bills, establishment and provident fund accounts sections each having its own functions.

The functions of finance department are:

  Purchase bills passing and payment to suppliers.

  Sales invoice records.

  Debt collection.

  Budgeting and costing.

  Statutory auditing.

  Finance control.

  Handle all auditing and taxes.

  Sales accounting.

  Generation and Utilization of funds.

 

Treasury operations.

  Management Information Systems (MIS) and Corporate planning.

  Financial book keeping and finalization of accounts.

  The functions of each department are explained below:

DEPUTY FINANCE MANAGER 

Deputy finance manager controls the costing process. Various costs such as material

costs and production cost are assessed. Fixed capital and working capital are also planned. A

comparative study on budgeting control is made.

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FINANCE MANAGER :

The function of FM is to have an over all control of above department. The various

sections coming under finance department are explained below;

GENERAL ACCOUNTS SECTION:

In this section a large number of general accounts are kept, these include;

  General journal in which the transactions are entered first.

 

Standard journal in which all recurring items are entered (salary, wages, excise duty).

  Cash book in which all cash receipts and payments are recorded.

  Sundry creditors and sundry debtor¶s ledger.

  Bank book in which all bank payments and receipts are entered.

  Subsidy ledger, which include individual accounts maintained by each department.

A trial balance is prepared every 4 months. Balance sheet is prepared annually for financial

year from April 01 to March 31st.

BILLS SECTION

In this section, all payment for purchase is recorded. This includes bills payable to

suppliers and contractors. In case suppliers demand advance, it is paid and properly accounted.

Sundry creditors ledger and supplier account are kept in this section. At the end of the year, the

accounts are ratified and send to the general accounts section. In this section, separate cost

records are kept and maintained and cost audit is conducted every year both internally as well as

 by the government nominees.

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COSTING SECTION

Budgeting and budgetary control is the main function of costing section where both

revenue and capital expenditure budget are prepared. Capital expenditure is prepared based on

the total cost incurred for all itemsin all departments. Revenue budget is prepared on the basis of 

estimates for production, sales and expenditure. The balance sheet with total assets and liabilities

shown is prepared and total cash flow is found.

SOURCE OF FUNDS

For efficient production and sale there must be adequate finance for fixed asset raw

material to meet day-to-day expenditure of the enterprise. Company raises fund by means of 

equity funds and borrowed fund. The share capital includes authorized, issued, subscribed and

  paid up capital. Subsidy has been received from debt service coverage ratio (DSCR) and

government of kerala. Loans are obtained as term loans from IDBI and material loans from

government of kerala.

6.11 SECURITY DEPARTMENT

Security department functions under the personnel manager with a chief security officer 

and around 50 staffs. The main functions of the department are to protect the company from

external threats as a part of security, pass and badges are provided to each worker. The issue of 

 pass is given by the P.M, and the duty pass is signed by him.

Qualification

PSC TEST At least 5 years in the army.

Security staff in the entrance- exit gate will record the workers entrance ± exit in the

organization with the help of their cards. If any employee is continuously absent for 7 days, their 

card will be taken back and it will be informed to the management and their pay will cut off. 

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7, CONCLUSION

From the detailed study of the function of various departments in terms of 

working conditions of the organization has clearly revealed that the organizational environment

is very systematic. The inter-departmental communications is found very effective. The qualities

of the products as well as the raw materials are strictly ensured in order to attain the high

quality standards of the global market. The company takes vital steps at right times to bring

the innovation in technological up gradation as well as organizational improvements.TCC

enjoys a lion¶s share of the market in Kerala and would continue to do so.