Saint Gobain 22

CONTENTS

CHAPTER TITLE PAGE NO.

1. INTRODUCTION 1 - 22. RESEARCH AND METHODOLOGY 3 - 4

OBJECTIVES 5SCOPE OF THE STUDY 6LIMITATIONS 7

3. PROFILE 8 - 24HISTORY 8 - 9INDUSTRIAL PROFILE 10COMPANY PROFILE 11 - 14PRINCIPLES OF CONDUCTS AND ACTIONS 15 - 18PRODUCT PROFILE 19 - 23PROCESS CHART 24

4. DEPARTMENTAL ANALYSIS 25 - 44HUMAN RESOURCE DEPARTMENT 26 - 33FINANCE DEPARTMENT 34 - 38PURCHASE DEPARTMENT 39MARKETING DEPARTMENT 40EHS DEPARTMENT 41 - 44

5. SWOT ANALYSIS 45 - 486. DATA ANALYSIS AND INTERPRETATION 49 - 667. CONCLUSION 67 -70

FINDINGS 68

SUGGESTIONS 69CONCLUSION 70

1

PROJECT REPORT 2008 - 2011

CHAPTER ONE

INTRODUCTION

2


INTRODUCTION

The Training Program is for a period of 21 days. This has taken up to the study the

organization and how the theories in management are applied in the practical business

functions. A study is conducted on in functional areas of the entire department in SAINT-

GOBAIN (SEPR), KANJIKODE, PALAKKAD. SAINT-GOBAIN SEFPRO is one of the largest

manufacturers of REFRACTORIES for glass furnaces.

SEPR REFRACTORIES INDIA LIMITED is a Wholly Owned Subsidiary of SAINT-

GOBAIN SEFPRO who is one of the world’s largest manufacturers of fused cast

REFRACTORIES for glass furnaces. SEPR India came into being in 2002 by acquiring the

fused cast business from Carborundum Universal (CUMI), PRODUCTS. The Company’s

manufacturing facility is located at Palakkad in Kerala. The plant is installed in a total land

area of 22 acres. The company has completed the major Expansion plan in Jun’09. With

this the company has an annual production capacity of 10000 MT of Fused Cast

Refractories. Continuous Quality Improvement and close customer interaction have

enabled us to consolidate our position in the Glass industry. We strictly adhere to quality

control measures in every stage of production process. We are certified for ISO 9001, ISO

14001 and OHSAS 18001.

Society Europeans products refractories India ltd is a part of more than 300 years

old industrial group SAINT GOBAIN based on in France and has business in more than

1000 locations and in 54 countries. Today the production of refractories is one of the big

industrial in the world. The product SEPR REFRACTORIES INDIA LTD. is fused cast

refractories known as fused cast alumina the in industrial market.

3


CHAPTER TWO

RESEARCH METHODOLOGY

4


RESEARCH METHOLOGY

The search for knowledge through objectives systematically planned way of doing

things to achieve the desired results in conducting research. Research includes different

tools and techniques which depend on the nature of study and type of information they

require. The relevant data for the study here collected from the following sources:

Primary Data

Primary data were collected from respective department heads and workers in

the organization.

Secondary Data

The secondary data were obtained from memorandum of association of the

company, company records, books and websites related to the textiles industry.

Tools and technique

In this report study, schedule method interview and observation were the

methods used to collect data.

Period of study

A significant period is necessary for analytical study for its clarity standardization

of data. A period of 15 to 21 day is used to make a study of a firm.

5


OBJECTIVES

The main objectives behind doing this project report are:

To familiarize the organizational setup.

To study overall functioning of the organization.

To study various departments in saint gobain.

To gain the practical exposure to the actual work situation.

To study about the policies adopted in the organization.

6


SCOPE OF THE STUDY

Saint-Gobain SEFPRO is one of the largest manufacturers of REFRACTORIES for

glass furnaces. Its production processes are highly systems-driven and have

appreciateable quality of products and very special EHS department.

One of the main motives is to understand about the EHS department and its

function. An intensive study of the functioning and management of departments overall

understanding of the international management system based on OHSAS 18001 and ISO

14001 and 5S practices are in placed.

7


LIMITATIONS OF STUDY

Personal Bias.

Inadequacy of time.

Employers were mostly engaged in their daily routine. Therefore the data may

be distorted.

Answers of certain questions were not obtained correctly due to inadequate

knowledge from the par of respondents.

Researcher was not able to go through the technical aspects of the topic due to

the limited time.

Most respondent lack know-how regarding the topic of the study.

Lack of time has been a major problem of the study.

8


CHAPTER THREE

PROFILES

9


HISTORY OF SAINT GOBAIN

It all started the operations during 1665 in France, with setting up of

manufacturing of “Royal Mirror Glass Works“ by Jean Baptiste Colbert, King Luis XIV’s

comptroller of finance at SAINT GOBAIN ,a small village in France. Since then it has been

a long journey, from producing glass for historic hall of mirrors at the palace of Versailles

to what SAINT- GOBAIN is today.

Over the years the group has witnessed an immense evolution it forayed into

diverse business, broadened its international presence and continued to build on and

leverage its inherent strength powered by technological excellence and innovation, SAINT

GOBAIN is currently amongst the world leaders in each of the sectors it operates in.

SAINT GOBAIN is vast organization spread over 52 countries more than 1000

consolidated companies with human resource of 180000 persons. SAINT GOBAIN group

as apart of plan devised by Luis XIV’s and Colbertto restore the French economy,

entrusted to private entrepreneurs, the company broke the factory tradition by

organizing glass production on an industrial basis. Ag established a near monopoly

Europe and ousted Venice which was then the leader in this sector.

10


During the 18th century, the royal glass manufacturing kept glass prices constant or

permitted only slight increases. It was able to do this because with each new privilege (as

in 1758) royal authority. Imposed a decrease or compression in prices. The casting

process also helped sharply reduce the cost of average and large sized glass. A stable

France in 1724and and a growing glass market did the rest between 1725 and 1788 sales

rose 400%by the war of the Austrian succession and the seven year’s war France’s total

trade volume also increased at similar pace, rising between 400% to 500% according to

different estimates.

In 1970, SAINT GOBAIN merger with Pont- a moussion , the world leader in cast

Iron piping gave birth to a procedure of materials and capital goods geared to global

dimensions of its market more recently since, 1997 the group has focused on the

business sector in which it holds strong position and the assets necessary for growth, also

the acquisition of polite in 1996 has completed its expertise in distribution.

11


INDUSTRY PROFILE

A Refractory material is one that retains its strength at high temperature.

REFRACTORIES are non metallic materials having those chemical and physical properties

that made then applicable for structures or as components of systems that are exposed

to environments above 1000oFrefractrory materials aroused in linings spot for furnaces,

kilns, incinerators and reactors. They are also used to make crucibles.

In older days the bonded REFRACTORIES are used in the furnaces, but they were

not able to resist corrosive action of melted glasses. They aroused a need to develop an

alternative refractory to resist the temperature and corrosion. As a result REFRACTORIES

that resist corrosive and erosive action of hot glasses, liquid and solid at high

temperature were discovered. They are highly demanding in glass industries.

Refractory materials must be chemically and physically stable at high temperature

depending on the operating environment, they need to be resistant thermal shock, be

chemically inert and have specific ranges of thermal conductivity and of the coefficient of

thermal expansion.

The oxides of alumina silicon and mg are the most important materials used in the

manufacturing of REFRACTORIES. Another oxides usually found in REFRACTORIES is the

oxides of calcium (lime). Fireclays are also widely used in the manufacture of

REFRACTORIES.

REFRACTORIES must be chosen according to the condition they will face. Some

applications required special refractory materials. Zirconium is used when the material

must withstand extremely high temperatures. Silicon, carbide and, carbon are two other

REFRACTORIES materials used some severe temperature condition, but they cannot be

used in contact with o2 as they will oxidize and burn. In India REFRACTORIES from SAINT

GOBAIN attain monopoly, but internationally it has gone competitors like raffle.

12


COMPANY PROFILE

SAINT GOBAIN SEPR REFRATCORIES

SAINT GOBAIN SEPRO is amongst the worlds largest of fused cast refract SEPR

REFRACTORIES INDIA LTD. Tories for glass furnaces. SEPR REFRACTORIES INDIA, part of

SAINT GOBAIN SEPRO, came into being in April 2002, when it acquired the fused cast

REFRACTORIES business of carborundum universal and GNO. The company’s

manufacturing facility is located at Palakkad in Kerala. Now with the initiatives to adopt

WCM (World Class Manufacturing) SEPR INDAI’s production processes are highly systems-

driven and have received several; certifications for quality, REFRACTORIES INDIA LTD.

Placed at Kanjikode, Palakkad and An intensive study of the functioning and management

of departments overall understanding of the international management system based on

OHSAS 18001 and ISO 14001 and 5S practices are in placed. The hierarchy management

and their various departments of SEPR REFRACTORIES.

The SAINT GOBAIN GROUP came to India in 1996, with the acquisition of a

majority holding in grid well Norton, the group’s first subsidiary in India. In the same year,

it established the general delegation for India, Sri Lanka and Bangladesh. Since then, the

group has made substantial investments in India. Were it now operates through eight

companies in three sectors. Each of these companies offering a variety of engineered and

construction materials stand tall as leaders in their respective fields.

13


SAINT GOBAIN SEPRO is amongst the world’s largest manufacturers of fused cast

REFRACTORIES for glass furnaces. SEPR REFRACTORIES INDIA LTD. Part of SAINT GOBAIN

SEPRO, was created in April 2002, products manufactured at SEPR INDIA include wear

resistant fused cast materials, sintered REFRACTORIES and monolithic. A fused cast

refractory is lugh density material obtained by melting a mixture of purest oxides and

casting them into adds to create the required shaped fused cast and locks are preferred

by the glass industry mainly because hey offer good glass corrosion resistance at high

temperatures with no glass defects.

SEPR REFRACTORIES INDIA LIMITED is a Wholly Owned Subsidiary of Saint-Gobain

SEFPRO who is one of the world’s largest manufacturers of fused cast REFRACTORIES for

Glass Furnaces. SEPR India came into being in 2002 by acquiring the fused cast business

from Carborundum Universal (CUMI), PRODUCTS

A fused cast refractory is a high–density material obtained by melting a mixture of the

purest oxides and casting them into moulds to create the required shapes. Fused cast

refractory blocks are preferred by the glass industry mainly because they offer good glass

corrosion resistance at high temperatures with no glass defects.

Apart from fused cast REFRACTORIES, we also manufacture Wear Resistant fused

cast materials, sintered REFRACTORIES and monolithic. In view of our ability to

manufacture products with internationally acclaimed standards, we today are preferred

suppliers to leading Glass manufacturers and designers like SGG, Fives Stein, SORG,

HORN, TECO, NEG etc. We are proud to have a satisfied clientele which spreads over

South East Asia, Russia, Europe, America, and Africa etc.

14


PLANT The Company’s manufacturing facility is located at Palakkad in Kerala. The plant is

installed in a total land area of 22 acres the company has completed the major Expansion

plan in Jun’09. With this the company has an annual production capacity of 10000 MT of

Fused Cast REFRACTORIES. The company achieved a cumulative aggregate growth rate of

30% in Annual Sales, while the production capacities increased by 3 times since the year

of inception, i.e. 2002.

QUALITY ASSURANCE

Continuous Quality Improvement and close customer interaction have enabled us

to consolidate our position in the Glass industry. We strictly adhere to quality control

measures in every stage of production process. We are certified for ISO 9001, ISO 14001

and OHSAS 18001. The company has highly talented, committed professionals & skilled

labour force for putting in best practices of manufacturing and to be close customers to

meet their needs,

FEATURES OF THE COMPANY

Unit has a plant area of 22 acres and is built in 13000sqm for Manufacturing.

Presently have a furnace capacity of 3000M in plant 1 and 4000M in plant 2.

Production capacity is around 10000 tons/ year.

Customized individual services.

Maintains a close association with its customers such as glass manufactures,

Glass Consultants and Glass Furnace Designers.

15


PRINCIPLES OF CONDUCT AND ACTION

Over the years, the Saint-Gobain Group has evolved a number of shared principles,

which have guided the activities of the Group across the world. These shared principles

have been given written expression to strengthen their application within the Group, in

view of their global scope and relevance. The application of those principles is a

requirement for belonging to the Saint-Gobain Group. The Saint-Gobain Group’s General

Principles of Conduct and Action can be summarised as follows:

PRINCIPLES OF CONDUCT

PROFESSIONAL COMMITMENT

Means mobilizing to the best of one’s ability the knowledge and know-how of the

individual and also calls for training to keep both up to date. It requires personal

commitment and a willingness to take on the tasks assigned and to acquire knowledge

necessary to do the job. It implies the effective contribution of each person in caring

particularly for the environment and for worker health and safety.

RESPECT FOR OTHERS

Is an absolute prerequisite for the professional and personal development of each

person? It applies throughout the Group worldwide. It implies an acceptance of pluralism

and other cultures and of people of all origins. It is expressed in a readiness to listen to

others, to inform, to explain, and to engage in dialogue

16


INTEGRITY

Requires a rigorous adherence to probity in all professional activities, It means that

no individual may compromise the interests of the Group entrusted to that individual in

favour of his or her own private interests – whether in dealing within the Group or in

dealing on behalf of the Group with third parties, whatever local practices might be.

Detailed rules of conduct may be adopted for certain categories of Group personnel

where the nature of their responsibilities so requires.

LOYALTY

Requires honesty and fairness in dealing with superiors, colleagues, subordinates

and third parties dealing with the group, In particular, it is incompatible with the pursuit

of self-interest where the latter conflicts with the goals of the individual company or the

Group as a whole. It implies the adherence to the guidelines and internal rules of

individual companies and of the Group.

SOLIDARITY

Is based on a sense of individual responsibility at work, which prevails over self-

centered thinking? It encourages team work and bringing out the best in each person, in

order to achieve the objectives of the company and the Group. It means rejecting

management or operational methods geared more to the self-satisfaction of given

individuals rather than the interests of the individual company or the Group as a whole

17


PRINCIPLES OF ACTION

RESPECT FOR THE LAW

All Group companies must apply in all areas all laws and regulations of the

countries where they do business. Particular attention is drawn to the areas described

below. All Group companies must prohibit all actions which might breach applicable

norms of competition law. They must refrain from any form of financing political parties

or activities, even if allowed under local law. They must also reject all forms of active or

passive corruption whether in domestic or international transactions. Furthermore,

Group companies must not exploit loopholes or inadequacies in any such laws or

regulations where this would mean non-compliance with the norms of the Saint-Gobain

Group in the areas described below.

CARING FOR THE ENVIRONMENT

Group companies are to actively promote the protection of the environment. All

company sites, wherever they are located, must be managed in a way that allows the

setting of clear environmental targets and the regular monitoring of environmental

performances and measuring the same against these targets. They must strive to raise

the main relevant environmental performance standards of their own sites to the level of

particularly effective performance standards found in the Group for comparable sites –

even if that means going beyond the requirements of local legislation.

18


WORKER HEALTH AND SAFETY

Group companies are to take particular care to adopt all measures necessary to

ensure the best possible protection against health and safety risks in the workplace. They

must adopt risk reduction policies and follow-up on the due application of the same,

checking actual results against the applicable standards. Such policies apply both to their

own employees and to employees of sub-contractors, when the latter are working on a

Group site. They must strive to raise the main relevant health and safety performance

standards of their own sites to the levels of particularly effective performance standards

found in the Group for comparable sites – even if that means going beyond the

requirements of local legislation.

EMPLOYEE RIGHTS

Group companies must scrupulously ensure that employees’ rights are respected.

They must promote an active dialogue with their employees. In addition, and without

limitation, they must respect the following rules, even if not provided for by applicable

local law. They must refrain from any form of recourse to forced labour, compulsory

labour, or child labour– whether directly or indirectly or through sub-contractors when

the latter are working on a Group site; and they must refrain from any form of

discrimination with respect to their employees, whether in the recruitment process, at

hiring, or during or at the end of the employment relationship.

19


PRODUCT PROFILE

SAINT GOBAIN specialize in products ranging from refractory bricks, tiles and

blocks to mortar, cements, ramming and gunnable monolithic and trowelling mixes to

low mass kiln furniture systems. Saint-Gobain SEFPRO is fully dedicated to REFRACTORIES

for glass industry.

Innovation - it is talked about a lot but few do it like we do.Their research policy is

unique and our research centre’s mobilize powerful and innovative forces.

Powerful, because SAINT GOBAIN have the largest research centre in the world

specializing in REFRACTORIES and their interactions with different types of glass.

Innovative, because they have 140 engineers and technicians who use the most

progressive, multidisciplinary technologies

Their Industrial Power takes on a very real meaning for your projects because we

truly work alongside you.

With 9 plants spread across the world we are able to offer you total reactivity.

Their units combine the power of a global industrial group and its large available

resources with both the proximity and made to measure expertise of their local teams.

Saint-Gobain H P R produces a wide range of REFRACTORIES including oxides and

non-oxide materials that are available as bricks, blocks, monolithic, mortars, cements,

and kiln furniture.

20


PRODUCT LINES

Complete Product Line, for high performance glass furnaces.

FUSED CAST ALUMINA

Both αβ and β alumina are available, for glass contact and superstructures in the

most demanding applications.

FUSED CAST ZIRCONI A

With ER 1195, Scimos Z, UZ and CZ, SEFPRO offers the most complete range of high

zirconia fused cast for special glasses.

CEMENTS & MORTARS

A complete range for furnace sealing and hot repairs.

SINTERED ALUMINA

Including BPAL and HPAL, ideal solutions for feeder channels.

SINTERED CHROMIUM OXIDE

The Zirchrom range, specially designed for insulation fiber furnaces.

SINTERED HIGH CHROMIUM OXIDE

A complete range of isostatic pressed materials for glass contact in reinforcement

fiber.

SINTERED TIN OXIDE

T1186 and T1187 LC, market’s reference materials for electrodes in specialty glasses.

21


FUSED CAST AZS

The main family of fused cast materials, available in Zirconia contents ranging from

32% to 41%, and with innovative new materials like ER 2001 SLX, a very low exudation

17% Zirconia material.

CASTABLES

Designed to cast monolithic safety layers for bottom pavings under the glass

contact materials.

RAMMING MIXES

Convenient alternative solutions to the castables for safety layers.

SINTERED AZS

For applications in furnace, forehearth and expendables.

SINTERED FUSED SILICA

PROSIL, a unique fused silica material with outstanding thermal shock resistance.

SINTERED MULLITE

A wide range of materials for all applications, including BP. Mullet, the best

available material on the market for creep resistance.

SINTERED ZIRCONIUM SILICATE

Both is ostatic pressed and vibro cast materials.

22


PRODUCT AND PROPERTIES

Bulk density (kg/m3)

Corrosion resistance, exudation and seeding

23


24


MANUFACTURING FLOW CHART

25


CHAPTER 5DEPARTMENTAL ANALYSIS

26


HUMAN RESOURCE DEPARTMENT

SEPR REFRACTORIES INDIA LTD is having a very good human resource department.

It consists of a human resource manager and a supervisor. This department stands as the

heart and soul behind the successes of the gigantic organization. This department deals

with all personnel activities of the organization.

The total strength of the organization is 296. Among them are

95 staffs

129 operatives

20 supervisors

21 management staff

31 trainees

WORKERS OF SEPR REFRACTORIES INDIA LTD ARE WORKING IN 3 SHIFTS

SHIFT A 12am 8 am

SHIFT B 8 am 4 pm

SHIFT C 4 pm 12 am

27


FUNCTIONS OF HUMAN RESOURCE DEPARTMENT

Although in one sense everyone in an organization is concerned of with the

personnel function. In case of larger organization a special department is segregated to

help line management to secure the optimum use of personnel with the help of

personnel department performing an advisory or staff functions. The personnel

department thus helps management in securing, using and developing appropriate

manpower to achieve the organization objective.

An important objective of every organization is survival which implies the

acceptance of the growth objective also during a period of time an organization loss of its

employees through deaths, retirement, and other causes. These leaves to be replace.

Besides as an organization grows it requires more employees.

Personnel management means the optimum utilization of the human resource. The

personnel department must be in position to supply the other department with capable

people as and when needed.

The personnel functions are selection, promotion, training, labor welfare activities,

and recruitments and so on.

28


SELECTION

The objective of the selection is to analyses the qualification of applicants for

determining their suitability. This process includes weeding out undesirable through

analysis of questionnaires, interviews, to investigate their references and evaluating them

and making final selection.

TRAINING

It is the subset of the broader human resource department function. Human

resource department is based management function that aims at developing the human

resource through appropriate instruments that are integrate with right processes for

achieving organizational process

PROMOTION

It is a transfer of an employee to a job that gives more money or those enjoy some

better status. In this factory the workers and employees are promoted on the basis of

experience, seniority, skill and education etc.

RECRUITMENT

The purpose of recruitment is to seek and attract qualified applicants to fill

vacancies. This process includes job analysis preparing man specification sources of

potential employees. Attracting potential of employee.

29


OTHER FUNCTIONS OF HUMAN RESOURCE DEPARTMENT

ATTENDANCE MAINTENANCE

The wages and salary paid to the employees is calculated on the basis of

attendance. So it should be maintained accurately by the human resource department.

LEAVE

This is the department responsible for the allowing leave to employees. The

employees are permitted with sick leave, cash leave.

MAINTAINING DISCIPLINE

In order the ensure the discipline inside the organization there is a certain standing

belatedly agreed by the employees and the organization and also by the district labour

officer usually all information regarding the maintenance of the organization should be

given at the time of induction period.

PROVIDENCE FUND

The employee as well as the employer contributes the amount equal to 12% of the

salary. Among the employers the contribution 8.33% will go to the pension fund of the

employees.

WELL FARE ACTIVITIES

The workers of sepr refractories india ltd. Are provided with canteens, first aid kits ,

restrooms and recreational facilities and while working the workers are provided with

goggles.

30


RECRUITMENT PROCESS

In an organization, the recruitment process involves a systematic procedure from

sourcing the candidates to decision making. The human resource department receives a

requisition from any other department of the company, generally to recruit towards

competitive strength and strategic advantage of the organization. The main objective of

the recruitment process is to obtain the number and quality of the employees that can be

selected in order to help the organization achieve its goal and objectives. The main steps

involved in recruitment process can be illustrated as follows;

STEPS IN RECRUITMENT PROCESS

External Sources

Employee referrals

Search for Potential

Internal Sources

Evaluating For Selection

Evaluating Recruitment

Personnel Research Transfer, Promotion

Developing sources of potential employees

Recruiting needed personnel

Human resource planning

Selection Placement

31


TRAINING PROCESS – FRESH RECRUITS

EXTRA ORDINARY PERFORMANCE

EXTRA ORDINARY DEPT.

Phase 1

Trainee

Phase 1

Evaluation

Phase 2

Trainee

Phase 2

Evaluation

Phase 3

Trainee

Phase 3

Evaluation

Disontinuions

Trainings

TRAINING COMPLETION

32


SKILL BUILDING AT SEPR

REVIEW & FEED BACK

Introduction /

Week NTTF

24 WEEKS IN OTHER DEPT.

24 WEEKS IN PARENT DEPT.

1 WEEK BEHAVIOUR EHS, WLC & COMPUTER

33


SKILL BUILDING AT SEPR

WLM Quality Circle

CFTS ESS

Suggestions Out Sourced Scheme Development

Kaizens IT Enablement

HR INITIATIVES

Defining mission and vision

JD’s for all positions

Skill matrix

CommunicationOpen house, pep talks, and in house journals

Training

Employment involvement

Recognition & encouragement

Appraisal system

34


FINANCE DEPARTMENT

Finance is the lifeblood of a business. Any organization cannot run without finance.

Finance department controls the financial aspect for running the day to day operation of

the business. The finance department maintains accounts to know the result of the

business activities. All the transactions are entitled in respective journal and are posted to

ledger accounts. The accounts make up-to-date. All the data in the accounts are

computerized and maintained by the finance department.

STRUCTURE OF FINANCE DEPARTMENT

HEAD FINANCE

ASST. MANAGER

EXICUTIVE ACOUNTS

SUPERVISORY SYSTEM

SUPERVISOR

35


FUNCTION OF FINANCE DEPARTMENT

Maintaining the records in orderly and chronological manner

Submits the records to the authority

Checking and passing of bills for payment

Making correct payment of wages to employees

Checking the freight receipt

Submission of records to the auditor

36


It is an abstract form of cash and bank book. From this ledger, an abstract is taken

for every month which is known as trail balance, profit and loss account and balance

sheet is prepared.

Working capital management

A managerial accounting strategy focusing on maintaining efficient levels of both

components of working capital, current assets and current liabilities, in respect to each

other. Working capital management ensures a company has sufficient cash flow in order

to meet its short-term debt obligations and operating expenses.

Implementing an effective working capital management system is an excellent way

for many companies to improve their earnings. The two main aspects of working capital

management are ratio analysis and management of individual components of working

capital.

A few key performance ratios of a working capital management system are the

working capital ratio, inventory turnover and the collection ratio. Ratio analysis will lead

management to identify areas of focus such as inventory management, cash

management, accounts receivable and payable management.

Management will use a combination of policies and techniques for the

management of working capital. These policies aim at managing the current assets

(generally cash and cash equivalents, inventories and debtors) and the short term

financing, such that cash flows and returns are acceptable.

37


Cash management. Identify the cash balance which allows for the business to

meet day to day expenses, but reduces cash holding costs.

Inventory management. Identify the level of inventory which allows for

uninterrupted production but reduces the investment in raw materials - and minimizes

reordering costs - and hence increases cash flow. Besides this, the lead times in

production should be lowered to reduce Work in Progress (WIP) and similarly, the

Finished Goods should be kept on as low level as possible to avoid over production - see

Supply chain management; Just In Time (JIT); Economic order quantity (EOQ); Economic

quantity

Debtor’s management. Identify the appropriate credit policy, i.e. credit terms

which will attract customers, such that any impact on cash flows and the cash conversion

cycle will be offset by increased revenue and hence Return on Capital (or vice versa); see

Discounts and allowances.

Short term financing. Identify the appropriate source of financing, given the

cash conversion cycle: the inventory is ideally financed by credit granted by the supplier;

however, it may be necessary to utilize a bank loan or overdraft, or to "convert debtors to

cash" through "factoring".

38


WORKING CAPITAL POLICY OF A FIRM

The two important issues in formatting working capital policies are;

1. The ratio of current assets to sale.

2. Ratio of short term financing to long term financing.

If the firm pursues a conservative policy, it would carry a high level of current

assets to sale, this in a lower level of expected profitability. These policy relics on short

term bank financing but more on long term sources of finance, which lower risk, but

increase cost of financing.

An aggressive current policy on the others hand carrier a low level of current assets

in relation to sales. The policy results in higher degree of expected profitability. It relies

on short term finance and less on long term degree of expected profitability. It relies on

short term finance and less on long term sources of finance which increase risk but

decrease cost of financing. The conservative policy is also characterized by a higher ratio

of current assets to fixed asset total assets, while lower ratio indicates an aggressive

policy.

An optimal position of working capital is characterized by a balance between

profitability and liquidity or risk and return and this depends up on the nature of finance

manager.

39


PURCHASE DEPARTMENT

This department is responsible for the purchase of the company. They are doing

both planning for material purchase and actual purchase of material.

The company follows the manufacturing requirement system, in which the

requirement of input material at different point of time is calculated based on production

plan. Planning department is vested with making the entire production plan since the

company is following the policy of making orders as it has to know the probable orders

for future. For this purpose market survey is conducted. Market forecast will give an idea

about the likely orders in next year. Based on forecasting results, the planning

department assesses the probable material requirement for the orders. Purchase

information related to the type and grade of the product.

The purchase order is specified by the department’s commercial for adequacy of

specified requirements prior to placing order.

MATERIAL PURCHASING PROCESS

IDENTIFYING THE REQUIREMENTS

EVALUATING THE VENDOR

IDENTIFYING THE SUPPLIER

PLACING THE ORDER

VERIFICATION OF THE QUALITY OF THE PURCHASED PRODUCTS

40


MARKETING DEPARTMENT

SEPR Refractories India Ltd. Is marketing fused cast refractories is all over the

world. 60% of the sales are domestic and 40% are exported to the Middle East Asian

countries, European countries and some African countries. The products SEPR India are

well accepted in the international market due to consisting quality and strict adherences

to delivery schedules and competitive pricing. In Palakkad plant general manager in

charge of marketing and he records world sales directed in France.

FUNCTION OF FINANCE DEPARTMENT

Customer Requirement

When a customer plans and order, the company understands there requirement

and dispatches the goods in requirement time.

Enquiry

In receipt of the purchase order the company sent the price list, time of delivery

etc to the customers.

Price Negotiation

In order to make the customers satisfied, negations are made in price and

accordance with products sold.

After making dispatches goods as per the order placed by the customers this

department takes immediate steps for collection of payments. The major customer in

domestic market is HRG HINDUSTAN.

41


ENVIORNMENTAL HEALTH AND SAFTEY DEPARTMENT

The department frames environmental policy for the company. The objective of

the department is to devolop and implements eco-friendly activity. They achieve this

objective through environmental management system. Company has ISO certification for

quality management, system environment system and certification underOHSAS 18001-

Service for over occupation health and safety management system.

Main objective of EHS department

Zero work related accidents

Zero occupation decreases

Zero non-valorized waste

ENVIRONMENTAL ASPECTS

Identification of environmental aspects is an on going process that determines the

past and positive impacts of the activity product and service on the environmental. A

procedure has been established to identify the environmental activity. Products and

services can be controlled over which an influence is expected. Procedure for evaluation

is also being established to determine those aspects, which have or can have significant

impact on the environment.

EHS POLICY

MANAGEMENT REVIEW PLANNING

CHECKING CORRECTIVEACTION

IMPLEMENTATION&

OPERATION

42


EHS CYCLE

43


EHS Activities and initiatives

Free medical & eye checkups.

Medical scheme operated by a committee representing employees and

management for all those not covered by ESI.

Training of all employees at all levels in EHS program.

Monitoring the following

1. Air mission.

2. Water consumption.

3. Hazardous waste generation, storage and disposal.

4. Work area voice level intensity.

5. ETP iblet effluent and treated water.

6. Environment and health incidents.

For employees: EHS Rules and Regulations

All areas inside the premises of the plant are declared as No-Smoking Zone.

Consuming alcoholic beverages or drugs is forbidden in the work place.

All employees have the right to demand for safe working environment.

All employees should obey the safety rules and regulations laid down by the

company.

Wearing of the personal protection equipments where ever prescribed is

binding on all the employees in these areas.

44


Access to restricted areas is only for the authorized persons. Environment, health

and safety. Saint–gobain it development on respect for all the people and their

environment.

All the objects and action plans of SEPR is based on the 8 core principles.

Health and safety

Environment protection and risk prevention

Reliability

Industrial efficiency

Quality and process control

Customer focus and service

People development

EHS initiatives and objectives:

Saint- Gobain believes that sustainable growth and development of business

can be possible only if we maintain an equitable relationship between economical

objective and social& environmental responsibilities. Saint- Gobain is totally committed

towards achieving all these objectives, in fact the group has joined the global compact (an

international initiative involving several hundred companies, NGO’s Civil Society

Organizations, UN Agencies) in July-2003 to hold on the principles in the field of human

rights, labours, environment and fight against corruption.

45


CHAPTERSWOT ANALYSIS

46


WEAKNESS

Lack of product line diversification.

High cost and price level.

The employees are very aged.

The sales promotion programmes are limited.

Customers are not aware about the sales promotion programmes.

No presence in possible market segments such as corporate, exports etc. This

would help to gain more returns.

47


OPPORTUNITIES

Large infrastructure facility.

Monopoly in market

Good market share.

Company goodwill.

Strong marketing network all over the world.

Increasing demand.

Trade fair participation to explore new markets.

Scope for technology up gradation to develop innovative products.

48


THREATS

Rise in the price of raw materials.

High labour cost.

Government regulations.

Small mistakes cause high loss.

Increased cost of production.

49


CHAPTER 6

ANALYSIS AND

INTERPRETATION

50


ANALYSIS AND INTERPRETATION

Data collected in order to study on the implementation and effectiveness of TQM

has been analyzed and interpretated by the researcher follows.

TABLE 1

AGE OF THE EMPLOYEES

Age in year No. of employees Percentage

Below 30

31 – 40

41 – 50

Above 50

1

17

37

5

2%

28%

62%

8%

total 60 100%

51


2%

28%

62%

8%

Below 30 31 – 40 41 – 50 Above 50

According to this given graph 2% of the employees are below the age of 30 years,

28% are between the age of 31 – 40 years 62% of them are between 41 – 50 years of the

age and 8% are above age of 50.

52


TABLE 2

EXPERIANCE OF THE EMPLOYEES

Experience in year No. of employees Percentage

Below 5

6 – 10

11 – 15

16 - 20

Above 20

5

4

18

15

18

8%

7%

30%

25%

30%

Total 60 100%

The table 2 shows that 8% of the employees are having less than 5 years of experience 30% of employees are having 11 – 15 years of experience and 25% are having 16 – 20 years of experience. While another 30% of employees have more than 21 years of services at saint gobain.

53


12%

10%

43%

36%

Below 5 6 – 10 11 – 15 16 - 20

54


TABLE 3

EDUCATIONAL STATUS OF THE EMPLOYEES

Educational status No. of employees Percentage

Below SSLC

SSLC

SSLC with ITI

Pre-degree

25

17

18

Nill

42%

28%

30%

0

Total 60 100%

42%

28%

30%

Below SSLC SSLC SSLC with ITI Pre-degree

The above given graph shows that 42% of the employees are qualified below SSLC, 28% of them have passed SSLC and 30% are qualified with SSLC and ITI.

55


TABLE 4

FUNCTIONAL AREA OF EMPLOYEES

Dept: No. of employees %

Production

services

54

6

90%

10%

total 60 100%

The collected data shows that majority of the employees, ie 90% of them are

belonging to the production department and rest of 10% belongs to service department.

Production90%

services10%

56


Table 5

NO. OF TRAINING PROGRAMS ATTENDED BY THE EMPLOYEES

No. of training programs attended No. of employees %

None

1 – 3

4 – 6

Above 7

4

30

24

2

7%

50%

40%

3%

Total 60 100

Analysis of collected data revels that 7% of employees have not attended any

training programs 50% have attended 1 – 3 training programs, 40% have attended 4 – 6

programs and 3% of the employees have attended more than 7 training programs.

None7%

1 – 350%

4 – 640%

Above 73%

No. of employees

57


TABLE 6

AWARENESS ABOUT THE 5S CONCEPT

Criteria for awareness No. of employees %

To great

To some

Not at all

32

28

0

53%

47%

0

Total 60 100

The collected data shows that majority of the employees 53% of the employees are

aware to great extent about the introduction of 5s concepts and 47% of the employees

are aware to some extent about the 5s concept introduced in their company.

53%

47%

No. of employeesTo great To some Not at all

58


TABLE 7

5S CONCEPT AND TRAINING

Criteria for evaluation No. of employees %

Very much sufficient

Sufficient

No of sufficient

22

37

1

36%

62%

2%

total 60 100

Majorities opinion is that training given on 5s concept are sufficient, about 36% of

employees expressed that the training given to them is very much sufficient and 2% of

them feel that it is not sufficient.

37%

62%

2%

Very much sufficient Sufficient No of sufficient

59


TABLE 8

Voluntary practice of 5s at work area

practice of 5s at work area No. of employees %

Strictly

To some extent

Practicing

Not at all

16

26

18

0

27%

43%

30%

0

Total 60 100

It shows that 27% of the workers are strictly practicing 5s concept, 43% of them are

practicing to some extent and 30% among them are just practicing the concept at their

work place and machineries.

Strictly To some extent Practicing Not at all

16

26

18

0

No. of employees

60


TABLE 9

Awareness about the suggestions scheme

awareness about the suggestions scheme No. of employees %

Very much

To good extent

To some extent

Not at all

30

15

25

0

50%

25%

25%

0

Total 60 100

50% among the employees were very much awareness about the suggestions

scheme in here. 25% of each employees were feel that they know to a good extent and to

a some extent awareness about the suggestions scheme.

Very much To good extent To some extent Not at all0

5

10

15

20

25

30

35

No. of employees

No. of employees

61


TABLE 10

Awareness about the monthly information sharing meeting

Response No. of employees %

Very much satisfied

To a good extent

To a some extent

Not at all

8

11

37

4

13%

18%

62%

7%

Total 60 100

Majority of the employees feel that the response to their Suggestions is only

satisfied to some extent about 13% of them feel very much satisfactions to response from

he management. And 7% of them feel not satisfaction on management’s response.

13%

18%

62%

7%

Very much satisfied To a good extent To a some extent Not at all

62


TABLE 11

Awareness about policy deployment

Awareness No. of employees %

Very much

To good extent

To some extent

Not at all

0

2

18

40

0

3%

30%

60%

Total 60 100

The collected data shows that majority of the employees 53% of the employees are

revealed that they are not at all aware of policy deployment practiced among their

superiors. 30%are aware of the same to some extent. And 3% of them are aware in good

extent.

To good extent3%

To some ex-tent30%

Not at all67%

No. of employees

63


TABLE 12

Awareness about internal and external customers

Awareness No. of employees %

Very much

To good extent

To some extent

Not at all

18

10

29

3

30%

17%

48%

5%

Total 60 100

Here about 30% of the respondents are aware very much about the internal and

external customers. 17% of the employees know to a good extent, 48% are aware to

some extent about the internal and external customers and about 5% of employees not

at all about the same.

Very much30%

To good extent17%

To some extent48%

Not at all5%

64


TABLE 13

Awareness about the monthly information sharing meeting

No. of employees %

Very much

To good extent

To some extent

Not at all

4

3

42

11

7%

5%

70%

18%

Total 60 100

This shows that 7% on the employees are very much aware of the monthly

information sharing meeting of the organization with trade unions and 5% of employees

know it to a good extent. Notably 70% of employees know about such meeting to some

extent only and 18% of the employees are not aware about of such meetings.

7%

5%

70%

18%

Very much To good extent To some extent Not at all

65


TABLE 14

Effectiveness of open house meeting

response No. of employees %

Very useful

Useful

Not at all

2

47

11

3%

79%

18%

Total 60 100

It proves that 79% of the employees say it is very useful to them but 18% of the

employees says its not at all affected them and rest of them say it is useful to them.

3%

78%

18%

Very useful Useful Not at all

66


TABLE 15

Extent of practicing ISO 9000 STANDARDS

Extent of practicing No. of employees %

Strictly

To some degree

Following

Not at all

19

25

15

1

31%

42%

25%

2%

Total 60 100

32%

42%

25%

2%

Strictly To some degree Following Not at all

67


CHAPTER SEVEN

CONCLUSION

68


FINDINGS

Majority of employees were feel that sharing knowledge is helpful for improving the relationship between employees

The practice being followed in the environment health and safety programs are conducted

The company is using lid of furnace for reducing electricity cost and saves 20%of kw/tones of batch.

Make an order system help the company to minimize inventory carrying cost to beter utilization of working capital.

Wastage of finished products reprocessed and utilized in manufacturing process, through that way the company can save 30% of the raw material.

The company follows an eco friendly system which recycles the waste water, waste plywood. etc

The labours idle time eliminated thought job rotation.

69


SUGGESTIONS

Wastage of plywood may be reutilized design work.

For ensuring objectivity, structure rewards should be kept.

To check whether just-in-time (JIT) is possible the material available nearby

location.

Proper dare must be given for reducing the cost of production.

Company must take care for identify the sources of raw materials easily

available.

70


CONCLUSION

The objective of the study is familiar with an organizational environment and to

get an idea about the function of different department. SWOT analysis was also carried

out this study helped to understand the working of different department of the company.

The company provides support to large, medium, end small industries of the glass. If the

company is able to withstand the present competition and insure profile in the future it is

doing now the company can improve their position in the international market. It has

succeeded in utilizing the plant capacity to the maximum through optimum utilization of

human resources.

71


QUESTIONNAIRE

A study on TQM with special reference to SEPR Refractory India Ltd

Palakkad.

Name Position

Contact no. Sign

1. Age

Less than 30 31 – 40

41 – 50 51 and above

2. Qualification

Below SSLC SSLC with ITI

SSLC Pre-degree

3. Service period

Up to 5 years 6 to 10

11 to 20 21 and above

4. Department

Service Production

Administration Others

5. Training programs attended within 2 years

None 1-3

4-5 7 and more

72


6. Did training helpful to improve your skills?

Very much To good extent

To some extent Not at all

7. Are you Aware about the monthly information sharing meeting in your company?



8. What is the opinion about department level communication?

Effective average

Effective and adequate Not at all

9. Effectiveness of open house meeting in your company?

Very much satisfied To a some extent

To a good extent Not at all

10. Are you following ISO standard in your company?

Very much To a good extent

To a some extent Not at all

11. Awareness about the 5s concept in your company?

Very much To some extent


73


12. Do you think Voluntary practice of 5s at work area is sufficient?

Very much sufficient Sufficient

Not sufficient

13. Awareness about the suggestions scheme in your company?



14. Are you satisfied with the suggestions scheme and management response in your

company?

Very much satisfied To a some extent


15. your awareness about internal and external customers

Very much To a some extent


Documents

Saint Gobain 22