organisational study report

8/11/2019 ORGANISATIONAL STUDY REPORT

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CHAPTER 1

INTRODUCTION TO CEMENT INDUSTRY

The ancient Romans developed cement and concrete similar

to the kinds used today. They manufactured cement by mixing

slaked lime (lime with water) with a volcanic ash called

Pozzuolana. People lost the art of making cement after the fall

of Roman Empire in AD 400s. In 1759, John Sneaton , a

British Engineer found how to make hydraulic cements by

using blue lime with clay content and Pozzuolana from Italy. I.

C. Johnson produced Portland cement in 1845. Portland cement

contains about 60% lime, silica and 5% alumina. Iron oxide and

Gypsum make up the rest of the materials. In the plant the

materials go through a chemical process that consists of three

basic steps namely crushing, grinding, burning and finish

grinding. Cement was developed by Joseph Asp Din of

England. He manufactured commercially the improved quality

of Portland cement in a country market kiln in the year 1848.

Cement produced on 21st October 1854 was patented as

Portland cement.

Cement Industry in India has made significant

contribution to the countrys economic development. This

is obvious because most of the development activities of

the country involve construction works using cement.

South Indian Industry Limited installed the first cement

industry in Tamil Nadu in 1904 and then onwards number


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of factories manufacturing cement was started. In our

country there are 51 companies and 99 plants having

installed capacity of manufacturing 700million KN of

cement and with this installed capacity, the Indian cement

Industry is the largest in the world.

Industrial era in Kerala had its beginning from the time

of Sir C.P Ramaswamy Iyer, Diwan of Travancore State

during the pre-independence period. He knew that the

cement is one of the basis industrial needs for the speedy

industrialization of the state and felt it is very essential for

the state to have at least one cement factory. But lime stone

deposits of the required quality were not available to start

a cement plant factory in Travancore. However, lime shells

available in the backwaters offered in alternative of course

a better source for calcium raw material. Sir C.PRamaswamy Iyer induced the promoters of TCL for

pulling up cement plant based on the lime shell reserve.

Thus the first cement plant starts its operation on

7.12.1946 in Kerala.

White Portland Cement or White Ordinary Portland

Cement (WOPC) is similar to ordinary, gray Portland cement

in all respects except for its high degree of whiteness.

Obtaining this color requires substantial modification to the

method of manufacture, and because of this, it is somewhat

expensive than the gray product. White Portland cement is


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used in combination with white aggregates to produce white

concrete for prestige construction projects and decorative

work. White concrete usually take the form of pre-cast

cladding panels, since it is uneconomic to use white cement

for structural purposes. White cement is also used in

combination with inorganic pigments to produce brightly

colored concretes and mortars. With white cement, bright

reds, yellows and green can be readily produced. The

whiteness of WOPC is measured as the powdered material

having a reflectance value ("L value) in excess of 85%.

Cement industry in India has made significant contribution

to country's economic development. This is because most

of the development activities involve construction works,

which makes use of cement. It is an indigenous industry

with local raw materials.In 1904, the first cement industry was started. It was in

Tamil Nadu. Since then, a number of factories

manufacturing cement were started.

In our country there are 51 companies and 99 plants

having installed capacity of manufacturing 700 million KN

of cement. With this capacity, the Indian cement industry

is the fifth largest in the world after China, Russia, Japan

and USA. Indian cement industry accounts for about 4 %

of the world's production.

The origins of Indian cement industry can be traced

back to 1914 when the first unit was set-no at Porbandar


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with a capacity of 1000 tonnes. Today cement industry

comprises of 125 large cement plants and more than 300

mini cement plants. The Cement Corporation of India,

which is a Central Public Sector Undertaking, has 10 units.

There are 10 large cement plants owned by various state

governments. Cement industry in India has also made

tremendous strides in technological up gradation and

assimilation of latest technology. Presently, 93 percent of

total capacity in industry is based on modern and

environment-friendly dry process technology. The

induction of advanced technology has helped the industry

immensely to conserve energy and fuel and to save

materials substantially.

Indian cement industry has also acquired technical

capability to produce different types of cement like

ordinary Portland cement(OPC), Portland pozzolana

cement(PPC), Portland Blast Furnace Slag Cement(PBFS),

Oil Weil Cement, Rapid Hardening Portland Cement,

Sulphate Resisting Portland Cement, White cement etc.

1.1 CEMENT INDUSTRY IN INDIA

Cement industry in India is currently going through a

consolidation phase. Some examples of consolidation in

the Indian cement industry are; Gujarat Ambuja taking a

stake of 14 percent in ACC, and taking over DLF cement

and Modi Cement: ACC taking over IDCOL: India


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Cement taking over, Rasi Cement and Sri Vishnu Cement;

and Grasim's acquisition of the cement business of L&T,

Indian Rayon's cement division, and Sri Digvijay Cements.

Foreign Cement companies are also picking up stakes in

large Indian cement companies. Swiss cement major

Holcim has picking up 14.8 percent of the promoters'

stake in Gujarat Ambuja cements (GACL). Holcim's

acquisition has led to the emergence of two major groups

in the Indian cement industry, the Holcim-ACC-Gujarat

Ambuja Cements combine and the Aditya Birla group

through Grasim industries and Ultra Tech Cement.

1.2 ISSUES CONCERNING CEMENT INDUSTRY

High transportation cost is affecting the

competitiveness of the cement industry. Freight

accounts for 17% of the production cost. Road is

the preferred mode for transportation for distances

less than 250 km. However, industry is heavily

dependent on roads for longer distances too as the

railway infrastructure is not adequate.

Cement industry is highly capital intensive

industry and nearly 55-60% of the inputs are

controlled by government.


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There is regional imbalance in the distribution of

cement industry. Limestone availability in

pockets has led to uneven capacity additions.

Coal availability and quality is also affecting theproduction.

1.3 OUTLOOK

Outlook for the cement industry looks quite bright. Given

the sustained growth in the real estate sector, thegovernments emphasis on infrastructure and increased

global demand, it looks as if the juggernaut of cement

industry would continue to roll on the path of growth.


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CHAPTER 2

DESIGN OF STUDY

-----------The main objective of the industrial training is

listed below. The study about the organization helps me to

understand the working of the organization and also

various processes taking place in the company, difficulties

faced by the company etc. The problems faced by the

company are carefully studied and various solutions are

put forward for effective and efficient performance.

2.1 OBJECTIVE

To understand the functioning of organization as a

whole.

To study the organizational structure..

To Study Various Department Of The Organization

And Their Function.

To Know The Organizational Objectives And Scope

SWOT Analysis

Case study Generation.


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2.2 SCOPE OF STUDY

The scope of the study conducted includes the study

of aims of the company, various departments and their

functions, various products and their production activities,

quality control procedures taken by the company and the

work culture of the organization. The study of the various

departments would help in improvement their overall

efficiency, by way of identifying deficiencies.

2.3 METHODOLOGY

This study was conducted by visiting the head office

of Travancore Cements Limited at Kottayam

from December 2012 to February 2013. The information

and data were collected by interacting with the managers,

officers and workers and also made interviews.

The further details about the production were taken

by the direct observation of the plant process. Also some

of the datas regarding the past performance of the

organization were collected by referring the annual reportof the company. This training help me to understand

functions various departments, various products and their

production activities, quality control procedures taken by

the company and the work culture of the organization.


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2.4 LIMITATIONS OF STUDY

The staffs are constrained by time due to their

tight work schedule.

As data are collected through interviews, the

information is subject to the bias of the

individuals.

Difficult to get some details because of its

confidentiality.

Covering the entire area of each department is

difficult within a limited time period.


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CHAPTER 3

COMPANY PROFILE

The Travancore Cements Limited was incorporated in

the year 1946. The year of commencement of grey cement is

1949. The licensed capacity of the plant is 50,800 tonnes per

annum. The master mind behind setting up of this factory

was Late Sir. CP Ramaswami Iyer, who was then Dewan of

Travancore, and he realized the vital role of cement in the

industrial development of Kerala. The company was made

with M/s F.L Smidth & Co, Denmark. During 1959, the

company diversified into the production of white Portland

cement. The capacity for the production of white cement is

30,000 tonnes per annum. Till 1974.the company was

manufacturing both white and grey cement in the same plant,

disturbing the production of two over certain period in the

year. Since 1974, the company started manufacturing white

cement alone, as the demand for white cement went up.

During the last 58 years off its existence, TCL has

diversified its activities into related areas. Besides Super

Shelcem brand cement paint, the company has added to its

product range namely the Sheltex Acrylic Emulsion paint

and Shell prime cement primer.


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The Travancore Cements Limited is the only

manufacturer, perhaps in the whole world, producing white

cement from a raw material other than conventional lime

stone. The main raw material of TCL is the lime shell, which

is dredged out of Vembanad Lake, one of the back waters in

Kerala. The company has successfully executed a

diversification project for manufacturing grey cement during

the year 2000, with a capacity of 66,000 NIT per annum.

3.1 MILE STONE IN THE HISTORY OF TCL

Started production of Grey Cement in August 1949.

Started production White Cement in 1959.

Grey Cement production stopped in 1976.

Diversified into Cement Paint production in 1977.

Became a Government Company in April 1989.

Dry Cement Primer 'Shelprime' production started in

January 2000.

Acrylic Emulsion Paint for exterior &Interior.

Sheltex launched in April 2000. Started production of 'Vembanad' 43 grade OPC in

September 2000.

Launched Vembanad Wall care putty in 2008.

ISO 9001:2000 certifications received for the

Company during December 2003.


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3.2 VISION AND MISSION

3.2.1 VISION STATEMENT

To be a leader in the Indian Cement industry and

providing customer delight and enhancing shareholders

value.

3.2.2 MISSION STATEMENT

Having a unique role in the Heavy Industry sector of

the country, TCL is committed for catering the society

towards the specific need expected by producing quality

product at a customer friendly price while keeping

sustained growth of the organization and total growth of

the society.

To enhance the companys shareholder value.

Employee satisfaction.

Revenue growth.

Strength supply chain management.

High volume, high market share, cost

effectiveness in all segments.


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3.3 PRODUCT PROFILE

The company is producing three types of products. They

are,

White Portland Cement under the brand

name VEMBANAD.

Cement paints under the brand name

SUPER SHELSEM in 42 different

shades. Wall putty under the brand name

VEMBANAD

3.3.1 VEMBANAD WHITE PORTLAND CEMENT

It is having first place in Indian white cement market,

by its excellent quality. As compared to other brands it

accounts for its superior whiteness and maintain its quality

by using lime shells instead of lime stone. The white

cement is the best suited for housing and construction of

industries. Vembanad White Cement is quick drying,

process high strength and superior aesthetic values. Also it

is good for floor finish, plaster and ornamental works. The

miscellaneous application of white cement are in

swimming pools, where it replaces the use of glazed tiles


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with coloured shades under water, for molding sculptures

and statues, for painting furnitures. It is also used for

ready mixed concrete, precast blocks and to fix marbles

and glazed tiles.

Special Features

Lowest magnetic content and hence most durable

white cement.

Brilliant whiteness.

High strength.

Super soundness.

Super finishing.

Excellent properties.

Ideal for manufacturing cement paints, mosaic

tiles etc.

Applications

Pointing brick works.

Road marking.

Cast stone finish.

External rendering.

Mosaic tiles.

Terrazzo flooring.


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3.3.2 SUPER SHELCEM CEMENT PAINT

In 1977 TCL started manufacturing cement paints

under the brand name SHELCEM. It was rebranded as

SUPER SHELCEM in 1986. Super Shelcem is a unique

technology formulation with the most durable

VEMBANAD white cement.It is an intimate mixture of

Vembanad white cement, water proofing fungicides, oxide

extends, non fading oxide pigments and hardening agents.

Cement paint is water biased paint widely used for

painting buildings. Unlike other cement paints, Super

Shelcem doesnt require water curing after first and second

coat. Only initial wetting of the surface is necessary. This

makes it ideal for exteriors of multi storied buildings andsky scrapers. Also it is ideal for interiors since, tedious

curing after removing furniture can be avoided which

means saving of labour.

Once a wall is painted with Super Shelcem, it looks

and stays good for years unaffected by weather and fungal

attack. Super Shelcem carries ISI marks and the approval

of Bureau of Indian Standards, is E-1969. It is available in

a wide range of colours of total 42 different shades in the

market.


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Special Features

Capacity: Any previous deep shade made on the surface

can be effectively hidden with a single coat of Super

Shelcem. The second coat completely covers the dark

patches and stains on the wall.

Coverage: Super Shelcem covers greater area than any

other cement paint. 1Kg covers 100 sq feet for a single

coat or 65 sq feet for two coats.

Adhesion: Super Shelcem can be applied on a wide

variety of surface like cement plaster, concrete, brick

work and plastered surface.

Drying: Super Shelcem dries very quickly. While other

cements paints requires 16 to 24 hours waiting time for

applying the second coat, Super Shelcem need only 3 to

6 hours after the first coat.

Production Of Super Shelcem

The main raw material for the production of cement

paint, i.e. lime shells is dredged from Vembanad Lake by

the company themselves. Lime Shell, rich white clay,

white silica sand is used for the production of white

cement. The white cement is mixed with hydrated lime,

colouring pigments, and fine sand and water repellent

compound in a separate mill to get the cement paint of

desired colour.A premium quality cement paint, always

consistent and of international standards.


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3.3.3 VEMBANAD WALL PUTTY

Vembanad Wall Putty was introduced in the year

2008. It is dry powder putty with Vembanad White

Cement as the base. By the low content of MgO in

Vembanad White Cement, the putty when applied on the

cement plastered wall and ceiling will ensure durability,

extra coverage and smooth finish. Vembanad Wall Putty

can be applied on freshly plastered surface also. Like other

products of TCL, Vembanad Wall Putty is also excellent

in quality.

Before applying wall putty, one or two coats of Vembanad

White Cement is recommended to be applied on the newly

plastered wall.

3. 4 QUALITY CONTROL POLICY

TCL has implemented the Quality Management

system and best quality throughout the production process.

The raw materials are taken by checking its quality and

after each and every production process they are testing

the quality of sample in the laboratory. Thus customers are

well satisfied with the products.


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3.6 SIZE

Total employee strength of TCL is 468. The

employees of the company are classified into 3 categories.

They are:

i. Officers

ii. Staff

iii. Workers.

3.7 ORGANIZATIONAL CHART

The Board of Directors consists of five persons of

which one is full time Managing Director. Under the

Managing Director we have: Marketing Manager,

Production Manager, Maintenance Manager, Financial

Manager and Secretary. The Maintenance Manager is

responsible for departments of dredger, civil and sanitary,

water and general transport, workshop and electrical. The

production manager is responsible for the departments of

white cement plant, kiln, packing house, lab and quality

control. The Marketing manager is responsible for thedepartments of marketing control, purchase etc. The

finance manager is responsible for the departments of

accounts. Finally the secretary is responsible for the time

office, personnel department, medical department, and

office and guest house.


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BOARD OF DIRECTORS

MANAGING DIRECTOR

GENERAL MANAGER

CHAIRMAN

FINANCE

MANAGER

PRODUCTION

MANAGER

MAINTENANCE

MANAGER

COMPANY

SECRETARY

MARKETING

MANAGER

ACCOUNTS

OFFICER

MAINTENANCE

ENGINEER

DEPUTY

MAINTENANCE

MANAGER

PERSONNEL

MANAGER

MARKETING

SUPERINDENT

STAFF JOINT

MANAGER

STORE

SUPERINDENT

STAFF STAFF

FOREMAN &

WORKERS

STAFF

CHART 3.1 Organisational Chart


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CHAPTER 4

DEPARTMENTAL STUDY

In TCL there are 12 departments to improve

efficiency and effectiveness in the performance and to

attain the organizational goals set by the company.

Departmentalization is done to logically connect the work

activities. Coordination of various departments is required

for the success of the company. The various departments

of TCL are listed below.

1.Mechanical Department

i) Production department

ii)Workshop department

2.Personnel Department

3.Finance Department

4.Marketing Department

5.Purchase Department

6.General Stores Department

7.

Transportation Department

8.Dredging Department

9.Material Handling Department

10. Electrical Department

11. Laboratory Department

12.

Packing House


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Workshop department

The company has workshop department under

mechanical department. The maintenance and repairing of

machinery spare parts, pipe line, oil line, vehicle etc. are

undertaken in the workshop. Fitter, Automobile section,

Diesel mechanic section, Welder, Turner, Blacksmith,

Carpenter, Khalasis, Tool section are the nine different

sections in this department. Dredger and barge is also

repaired in this department. If any fault occurs in the

running plant, workers from this department will be sent

there. There are 80 employees working in different

sections of the workshop as welders, fitters, blacksmith,

carpenter etc.


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CHAPTER 5

SWOT ANALYSIS AND CASE STUDY

5.1 SWOT ANALYSIS

5.1.1 STRENGTH

As TCL is a government owned firm, it enjoys all

the privilege granted by the government.

The standard quality of the product is the great

strength.

Good organizational climate also adds to the

strength of TCL.

Efficient quality control department is strength of

TCL.

Employees are maintaining good relation with each

other.

TCL experience good co-operation from various

trade unions present here.

5.1.2 WEAKNESS

Excess manpower is the major weakness of the

company. Wastage of money through the payment


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of salary and other things to this excess supply of

manpower.

Lack of modern technology is another weakness of

the company. They are still using the out dated

machinery and technology. The technology now

followed by them is 24yrs old.

Higher cost of the products compared to the

competitors product.

Unnecessary formalities cause a delay in business

decisions.

Lack of raw materials cause problems in production

process.

Lesser chance of promotion for employees.

5.1.3 OPPORTUNITY

The budget amount should be used wisely so as to

get maximum visibility for the product.

Company introduces promotional programs.

It should expand the distribution network to that

place where the product is less available.

It should switch on to newer technologies in order to

reduce its cost of production.


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Exporting and expanding to north Indian markets can

be considered once it increases production.

5.1.4 THREAT

Scarcity of raw materials is the major threat faced by

the company.

Out dated techniques are still following.

Increase in labour cost is another threat. Government policies towards sales tax and other tax

is changing every time.

Customers requirement are changing day to day. It

is another threat to the company.

Good replacement facility of other brands is also a

threat.


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5.2 CASE STUDY

5.2.1 INTRODUCTION

From SWOT analysis and discussions it is clear that the

market share of TCL is going down. . So my case is to

identify the reason for lower market share. The title of my

case study is ROOT CAUSE ANALYSIS OF LOSS

OF MARKET SHARE.

TCL is the only company in India which is producing

white cement from lime shell. The main raw material for

the production of Vembanad White Cement is lime shell,

an underwater deposit in Vembanad lake, is dredged andbrought to the company by means of power barges. The

company has two dredgers, one hydraulic dredger named

Lokanathan of 5000 gallons capacity and one mechanical

dredger, dredger of 2000 gallons capacity. The dredger can

cut the lime shell around 40 ft. maximum depth. Since

lime shell is a natural resource special care is needed for

the availability. From the data collected it is clearly

understand that the production of white cement is

decreasing per year.


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5.2.2 SCOPE

The main purpose of the study is

To identify the root causes of loss in market share.

To make the suggestions for better performance.

5.2.3 METHODOLOGY

After detailed study about the organization and the process

the first step for case study is data collection and analysis.

Second step is problem identification. And third step is to

make suggestions to overcome the problem. The data

collected for the case study is given below.

D) PRODUCT

In TCL lime shell is used because it is the

purest source of calcium carbonate and best suited for

white cement manufacturing. In TCL they are following

wet process, though expensive, is retained to ensure

quality. They do not do any compromise for quality so

special analysis is taken to overcome the difficulty of raw

material availability. Lime shell is dredged out fromVembanad Lake. Due to the opposition from the public

and fishermen dredging finds to be difficult. So they

import clinker from Egypt in order to overcome the

difficulty in the availability of raw material. Quality

department of TCL checks the quality of imported clinker

and it is almost meeting the level.


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CHAPTER 6

FINDINGS, RECOMMENDATIONS AND

CONCLUSION

6.1 FINDINGS

Obsolete technology is a main aspect which needs to

be sorted out.

There is dependence on Contract workers which

affect the performance of the company.

Price of raw material and furnace oil which is used in

Rotary kiln is high.

Absence of proper promotional activities affect the

company very much.

There is reduction in the production of white cement

year by year.

Lack of availability of raw materials and lack of

diversification are areas of concern.

Absenteeism of workers are areas of concern.

6.2 RECOMMENDATIONS

The company should be able to provide Promotional

offers, Availability, Credit facility, Margin,

Discount, Sales support to the customers.


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Dealers are attracted by the profit margin, provided

from product. The company should concentrate on

introducing new varieties of promotional offers and

schemes to attract dealers like having better credit

facilities, discounts etc.

The company can provide incentives to the sub

dealers for the work they are doing.

Television has become an alternative source of

awareness among consumers, so more

advertisements should be done through those visual

media. This could improve sales as there are many

other competing brands with lower price in the

market.

More sales support should be given to the dealers.

They need to inform well about different types of

products, features and the company as a whole so

that targets can be achieved in a mutual way.

More concentration should be given on improving

dealer relationship. Extra incentives can be provided

as a sales promotional strategy to further boost the

companys sales.

The dealers who have stopped dealing with

Vembanad must be brought back for brand

penetration in the market.

The company can focus on improving product sales

outside the state as well.


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Availability can be improved as some dealers have

been facing low supply of goods. This would

strengthen dealer relations.

Better strategies have to be developed for making

pricing decisions as it could improve profit margin of

the dealers. This would ultimately improve sales

performance and dealers would be enthusiastic in

selling the product.

Concentrate on rural areas where the competitor

brands are weak.

Expand the market to a national level by supplying

the product to other parts of India. This will increase

the sales, and the company can reach economies of

production. This results in the reduction of unit cost

of production.

Switch to other raw materials such as lime stone, for

production of cement, and adopt new technology for

production.

Motivate dealers through some sales contests, and

reward those dealers who are performing well.

Improve packing of 50 kg bag.

Provide more incentives and credit facilities to the

dealers for the improvement of market share.

The company shall use improved advertising

technology to make consumers aware of product and

thus increasing the sales.


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The company shall take necessary steps to improve

their brand image.

The company shall make appropriate measures to

produce high quality white cement at low cost thus

reducing the overall price of the white cement.

6.3 CONCLUSION

During the 15 days of training undergone at

Travancore Cements Limited Nattakom, Kottayam an

opportunity was created to have a thorough exposure to the

management function of departments involved in the

working and management of a cement industry. It was also

offered a platform to learn about engineering activities

such as dredging, working of various mills, rotary kiln,

packing machineries etc to its core during this period. TCL

is the only company in India to produce white cement

from lime shell. With the adoption of latest technologies

the company can fly to new heights of excellence.

Adoption of an alternate fuel for furnace oil can decreasethe production cost. Improving the marketing strategies

and solving the existing problems, the company is ensured

of bright prospects.


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REFERENCES

1.Company Brochures and Manuals.

2.www.travcement.com.

3.www.cementsindia.com.
http://www.travcement.com/http://www.travcement.com/

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