1

INTERNSHIP REPORT ON ORGANIZATIONAL STUDY AT

SALZER ELECTRONICS LTD

By

ARUN KUMAR K 11MB5028

RENU GOPAL V 11MB5145

II SEMESTER MBA

Guide

Prof. LISSY MATHEW

Internship Report submitted to the University of Mysore in partial fulfillment of the

requirements of II Semester MBA degree examinations – 2012

Ramaiah Institute of Management Studies

#15, New BEL Road, MSRIT Post, M S Ramaiah Nagar

2

Bangalore – 560054

3

Ramaiah Institute of Management Studies

Bangalore - 560054

CERTIFICATE

This is to certify that this Internship Report on Organizational Study at SALZER

ELECTRONICS LIMITED is a bonafide study of ARUN KUMAR K and RENU

GOPAL V carried out under my guidance and supervision.

Place: Bangalore

Date: [Signature of the Faculty Guide]

4

DECLARATION

We hereby declare that this Internship Report on Organizational Study at SALZER

ELECTRONICS LIMITED submitted in partial fulfillment of the requirement for II

Semester MBA Degree examinations 2012 of University of Mysore through Ramaiah

Institute of Management Studies is our original work and not submitted to any other

university. This work has been done under the supervision of Prof. LISSY MATHEW in

Ramaiah Institute of Management Studies, Bangalore.

Place: Bangalore

Date: [Signatures of the Team Members] [Reg. No.]

5

ACKNOWLEDGEMENT

Words are indeed inadequate to convey my deep sense of gratitude

to everybody. This project is an outcome of all the efforts and co-ordination of various

people. F i r s t an d f o r em os t , w e wo u ld l i k e t o ex p r es s ou r s i n cer e

g r a t i t ud e to D r. Mr . PA TTA BHI R AM, Di rec to r , R am ai ah In s t i t u t e o f

M an agem ent S tu d ie s , D r. Y . R AJ A RA M , D ean , R am aiah In s t i t u t e o f

M an agem ent S t ud ie s and Dr . Mrs . MA N ITH A D SH AH , D ean ,

R am aiah In s t i t u t e o f M an agem ent S t ud i e s , for the giving us this opportunity.

I am also grateful to the esteemed organization SALZER ELECTRONICS

LIMITED co-operation during my project. An all the faculty who provided full

support in completing this project successfully.

I would be afflicting myself if I do not profess my sincere appreciation to my

dearest parents, sister and friends who helped me in every step

Place :

Date : Signature of team members

ARUN KUMAR K

RENU GOPAL V

6

CONTENTS

Certificate from the Company II

Certificate from the Faculty Guide III

Declaration IV

Acknowledgement V

1. Industry Profile 01

2. Company Profile 05

3. Organizational Hierarchy 09

3.1.Organizational Chart 10

3.2.Product Profile 11

4. Study of Functional Departments 16

4.1.Production Department 17

4.2.Finance Department 31

4.3.Marketing Department 33

4.4.Human Resource Department 35

4.5.IT Department 39

5. SWOT Analysis 52

6. Summary of Findings 54

7. Conclusions and Suggestions 56

8. Bibliography 58

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LIST OF TABLES AND FIGURES

1. Fig 3.1 Organization Chart 10

2. Fig 3.2 Products 12

3. Table 4.1 Different Between Relay Assembly and Rotary Assembly 17

4. Fig 4.1 Relay Assembly departments 18

5. Fig 4.2 Rotary Assembly Department 19

6. Fig 4.3 Production Planning – Process Flowchart 26

7. Table 4.2 Raw Material, Manufacturer and Supplier / Dealers 27

8. Fig 4.4 Accounting Flowchart 32

9. Fig. 4.4 Company controls 41

10. Fig. 4.6 Data flow diagram 47

11. Fig. 4.7 Employee Details 48

12. Fig 4.8 Department Details 48

13. Fig. 4.8 Loan Sanction 49

14. Fig. 4.9 Loan Sanction 49

15. Fig. 4.10 Attendance Detail 50

16. Fig. 4.11 Overtime Detail 50

17. Fig. 4.12 Salary Detail 51

18. Fig. 4.13 Loan Payment 51

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1. INDUSTRY PROFILE

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1.1 Industry Profile

In recent years the electronics industry is growing at a brisk pace. Its currently worth

$ 32 billion and according to industry estimates it has the potential to reach $150 billion by

2010. The largest segment is the consumer electronics segment. While is largest export

segment is of components.

The electronic industry in India consists just 0.7% of global electronic industry.

Hence its minuscule by international comparison. However the demand in the indian market

is growing rapidly and investment are following in to augment manufacturing capacity.

The output of electronic hardware industry in India is worth $11.6 billion at present.

India also exporter of a vast range of electronic components and products for the following

segments.

Display Technologies.

Entertainment electronics

Optical storage device

Passive components

Electromechanical components

Telecom equipment

Transmission and signaling equipment

Semiconductor designing

Electronic manufacturing service

1.2 Revolution or analysis of electric industries

Like every other industrial sector in India, the Indian Electrical/Electronics Industry

too is slowly emerging from out of its "protective cover". For far too long has Indian Industry

remained shackled and consequently inward looking. Over the past fifty years there was no

exposure to global players and competition, with the result that the Industry grew up in

sheltered environment, dependent on the Government for everything, from licenses

to protection to tariffs. Each one of these interventions was aimed at securing protection

for oneself and ensuring growth of one’s own organization at the cost of industry and the

nation at large. Lack of global competition encouraged a "cost plus" approach, where every

conceivable cost increase was passed on to the customer.

10

There was thus no motivation to reduce cost.

With deli censing, decontrol and deregulation, Indian Industry has

suddenly been exposed to global competition. Since last decade, India has

witnessed what global players have achieved and what they are capable of achieving.

We are becoming aware of competition on our turf. In

t h i s s cen ar io , eve ry co m p an y co m pl a in s o f i n c r eas ed com p et i t i o n , l ow e

r o rd e r bo ok s and shrinking margins.

The Indian Electrical/Industry is of course further besieged by t h e f ac t t h a t

t h e r e i s a d ea r t h o f bu s i n ess on accou n t o f l a ck o f i nves tm en t i n t h e

p o w er infrastructure. Many organizations in this industry are looking overseas to develop

the export markets owing to reduced demand at home.

A t t h e o u t s e t , i t mu s t b e s t a t ed th a t t h e r ed uced do m es t i c d em an d

i s a t b es t a t em por a r y phenomenon. The power sector in India is bound to

grow and this will undoubtedly boost demand from the Utilities, quite apart from the

industrial demand which will continue to grow with increased industrial output. The

poor financial health of the SEBs is however a damper that cannot be wished

away in the short term. This will continue to plague corporate in the Electrical

Industry, until the SEB restructuring and unbundling brings a turnaround in the

medium term.

Salzer Electronics Ltd company has entered into technical and financial collaboration

with M/s. Plitron Manufacturing Inc., Canada in 1995 for manufacturing Toraidal

Transformers with 50% Buy-Back specialty.

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The Prestigious ISO 9001 Certification by NQA-UK has been obtained for Design,

Development, Manufacture and Supply of CAM Operated Rotary Switches and Allied

Products. The company has strong Research and Development facility with the full-fledged

laboratory to upgrade the product and set new market trends. In house Research and

Development has been recognized by Ministry of Science and Technology, Department of

Science and Industrial Research, Government of India.

Today, they are market leaders in India for Rotary Switches.

M/s. Larsen & Turbo Limited, the Indian Industrial Giant in Engineering has been

marketing Salzer Switches throughout India since 1993.

Having marketing Tie-up with India’s largest Engineering and Infrastructure

industries such as L&T Ltd. To cater the Indian market through their market network which

covers an area more than 300-400 Stockiest / Dealers. This Company has 40% market share

in Rotary Switch segment. Salzer Electronics is Largest Supplier to Indian Railways.

The competitors are ABB Ltd, Anand Project Ltd, Artech Power Products Ltd, Best

& Crompton Engineering Ltd, Continental Controls Ltd, Crompton Greaves Ltd, Pricol

Technologies Ltd.

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2. COMPANY PROFILE

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2.1 Genisis

M/s Salzer Electronics Limited was incorporated under the companies Act, 1956 on

January, 1985 for the manufacture of CAM operated rotary switches and other allied

switches gear products. It has technical collaboration with M/s Salzer Schaltgerate Fabrik

Gmbh, Germany.

2.2 Promoters

The core promoter of Salzer electronics limited, Mr. R Duraisamy, is a qualified

electrical engineer and technocrat entrepreneur with wide experience. He has served with

M/s. Lakshmi Machine Works Limited, the market leader in textile machinery manufacturing

industry for more than 2 decades in various capacities. He had been trained in M/s. REITER

MACHINE WORKS, M/s. BROWN BADEN, and M/s. SORECHER + SCHVE ARROW,

in Switzerland. With his experience gained through his association in companies as

mentioned above, he promoted the pilot project, M/s. Salzer Electronics Limited, in the year

of 1985, in technical collaboration with M/s. Saelzer Schaltgerate Fabrik, Germany, for the

manufacture of CAM operated Rotary Switches.

M/s Salzer Electronics Limited,

Samichettipalayam (post),

Jothipuram,

Coimbatore – 641047.

2.3 Directors of the company

The Directors for Corporate Affairs and Company Secretary is

Mr.S.Baskarasubramanian.

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2.4 Listing Arrangements

The shares of the company are made with the help of two stock exchanges

1. Coimbatore Stock Exchange Limited,

Trichy Rd,

Coimbatore-5

2. The Stock Exchange,

Dalal Street,

Mumbai-1

2.5 Business Overview

The company is established in the switch gear industry for the manufacture of CAM

Operated Rotary Switches with Latest technology at international standards mainly for

industrial purpose and can have the facilities of taking the multiple outputs as well as

sequence with various programs in all capacities from 6 Amps to 400 Amps.

The company’s products are well received in the International and Local Markets and

all other OEM’s including public sector undertaking are using standardized Salzer switches.

The company is progressing well and is now planning to improve the quality further to

superior standards to expand the export markets.

Recently M/s. Salzer Controls Ltd, one of the group companies, has merged with

Salzer Electronics Ltd. This will facilitate Salzer Electronics Ltd, to further strengthen its

hold in the global markets and also to have size economy, cost reduction better utilization of

human resource and its manufacturing facilities, etc, to achieve the cost effectiveness.

As a corporate citizen with a good track record of profit earning and dividend paying

company since 1991 – 92, the company’s performance is registering an impressive growth in

its turnover consistently.

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2.6 Marketing

It is one of the largest producers of rotary switches and cable ducts in Asia. The

company is having marketing tie up with M/s L & T, an individual giant, for marketing its

product in the domestic markets. Marketing can be through their wide marketing network

over 500 outlets throughout the country. By these arrangements, the company is enjoying a

major market share in the domestic markets to about 45%-50%.

2.7 Exporters

More than 24% of production is exported. Another 13% has deemed export status.

The company is also having market tie-up arrangements with M/s Crompton Greaves Ltd, an

accredited export house in the country, to sell its products in international markets. The

company presently serves for more than 35 countries in the global market and has already

established its foothold in the highly competitive international markets.

2.8 Company Turnover

Salzer Group has 7 manufacturing industry in all over India. The turnover of the 7

manufacturing industry of salzer group India is 430 crore, except software companies.

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3. ORGANIZATIONAL HIERARCHY

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Fig. 3.1 Organization Chart

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3.1.1 Organization structure

Salzer Electronics Ltd company maintain Divisional Structure.

Product Structure - A product structure is based on organizing employees and work

on the basis of the different types of products. If the company produces three

different types of products, they will have three different divisions for these products.

Sales and Purchase Structure - Sales and Purchase structure is used to group

employees on the basis of specific market the company sells in. A company could

have Sales or Purchase they use and according to this structure, each would be a

separate division in the structure.

3.1.2 Advantage of company structure

Divisions work well because they allow a team to focus upon a single product or

service, with a leadership structure that supports its major strategic objectives. Having its

own president or vice president makes it more likely the division will receive the resources it

needs from the company. Also, a division's focus allows it to build a common culture and

esprit de corps that contributes both to higher morale and a better knowledge of the division's

portfolio. This is far preferable to having its product or service dispersed among multiple

departments through the organization.

3.1.3 Disadvantage of company structure

This structure results in duplication of resources because, for example we need to

have equipment, for each division. Obviously, it does not support the exchange of knowledge

between people working in the same profession because part of them are working in one

division and the others are working in other divisions

3.2 Product profile

The company is not importing any raw material and the required materials and

components are made indigenously. The company is having well equipped plant and

machinery and a modern tool room to take care of its requirements and the maintenance to

achieve the target production. It also helps in quick development of new products. Salzer is

the only approved supplier for Nuclear Power Corporation for rotary switches.

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Fig 3.2 Products

3.2.1 Sub contract operations

The senior engineer of sub-contract shall place the sub-contract order on the

approved venders and provisionally approved vendors. The order is placed on the daily

production need priorities. All the sub-contractor orders shall be prepared by assistants.

Sub-contractor and it should be authorized by the Marketing manager.

3.2.2 Manufacturing Facilities

The company has already installed requisite capacity and is having well equipped

plant and machinery’s and a complete tool room to take care of the production requirements,

maintenance to achieve the target production.

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3.2.3 Research and Development

The company is having full-fledged R&D with testing lab to ensure continuous

improvement in product specifications and utilities, besides new product developments. The

company has been accredited ISO 9002 certification based on the recommendation of

KPMG, USA and subsequently upgraded to ISO 9001 standards for design, development,

manufacturing and supply of CAM Operated Rotary Switches and allied products. Further,

the products are also accredited with International Quality Standards Certifications like CSA,

CE, UL, and VDE.

The Department of scientific & industrial Research under ministry of Science and

Technology, Govt. of India, New Delhi, in response to our application dt.21.01.2002, has

accorded recognition to our In-House R&D unit vide their letter dt.27.09.2002, which will

facilities better interaction and updating of technological advancement being taking place in

the industry. The govt. of India has further renewed the recognition.

Company is contemplating to maintain and continuously improve the quality and

utility of the existing products such as connectors, cable ducts, toroidal transformers;

modular switches etc., with the present capabilities of R&D departments.

The company has erected and commissioned four windmills of 1*225 KW, 2*250

KW and 1*500 KW at Palladam, Coimbatore. The windmills have already started

harnessing power from renewable source wind. The mills could produce around 30.00 Lac

unit of power per annum and the power generated through the windmills be utilized for

captive consumption.

The products of the company are well accepted qualitatively in the highly competitive

export markets. The quality system of the company is in accordance with the guideline of

ISO 9001 to ensure quality in the products and services for both the manufactured and trade

products.

The International Approvals are

CSA (Canadian Standards Association)

UL (Underwriters Laboratory, USA )

CE (Conference Europeanize)

AGET (Association of German Electrical Technologies)

3.2.4 Products Range

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The company thrust is to manufacture CAM Operated Rotary Switches with

improved version of utility both for domestic as well as industrial purposes. In brief the

switches can be used for taking multiple outputs as well as sequence from single compact

switches ranging from 6 Amps to 400 Amps, with variable programs.

Over the years, it has expanded its product range to include auto mobile switches,

load brake switches, proximity and modular switches, wiring ducts, terminal connectors and

toroidal transformers. The market share for these products is continuously growing as a

result of international approval and innovative design.

The company has been at the forefront or technological advancement catering to the

requirement of the industrial, Domestic and automobile segment. It is an ISO 9001:2000

certified company with government of India recognized R&D center. It produces the best in

quality & value added products complying with international benchmarks.

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It now has in its fold the following product range to meet the customer’s tailor-made

requirements in additional to the cam operated rotary switches 4 Amps to 400 Amps.

DC switches – 16 Amps-500 Amps

Touch proof switches

Load bread switches

Proximity switches

Modular switches

Relays

Sensors

Terminal connectors

Cable ducts / PVC Channels

Single phase starters

Remote control switches

Phase changeover switches

Toroidal transformers

Foot switches

Besides, the company is also developing automobiles switches to meet the requirement of

the automobile industry.

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4. STUDY OF FUNCTIONAL DEPARTMENTS

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4.1 Production Department

This department which has two production departments

1. Relay Assembly

2. Rotary Assembly.

Table 4.1 Difference of Relay and Rotary Assembly

Relay Assembly Rotary Assembly

AC & DC relays ranging from 3 to 80 Ampere from

1 to 4 pole.

Silver contacts for enhanced electrical life.

Miniature, General purpose, Power & Automotive

relays.

Status indication through LED.

Status indication through LED.

Relay Modules.

ERDA Tested & Complies with JSS standards.

AC Switch Range : 6 Amps - 400 Amps

Touch Proof / Rear Termination / Screw less

Terminal switches

Mountings : Standard front panel / Rear /

22.5 mm / Din rail / Mix & Match

Safety feature: Center Key Lock, Pad

lockable, Door Interlock.

Custom built switching configuration.

DC Switch Range : 16 Amps to 500 Amps up

to 250 Volts DC

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Fig.4.1 Relay Assembly departments

Rejection

Relay Assembly

Sub Assembly Coil Assembly

Wire Stripping

Coil Resistance Check

Coil Resistance

Check

Accepted Scrap

Finished Goods

Inspection

Cover Fixing

Resistance Value Check

High Voltage Testing

Relay Testing

Relay Wiring

Relay Alignment

Packing

Packing

Dispatch Based On

the Sales Order

Fixed Goods Stores

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Fig.4.2 Rotary Assembly

Dispatch Based

On the Sales Order

Fixed Goods Stores

Packaging

Screw Assembly

Main Assembly

Stage Assembly

Latching Assembly

Rotary Assembly

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4.1.1 Production planning and control department

This department describes and plans the method production of components and final

product to suite the customer satisfaction. It applies to all planning activities needed for

manufacturer on the receipt of the order acceptance.

4.1.2 Procedure

The superintendent planning shall receive OA (order acknowledgement) along with

worksheet after reviewing with officer (FGI) and GM. It shall consolidate the OA and

shortage of MSL (minimum stock level) switches on daily base with EDP. For orders

consolidated, one copy of BOM (bill of material) will be prepared by superintendent

planning with EDP. BOM shall be printed on CSR (component requisition slip) and given to

stores by superintendent planning for receiving the materials. Superintendent planning shall

decide the work load to the assembly based on the delivery schedule and prescribes packing.

It shall prepare SA (switches assembly) along with the processing tag and hands it over to

assembly with copy of SA. It receives the material for the CRS given from officer stores

along with CRS. The officer stores shall issue components issue components issue slip for

assembly shortages/rejection. The superintendent production material co-ordination shall

prepare the monthly requirement list in the first week of the every month. The manager

production shall prepare once in six months the MSL for components based on the value and

the consumption of the company. The officer shall plan for the components stock based on

the MSL for component.

4.1.3 Process control

It ensures all activities necessary for the manufacture for the final products which

are planned and controlled in such a way to ensure the satisfaction of the customers. It

applies for all manufacturing operations followed on receipt of order acceptance from sales

department.

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4.1.4 Procedure

PPC (production planning control) shall carry out planning the manufacture of

components and the final product on receipt of work sheet. Based on the requisition slip

from PPC, production stores shall issue raw materials and components for the manufacture of

components and final product to machine shop assembly tool room maintenance and screen

printing. Machine shop will convert the raw materials into components required for the final

product with the help of machineries and operators based on the process given by planning.

Tool room shall carry out the manufacture and maintenance of tool required for machine

shop, assembly and new components requirements.

Maintenance department shall carry out preventive, break-down and general

maintenance for all machines. The assembly section shall carry out the manufacture for all

machines. The assembly section shall carry out the manufacture of final products based on

CRS along with materials from planning. By the in-process inspection all manufacturing

activities of machine shop, tool room and assembly are controlled. Workers performing the

job in machine job, tool room and assembly maintenance, screen printing shall be trained in

line with company training procedure. It shall be the responsibility of department in-charges

to provide house-keeping practices for good working environment. Screen printing and

soldering shall be special process carried in the manufacturing.

This department ensures consumers satisfaction by reviewing the requirements,

capabilities and the clear definition of agreed requirements. It covers all the activities from

the receipt of an order the consumers and to process the order for standard products and non-

standard products.

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4.1.5 Procedure followed

Price list

Deputy Manager shall get the authorization of managing director when the change in

price list occurs.

The ruling price list shall be revised as and when the change in input level occurs and

it is also based on competitive price.

Trade discount over the list price will vary from each customer irrespective of

standard products or non-standard products.

Deputy Manager maintains the current price list for standard products and non-

standard products.

Deputy Manager will discuss with R&D (RESEARCH AND DEVELOPMENT) if

there is any special products or non-standard products. Price list will be approved by

the MD/JMD/ED.

4.1.6 Enquiry

Sales department will receive enquiry in the form of letters, e-mail, fax etc. All

enquires will be recorded in a separate ledger held by the sales department. Based on the

enquiry, the DM shall check with the catalogue for its feasibility.

4.1.7 Quotations

If the enquiries received from L&T-ESP, the necessary quotation shall be sent to the

respective branch.

If the enquiries received from the customers, the same will be directed to the

concerned branch of the territory and the necessary prices shall be furnished to the

branch office either in the form of letter or form of quotation.

For contacting sales, fax number, phone, for L&T-ESP available in the sales

department.

All the quotation will be prepared by sales assistance? / Executive sales and approved

by D.M, executive sales shall approve the quotation and later ratified by DM.

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4.1.8 Orders

L & T orders are downloaded through L & T website by using allotted vender code

password for all branches. Orders shall in the form of customer purchase order, fax, e-mail

and letters and it is recorded in the ledger in sales department. DM will aggregate the order

received as non-standard/special. Sales staff shall prepare order acknowledgement for all

standard and non-standard orders with the help of EDP based on feasibility and it will be

countersigned by sales executive or sales assistant and then it will be approved by DM.

4.1.9 Accepting the Order

The orders are received from customer list in annexure approved by MD/JMD/ED the

order acknowledgement shall be raised. For the orders from L & T, ESP the necessary OA

shall be raised favoring the concerned branch. For the order received the same shall be

directed to the respective branch of L & T-ESP on the covering letter. The copy of OA along

with the worksheet shall be circulated to FINISHED GOODS STORES AND PLANNING.

In the event that the order received is urgent the OA shall be marked as “URGENT

ORDERS” with the red colored rubber stamp. The delivery period shall be incorporated in

OA through EDP by sales staff.

4.1.10 Dispatches

Sales assistant on getting the receipt of the packing slip from the dispatch transfers to

the EDP. The transaction will be regularized by accounts department by preparation of

invoice cum delivery challan. The packing slip will be retained by dispatch department after

the transfer of the data to EDP. The copies of invoice, way bill covering letter shall be

retained by accounts department and sales department will refer the same on requirement.

4.1.11 Stores Department

This department ensures that all material is protected against loss during storage and

damage deterioration. It applies to storage of materials in the defined storage area within the

company itself.

31

4.1.12 Abbreviation

GRN-Goods Received Note, CRS-Company Requisition Slip, CI-Company Issues, RM-

Raw Material Issue, MSL-Minimum Stock Level, and BOM-Bill Of Materials.

4.1.13 Procedure

The officer stores shall receive the bill of material on company requisition slip.

Officer also instructs the stores assistant to collect the material from retrieved rack. Stores

assistant will place ACTAG for every material collected against BOM. For the material that

are not available at the time removal of CRS the officer stores will prepare a shortage list.

Then the officer hands over the shortage list and the material to superintendent planning. For

all CRS given to store superintendent planning shall consolidate list of components to

officer’s stores. Time officer’s stores prepare process cards based on monthly requisition list

in computer and issue process cards to engineer machine shop, senior engineer and sub-

contract.

4.1.14 Indents

The officers stores raises indents through electronic process to processing department

based on BOM taking into consideration the minimum stock level and present value of

components. For other material which is required by the department shall be got from officer

stores through a request letter or oral request.

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4.1.15 Receipts of Materials

The officer stores shall monitor all inward and outward materials with the help of

offices stores assistant, he shall receive the material from the supplier through the security

department. After verification of material the assistant officer stores shall put the “PUTUP

TAG” for awaiting inspection status. They shall get the GRN prepared in the computer.

Assistant officer stores fill the quantity received in GRN and handover the material with

GRN to superintend quality control for inspection. Stores assistant will place the inward

materials in the retrievable racks. The officer then receives the scrap/rejection from the

engineer machine shop. Monthly remainder of components in assembly will be returned

from assembly to stores. The goods returned by the customer will be handover to customer

service representative. The other material of the factory on receipt shall be in warded to

stores through inspection report by the assistant officer who shall be inspected by the concern

department.

4.1.16 Minimum stock level

If there is any shortage fall officer stores will monitors the position to MSL

(minimum stock level) and will inform assistant manager purchase. The officer stores will

have the MSL list of purchase components.

4.1.17 Issues

The officer stores issues components through component issues for assembly rejection

or shortage based on the concern list given to the superintendent planning by assembly. Raw

materials required for manufacturing the components shall be issued against the process card

duly authorized by officer’s stores. All other materials are issued through issue ledger.

Assistant officer stores shall also send material to other companies through delivery challan

based on the recommendation of the head of the department with the approval of assistant

manager purchase.

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4.1.18 Stock verification

Physical stock verification shall be carried out once in three months by personnel

from internal control department on random sampling bases and status will be reported to

assistant manager purchase.

Fig.4.3 Production Planning – Process Flowchart

Receipt of Order Acknowledgement

Consolidation of Order Acknowledgement Daily

Preparation of CRS (Common Requisition Slip)

CRS to Stores for Component Collection

Shortage List Along With Filled CRS to Planning

Assembly Work Order to Assembly

Preparation of Monthly Requirement and Minimum stock

Level (MSL)

Follow of Completion of Sales Order

34

Table.4.2 Raw Material, Manufacturer and Supplier / Dealers

S.No DRG. No Manufacturer Dealer / Supplier

1 ABS BLACK

IM11B, IM17A,

SHF50+

BHANSALI ENGINEERING,

RAJASTAN

KWALITY

POLYMERS, STAR

POLYMERS,

SIDHARTH

PLOYMERS.

2 ABS IFB WHITE

IM11B, IM17A,

SHF50+

BHANSALI ENGINEERING,

RAJASTAN

SIDHARTH

PLOYMERS, PUNE

3 ABS GREY

IM11B, IM17A,

SHF50+

BHANSALI ENGINEERING,

RAJASTAN

KWALITY

POLYMERS,

COIMBATORE

4 ABS MILK WHITE

IM11B, IM17A,

SHF50+

BHANSALI ENGINEERING,

RAJASTAN

KWALITY

POLYMERS,

COIMBATORE

5 ABS NATURAL

IM11B, IM17A,

SHF50+

BHANSALI ENGINEERING,

RAJASTAN

KWALITY

POLYMERS,

COIMBATORE

6 ABS RED

IM11B, IM17A,

SHF50+

BHANSALI ENGINEERING,

RAJASTAN

KWALITY

POLYMERS,

COIMBATORE

7 ABS YELLOW

IM11B, IM17A,

SHF50+

BHANSALI ENGINEERING,

RAJASTAN

KWALITY

POLYMERS,

COIMBATORE

8 POLY

CARBONATE

LEXAN

143R805093

SABIC INNOVATIVE

PLASTICS

RELIANT SAGA,

COIMBATORE

9 PC CLEAR

PANLITE L-1225L

TEIJIN POLYCARBONATE

SINGAPORE (P) LTD,

SINGAPORE

CREASAKTHI,

COIMBATORE

10 PC GREY

PC1000 FR GREY

BRAKES INDIA, CHENNAI BRAKES INDIA,

CHENNAI

11

PC WHITE

PC1000 FR WHITE

BRAKES INDIA, CHENNAI BRAKES INDIA,

CHENNAI

35

S.NO DRG. NO DESCRIPTION MANUFACTURER SUPPLIER /

DEALER

1 GF 3H BLACK SI3GF 30%GF-

BLACK

SRF LTD,

CHENNAI

SUMANGALI

PLASTICS,

COIMBATORE

2 GF 3H BLACK N6GF30 –

BLACK

FORMULATED

POLYMERS,

CHENNAI

FORMULATED

POLYMERS,

CHENNAI

3 GF 3H BLACK 73G30L –

BLACK

DUPONT DUPONT

4 GF 3H BLACK GF3H – BLACK GUJARAT

FERTILISER

GUJARAT

FERTILISER

5 GF 3H BLACK NGC 3010 –

BLACK

PI POLYMERS,

PANOLI

CREASAKTHI,

COIMBATORE

6 GF 3H BLACK PA1031 –

BLACK

BRAKES INDIA,

CHENNAI

BRAKES INDIA,

CHENNAI

36

S.NO DRG. NO DESCRIPTION MANUFACTURER SUPPLIER /

DEALER

1 GF 3H

NATURAL

ZYTEL 101L

NC010

DUPONT INDIA

LTD, CHENNAI

CREASAKTHI,

COIMBATORE

2 GF 3H

NATURAL

AKULON

KFKGS6-FR

DSM ENGG. STAR

POLYMERS,

COIMBATORE

3 GF 3H

NATURAL

PA1031 UVFR

(N)

BRAKES INDIA,

CHENNAI

BRAKES

INDIA,

CHENNAI

4 GF 3H

NATURAL

SI3GF 30%GF –

NATURAL

SRF LTD,

CHENNAI

SUMANGALI

PLASTICS,

COIMBATORE

5 M90

NATURAL

CELCON M90 POLYPLASTICS

CO. LTD

KALAISH

TRADING,

COIMBATORE

6 M90

NATURAL

IUPITAL F 20 MITSHUBISI

ENGG.CO

TEXTILE

DYECHEM,

CHENNAI

7 M90

NATURAL

DUROCON M90 POLYPLASTICS

CO.LTD

KALAISH

TRADING,

COIMBATORE

8 ACRYPOL GUJPOL – 876 G GUJARAT

FERTILISER

GUJARAT

FERTILISER

9 ACRYPOL SUMIPEX – LG

8G11AA

SUMITOMO

CHEMICALS,

SINGAPORE

CREASAKTHI,

COIMBATORE

10 PBT ARNITE – TV

420 S BLACK

DSM ENGG. PUNE STAR

POLYMERS,

COIMBATORE

11 BEKLITE ATI – 101 FLOW

MEDIUM

INJECTION

AMITY AMITY

12

BEKLITE

ATO – 142. BK

COMPRESSION

AMITY

AMITY

37

S.NO DRG. NO MANUFACTURER SUPPLIER /

DEALER

1 NYLON 6 BLACK SRF SUMANGALI

PLASTICS

2 NYLON 6 SXXIC W SRF SUMANGALI

PLASTICS

3 NYLON 66 33% SRF SUMANGALI

PLASTICS

4 PBT SRF SUMANGALI

PLASTICS

5 PE ELCER SABIC LUCKY

6 NYLON 6 30% GF SYNERGY SYNERGY

7 6VIN TO. 00000-

204-10

X PRO, INDIA LTD X PRO

8 PA 1031 UVS REL BRAKES INDIA,

CHENNAI

BRAKES INDIA,

CHENNAI

9 NYLON 6 BLUE SRF SUMANGALI

PLASTICS

10 NYLON 6

NATURAL

DSM DSM

11 POLYETHER

SULPHONE

SOLVEY SOLVEY

12 ABS NATURAL

LG CHEMICALS

KWELITY

POLYMER

38

4.2 Finance Department

4.2.1 Accounting department

Accounting department is one which looks after all the financial affairs of the

company. The company follows the double entry system of book keeping and they recognize

income and expenditure on an accrual basis. All the accounts are recorded are maintained in

in CD’s in order to reduce the paper work. Some of the transactions which are below

Rs.2000, no vouchers are prepared. They are entered separately in petty cash book. The bills

are discounted by using the facility offered by L&T Company (i.e.) 75% and the balance of

25% is dealt with outsiders. Presently e-billing facility was introduced. Pre-printed cheques

are used and the company has all its transaction with ICICI bank. In Canara bank, working

capital limit was maintained by the company.

Cash payment voucher

For the purpose of paying in cash the company maintains some of the vouchers

like,

Advance payment

Against bill

Credit type

Through bank

4.2.2 Payment of salary

Employee salaries are usually paid through the bank. In a concerned bank each

and every employees maintains an individual saving account for easy transactions. The

salary is deposited every month in the bank and the employees can withdraw their salary

every month. The payment of salary is given to employees who are working in the

organizations based on the time-rate and 8 hours are fixed time. The workers who are

working in machine shop and tool division, the salary is not based on the time rate. They

have to work on shift basis and over time are also allowed.

39

Fig 4.4 Accounting Flowchart

40

4.3 Marketing Department

The entire marketing for industrial segment products are being done by L&T in India,

the company does not have a separate distributor network, but the network of L&T is

available for its products. However for our domestic segment-modular Switches SEL is

setting up our own distribution network in the country. At present the company has around

25 stockiest in the three southern states. In the next one-year SEL is planning to create

another 35 stockiest in the western and northern markets.

4.3.1 Marketing Domestics

The company is having a marketing tie-up since 1993 with M/s LARSEN & TURBO

LIMITED, an Industrial giant in switchgear industry, which helps to appreciate its market

share availability throughout India. With the network of more than 300 dealers in India

Salzer’s product availability is enormous.

4.3.2 Marketing-Expert

Having a marketing tie-up with M/s CROMPTON GREAVES LIMITED, an

accredited export house, to service International Market, the export performance of the

company is growing steadily year after year.

Salzer is the largest and only exporter of rotary switches, cable ducts and Toroidal

Transformers. In export front the company is also exporting its products to more than 40

countries in the world penetrating the highly competitive global markets. The major

countries are South America, Egypt, New Zealand, Oman, U.K., Portugal, Uruguay, Syria,

Zimbabwe, Saudi Arabia, Qatar, Greece, and Chile, through Crompton Greaves. Besides the

company is also directly exporting its products to Malaysia, Singapore, Hong Kong, Sri

Lanka and other East Asian countries.

Salzer is successfully competing against all major European brands and it also had

overcome the Chinese threat to a great extent in the world market. Its sales exports works

out to 30% - 35% of the total turnover.

41

4.3.3 Market Size

With the primary data available through the industrial bulletin like IEEMA, the

market size for the switches and its allied products are estimated around Rs.700 Cr. In

respect of the following broad category of switches, though, there have been many

unauthorized regional level of manufacturers, whose contribution could not be quantified.

With the available source the details of the total market size is as follows:

Rotary Switches : 95 Cr.

Cable Ducts : 40 Cr.

Terminal Blocks : 70 Cr.

Modular Switches : 400 Cr.

The market is growing at a rate of 15% to 25% for the year 2003-04, 2004-05 &

2005-06 respectively.

42

4.4 Human Resource Department

4.4.1 Human Resource

Human resource is a process in which the employee of an organization is

continuously helping in the planned manner to sharpen their capabilities that are required to

perform various functions associated with present and expected future roles and to develop

their general capabilities under value to discover and exploit their manner potential for the

organization development process. Human resource management deals with the planning,

organizing, directing, controlling of the procurement, development, compensation,

integration and maintenance of the people for the purpose of contributing the organization.

At the level of organization individual and society goals of human resource managers are

involved in the resource management to contribute towards the accomplishment of goals of

the enterprise.

4.4.2 Human Resource Function

Analyzing the role.

Marketing the role and person.

Developing the role of the person.

Developing self-renewing capability.

The Head of the Human Resource Department is Mr.K.Raman.

43

4.4.3 Objectives

To assess new human resource trends for the improvement of the

organization.

To study about the employees feel about management.

To learn about the employees relationship with their peers.

To prepare personnel at all levels to sharpen their knowledge, skill, attitude,

abilities, to accept greater tasks for strengthening the origin.

To analyze the overall performance of the employees.

To find out the employee motivational factor.

To encourage employees to participate in decision making.

To analyze the overall human resource performance of the company.

Human resource activities can be classified as’

Recruiting.

Training.

Compensation.

Organizational development.

Mr.K.Raman is working as Human Resource Manager in Salzer electronics Ltd for 10

year’s and in present. He has good knowledge about allocating the manpower requirements

in different departments. He is one of the main key for the company to run their process

without any shortage of manpower. In this company among 700 employees are working in

different departments.

4.4.4 Selection Process

The required manpower is been gathered from various departments. Then according

to the information given they scrutinize and make allocation of manpower according to the

field of requirement. They select through the advertisement, their own employees, campus

recruitment, and private company consultancies.

44

4.4.5 Training

The company is providing different kind of training program to all technical and non-

technical employees. It provides various training like demonstration, literature, slide show,

etc., to all the persons in the organization. It is for all performing and self-developing in

occupation for future career development.

4.4.6 Compensation

Based on the performance of the employees in the company, the concern provides

compensation with the benefits and services. Salary, allowances, bonus, incentive, PF, etc.,

are generally comprised as executive remuneration. They scrutinize the manual records for

allocation of compensation.

4.4.7 Policy statements

Corporate policy

“Strive for excellence” is the company does and shares the benefit through the society

As well.

Quality policy

Salzer group of company’s main thrust is consistent quality at every stage of process

to meet the requirements of consumers and to satisfy them with delivery right type of

products at right price with competitive and innovative design. The company strives for

continuous improvement at all levels by implementation and maintenance of quality

management system.

45

4.4.8 Employee welfare

Salzer provides the following welfares to the employees

Canteen -50% subsidy

Med claim – group insurance 50 by 50

First aid – free of cost

Welfare fund – provided for the employee at low interest rate

Trust – educational institution med claims facilities

4.4.9 Ratio of payment

The salary and wages ratios are as follows for the employee

Basic pay – 12%

Employee state insurance – (Gross) 1.75% for the employer

Provident fund – 12%

Employee sate insurance – 45%

4.4.10 Leave

For workers maximum 15 days is offered as cash leave per year. For staff monthly

one casual leave & 5 days if offered as cash leave per year. If the permanent worker doing

over time for 48 hrs. are offered wage as 1.5

Depending on last year working days

Formula= -------------------------------------------------------------

20

46

4.4.11 Welfare amenities

The loan for medical purpose is been given immediately and for all purpose. Time

gap between loans should be a minimum of 1 year. For the educational purpose the company

is providing their employee’s children by rewarding to all standard of best outstanding

students.

The welfare amenities provided by Salzer are as follows

Uniform

Shoes

Noise control measure

Lighting

Exhaust fans

Rest room

4.4.12 Organizational Development

In order to develop the organization the activities such as performance management

i.e. management by objective, measure of performance, potential appraisal is been carried

out.

47

4.5 IT Department (EDP)

The EDP department maintains all department status in software level. Every

department has it unique software to maintain their process for easy and quick access. One

department can access other department functions and process, but they can’t make changes

in it. Managing director can access the status of all departments from this office.

After getting the order acknowledgement, first they will check the FGI and FGS

status in stores department. If the required switch materials are available, it will be sent to

assembly section for assembling process. Delivery challan is created and sent to the finance

department. Finally the product will be delivering to the customers in given time.

In case the switch materials are not available in FGS, they will check whether the

BoM (Bill of Material) are under production process. If the required switch materials are

under production process they will assemble them after production and the products will be

delivered to the customers by FGS. Delivery challan is made after assemble process.

If the BoM are not under production process, they will check the availability of raw

materials for producing the required switch materials. They use two choice of producing

switch materials are producing by themselves or they give order to sub contract. After getting

the switch materials, assembling process will takes place and delivery will be made.

All departments has link with one another through software. Acknowledgement will

be issued to maintenance department, so this department checks the sales process. Finally it

will give information about the sales to check the payment details like debit and credit.

Finally the products are delivered to the customers.

The manager checks the entire department process for avoiding mistakes in the

process of production and sales. EDP department controls all department’s software and

sends the data to manager and managing director to know the current status of all the

departments.

48

Fig. 4.4 Company controls

FGI

Assembly

FGS

Stores

Sub - Contract

Job Orders

Work Order

BOM Generation

Stock at FGS Order Consolidation

Order Acknowledgement

Delivery Challan

Invoice

Finance

Stock at

Stores

Customer

In - House

49

4.5.1 SYSTEM CONFIGURATION

4.5.1.1HARDWARE SPECIFICATION

Processor : CORE2DUO

Ram : 2GB

Hard Disk : 320 GB

Monitor : 15” Samsung

Key Board : 104 Keys

Pointing Device : Logitech Mouse

CD Drive : Sony

4.5.1.2SOFTWARE SPECIFICATION

Operating : Windows XP

Front-End : Microsoft Visual Basic 6.0

Backend : SQL

50

4.5.2 SYSTEM APPLICATION DESIGN

4.5.2.1 INPUT DESIGN:

The input design is link that ties information system into the world of its user. Input

design consists of developing specific procedures for data preparation, step necessary to put

the transaction data which is usable for computing processing.

User friendly screen format can reduce the burden of the end users, who are not

highly proficient in computers an important step in input design is the source. Source

document is the form on which data are the facility to modify the entered data is provided

which will be very useful for the user to change the wrongly entered data. If the entries are

modified, then they will be automatically modified in the corresponding database.

4.5.2.2OUTPUT DESIGN:

Output is only one method by which the user receives the information. The output

must comprise all the necessary information, which the user needs. The output must not

contain any necessary data. Efficient and intelligent output design will surely improve the

relationship between the user and the system.

In online application the information displayed on the screen. Allowing the user to

review the sample output can be extremely important of the quality of the system and in turn

read to the success of the system.

Major form of the output is the hardcopy from the printer. The print outs should be

designed around the output requirements o the user time standards for printed output suggest

the following given each output a specific name or title. Provide a sample of the output

layout, including read where printing may appear and location of each field.

51

4.5.3 DATABASE

4.5.3.1 DESIGN

The key to integrate as automatic design is well structure common database. Without

a common database to share information, data must be recreated and reinterpreted at every

stage of this process.

The basic function involved in a database system related to the information required

by its users is

Defining the data

Inputting the data

Locating the data

Communicating the data

While producing report, efficient database tables are joined using the fieldscontained

in the table to retrieve the necessary information. In database design, several objectives are

considered such as

Redundancy can be reduced

Inconsistency can be avoided

The data can be shared

Conflicting requirements can be balanced

Standards can be enforced

Integrity can be maintained

Usually the centralized data management software package called as database

management system. Within it will be found components, which exist as separate software

packages, such as a complex file handler, an information retrieval system, or a

comprehensive report generator. The organization of data in a database aims to achieve three

major objectives such as data integration and data independence.

52

4.5.4 SYSTEM TESTING AND SYSTEM IMPLEMENTATION

4.5.4.1 System testing

Testing is vital to the success of the system, the system testing makes an assumption

that if all parts of system are correct, then the goal will be successfully achieved, this is

mainly done to eliminate errors.

The various tests is,

Unit testing

Acceptance testing

Integration testing

4.5.4.2 UNIT TESTING

In unit testing, each program is tested individually. So, errors in the unit are

debugged. Sample date is given for unit testing. The unit testing results are recorded for

further reference. During unit testing the functionality of the program unit, validation and

limitation are tested.

4.5.4.3 ACCEPTANCE TESTING

The acceptance testing is the final stage of testing phase. The user does this. The

development is given to the user and tests the system with live data. The various possibilities

of the data are entered response or the system is test. The client signs off acceptance testing

and then we can successfully implement the system.

4.5.4.4 INTEGRATION TESTING

Data can be lost across an interface one module can have an adverse effect on

another, sub functions combined, may not produce the designed major functions, individually

accepted impression, may not produce the designed major functions, individually accepted

impression may be magnified to unexpectable levels, global data structure can present

problems.

53

Integration testing is systematic technique for constructing the program structure

while conducting tests to uncover errors associated with interface. The objective is to take

unit testing to uncover errors associated with interface. The objective is to take modules and

to build program structured that has been dictated by design.

54

Fig. 4.6 Data flow diagram

LOGIN

EMPLOYEE

EMPLOYEE SALARY

OVERTIME

ATTENDANCE

DEPARTMENT

LOAN

EMPLOYEE EMPLOYEE

REPORT

OVERTIME

DEPARTMENT

EMPLOYEE

DETAILS

SALARY

PROCESS

OVERTIME

PROCESS

ALTERNATIVE

PROCESS

DEPARTMENT

LOAN PROCESS

LOAN

EMPLOYEE

USER

55

4.3.4 Screen Shot

Fig. 4.7 Employee Details

Fig 4.8 Department Details

Fig. 4.8 Loan Sanction

56

Fig. 4.9 Loan Sanction

57

Fig. 4.10 Attendance Detail

Fig. 4.11 Overtime Detail

58

Fig. 4.12 Salary Detail

Fig. 4.13 Loan Payment

59

5. SWOT ANALYSIS

60

5.1 Strength

Salzer electronics Ltd is one of the rare unit in India to produce the good quality

switches, rotary switches, ducts, cables.

Management is very stable, that forms strong foundation.

This company got ISO certifications to producing quality product.

It has well equipped quality control department to inspecting the incoming raw

materials and final products.

Highly skilled and committed employees.

5.2 Weakness

Underutilization of resources.

Less co-ordination between different departments.

5.3 Opportunity

It has opportunity to expand production units because of the demand for their quality

products.

Set more branches across nation.

There is growing demand in developing countries for electronics goods like switches,

cables etc.

5.4Threats

Increasing raw material cost due to inflation rates.

Rising number of switches manufacturers in India.

61

6. SUMMARY OF FINDINGS

62

6.1 Findings

Strength of SALZER is its Brand Name.

SALZER is willing to take up any challenges customize project and willing to

successfully implement it.

Advertisement costs are too less because they manufacture the products based on the

orders.

SALZER ELECTRONICS has ISO, KEMA, CE, UL and VDE certifications.

Quality assurance department is maintaining the quality of the product & it has

become basis of competition with other companies.

Company is ecofriendly; they recycle the waste water and reuse the same water for

their daily use like washing and gardening.

They have well integrated SAP and use data base such as ORACLE or that co-

ordinate and connects various information of different departments, hence it provides

ready information to the top level management to take immediate decisions.

63

7. CONCLUSIONS AND SUGGESTIONS

64

7.1 Conclusion

Salzer Electronics Limited is situated in good location, with an excellent

infrastructure. In this competitive world, it is very important for every student to gain a

practical knowledge about the organization. This internship training has given a view about

the technical, theoretical and practical working of an organization.

We had great time with this company, because we learned number of things about the

management. We learned how they are maintaining the productions, how they are

controlling all departments, order maintenance, sales, functions of human resource

management, workers and staffs relationships. That was very useful to improve my

management knowledge.

I conclude by thanking M/s Salzer Electronics Limited permitting me to carry out this

training successfully in their organization. I am also very thankful to my guide and staffs

who gave me a great support to complete the training successfully.

7.2 Suggestion

Manufacturing cost to be lowered by improving productivity.

An extensive & effective marketing strategy needs to be carried out by the company.

Employee satisfaction & retention of manpower should be checked & ensured.

Company can encourage more women employees.

Provide sign boards within & outside the company premises to facilitate easy

identification of the department.

Can improve the infrastructure of training & development center in order to provide

better environment for the learners & trainees.

65

8. BIBLIOGRAPHY

66

Reference

K, Human Resource Management, Ashwathappa

www.salzergroup.net