ACKNOWLEDGEMENT

I have great pleasure in expressing my deep sense of gratitude to my institute GIDC Rajju Shroff Rofel Institute Vapi of management studies giving me an opportunity to learn practically about the different activities carried on in the United Phosphorous limited.

First of all I m thankful to GRIMS and director of our college Dr. R.S.Shah for providing me such great opportunity. I am thankful to Mr.kanubhai Desai (vice president) and Mr. Akhilesh Sharma (H.R. Manager) of UPL for granting me permission of summer training.

I am also thankful to my college guide Prof. Jayshree tailore who have supported and guided me during my whole training.

I would also thanks to my external guide in UPL Mr. Mayur shah, Miss.Menka sigh, Mr. Parth and all the plant people who guided for valuable information with kind support for giving me the required data for completing my training and project report.

And last but not the least I would like to thank each and every person who directly and indirectly supported me in doing this work. And also my family members and friends who encouraged and motivated for my project work.

PREFACE:

The knowledge of the practical implication of the management and its function in an organization is very important for a management student. To get the real feel of this knowledge, I had undergone summer training in this organization. As a management student, it was pleasure to undergo practical training and submit the report to our college. A comprehensive understanding of this will increase my practical knowledge and decision making ability. I gathered all required information from the organization. It is earnestly hoped that this report will meet the educational requirements.

INTRODUCTION OF THE COMPANY

United Phosphorus Ltd. is a part of the Shroff group, which has diverse interest in the crop protection chemicals. The year of commencement of business is started from 1969 to till. UPL is a leading global producer of generic crop protection products, intermediates, specialty chemicals and other industrial chemicals. The company ranks 4th amongst the generic Agro chemicals companies in all over the world.

UPL has transformed itself into a multi-dimensional, multi-location company offering a comprehensive range of quality products, efficient customer service and a wide distribution network. UPL is also the only Agrochemical Company in India, and amongst two or three companies in the world, to have successfully implemented SAP/R3 (ERP) solution. Today the company with a modest beginning has grown and consolidated its strengths, skills and people to achieve a unique enterprise. Here the company's care strategy is to offer better value to its customers on the price quality matrix and participating in their programs to delivery better value to the customers.

PLANT LOCATION OF COMPANY

CODE OF PLANT LOCATION

PL 00 VAPI

PL 01 ANKLESHWAR

PL 02 ANKLESHWAR

PL 03 ANKLESHWAR

PL 04 HALOL

PL 05 JHAGHADIA

PL 06 VAPI

PL 07 VAPI

PL 08 JAMMU

Corporate Mission And Vision

We will be a World Class Organization that Enhances Value to our

Customers and other Stakeholders by:

Caring for Employees to work as a Motivated Team in an Open and

Learning Environment

Setting Challenging New Standards of Performance

Focusing on Total Quality, Innovation and Responsible Care towards

the Environment.

We are in the business of:

Manufacturing and Supplying Crop Protection and Specialty Chemicals

world-wide

Providing solutions to optimize farm productivity for the farmer

through innovative and cost effective products to provide the customer

better value for money.

Grow steadily focusing on Total Quality, Innovation and Responsible

Care towards the Environment.

Respond to New Standards of Performance.

Diversify markets.

Mission statement

UPL's Aim

Provide customers with prime quality products and services, backed by

efficient and courteous customer service.

Earn enduring respect of customers and the community.

Rank among the tope five Crop Protection and Specialty Chemicals

supplier in the region.

UPL's Goals

AWARDS AND ACHIEVEMENT

Year Achievements Year Awards

1969 Factory 1 : Founded at Vapi

Red Phosphorus

1972 Gold Shield for Red Phosphorus

Board on AWARDS for Import

Substitution

1975 Agrochemicals & Metal

Phosphorus Chlorides

1980 Factory 2 : Ankleshwar backward

integration - Yellow phosphorus

1983 Synthetic Pyrethoid

insecticides Mercury

Compounds

1985 Certificate of Merits AIP, PCL,

Ministry of Commerce, GOI

1985 Organo phosphaten

plasticisers Organo mercurial

1989 Tri methyl phosphite Synthetic

pyrethoid intermediates

1990 Top Export Award

CHEMEXCIL

1991 Top Export Award CHEMEXCIL

1992 Top Export Award

CHEMEXCIL

First Export Award –

CHEMEXCIL

1992 Factory 3 : Ankleshwar Organo

phosphorus insecticides

1993 Innovative Technology

Award for TMP Indian

Chemical Manufacturers

Association

Consistent Export Award -

F.G.M.I Association

1993 Factory 3 : Ankleshwar Organo

phosphorus insecticides

1994 Corporate Excellence Award

Dalal Street Journal

The Analyst Award - Investor

Friendly Company -C.F.A.I

Top Export Award –

1994 Factory 5 : Jhagadia

Factory 6 : Gopipura

CHEMEXCIL

1995 Outstanding Export

Performance Award -

Ministry of Commerce

Accorded the status of

Trading House.Top

1995 Outstanding Export Performance

Award - Ministry of Commerce

1995 Top Tax Payers Award-

Central Board of Direct Taxes

Sutra

1996 Factory 7: Vapi - Manufacture of

Pollution Control Equipment.

1997 Certificate of Approval-

Quality Standards ISO

9002:1994

1998 ISO-14001 Environment

Management System Certificate

1998 Outstanding Export

Performance Award by

Industries Commissioner,

Government of Gujarat

1998 Awarded Certificate of a Super Star

Trading House-Director General of

Foreign Trade

1998 Awarded ' Samman Patra ' for

Export Performance-

Commissioner ate Of

Customs Mumbai

2001 The Economic Times Awards for

Corporate Excellence-Nominated for

Emerging Company

2004 Certificate of Approval-

Quality Standards ISO

9001:2000(VAPI)

2004 Outstanding Export Performance

Award -Basic Chemicals,

Pharmaceuticals & Cosmetics

Export Promotion Council, Mumbai

2005 Certificate of Approval-

Chemo Electronic Laboratory

ISO 9001:2000(VAPI)

2004 Gujarat State Safety and Health

Award to Unit3, Ankleshwar

2005  Frost & Sullivan India

Manufacturing Excellence

Award  

2004 Gujarat State Safety and Health

Award to Jhagadia

2004 Gujarat State Safety and Health

Award to Halol

    2004 ICMA Aditya Birla Award for Best

Responsible Care Committed

Company 2003-2004

Growth Strategy

UPL has pursued a strategy of continuous expansion, backward and forward

integration, branded product development, thrust on registration and aggressive

marketing. Through acquisitions, strategic alliances and subsidiaries, UPL has built

a network across the globe and operates across seven manufacturing sites, six in

India and one in Europe, each with close support from on-site technical services and

quality control.

Integration is the core strength of UPL. This approach secures reliable

raw materials for multi-site manufacturing through an extensive downstream range

of products and services. UPL pioneered 'backward integration' in agrochemicals

and is one of the world's few companies to manufacture complex oregano-

phosphorus compounds starting from the basic raw material, rock phosphate ore.

This strategy has now been extended to other products, the most recent being an

integrated caustic chlorine plant using the latest membrane technology, creating

basic building blocks for agrochemicals and specialty chemicals.

Company has pursued a strategy of

Continuous Expansion

Back & forward Integration

Branded Product Development

Thrust on registration & Aggressive Marketing

SWOT ANALYSIS OF UPL

S:-Strength

W:-Weakness

O:-Opportunity

T:-Threats

STRENGTH

Pioneered in "Backward & Forward integration" In agrochemicals is the care

strength of UPL.

Capability is applied R & D strategy is one of UPL's major corporate

strength.

A team of experienced professionals IT specialists maintains

The SAPIR3 (ERP) system. This made UPL one of the Agrochemical

Company worldwide to have successfully implemented SAPIR3 (ERP)

solutions.

A world wide marketing network across the globe in more than 100 countries.

WEAKNESS

The growth of agrochemicals sector is linked to monsoon. A good monsoon

will see the growth, but a poor monsoon will negate the growth.

OPPORTUNITIES

The opportunities for growth are tremendous, both on local as well as

export front.

In India, the consumption of agrochemicals is very low as "compared to

countries like U.S.A., Japan etc.

In respect of exports, there is very good potential for the growth of

agrochemicals. Some of the countries have stopped production of

agrochemicals there and started outsourcing their requirements from

countries like India. So overall scenario for exports is very encouraging.

THREAT

The major threat faced by this sector is the emergence of unorganized

sector, who indulge in production of spurious agrochemicals. This eats

into the market as well as margins of genuine producers.

Another threat is the registration required for agrochemicals, in India as

well as abroad.

To obtain registration for products is time consuming and cumbersome

process, requiring data generation for a number of years and efficacy

report for trials taken at various stages.

SOCIAL INITIATIVE AND OBLIGATION

Being a leading company in its industry and because of a nature of a product UPL always try to satisfy the community with its practice. Because of normal myth in the people surrounding UPL as UPL is one of the highest pollution making company, UPL always try to improve its image in the mind of customer and surrounding community. The following are few snap shot of UPL’s activity toward fulfilling social obligation.

Bharuch Environment Infrastructure Ltd (BEIL):-

Certified under Environment Management System Standards ISO 14001.BEIL is a Company promoted by major industries in Bharuch District. United Phosphorus Limited (UPL) group of Companies holds major equity in the Company.

BEIL has developed a Centralized Secured Landfill Facility at Ankleshwar in 1997-98 and so far, collected and disposed off more than 200000 MT of Solid/Hazardous wastes from member industries in this region.

Salient Features of BEIL:

The secured landfill facility is in operation since 1998.

During the 5 years of operation, the Company has collected and disposed off

more that 2, 00,000 MT of solid/hazardous wastes from member industries.

Two cells have already been provided top coverage.

Follows the Hazardous Waste (Management and Handling) Rules 2000; and

"Criteria for Hazardous Waste Landfills" published by CPCB.

Implemented EMS ISO 14000-first such facility in India.

Chemo Electronic Laboratory

Chemo Electronic Laboratory is a result of UPL's diversification strategy. Established in the year 1993, the Chemo Electronic Laboratory is today one of the largest manufacturers of toxic gas detection devices in India . We have a wide range of products, all designed and developed in this laboratory. We are the only Indian manufacturer of chemical detector tubes. We produce intrinsically safe personal, portable monitors and flame proof fixed systems for detection of several toxic and flammable gases. Our worldwide customers include large chemical and petrochemical industries, oil refineries, government establishments, fumigators,etc. company products are exported to countries such as U.S.A., Germany, Australia, Spain, Mexico, South Africa, Argentina, Israel and several other countries.

Enviro Technology Ltd (ETL):

Operates a unique Common Effluent Treatment Plant with primary, secondary and tertiary treatment, at Ankleshwar industrial estate, Gujarat.

Highlights of ETL: Unique CETP.

Capacity 1000 M3/day.

Treats Raw Effluent from 225 member industries.

Transportation of effluent through rubber-lined tankers.

Primary, Secondary and Tertiary Treatment Schemes.

Lime Handling Facility.

Dewatering of sludge with RVDFs.

Sludge containing Calcium Sulphate being sent to Cement Industries.

Extensive laboratory facility.

Ministry of Environment and Forests, New Delhi, entrusted ETL to conduct

series at Pallavaram Tanners Industrial Effluent Treatment Co Ltd., Chennai.

First CETP in India, getting ISO-14000 certification.

Project cost- Rs 680.00 lacs

Loan has been re-paid.

Charging System based on effluent quality and quantity.

Commissioned in December 1996.

Application of any amendment including ETL sludge tended to increase the

yield of both Wheat as well as green gram.

GIDC Rajju Shroff ROFEL Institute of Management Studies (GRIMS)

The GIDC RAJJU SHROFF ROFEL Institute Of Management Studies is a uniquepartnership between the Rotary Foundation for Education and Learning (ROFEL), Vapi and the State Industrial Development Corporation of Gujarat (G.I.D.C.).

From a sleepy village of the 1970's to the hub of the largest concentration of medium and small industries in Asia - Vapi's infrastructure owes itself largely to the initiatives of G.I.D.C, in building the Industrial infrastructure and in attracting young entrepreneurs from Gujarat and Maharashtra. Equally the growth of the social infrastructure - School, Colleges, Hospital, vocational training - stems from the bold initiatives of the Rotary Club of Vapi. Vapi's strategic location has been a source of strength - on the route from Bombay to Ahemedabad, 13 kms to the east of sea resorts of Daman, 13 kms to the West of the hilly forest reserves of Silvassa, close to the trading centres at Surat and Baroda.

THE ROFEL TRUST:

The Trust soon branched out to start the first Arts & Commerce College in Vapi in 1990, followed by a Bachelor of Business Administration Course in 1996. This was followed further in 1999 by a Management Institute (G R I M S) to conduct the course in Post Graduate Level and a college of Science and College of Pharmacy.

G R I M S is a logical extension of these educational endeavors to the growing need for managerial manpower in this region and indeed in the whole country. They even provide fund for organize the event called ‘akanksha”, management meet organize by the student of GRIMS.

PRODUCT PORTFOLIO

UPL is the largest producer in India of crop protection products with a wide range of products that include fumigants, fungicides, insecticides, rodenticides and herbicides and has established a broad product line that caters to the crop protection needs of a plant during all stages of growth. This broad product range has given our company a competitive edge in terms of market penetration.

UPL's quality control (QC) approach is based on the clear target of "Zero Defect". Each stage of production from raw material sourcing through manufacturing to post-production are closely monitored. UPL has also committed substantial investment to maintain and improve high standard of environmental

New products have been introduced virtually in every year of the company's history in response to the specific needs of changing market.

UPL offers 'total crop protection' with a comprehensive product range and a sales support operation in every continent.

UPL has developed more than 100 insecticides, fungicides, herbicides, fumigants and rodenticides for every stage of the growing cycle:

UPL manufacture number of products their product category consist of three major segments. They identify their product in three-product category:

1. agrochemical,2. specialty chemical, and3. industrial chemical.

They manufacture two kind of chemical,

1. technical, and2. formulated.

Very few companies are in the area of technical chemical. While the number of small player exist in the area of formulated chemical. They purchase technical solution from UPL and produce formulated chemical from it.

Agrochemical:

Total agrochemical product is divide in five category based on their function and objective.

Insecticides

Product NameBrandName

Cypermethrin UstaadCypermethrin CyruxAlpha-Cypermethrin Fastoxunitox 5 EcFenvalerate FenkillPermethrin PerkillDichlorvos DoomdivapMonocrotophos PhoskillPhosphamidon KinadonQuinalphos KinaluxTerbufos HunterCypermethrin 3% + Quninalphos 20% Ec Viraat

Herbisides

Product Name BrandName

ChlorprophamOrrja

Desmedipham OrrjaDiuron Diuron 80 WpDiuron Diuron 80 WpMetamitron Diuron 80 WpMetoxuron KaabuNapropamide DevrinolPhenmedipham PhenmediphamPyrazosulfuron Ethyl Saathi

Fungisides

Product Name BrandName

Metalaxyl + Mancozeb Zeemil Mzb 680 WpMetalaxyl Rampart 350 Sd

Fumigants:

Product Name BrandName

Aluminium Phosphide QuickphosmestagasMangnesium Magnaphos

Specialty Chemical

UPL Industries with a strong technical strength and wide range of specialty chemicals is all set to contribute in terms of export of its products. More than 20 % of the total production of specialty chemicals from UPL will be exported.

Specialty Chemicals

2-Hydroxy Quinoxaline (2-Hq) Phosphorus Red (Rxp)Diethyl Phosphite (Dep) Triethyl Phosphite (Tepi)Dichloro Phenyl Isocyanate (Dcpi) Trimethyl Phosphite (Tmp)

Dimethyl Methyl Phosphonate (Dmmp)Hydroxy Ethylidene Diphosphonic Acid (Hedp)

Phosphorus Trichloride (Ptc) Tris Chloro Isopropyl Phosphate (Tcpp)Meta Chloro Phenyl Isocyanate (Mcpi) Triphenyl Phosphite (Tppi)Tris Chloro Ethyl Phosphate (Tcep) Triphenyl Phosphate (Tppo)Meta Phenoxy Benzaldehyde (Mpbad) Thio Diphenol (Tdp)Meta Tolyl Isocyanate (Mti) Phosphorus Pentoxide (Ppo)Phenyl Isocyanate (Pi) Phosphorus Pentachloride (Ppc)Potassium Mercuric Iodide (Pmi) Phosphorus Oxychloride (Poc)Phosphorus Pentasulphide (Pps) Triethyl Phosphate (Tepo)D V Acid Chlorine / Cypermethric Acid Chlorine (Dvac / Cmac)

Industrial Chemical

Industrial ChemicalsPhosphorus Trichloride (Ptc) Phosphorus Pentachloride (Ppc)Phosphorus Pentasulphide (Pps) Phosphorus Pentoxide (Ppo)Phosphorus Oxychloride (Poc) Trimethyl Phosphite (Tmp)Triethyl Phosphite (Tep) 2-Hydroxy Quinoxaline (2-Hq)N-Phenyl Maleinic Acid Hydrazide (Pmh)

Phosphorus Red (Rxp)

Thio Diphenol (Tdp) Potassium Mercuric Iodide (Pmi)   D V Acid Chloride / Cypermethric Acid Chloride (Dvac / Cmac)

QUALITY SYSTEMS

All manufacturing sites of UPL have achieved ISO 9001 2000 certification for all of its products. Apart from this the Vapi plant has been certified for ISO

14001 (EMS) and also an ISO 18001 certificates. UPL is currently implementing six sigma programs to ensure zero defect level in operation. In early year, UPL was poised for rapid growth. With a view of sustaining this growth and also ensuring consistency in every thing it did. UPL zeroed down on a business strategy focused on quality management systems. If therefore, identified a well defined resource plan using systems approach, which led to the following initiatives.

ISO 9001:2000

The task force assigned to this quality initiative commenced activity in early year. As a first stage ISO certificate was obtained and registered by quality registrars BVQI for the Vapi plant. Currently, UPL's Vapi, Ankleshwar plants and sales and marketing network are all functioning with the, ISO 9001: 2000 certification for the following. The entire ISO documentation and quality records are on electronic media and UPL is already reaping the benefits of this ISO consolidation with improvements which have lead to benefits like uniform work flow, quality assurance and high customer satisfaction and rapid sales growth.

ISO 14001(EMS)

The Vapi plant was accredited for ISO 14001 (EMS) under Environment Management System standard. Your company has taken various measures to improve the overall condition with respect to protection of Environment. Both the units of the company at Vapi and Jhagadia in Gujarat are certified under Environmental Management System Standard

ISO 14001. To improve the environmental performance the company is monitoring emission levels with respect to air, water and solid wastes with improvements in Environmental performance.

The company had participated in the Green Rating Project conducted by Center for Science and Environment, New Delhi, and bagged THREE LEAVES RATING AWARD.

The company has taken membership of Bahruch Eco Aqua Infrastructure Ltd, a company formed for collection, treatment disposal of the effluent.

OHSAS 18001

The company has become leader in OCCUPATIONAL HEALTH & SAFETY MANAGEMENT SYSTEM STANDARDS by getting certificate under OHSAS 18001. The company is the first Chlor Alkali unit in Asia getting the OHSAS 18001 certification and the first chemical industry in India getting such prestigious certification.

UPL has committed to safeguard the health & safety of all its employees. Periodic preventive maintenance of equipment is being carried out. All staff and workers are trained in safe operation / maintenance of the plant and equipment and safe method of production and handling various chemicals as well as provided suitable personal protective equipment to do their job safety.

Both the units of the company at Vapi and Jhagadia in Gujarat were audited by TAT A AIG RISK MANAGEMENT SERVICES LTD., MUMBAI to review the effectiveness of the safety system to assess the risks and evaluate the improvement.

DEPARTMENTATION

United Phosphorus Ltd. is a very huge company which is performed various functions of the business activity so that it is not possible to performed all the work with a time therefore the Head of Department is decided that the functions of the industry Are assigned to different department. In this company each department wise the various functions and responsibility of a particular work is to be assigned to the department and in this way the burden of the work is assigned to the different department and the Head of the department gets the particular work responsibility to utilize his ability.

LIST OF DEPARTMENTATION

The main objective of the departmentation is to separately divide the work burden of the company and also maintaining the coordination amongst different departments. Following are the List of department:

Personnel Department

H.R. Department

Finance Department

Marketing Department

Planning Department

Purchase Department

Stores Department

Production Department

Excise & Dispatch Department

Accounts Department

Safety Department

Quality Assurance and Control Department

Research & Development Department

Max. Pro. Department

Engineering Department

Project Department

Liaison Department

System Department

Personnel Department

Major Functions of Personnel Department at UPL are as follows:

Record keeping Manpower planning Industrial Relation Liasoning with government officials Statutory requirements Time office Salary and wage administration Welfare activities Administration

o Transporto Ticket bookingo Housekeeping

Recordkeeping

All the records are maintained by the personnel department in different registers. A joining report is prepared when an employee joins UPL. All the documents are verified such as qualification certificates, medical reports etc. Induction training is given to the newly joined employee. Punching card of the new employee is also prepared so that arrival and exit record of the employee can be kept then Appointment letter is prepared.Performance of the new employee is evaluated in the probation period and according to the performance extension or confirmation letter is prepared. An employee individual file with gratuity, provident fund, ESIC nomination form is prepared.

Industrial Relation

Labour are the most important part of the company. So that it is the company's responsibility to take care of the Labour and to give them some facilities so that the Labour can be satisfied with their contribution to the company. Personnel Department tries to maintain healthy relations with employers and employee. Disciplinary actions such as

Show cause notice or warning notice is issued to the employee for the misbehavior or misconduct.

Domestic enquiry is also conducted to find the root cause of the issue. If an employee is found faulty then punishment such as suspension or

termination is given to the employee UPL did 3 year settlement with “THEVALSAD JILLA BHARTIYA

KAMDAR SANGH” to avoid disputes between management and employees.

Statutory Compliance & Liasoning with Government Department

Various Act defined by the government for the establishment and smooth functioning of the factory. UPL follows the entire act defined by the government and performs all the necessary activities according to the Act. According to the Factory Act leave card register, I card register, fine register, Accident register is maintained. UPL also take all type of permission and certificate which is necessary for company.

According to the Contract Act contract registration is done. Over time register, Employment register, Visit book is also maintained.

According to the Gratuity Act employees who worked for UPL 5 yrs or more than 5 yrs and then left the job for any reason are given 15 days gratuity.

According to the Bonus Act employee are given minimum bonus of 8.33% and maximum bonus of 20%

Provident Fund account of each employee is maintained. Every month 12% employee salary is deducted and same is contributed by the company and deposited in the provident fund account.

According to the Apprenticeship Act every year training is given to people with stipend and pay register is also maintained for the same.

Time Office

Card punching system is used in UPL to get the direct attendance. Whenever an employee wants a leave he has to fill details regarding his leave in the leave card. Salary details are also kept if any employee has taken loan then per month a certain percentage is deducted from his salary. Absenteeism details are also kept. Late comer details are also kept and to reduce the late comer, UPL made one rule. Employees who comes late by 15minutes for more than 4 days their ½ day salary is deducted. Full and Final details of the employee are also kept..

Salary and Wage Administration

Salary to the staff and wage to the workers is paid by the personnel department. Every month a salary statement or pay role statement is prepared by the personnel department and submitted to the accounts department. This statement goes to the head office and then they send cheques and these cheques are received by the accounts department and then salary and wage is paid to the staff and worker. UPL pay salary to the worker according to the government Law. Welfare Activities

Company done two type of welfare activity:-1. Statutory2. Non Statutory

Statutory: PF, Bonus, Gratuity,

Non statutory: Social welfare, Employee welfare Schools Colleges

Hospitals Highway Beautification Railway station development Uniform to employees Family training Canteen Transportation Medical check up Milk, Banana & Soda.

. Whenever an employee is retired or expired Rs. 50 is deducted from the salary of all employees and Rs. 100 is contributed by the company for welfare of the retired or expired employee.

UPL also adopted two villages and given electricity and water facilities to the household in these villages.

Administration

Transport and ticket booking facility is given to employees. Telephone bill, mobile bill and car maintenance is also responsibility of personnel department. UPL, vapi has presently only 3 car in this 3 cars they manage all the employee needs; It is also a big task. Manage house keeping is also a responsibility of personnel department. Personnel department look after all thing related to house keeping. They are renewing the contract of house keeping. Personnel department also handles the activity of canteen. UPL provide canteen facility to all the employee at cheapest Rate. Canteen carries the responsibility of personnel department.

Manpower Status:

There total 610 employees and including contract labours there are 1200 employees.

Human Resource Department

Objective:

Planning, organizing, directing and controlling of human resources to achieve organizational goal as well as individual goal.

Duties and Responsibilities of HR manager:

1.To provide well-trained and well-motivated employees.2.To improve skill and knowledge of employees.3.Satisfying working relationship among all the members.4.Provide training for the development of employees.5.Maintain high morale and good human relation within the organization.6.Satisfying individual needs by offering appropriate monetary and non

monitory incentives.

Functions of Hr Department:

Manpower planning. Recruitment Selection Training & development Performance Appraisal

Manpower planning:

Manpower planning is done for the personnel retired, transferred to another plant. Job rotation, job scheduling of personnel is done to make personnel feel comfortable and to avoid making their job monotonous.

Recruitment:

Following are the sources of recruitment for U.P.L.

Internal Sources:

Relatives of present employees Promotion and transfer

External Sources:

Advertisement Educational institutions Placement agencies Labour contractors Recruitment at factory gate Own database

Selection:

Selection is done on the basis of position for which person is required. Job profile varies with the position. Skills, abilities and competencies of the person are matched against job profile.

Selection procedure:

Company follows different procedure for different Job. In general they follow following procedure.

Collection Of Application

Screening

Securitization Of Application

Interview

Medical Checkup

Appointment Letter

Induction Training

Placement

Training & Development:-

Before imparting training areas in which employee needs training is identified.Training is given to employees by internal and external faculty. When the training is given by the external faculty it is known as In-house training. The key focus of training and development in UPL is knowledge, skill, and attitude. Documentation of Training Procedure is necessary at UPL. Benchmarking on Training Man-days/Annum is as follows:Staff & above – 5 Man daysWorkers – 2 Man-daysTraining Need Identification of all employees is done by various HOD. According to the need identification Training Modules are designed and developed. Annual & Monthly Training Planner is maintained it contains information regarding the training to be given with in a month or a year.

There are major three categories of training program at UPL

Technical – Program Internal, In-house & External Training Programs Behavioral

Technical Program:Technical training programs is imparted in two ways

1. Through Suppliers & Vendors 2. Through Internal Faculties

1. Through Suppliers and Vendors: Suppliers and vendors give training to UPL employee regarding

its product use. For example boilers, steam ejector, reactors, motors etc

2. Through Internal FacultiesInternal faculty gives two types of training.

I. MAXTRAIN(worker skill up gradation program)

MAXTRAIN: Various HODS are called for the meeting. Brainstorming session is conducted between these employees and 30 topics for discussion is

listed out and among them 15 topics are prioritized. According to the topics faculty is chosen.Faculty prepare themselves on the topic and gives presentation on that topic and solves the queries related to that topic.

SAFETRAIN: As UPL is a chemical company Safety training is must at UPL. The training regarding safety is given it is know as SAFETRAIN in UPL.

Outdoor Management Development Program: Employees are taken to a hill station or any outdoor place where team spirit and many other concepts are learned through experience.

De-briefing Sessions: When employees comes from outdoor management development program they brief their experiences with other employees

Performance Appraisal:

Performance management is done at UPL to raise the performance level of the employees to the expected level.

Balanced Score Card: The Balanced Scorecard can be an effective tool to help execute, manage and communicate organizational vision and strategy

270 degree performance appraisal:270 degree performance appraisal method is used. In this method performance is evaluated by the superior, subordinate.

Organization structure:Organization structure is flatter so that people feel more empowered and to make communication more effective.

Induction: Induction of every personnel is necessary in UPL so that they become familiar with organization. Induction period is from 6 to 10 days.

Career planning: Carrier Planning is done in two ways 1. Individual level planning: career planning for the individual is done

through promotions.2. organization level planning:

Personal Counseling: If the performance of any employee is going downThen the reason for poor performance is found out through face to face interaction with the employee.Promoting learning culture:

Achievement Celebrations: Whenever UPL achieves extraordinary performance then that achievement is Celebrated through decorating canteen, giving feast to all its employees.

Reward & recognition:Whenever performance of any individual is outstanding than that employee is appreciated through rewards and recognition.

Exit Interview:Whenever any employee leaves the organization then interview of that employee is taken to find out the plus and minus points of the known through these interviews

Salary Structure:Basic + DA + Education + Transport + Bonus + PF + LTA + Medical Reimbursement

Basis for Transfer:A transfer is a horizontal or lateral movement of an employee from one job to another job in the same level of hierarchy with the same level of responsibility status and pay.

Production department

Upl produces world’s largest aluminum phosphate. Aluminum phosphate is a chemical in form of solid form to avoid insect in the wheat and paddy’s and also avoids or kills rats but for rats it is very rare case.

Raw materialAluminum powder and white phosphorous are its raw material.Ammonium carbamen is made by mixture of ammonia+co2Carbon-di-oxide avoids flashingWax is used for bending.Graphite powder for shininess in the material.Zioxstride for preflow movement.It takes about approx. 22 hours producing one metric tone and after that every three hours we get tones of material.

How it kills the insect?In this phosphing gas releases when the wheat or paddy is stored in a packed area where no moisture is allowed and at that time this phosphate releases and it doesn’t allows the insect to spread. It has quick reaction with moisture disintegration starts if moisture is found and it results in burning.Bitrine is a poisonous gas and with consumption of this gas it may kill the person and this happened many times that the people were using this phosphate as a suicide tool but later the producers lessened the proportion of this gas by 15% first it proportion was 60%. In 60% it directly killed the person but now due to 15% it only has effect of vomiting and all gas comes out. Batch process is undertaken.

Aluminum phosphide are made in two forms by upl :

Tab late form Powder form

Let us see in detail about these two forms:

TAB LATE FORM :

Tablets are packed in tubes and plastics. It is packed in three different weights they are: 0.6 grams pallet 3 grams round tablet 3 gram flat tablet

3 grams flat tablet is manufactured only for domestic market and rest 3 grams round tablet and 3 grams flat tablet is for export purpose.

POWDER FORM :

It is packed in 34 gram of pouch and pouch is made of paper so dust disposal is easy. Cost is very high for powder form.

Monthly production of aluminum phosphate is 200 metric tone and more production is done if required or as per order. Safety stock is kept up to 60%. This can cover 10 days of production.Brand names vary from country to country. Quick phos. Is the brand name for domestic market.Export for the last year was 88% and 12 % was in domestic market..

Manpower in this plant is 30% of upl. 225 are permanent employee and others on contract.All this work is done manually .Recently they are working for automation likeHigh speed tableting machine, automatic weight, packing, leveling and strapping.

Rejection:

Rejections are mainly for purity and in this case they blend it and make it pure.Rejections come in case when:

Packing is not proper Al phosphate gas is more in quantity.

2 ppm gas is maximum allowed when dispatched more then this then it can be rejected or not allowed.

Material handling:

Material handling cost is 80 to 90 paisa per kg. simple lorry is used for handling.

Safety measures:

Censors and online systems are kept. Dust mask Helmets are compulsory Compressed breathing air are made available Training and awareness program are held. Discussion on the occurrence or accidents which are already

occurred or which can be occurred is discussed

Meeting for safety:Once in week meeting is held by ship officer.Once in a month all plant members meeting is held.

Complains from Customer like: Opening of packing Smell of ammonia and phosphide Excessive dust Flash of material Blast Wrong printing Excessive tightness

Labeling:Labeling is done according to country wise and approval.

Wastage:Wastage is decontaminated in water or gives to scrap contractor.

STAGES OF AL PHOSPHATE:

1st stage:Mixing procedureAllumium+white phosphate3 hours for 1 metric tone, temp 8 to 9 centigrade3.5 to 5 for cooling

2nd stage: Wax coating

3rd stage:Jaw crashing operating 2.5 hours

4th stage:Blending and sewing4 hours

5th stage:Tablets and packing 7 to 8 hours

Engineering department:

Engineering Activities

1. Chemical Engineering2. Mechanical Engineering3. Civil Engineering4. Instrumentation Engineering5. Electrical Engineering6. Procurement

Type of Projects

1. Expansion of Existing Plants2. Process Modification3. Plant set up for new product4. Batch to continuous process5. Cost reduction projects6. Safety,Health and Environment

Audits:6 months audit forISO 9000 for qualityISO 14000 for environmentISO 18000 for safety

Process:

Raw material

Energy finished product

Utility MachineManpower

Maintenance:

There are 3 types of maintenance:

Preventive maintenance Predictive maintenance: Breakdown maintenance:

Generate report and send to Mumbai.All details are asked by Mumbai headquarter.

100 EUIPMENT

R & D DEPARTMENT:

Works in different areas like: New molecule development Improvement in existence product Support to registration activities Trouble shooting activities

New molecule development procedure :

Brief literature search

Selection of the route

Paper costing

Initial and elaborative lab. Work

Brief work/ experative work

Process scale up to 1 kg

Generation of the project data

Process scale up to 100-200kgPilot trials

Commercialization

In the first stage they find the route for making the product. There are several routes found by them and after finding they select the route the most convenient to them. After the route is found they do paper works i.e. cost estimation of the production, what will be the total cost of the product. Then initial lab. Work is done that is in which quantity what product will be needed,For e.g. = C +D it means that for making a+b how much quantity c and d requires. Then experative work /brief work is done and manufacturing of 1 kg of the product is made and if approved by the R & D section production up to 100 -200kg is manufactured. At last as per the market demand the product is produced.

Improvement in existence product:

Here in this after the product is produced and if any defect is found or any complains is there then improvement is made as per.

Support to registration activities:

Whenever the upl member produces a product they have to submit impurities preparation and there are 5 batch analyses for a new molecule.Also preparation of the documents related to registration.

Trouble shooting activities:

Here they support the plant people and give solution and corrective measures during the manufacturing for process related problems.JRF (jai research foundation) generate registration.

There Are 5 R&D centers:

1. R $ D VAPI2. R $ D ANKLESWAR3. R $ D JAGHDIYA4. R $ D HALLOL5. R $ D THANE (MUMBAI)

Thane does the basic work and registration activities

Account department

Objectives: Prime objective of accounts department is to record and maintain all monetary transactions of company

Following activities are undertaken in accounts department:

1.) CASH MANAGEMENT:Requirement of cash for day to day activities is met. A certain level of cash is maintained for working capital requirement. The amount of cash maintained in the company should be neither too high nor too low. If it’s too low then day to day activities can be hampered and if it’s too high there is a risk.

Dispersement : Here they find out the requirement of cash

Petty cash: Cash for minor expenses are kept.

Working capitalDay to day expenses like salary,In upl minimum amt of cash is kept because it is risky to keep more cash. They keep abt 1 lakh only.

Vendor reconciliation:If any payment is due even after the due date then ledger balances is reconciled if money is not received by the vendors.

I owe you:Here in UPL after 3:30 giving of cash is closed so IOU starts which means I OWE YOU whatever cash may be.

Statutory Payments: Statutory payments like GEB bills, water bills, and ETP (effluent treatment plant)bills are also made by the accounts department.

Fund management:Here accounts department keep the record of fund needed in any plant and as per inform in the head office.

2.) ACCOUNTS PAYABLE MANAGEMENT:

Invoice Verification:Accounts department check whether all the details mentioned in the invoice is matching with purchase order in the system. And also check whether the full credit of exercise is being taken by the excise department. Invoice verification is the final procedure which closes the activities relating to invoice.

payment schedule: They do payments on 10th and 20th of every month.

bank reconciliation account:Here they verify the bank book and pass book.

Physical stock verification:Here they go for the audit of the stock in any plant at any time and if found less then necessary actions are taken.

3.)MIS (management information system):

In Management information system designed for accounts department following activities

Cost sheet:Cost of production is set for every year for every product. The actual cost of production is calculated and it is matched against the standard cost. This helps to find out whether the plant is more efficient or less efficient. The actual cost incurred is presented to plant people on 15th of every month so that get to know about their position.

Overhead expense summary:Training, seminar, uniform and all other expenses related to the

product are made. Byproduct costing report:

Here they find out what is the actual amt of byproduct and original. So take up some decision where if by adding necessary ingredients if byproduct can be lessened and can get more quantity of original product.

Job work costing report:Some products are made outside UPL under the name of UPL.Expenses incurred of producing outside and revenue received from that is checked.6 job worker are existing.

Dispatch Report:A product wise dispatch report is prepared every month. It contains the details about the product sold in that particular month and various duties charged on it.

Budget : Two types of budget:

Bill of material. Revenue budget.

Bill of material :

Here the expenses for 1 metric tone is find out and accordingly for 200 metric tones they find the cost and the make the report.

Revenue budget:

Here there are some fixed expenses which are related indirect related to the product, budgets are made

MAX PRO:

Max pro stands for maximum profit. It is for process development. The main objective of max pro department is cost reduction by making improvements in process. Max pro department tries to simplify the process so that cost can be saved and maximum profit can be gained.

Latest 8 projects in max pro department:

Cyper project:Here they are making the changing the batch production to continuous production. Also improving color and reducing cost. This project has been implementing since one and half year and if succeeded they will save about 70 to 75 lakhs per year on this product.

Pocl3 distillation Salt recovery improvement: making improvement till 95%. IFNA yield improvement : improving yield from 73 to 78% Pyridine recovery UPH K.salt filtration BCT reduction: from 32 hours to 22 hours.

SBC1 filtration capacity enhancement : 12mt to 20 mt IKI drying BCT reduction: 16 TO 5 hours.

Steps for taking up projects:

Identifying problems

Data collection plant

Data generation by experimentation

Data analysis

Solution by engineering inputs

Model designing

SOP (standard operation procedure) preparation

Commissioning in plant

Following is the procedure for improvement in process:

Identifying the problems in the process Data is collected regarding the ongoing process such as

temperature, pressure, reactor size, flow rate. Data is generated by doing experimentation for the improvement in

the process Data Analysis is done for the improved process After analyzing the data solution is given by the engineering

personnel Model is designed according the solution If the model is approved standard operating procedure is prepared Commissioning in plant.

Suggestion:We have given them suggestion for automation which could make their work easier and this was agreed by them that it will make their costs and manpower less but for automation they are not getting permission from head office.

PROJECT DEPARTMENT:

The main objective of the project department is handling the activities related to erecting and commissioning of equipments. When there is rise in demand assessed by the marketing

department which can’t be met by current production facilities. A new project is started and arrangement of all production facilities required for producing that much product is made. For that purpose process flow diagram, process equipment diagram is prepared by the projects department.

SAFETY DEPARTMENT

The management is committed to safety, health & environment for all and to comply with all relevant statutory requirements. The company believes that safety concern & statutory compliance override all activities including production target and that all accidents are preventable.

Followings are policy of safety & health:

The company shall ensure necessary standards of safety in process, engineering, design, fabrication, installation, commissioning and operation of plants by following responsible care initiatives.

The company shall make due arrangements for informing, educating, training, and retaining all company employees at different levels wherever required.

Arrangements for worker involvement in safety activities shall be encourage

In factory we have to work with different machines. Some machines are simple to use buts some are totally different and new to us so we should be careful while using the machines and should take precautions to avoid accident. To avoid accidents we should maintain discipline and should be careful.

Emergency Siren Code:

1. Fire siren

10 second ON 10 OFF for three times.

2. Gas Leakage 15 seconds ON 15 OFF for four times.

3. Off Site20 seconds ON 20 OFF five times

4. All Clear Siren One-minute continuous.

Duties of Emergency Response Team

Be alert on hearing emergency siren. Locate place of accident and wind direction and keep your gas

mask, SBA set, and think about route of approach. When advised report to site control/shift in charge at the site of

emergency Help site controller in emergency control activities such as rescue,

fire goals leak

Safety Equipments:

Helmet Safety Goggles Ear Muff Mask Rubber Gloves Safety Shoes Aprons

Stores department:

PR is initiated by the respective departments and submitted to the store for comparing or checking of the stock of the product. When the product is in stock, stores shall record the level of stock in the PR and forward to the unit head. The units head shall review the comments of the stores and shall take decision for the quantity to be ordered and approve the PR non approval PR shall be cancelled.

Here after they deal with challans.they receive the goods which come on the due date of po .when the goods enters the gate, the stores are responsible for checking the goods i.e. as per po and check the lorry number and goods receipt is made. After that weightment is done and if found proper they are sent to QC and if selected then GIR (goods inward receipt is made) which means goods have entered and QC has approved. And if rejected by QC then they pass the movement 124 i.e. goods are rejected and send back.

Purchase department:

Objective of Department

To search and place orders with vendors To purchase quality material at optimum price

Purchase department handles three types of materials1. RM2. PM3. Consumables.

Rate selection and Vendor selection of RM and PM is done by the head office.Consumables and spares is dealt by the respective unit. RM and PM requirementis understood in general meetings. According to the decision taken in the general meetings monthly targets for the production is set and entered in the SAP. According to the norms set in the SAP, it gives details regarding the amount of RM and PM required for the meeting the monthly targets and based on Purchase requisition is raised.

Scheduling for RM and PM purchase is based on

1. Plant storage capacity2. Daily consumption3. Availability of material4. Place from it comes (domestic or export)

Procedure for Purchase

Purchase of imported materials is planned one month before. Imported liquid materials are stored in Kandla (Gujarat) and Powder form is stored in JNPT (Mumbai) because storage facility is not available in vapi. Godown and trucks are taken on rent.

For consumable goods annual rate contract is made therefore purchase order is not made every time. Purchase for a year is made based on the last year’s requirement. Consumables and spares are not approved by QA.

Procedure of Purchase

Purchase requisition

RM PM

QCS

Sing on hard copy

PO(PO Release)

Po to vendor (Fax/ courier/Email)

Inform to vender (email/telephone)

Techno commercial discussion

Request for confirmation

Call for joint analysisReturn materials

Accept on prorata

Po to vender (Fax/Courier/Email)

Po from HO

Monthly Planning to HO

Receipt by Stores

ENG/Consumable

PO based on conformation

Release from HO

Schedule from factory(Email/ Telephone)

Rejected

Accepted Quality check

ETP (Effluent Treatment Plant)

The main objective of effluent treatment plant is to keep the environment clean and health and minimize the hazards due to disposal of wastes.

For attaining its objective ETP have an equalization tank. Wastes from various plants disposed through pipes in equalization tank. For normalization of wastes, lime is added in the waste and sent to the clarifier. In the clarifier sludge is separated from the water. Then the waste is sent to the bio reactor where bacteria eat up the organic present in the wastes. After passing from bio-reactor waste is passed through secondary clarifier where sludge is again separated. PH level of water is checked which should be between 6.5 to 8.5.

Planning Department

On 23rd of every month HO gives the target to planning department and accordingly they plan to achieve those targets.

Planning for the production is made for two purpose

1. firm orders2. Forecasted orders

Firm orders are those which are received from the permanent customers every monthForecasted order are those which marketing analyze in the market

Planning is done after considering firm orders, forecasted orders and closing stock.For example:

Firm orders = 50Forecasted=50Closing stock= 20

Then production for the month=80

Customers

1. Export2. Domestic3. Captive

Steps for planning1. Head office meeting2. Post PTF meeting(planning task force)3. Purchase requisition

Daily production report: Every plant head receives a production report so that he can check whether production is going according to plan or not. If any loopholes are found corrective action can be taken.

Dispatch

80% of the product is exported and 20% of the product is domestic.

HO is informed about the dispatch before 10 days and according to the intimation received by various units HO books the container. If the

production is not on the time schedule then various units have to inform HO about the delay so that HO cancels the container.

Quality Assurance

Nearly 200 raw materials with different specification comes to the qualityAssurance department. Raw material sample is sent to the quality assuranceDepartment if the quality is according to the specification then only it is sentTo the plant otherwise it is sent back to the supplier.

During processing, at each stage of production sample is sent to QA departmentAnd it is tested if it is approved then it is passed for next stage of productionOtherwise

1. Reprocessing2. Blending

Reprocessing: The material is reprocessed if it is not according to the specification

Blending: blending of the material is done with the other material whose purityIs more than the required?

For example: if the required purity level is 92% and purity of tested materialIs 90% then it is blended with material whose purity level is 94%.

Major equipments used in QA department are:

HPLC [High Performance Liquid Chromatography]

EXCISE & DISPATCH DEPARTMENT

Function of Excise Department:-Following are the main function of the excise department of

U.P.L.Vapi. To registered with central excise department To give intimation for registration of the new product of the

company & its procedure to the central excise & custom department.

To prepare monthly M.I,S. report & submit to deputy general manager commercial

To take CENVAT credit on all the inputs which is used for manufacturing of final product

To pay excise duty of final product of the U.P.L,Vapi. To prepare all the registered & return as per the central excise &

custom act & submit those return to the central excise department. To submit the monthly return ER-I to the excise department. To arrangement of transport for local dispatch To prepare all the document of goods for dispatch in domestic or

export To handling job work procedure of U.P.L. with vendor To give instruction for stuffing of material related thing like

fumigation, take photograph of the material while stuffing. To give intimation to the central excise department for stuffing of

material in container before two or three days. To do all type of work which are directly or indirectly related with

the excise & dispatch..

Structure of Excise & Dispatch Department:-

Excise duty:-

Excise duty is a duty on production or manufacture of goods. It is a tax levied on manufacture of goods and the liability to pay excise duty arises immediately on manufacture or production of goods. In India, excise duty is levied in accordance with the provisions of The Central Excise Act, 1944.

CENVAT:-

MODVAT scheme came into existence in 1986 and over a period of 20 years a number of amendments took place and procedural relaxations

announced which finally resulted in renaming the scheme as CENVAT effective from 1-4-2000. The term CENVAT refers to excise duty under section 3 of the central Excise Act, 1944.

CENVAT is a scheme under Central Excise and service Tax law which enables manufactures to take credit of the specified duties paid on eligible inputs and capital goods as well as service tax paid on notified input services which are received with specified duty/tax paying documents and used in or in relation to manufacture and clearance of dutiable final products. Excise department has authority to utilize CENVAT credit for payment of excise duty on final product. Ex.

If company produce & sale product-XYZ for manufacturing this product company paid excise duty on inputs Rs.100 & company’s product-xyz’s cost is Rs.1000 on this company have to pay 16% excise duty it is Rs.160 & company take credits on inputs of Rs.100 & actual duty payable on product is Rs.60(value addition).

CENVAT is available on all kinds of material which is getting used in manufacturing directly or indirectly. Company take CENVAT credit All Raw Materials, Packing material, Consumables, Engineering items, Capital Items Company. On Capital items CENVAT to be availed in 2 years i.e., 50 % in first year of procurement and rest 50% in next year.

Following chart show record keeping of CENVAT credit.

Excise registered:-

R.G.-1.:-R.G.-1 is known as daily stock account registered. In this registered only finished goods are recorded. It is compulsory to prepare & submit to the central excise on a monthly basis. In this registered we see the stock of particular product on particular day.

R.G.23-A Part-I:-R.G.23-A part-I is mainted for inputs (R.M, P.M,) on a daily basis. It is also called as the inputs stock account. In this registered all the inputs in which we want to take CENVAT credit are recorded.

R.G.23-A Part-II:-This is known as CENVAT credit account for inputs. When we take credit on material, this registered has all the record of those items date wise as well as serial Number wise. Form the Part-II we can know how much CREDIT we take in the whole month or in the some specific period.

R.G.23-C Part-I:-R.G.-C Part-I is maintained for capital goods on a daily basis. It is also called as the capital stock account. In this capital item on which we want to take CENVAT credit are recorded.

R.G.23-C Part-II:-R.G.23-C Part-II is known as CENVAT credit account for capital goods. When we take credit on inputs items, it will be recorded in this registered.

Taxes on Inputs & consumable:-

Following are the taxes on inputs or capital goods of U.P.L, vapi.

Taxes when dispatch of finished Goods:-

Following are the taxes which U.P.L. paid while dispatching of final product.

Liaisons Department

Objective:

The main objective of liaison department is to meet the basic statutory requirements regarding license and registrations.

Function of Liaison department:-

Following are the Various functions of liaison department are as follows:

To get the license according to the various Factories Act defined by the government.

To meet all the norms set by ISO 9001, ISO 14001, OHSAS 18001.

To look after all the legal matters of the company in consultancy with the legal department.

To look after all the registration activities

SYSTEM DEPARTMENT

Systems department generally handles day to day maintenance related to hardware, software and configuration. SAP is being used in UPL since 2004. All the transactions related to every department are recorded in SAP. Purchase order, purchase requisition, Goods Inward is prepared using SAP. Head office can know the working of the Vapi branch through its online data on SAP.

There is a separate portal for UPL known as uplonline.com for which employees have separate email id. In which UPL employees can access their salary slip and get the latest news about UPL.

UPL also have employee chatting s/w in which employee of any department, plant can chat with other employee this software is known as PSI.

There are total 135 pc’s and among them in 50 pc’s windows is being used and in 80 pc’s Linux is being used because of its low cost and maintenance.

Vendor Evaluation

Objective of the study:

Analyzing existing vendor base and finding out the critical RM, PM, CONV, and ENGV and ascertain the item with less or single vendor.

Initiate to establish step wise procedure for vendor which shall increase the entry of new vendor.

Reason for new product /vendor development:

New market demand:Whenever there is new market demand for the product there is possibility of new vendor.

Recommendation from R$D-yield increase, quality:Here when R$D recommends that by getting some other ingredients in the product which will increase the yield i.e. if a finished product we is yield is 50% and by adding some ingredient if we get 70% then there can be also new product /vendor development.

Non-performance of existing product/vendor:If the existing product/vendor is not reaching as per our requirement then to there is possibility of development of new vendor.

Cost-cutting:If by using another product with equal quality we can save our cost then we will switch off to the new vendor/product.

Current Vendor analysis:

Top 50 vendors in value term are rated on the following 4 parameter: Price Quality Delivery General service :

Here they rank for the readiness for supply of the vendor at the time of emergency and also some innovation made.SAP system does the vendor analysis twice a year.

Current vendor evaluation:

New vendor Evaluation

Eng/consumableRM PM

Sample for testing Sample for approvalAs per Specification

Commercial Discussion

RFQ

Vendor visit

Techno commercial discussion

Trial Order

Purchase Order

Vender Registration

Commercial order

Techno commercial discussion

Vender Registration

Vender Registration

Purchase Order

Current Vendor evaluation procedure:

For RM and PM:HOD does the search for RM and PM. Vendor detail for introduction of new vendor is received from HOD. Accordingly after searching the vendor the vendor is asked for the sample of the product for testing and if found as per quality they request for the visit to vendor’s plant and according to the visit procedure they go ahead and submit the report to HOD and commercial discussion i.e. vendor are called for the negotiation and also discuss the specification of the product. After the all the negotiation vendor registration form is filled up and here after the PO is raised.

For engineering and consumable goods:UPL can search the vendor in case of engineering and consumable goods. Here RFQ (request for quotation) is asked and make the comparison and also visit the vendor’s plant and quality control system is checked such as ISO 9001, ISO 14001 and OHSAS 18001 and then technical commercial discussion is there and hence if satisfied vendor registration form is filled up and here after the PO is raised.

VISIT PROCEDURE:

Product planning

Vendor search

Inform for visit

Date for visit

Stores, QA, plant visit to vendor plant

License

Details about product

FTPR (first time past rate)

QMS, ETP, SAFETY and ISO

Production capacity

Report and approval

Product planning is the done in the first stage by the plant and purchase, after that vendor search starts through the net and as per recommendations of HO in Mumbai. Here after they finalize the date to visit the vendor industry and one person from purchase, QC and plant visit the vendors industry. They check the license, certification and capacity of the plant.

Take all the details of the product and check out the FTPR (first time pass rate) which means that whether the product in the end stage gives the material as the required manner by the UPL .After the FTPR, they check the QMS (quality management system) ETP (effluent treatment plant) and also the production capacity of the plant whether larger or bigger.

Make all surety about the legal procedure and the quality tests and after that make a report, which is send to HO and if HO approves, the vendor starts the delivery.

Data analyzed in plant: Most critical items for RM, PM, EGV and CMV

Found the number of existing vendors.

Difficulties faced by UPL, where there less then two or one vendors.

Purpose: To recommend at least three vendors to minimize the delays

taking place.

No delay take place and Dispatch is made on time.

Data analyzed:

PLANT RM RM VENDORS REASONSMPBAD Benzel dihide 3 vendor

Gwalior chemical

Imported dependent

Vinery no capacity

Cuparious chloride 2 vendor

Caustic potash flakes 2 vendor DELAYR.k. Enterprise

Parikh chemicals

Aluminum chloride Kumoria chemical

Gujarat alkies

Bihar caustics

ALP Aluminum Powder 2 Vendor DELAYMaharastra Powder

Metal Powder Comp.

White Phosphorous Imported From China

No issue keep safety stock

Co2 Pramukh Engineering Need to increaseSikh Sigma

ZINC PHOSPHIDE Zinc Powder Universal Quality Issue in bothMetro Cam

DVACL Carbon Petra Chloride 2 Vendor(Import $ Local)

3 days stock is kept but still to be developed

Acry Lo 2 Vendor(Import $ Local)Acito Nitrine 2 Vendor(Import $ Local)

PACKING MATERIAL

PLANT PM PM VENDORS REASONSALPAluminum Tubes Hind Com 1 VENDOR DELAY

Tube Stoper Biner Plastic DELAY

IN FLAS PACKINGAluminum Flas $ PP cap Dracan Private Ltd

Because of two product same 3 vendor

Metal ImpactHind Com.

Gasats Jos Rubber DelaySpareage

Tins Premium Cane 1 VENDOR Not As Per Quality

Boxes Yash Packing 2 VENDORS Not As Per QualitySriranga

ZINC PHOSPHIDE Teen Quality TeenNeed To Increase In Export.

DVACL structure packing

PESTICIDES 200 Litres DrumsRimple Drums N Warehouse

50 LitresABC Drugs And Bears

ENGINEERING GOODS

PLANT ENGV ENV VENDORS REASONS

ALPSpares For Rtm Machines

Subrang Eng.Poor QualityRate Is HighHIRE A ENGINEER

MPBAD Piping

Fabriation

Tiling

PESTICIDES:Reactor

For Repairing Purpose

ZINC PHOSPHIDE:Spoket Wheel Ahmedabad

Need for stock

Housing BearingEar BoxMotor, Starrel, BladeTiller Lining JobsGlass LineSs/Ms ReactorBlades

CONSUMABLE GOODS:

PLANT CONV VENDORS REASONSALP Punches And Dyes

For Tablating Mkn Sons Short supply and

quality issueRatan Pharma

bearingNut boltV. beltCouplingGasgatpipe

Here there are many materials where even if there are three vendors then to vendors are required and where there one or two vendors I found that there is delay in dispatch.

Observation: Delay in routine schedule.

Loss to UPL

Less then 2 vendor

Purpose of SOP for vendor evaluation: To recommend at least three vendors to minimize the delays

taking place.

Dispatch on time.

Finding:

There is no systematic procedure or any form for evaluations of the new vendor/product.

Need for SOP to give stepwise procedure and also find out that on which stage the product is actually there.

Flow chart for the SOP:

SOP for vendor evaluations form:

Need stage

Hunt stage

UPL VAPI

Evaluation stage

Selection and registration stage

Final stage

Need Stage

Plant Name:

Name of the Product Needed:

Reason for the Need of New Product:

Brief Specification of the product needed:

Purity:

Color:

Dimensions:

Category: RM

PM

EGV

CMV

R&D

Demand Type: Permanent Campaign oriented Seasonal

Minimum Qty. Required (p.m. / p.a.)

Commercial stage: Available in the Market

Not Available in Local Market

Need to be developed

Suggested Source (if any):

Hunt Stage

Selected Media for Inquiry Floating:

Total No. of Inquiry Floated (RFQ):

Total No. Vendors Contacted:

Details of the Vendors Contacted:Names:

Location:

Capacity:

Financial Capability:

Market Reputation:

No. of Quotations received:

Highest (Min) Quote:

Lowest (Max) Quote:

Evaluation Stage

Vendor A B C

Sample received

Product capability

ISO certification

FOR RM:

Purity result:

Impurity result profile:

Acidic material

Moisture

performance

FOR PM:

liquard

Length:

Width:

Diameter:

Thickness:

Performance:

QMS:

ETP

Suggestion According To QC:

QC test result:

Which vendor better

Approved vendor:

Reason for approval:

FTPR:

COMMENTS:

Regulatory (Legal) Requirements:

:

Selection & Registration Stage

Vendor Selected:(Acco. To QC)

Vendor Selected: (Acco. To Purchase i.e. Price, Delivery, Qty. Prod. Capacity,)

Total capacity of items required by upl:

Registration Form Given to the Selected Vendor: Yes No

SAP Registration Done: Yes No

Order Placed: Yes No

Type of organization: private Ltd.

Public ltd

Proprietary

Partnership

Type of industry: small scale

Large scale

Govt.

Contractor

Total no. of person employed:

FINAL STAGE:

Product:

Response of customer: good average excellent

Feedback on quality: good average excellent

Benefits:

Stepwise procedure

New recruit person can understand easily.

Defects can be traced

Channelizing Communication

Between Accounts Dept.

(UPL, Vapi) and Vendor

OBJECTIVE: To inform the vendor about the deduction of amount.

To keep the record of those entire vendor lists whose amount has been deducted.

Methodology:Understanding the procedures going on in UPL in case of deductions in the bills which are followed by accounts department.

Summary:Invoice is a document stating the negotiated details in the purchase order sent to the party. It has information like party name, bill no., bill date item name, quantity of the material, per unit rate, total amount payable, discount negotiated with the party, freight charges and exercise duty etc. They are categorized into 4 type:

Raw material(RM) Packing material(PM) Engineering goods(ENGV) Consumable goods(CONV)

These invoices are verified and deductions take place in two cases: If any quantity found less than what was negotiated. If amount mistakes in amount are found i.e. if amount

found more than what was decided during negotiations.

Present system in UPL of communication to the vendors:In UPL there is no systematic system to inform the vendor. Only sometime if huge amount is deducted then only they inform the vendor by giving a mail and that to it is in rare cases, otherwise no information is given. So because of the vendor is not informed for the deduction they call/mail the accounts department, and ask that why their amount is deducted. And here after the accounts people by taking invoice number search in SAP system and give the reason for deduction.And almost there are many cases for deduction and it becomes a hectic for them to search each and every time. So it is very necessary to have a record for deducted amount and reasons for it, which should also be mailed. Now again every time writing a mail to different vendor is hectic job, so it should be in such a way that all the information is recorded for deduction and automatically a memo should become ready for the vendor so that either it can be mailed or send through post.

FINDINGS: Accounts department does not inform the vendor at the time

when they deduct the amount.

No Standardized procedure.

They inform in very rare cases only if huge amount is deducted

Relation with the vendors may spoil.

The vendor comes to know when they receive the cheque and make a call/mail to the accounts department for asking the reason for deduction and here the problem starts and department has to go through the invoice number and find the reason in the SAP system.

Normally in the accounts department get

RECOMMENDATION:

Accounts department should keep daily record if deduction takes place.

Should inform as soon as the amount is deducted through mail or post.

Should inform each and every vendor whose deduction is made.

Should keep database of all those vendors whose amount has been deducted which will be also helpful in the times of audits.

Department can inform the entire vendor in the particular week together by informing twice in a week.

SUGGESTED SYSTEM:Here I found out that there is a need to have database and also master of vendor where necessary information can be stored and all those vendors record whose deduction have been made.Suggested system was in ACCESS where in following activity takes place:

Vendor master:First made the vendor master of the vendor and added field like code, name, address, email and all other information related to the vendor. In case where vendor email address or phone number is changed, by editing it will automatically update in the particular vendor list. Also by applying a code in the vendor code we can find out the particular vendor by their code and can make any changes.

Vendor deduction list:Here we have fields like vendor code, invoice material name, bill amount, amount paid, remarks. We can put the information about the deduction made and once entered it will be saved.

Invoice deduction report:This report has been design in the reports in access.In invoice deduction the master table and the deduction table have been linked so that the both information can be merged and viewed in a complete memo with all the information of deduction.

Benefits:

Regular and Standardised system for informing the vendor.

No complain from the side of vendor for not informing about the deduction of amount.

At times of audit it will be easy to show the records of master list of the vendor and deducted vendors.