Chapter 1

Introduction to the study & Industry Profile

1.1 Introduction to the study

An organization study is the study of an organization. It is a wonderful opportunity for

knowing more about the corporate sector. It is a way to explore the practical aspects of the

management theories. The methodology of the project work involved in 10 days which

gives practical knowledge to the intern by observing the activities in the organization.

During the organization study one can gain ideas about the real life phenomena of the

business.

1.1.1 Organization Study – An overview

I have taken this opportunity to do my lab hour’s project on the organizational study in

ZUARI CEMENT LIMITED_YERRAGUNTLA. This company involves in the

production of Cement. This 10 days duration of the lab hour’s project has been an

education process. The organizational study is a very good chance for the intern’s to

expand their learning and skills.

The learning in the organization will starts from:

- Raw material extraction to production then to packaging of material. In this process the

overall departments has been included.

- It also includes the collection of secondary data.

Through this project we can expect the following outcomes:

Practical Knowledge

Skills

1.1.1 Nature & Scope

The nature an organization is to observe the division of work, interrelated activities,

assigning duties to employees, decision process etc.…

1

Scope says about the

1.1.2 Objectives

The following are the objectives formulated to study the organization:

To understand the relation between theory & practices in management sciences.

To gain an insight into the function of manufacturing firm.

To gain knowledge in functional area of management.

To understand the management functions in the firm.

To understand industry and sector with regard to the cement industry.

To apply management models in this study

To gain knowledge & skills required for management professionals

1.1.3 Methodology

The methodology adopted for this study was, through identifying suitable firms

having all functional areas such as production, materials, inspection, finance, h.r

marketing etc.…..

The methodology was to identify the right organization which has the

following criteria:

o It must be a registered company

o The firm must be into a manufacturing of goods

o Firm must have key functions such as marketing, operations,

finance, H.r

o The turnover must be 1 Crore

o The work force should be greeater than 150 employees

Upon selection of firm the intern has work for 10working days covering required

areas as per organizational study guidelines

Data & information were gathered from both primary & secondary data

Primary data through interactions and discussions. Secondary data through

published sources.

The gathered data and information were analyzed subjectively to draw inferences for

the accomplishment of set of objectives

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From among various management models such as porters, balanced scorecard etc….

appropriate models were used in this study for better understanding.

All the data, information & analysis were reported appropriately

1.1.5 Limitations

.

An in depth study of company could not be carried out due to shortage of time.

Due to time constrains the intern was able to collect the data & information, conduct

analysis and report the same to the best of his capability.

1.2 Industry Profile

1.2.1 Global Scenario:-

Innovation & Developments in cement Industry

In generally most of us thought that John Smeaton has invented cement.

But most of us doesn’t know that the cement was invented by Romans. They discovered

that certain volcanic ashes when mixed with lime and water which would create a rock-

like substance. When mixed with gravel and small stones this produced concrete. The

dome of the Pantheon in Rome was made from concrete in 126 A.D.

Later in 1756 by British engineer, John Smeaton made the first modern concrete by adding

pebbles and mixing powered brick into the cement.

Again in 1824, English inventor, Joseph Aspdin invented Portland cement, which has

remained the dominant cement used in concrete production. Joseph Aspdin created the

first true artificial cement by burning ground limestone and clay together. The burning

process changed the chemical properties of the materials and Joseph Aspdin created a

stronger cement than what using plain crushed limestone would produce.

At around 1800 by adding up some chemicals hydraulic cement has been invented

The following OS101 are the top cement manufacturing companies in the world by 2012.

3

Fig : OS101

Rank Company/Group Country Capacity (Mt/yr.) No. of plants

1 Lafarge France 225 166

2 Holcim Switzerland 217 149

3 CNBM China 200 69

4 Anhui Conch China 180 34

5 Heidelberg Cement Germany 118 71

6 Jidong China 100 100

7 CEMEX Mexico 96 61

8 China Resources China 89 16

9 Sinoma China 87 24

10 Shanshui China 84 13

11 Italcementi Italy 74 55

12 Taiwan Cement Taiwan 70 -

13 Votorantim Brazil 57 37

14 CRH Ireland 56 11

15 UltraTech India 53 12

Source : www.globalcement.com

4

Cement Exports by Country:-

Below are the 15 countries that exported the highest dollar value worth of cement during

2014:

1. China $772.4 million (6.5% of total cement exports)

2. Thailand $655.8 million (5.5%)

3. United Arab Emirates $653.7 million (5.5%)

4. Turkey $641.4 million (5.4%)

5. Vietnam $634.1 million (5.3%)

6. Germany $585.6 million (4.9%)

7. Spain $552.5 million (4.6%)

8. Pakistan $516.9 million (4.3%)

9. South Korea $367.2 million (3.1%)

10. Japan $362.4 million (3%)

11. Canada $302.2 million (2.5%)

12. India $289.6 million (2.4%)

13. Greece $281.2 million (2.4%)

14. Portugal $276.2 million (2.3%)

15. United States $267.5 million (2.2%)

Source: Wikipedia

Global cement consumption:

PCA gave some expectations regarding cement consumption in 2015 as follows:

Global cement consumption is expected to grow throughout 2015 and continue throughout

the next year, but at the slower rate than in the past. 

A report released by the Portland Cement Association (PCA) indicates that cement

consumption among developed economies increased by roughly 9.2 million metric tons in

2014, followed by another 9 million ton increase in 2015.

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PCA projects global cement consumption to record sustained growth during 2015-2018,

but at a less robust pace than previously expected. World cement consumption is expected

to grow 2.2 percent in 2015, 3.7 percent in 2016, and remain near 4 percent growth during

2017-2018. World cement consumption grew an estimated 4.6 percent in 2014 from 4.0

billion metric tons in 2013 to 4.3 billion metric tons.

Size of global cement consumption by 2011 & 2016:

Fig : OS102

2011 2016

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Source: www.statica.com

1.2.2 Indian scenario:-

India is the second largest producer of cement in the world. It also helps to provide

employment to more than a million people, directly or indirectly.

CMA:-

(Cement Manufacturers Association)

CMA is the most important apex body of cement manufacturers in India which was

established in 1961.

It is a unique body in as much as it has been both the private & public sector cement

companies as its members.

CMA acts as a bridge between the Indian cement Industry & the Government

Its registered office is in New Delhi, Corporate Office in Noida, Brand offices are in

Mumbai & Hyderabad.

Cement industry growth in India:

Cement demand in India is expected to increase due to government’s push for large

infrastructure projects, leading to 45 million tonnes of cement needed in the next three to

four years.

India's cement demand is expected to reach 550-600 million tonnes per annum by 2025.

The housing sector is the biggest demand driver of cement. Other major consumers of

cement include infrastructure at 13 per cent, commercial construction at 11 per cent and

industrial construction at nine per cent.

To meet the rise in demand, cement companies are expected to add 56 million tonnes

(MT) capacity over the next three years. The cement capacity in India may register a

growth of eight per cent by next year end to 395 MT from the current level of 366 MT. It

may increase further to 421 MT by the end of 2017. The country's per capita consumption

stands at around 190 kg.

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The Indian cement industry is dominated by a few companies. The top 20 cement

companies account for almost 70 per cent of the total cement production of the country. A

total of 188 large cement plants together account for 97 per cent of the total installed

capacity in the country, with 365 small plants account for the rest. Of these large cement

plants, 77 are located in the states of Andhra Pradesh, Rajasthan and Tamil Nadu.

Investments in India:

Fig : OS103

COMPANY INVESTMENT on Worth of RS.

Dalmia Cement LTD Expanding to north east 2000 crore

JSW Group Expanding production

capacity from 5 MTPA to

30 MTPA

2500 crore

UltraTech cement LTD 2 Cement plants in Madhya

Pradesh

5400 crore

Andhra Cements LTD Commercial production

Source:Secondary Data

Indian Cement companies market share in India:

Fig : OS104

8

UltraTech Cement

ACC Ambuja Indian Cements

Zuari Cement

Madras cements

Penna cements

others0%

5%

10%

15%

20%

25%

Cement Market share in Indian Market

Cement Market share in Indian Market

Source: www.statica.com

 Impact of the recent economic crisis on the Indian automobile industry:

CCI has imposed 6316.59 crore cartelization charges as penalty on 11 cement industries

namely:

UltraTech Cement LTD

ACC

Ambuja Cements

Binani Cements

Century Textiles Ltd

India Cements

JK Cements

Lafarge India

Madras Cements9

JP Associates

Shree Cements

1.2.3 Key players in the industry:-

LAFARGE

LAFARGE is a French industrial company specializing in 4 major products of cement,

aggregates, roofing and gypsum. It defines itself as a multi local global firm. Over the past

years it invested heavily in emerging countries. Founded in 1833 by Bruno Lafont.

In 2005, the Group began the construction of nearly 5 million tonnes of additional

production capacity in China, Bangladesh, Mexico, Morocco and Vietnam. These will be

fully operational in 2006. These development investments will increase cement production

capacity by 5 million tonnes by 2008.

HOLOCIM

HOLOCIM is a Swiss-based cement and aggregates (crushed stone, sand and gravel) as

well as further activities such as ready-mix concrete and asphalt including services. The

Group holds majority and minority interests in more than 70 countries on all continents,

and employs some 90,000 people. Holcim has a strong presence in India. Founded in1912.

Holocim says merger with Lafarge in India.

Heidelberg Cement

Founded in 1874. Heidelberg is a German multinational building materials

company headquartered in Heidelberg, Germany.

In 2010 it was the 3rd world largest cement producer.

Heidelberg had acquired ItalCementi Group & it is going to hand over its total stake

approximately by august 2016

Where as In Domestic

Ambuja Cement:-

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Established in 1983

It was formerly known as Gujarat Ambuja Cement LTD. It has an annual capacity to

produce more than 27 million tonnes.

Jaypee Cement:-

Established in 2001

Jaypee cement is a well-known corporate group in the business of power, infrastructure,

construction & highway. It has the annual capacity to manufacture almost 35 MTPA

UltraTech Cement:-

Established in 1987

UltraTech cement is the largest cement producer & exporter which has an annual

capacity of more than 50 million tonnes. It is a flagship company of Aditya Birla Group

Company.

ACC Limited:-

Established in 1936.

It is a part of the world’s leader Holcim group.

1.2.4 PEST analysis:-

POLITICAL

The price of cement is primarily controlled by coal rates, power tariffs, railway tariffs,

freight, royalty & limestone.

Interestingly, government controls all of these prices. Government is also

One of the biggest consumers of the cement in the country.

Most state governments, in order to attract investments in their respective

States, offer fiscal incentives in the form of sales tax exemptions. States like Haryana offer

a freeze on power tariff for 5 years, while Gujarat offers exemption from electric duty.

ECONOMIC

Currently, the industry is on the boom, with a lot of government

infrastructure and housing projects under construction.

In spite of seeing a fall during 2008-09, the export segment of the industry is

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expected to grow again on account of various infrastructure projects that are being taken

up all over the world and numerous outstanding cement plants coming up.

SOCIAL

Usually, the cement industry in India consists of both the organized sector and the

unorganized sector.

Organized sector comprises of the well-known cement manufacturing

companies while the main players of the unorganized sector are the regional and local

cement-producing units in various states across the state.

Indian consumers prefer buying branded cement like ULTRATECH,

JAYPEE CEMENT, DALMIA CEMENT etc. It has been seen in the past, as well, that

mini cement plants with low brand value and image are not able to survive against the

cement giants. With a population of more than 100 billion people, it is expected that

cement industry will create another 25 lakhs jobs in the next 4-5 years.

TECHNOLOGY

From mining to production the entire process depends on technology. The Government

of India plans to study and possibly acquire new technologies from the cement industry of

Japan.

The government is discussing technology transfer in the field of energy conservation

and environment protection to help improve efficiency of the Indian cement industry.

Cement industry has made tremendous strides in technological up-gradation and

assimilation of latest technology. At present 93% of the total capacity in the industry is

based on modern and environment- friendly dry process technology.

1.2.5 Porter’s 5 forces analysis:-

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1. RIVALRY AMONG EXISTING PLAYERS (High)

The Indian cement industry has large number of cement producers thus making it a low

concentration market. The four biggest cement players in the Indian cement industry are:

ACC Cement

AMBUJA Cement

PENNA Cement

DALMIA Cement

The market share of the above- mentioned four companies’ accounts to 39.80% currently.

It is believed that if these four companies do not increase their market share in the coming

years, then their combined share could drop to 34%. The share of mid-large players (like

Shree Cement, Madras Cement, India Cement) will remain about 36%, small players (like

My Home Industries Ltd, Orient, Binani) will hold about 24%, and new players (like

Reliance, Murli Agro, Panyam Cement) will account for 6 of the market With focus on

capacity addition, many small/medium players have been able to capture more market

share and consolidate their position in the industry in the last two years. Market share of

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top five individual companies taken together show a decline to a level of 44.3% in FY09

from46.3% in FY08.

2. THREAT OF NEW ENTRANTS (High)

The existing companies are pushing hard to expand their production capacity to face the

rising competition. With the announcement of the Indian Government in the budget for the

FY2010-2011 to pump in more than Rs.1.73 trillion in infrastructure (Thomson Reuters

Corpora ten. d), the cement industry becomes a very attractive market to enter, thus

increasing the threat of new entrants. Although the investment to set up a cement plant is

huge, still looking at the future opportunities Indian steel and infrastructure giants like

Jindal Steel works and Reliance Group are also eyeing a share in this huge market

(Word Press n. d; Economic Research India Limited2010).

3. THREAT OF SUBSTITUTE PRODUCTS OR SERVICES (Low)

Now-a-days Timber is also being considered as one of the substitutes of cement. In many

countries like Japan, Indonesia, Singapore etc. are now using timber in construction since

those areas are high earthquake affected. They now prefer timber which is cheap and long

lasting for years. But timber cannot be considered, as one of the major substitutes of

cement, therefore cement is one of the main components of any construction. Without

cement, construction work is next to impossible as it provides strength to the building.

4. BARGAINING POWER OF BUYER (Low)

The boom in the infrastructure industry of India has benefitted the cement industry

immensely. In the present day context, cement producers have become more powerful than

buyers. In the current situation, most of the companies are moving into direct marketing,

thus removing middle men. Despite enough competition, due to high institutional demand

of cement, small-time buyers are usually targeted as a secondary market by the cement

companies. Thus, buyers are not left with much bargaining power.

5. BARGAINING POWER OF SUPPLIERS (moderate)

The basic raw materials used in the cement manufacturing process are limestone, 14

sand, shale, clay, and iron ore. The main material, limestone, is usually mined on site

while the other minor materials may or may not be mined there. Since all the raw materials

are natural resources, they are under the Government’s control. Companies have to buy

rights from the government to Set-up the cement plant. So there are no such suppliers in

the cement industry.

Chapter 2: Company Profile

2.1 About the company:-

Zuari Cement is one of the leading cement producers in

South India. A fully owned subsidiary of the Italcementi Group, commitment to customer

satisfaction has seen Zuari Cement grow from a modest 0.5 million tonne capacity in

1995 to above 6MnT in 2013, and earned a place among the most innovative

cement Brands in the country.

Zuari Cement is a part of the Italcementi Group. With an annual production of more

than 60 million tons and 46 cement plants, Italcementi group is the world’s fifth largest

cement producer. Along with the cement plants, Italcementi Group’s industrial network

includes12 grinding centers, 6 trading terminals, 420 concrete batching units combining

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the expertise, know-how and cultures of 22 countries across4 continents. In 2013

the Group reported consolidated revenues of more than 4.2 billion Euros. In India, with its

inherent strengths, Italcementi Group's Zuari Cement is committed to give the building

industry, cement that is truly international.

Italcementi Group is strongly committed to the Indian market and is strengthening its

presence through organic and in-organic expansions. In 2011 the company has reached an

agreement with Zuari Industries for the acquisition of 74% of Gulbarga cement, which is

developing a project of 3 million tons per year, cement plant in North Karnataka. A large

grinding unit with an annual capacity of 0.95 Million Ton Per Annum is located in

Solapur, Maharashtra. Additionally, a 1 million ton bagging unit at Cochin Port Terminal

caters to overseas markets. In two consecutive years, Zuari Cement has been adjudged as

‘OUTSTANDING COMPANY’ in Cement sector, at the Fourth EPC World Awards.

Zuari Cement has also been recognized as a “Power Brand” for two consecutive years in

a survey conducted by ICMR among consumers across India.

They said that their success is because of:

Customer satisfaction which leads to growth.

Strength lies in our people.

Leading in innovation.

2.2 History of the company:-

Milestones of company:

Fig : OS105

Milestones of ZUARI CEMENT

1994 Zuari entered the Cement business to operate the Texmaco Cement Plant

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1995 Texmaco’s Plant at Yerraguntla was taken over by Zuari and a Cement Division was

formed.

2000 Zuari Cement Limited was born, when Zuari Industries entered into a Joint Venture

with the Italcementi Group, the 5th largest producer of Cement in the world

2002 Zuari Cement took over Sri Vishnu Cement Limited

2006 Zuari Cement becomes 100% subsidiary of Italcementi Group

Milestones of Italcementi Group:

Fig :OS106

Milestones of Italcementi Group

1864 Founded

1925 Quoted for 1st time on stock markets at Milan stock exchange under the name of

“Societa Bergamasca per la Fabbricazione del Cemento e della Calce Idraulica”

1927 Operating under the name of Italcementi Group

1992 Takeover of Cement France

1997 consolidated its verticalisation strategy with the acquisition of Calcestruzzi

1998 Acquired new cement works in Bulgaria, Kazakhstan, Thailand, Morocco, India,

Egypt and the United States

2.3 Awards:-

The awards of a company makes the company to stand at outside in the competitive

world.

Fig : OS107

17

Awards secured by the company

YEAR AWARD REASON

2014 Hot 50 Brand Top selling

2013 Outstanding Company For the excellent performance

2013 Power Brand As Most powerful brand consumed by

Indians

2013 ZEE Business Brand For marketing communications

2012 Power Brand As Most powerful brand consumed by

Indians

2.4 Vision & Mission:-

2.5 Values:-

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To be a world class local business building a better and sustainable future for all our stakeholders.

VISION

MISSION

To create value in the building materials sector through the innovative and sustainable use of natural resources for the benefit

of our communities and clients.

19

INTEGRITY

RESPONSIBILITY

INNOVATION EFFICIENCY

DIVERSITY

2.6 SWOT Analysis:-

SWOT analysis is a structured planning method used to evaluate the strengths,

weaknesses, opportunities and threats involved in projects or in a business venture. A

SWOT analysis can be carried out for a product, place, industry or person. It involves

specifying the objective of the business venture or project and identifying the internal and

external factors that are favorable and unfavorable to achieve that objective.

Strengths

Availability of cheap raw materials.

Need of cement & absence of substitutes materials to replace the

cement.

Weakness

High rates of unexpected breakdown & maintenance costs.

High standard operating process.

High transportation & freight costs.

Opportunities

Increase the domestic demands & potential to export the cement.

Technological changes

unstable & sudden changes in political rules & regulations

Economic changes & competition environments.

2.7 Products:-

1. PPC20

Portland Pozzolana Cement (PPC) makes concrete more impermeable, denser as compared

to OPC. The long-term strength of PPC is higher compared to OPC. PPC produces less

heat of hydration and offers greater resistance to the attack of aggressive water than

normal OPC. PPC can be used for all types of construction.

Advantages:

Low heat of hydration.

Reduction in water demand

Resistance to sulphate attack and chloride attack

2. OPC (43&53 grade)

Ordinary Portland cement (OPC) 53 Grade is used in RCC and pre-stressed concrete of

higher grades, cement grouts, instant plugging mortars etc. where initial higher strength is

the criteria.

Advantages:

Speedy construction

Durable concrete

Economic concrete mix designs

3. SRC

Sulphate Resisting Cement

C3A phase is low

4. Primo Concrete Cement

Primo Concrete Cement is a high quality cement prepared from the finest raw material.

Owing to optimum water demand, it contributes to a very low co – efficient of

permeability of the concrete prepared. It is a long lasting residential & commercial

constructions of wide variety such as dams, highways, roads & flyovers.

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2.8

Work Force of the company:-

Though the organization is running with machineries it requires work

force up to some extent.

In Zuari Cements at Yerraguntla the work force on the date of 01 – Jan – 2016 was:

Fig : OS108

Total employees – 331 [152 managing employees & 179 wagable employees]

Contract labour – 1036

Department No. of employees Head

Chapter 3: Organization Design

3.1 Organizational Chart

Fig : OS109

22

PLANT MANAGER

Production manager

Chief chemist

Safety Manager

Maintenance manager

Plant accountant

HR Manager

3.2 Types of organizational structure:

In the above organizational chart we can find different types of structures.

Some of them are:

i)

Line organizational structure

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ii)

Staff organizational structure

iii)

Line & staff organizational structure

iv)

Divisional organizational structure

i.

Line organizational structure:

Has only direct, vertical relationship between different levels in the firm.

Advantages:

We can easily simplify & clarify

Promotes fast decision making

Simple to understand

Disadvantages:

Overloads key persons

Ineffective because of larger line organization

ii.

Staff organizational structure:

An organization where staff department have authority over line personnel in

narrow areas of specialization.

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Disadvantages:

Potential conflicts resulting from violation of principle of unity of command

The tendency to keep authority centralized at higher levels in the organization.

iii.

Line & staff organizational structure:

Most large organizations belong to this type of organizational structure. These

organizations have direct, vertical relationships between different levels and also

specialists responsible for advising and assisting line managers. Such organizations have

both line and staff departments. Staff departments provide line people with advice and

assistance in specialized areas.

Advantages:

Even through a line and staff structure allows higher flexibility and specialization it may

create conflict between line and staff personnel.

Line managers may not like staff personnel telling them what to do and how to do it even

though they recognize the specialists’ knowledge and expertise.

Some staff people have difficulty adjusting to the role, especially when line managers are

reluctant to accept advice.

Staff people may resent their lack of authority and this may cause line and staff conflict.

Disadvantages:25

Conflict between line and staff may still arise.

Staff officers may resent their lack of authority.

Co-ordination between line and staff may become difficult.

iv.

Divisional organizational structure:

In this type of structure, the organization can have different basis on which

departments are formed.

Chapter - 4: Business Level Functions

ZUARI CEMENT at Yerraguntla has various departments which helps the plant to

become successful in the competitive world.

The departments are:

P& A

Mines

26

Operations

Cement mill end packing plant

Quality control

Mechanical

Civil

S & D

Purchase

Stores

Finance

I.T

Safety

27

4.1 Introduction, functions & procedures of various departments

4.1.1 P& A Department:-

Introduction

Personal & Administration Department looks at administrative related

matters. Which helps the organization to run smoothly by restricting 3rd person entry in to

the company.

Some functions of P&A department are

Work force wealth

Training to employees - SAP, EXCEL, Communication Skills, Safety

Permissions to the employees

Preparing of I.D cards to employees

Giving training to the students for their respective project work

Solving employees issues

Ascertaining of roles to various departments

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Looking at CSR activities.

Tax returns on behalf of employees

Public relations

In accordance with these they have different types of responsibilities of

like Public relations

Employee welfare management

Security management

Employees transportation management

House keeping management

Contract labour management

Procedure of P&A department (Fig :OS110)

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Department Head

C.Venketeshwar rao

Manager employees

14 members

sr.manager

D.Sri ram

4.1.2 Mines department:-

It plays a crucial role in the cement factory.

As to prepare a cement we require 95% of lime stone which is available through mines.

Functions:

Extraction of limestone

30

How to reduce the eradicating cost

Pollution control measures at mines location

How to use different layers of limestone in the mines

Procedure of Mines department (Fig : OS111)

4.1.3 Operations &quality control Department:-

31

G.MK.V.S.Sharma

D.G.M

Manager

Employees 611

In operations it produces the cement by using different raw mills

Quality checking at the time gap of 1 hour.

Use of industrial engineering

Use of computers and data operating equipment

Functions:

Producing of required cement whether to produce PPC or OPC etc... by using fly ash,

gypsum

Quality checking at regular intervals based on required cement quality

Adjusting of chemicals

Job design and process design

Equipment selection and replacement

Using of wastage in the place of coal

Applying new techniques to produce cement

Quality control

Production Department Principle

“To Achieve ZERO Defects”

Procedure of operations & quality control ( Fig :OS112)

32

Production map of cement (Fig : OS113)

SILO

MOVING BELT

33

Department head

J.Vishwanath (operations)

Suresh

(q.c)

manager

Employees(43)

Chemist Employees (21)

Limestone 95%

Bauxite 2.5%Iron ore 2.5%

Raw mill

Stock point

200*

600*

400*

inlet

outlet

process

4.1.4 Cement mill end packaging plant:-

Packing of cement with the respective quantity required

Packing based on the quality of cement

Functions:

Packaging with respective quality according to the based on product

Procedure of cement mill end packaging plant ( Fig : OS114)

34

800*

1200

1450

1800

Coal

Stock point

Clinker gypsum Cement mill

Department head

Linga reddy

Sr.manager

4.1.5 Mechanical & Electrical department:-

Helps to the organization through servicing to the organization

Service is an intangible

Functions:

Giving of service at the time of machine breakdowns

Installation of machineries

Solving issues regarding new machineries35

Limestone crushing

Raw material grinding

Coal grinding

Procedure of Mechanical & Electrical department (Fig :OS115)

4.1.6 Civil department:-

36

Department head

p.s.murthy

Sr.manager

Manager

Mechanical employees

80 Electrical employees

23

Looks at construction roles inside the organization like constructing of roads, buildings,

etc.…

Procedure of civil department doesn’t have more significance in the organization

comparing to other departments.

The procedure is:

Department head – Shiva Prakash

2 Employees

4.1.7 Marketing and Logistics department:-

Product demonstration.

Product launching in all towns, villages, cities by paper, telephone,

emails.

Customer satisfaction.

Quality management (monitoring).

Feedback from all dealers & customers.

Dealing with marketing fluctuations.

Checking of demand and supply requirement

Commitment with cement manufacturing association.

Zuari cement_Yerraguntla doesn’t have proper access on Marketing and logistics

department

Procedure of marketing and logistics department (Fig : OS116)37

4.1.8 Finance department:-

Preparing of company financial statements38

Senior Manager

General Manager

employees (logistic - 3)

Manager

K.S.N.V.Raju

Employees(5)

Preparing tax returns

Financial decisions

Functions:

Preparing department wise budget details.

Checking work orders (Department wise).

Cross checking of invoice challans (Item & department wise).

Daily revenue cash flow.

Preparing of records according to Indian Accounting Standards

Creditors bills passing

Maintaining of Accounting records through SAP

Procedure of Finance department (Fig OS117)

39

Department headKrishna Murthy

Sr.Manager

Employees (11)

Sr.Officer passing bills

4.1.9 Stores department:-

The basic responsibilities of stores are to act as custodian and

controlling agent for parts, supplies and materials and to provide service

to users of those goods.

Like…… receiving bay, custody, issue.

Functions

Stock matching

Material receipt

Inspection

Materials issued

If any defects- sending back materials to the vendor through purchase

department

Procedure of stores department (Fig :OS118)

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Store superintended

Kasinath

Store supervisor

Employees(7)

4.1.10 Information Technology department:-

In Zuari Cement_yerraguntla I.T department doesn’t play the important role

comparing to other departments

Functions are:

Maintaining of I.T security

SAP maintenance

Maintaining of “i.like” web

Only one employee is looking at whole operations of I.T department

“Bramhanandam Reddy”

4.1.11 Environment Department:-

We all know that the cement industry is almost located at near limestone mines

where the limestone extraction is done by the company for the purpose of manufacturing

cement, by this extraction the environment will be spoiled so the company has to take

some measures to control the environment.

The company took one of the most appropriate measure that

growing plants & trees at the location of mines which makes to reduce the pollution

The total environment department aspects will be controlled by Madhava Reddy.

4.1.12 Safety Department:-

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In any manufacturing company employee safety is the main importance. At Zuari

Cement_Yerraguntla Safety measures has the main importance for the employees. They

also installed some employee’s safety rewards which makes the employees to follow the

safety rules perfectly.

The safety department roles at Zuari Cement_Yerraguntla will be handled by 2

employees namely:

Kishore

Ananda Raju

4.1.13 Purchases Department:-

Purchase department plays the role of not only purchasing of raw material for

production process but also to purchases based on the requirements mentioned by the

respective department.

Process of purchasing:-

Company will pose some qualities what they require from vendors

Then after the vendors will initiate the amount at what price they are willing to sell their

product

The vendor will be selected based on the requirements of the company who initiated the

reasonable amount

Then after the company will enter into the agreement with the vendor with some terms &

conditions.

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Purchasing process inside the organization:-

Fig : OS119

(If the goods are non-defective and in accordance to requirements)

4.2

CSR Activities:-

Zuari Cement_Yerraguntla is manufacturing cement by using the resources

located at the premises of the factory. So they were implemented some CSR activities in

the organization based on the policy of whatever we got from has to give back to society.

The CSR Activities are:

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Respective department

With requirement

note & permissions

Purchase department

(Process of purchasing)

)

P.D Communicating

vendor’s specializations with respective

department

P.D communicating with vendors on

behalf of respective department

Receiving of goods from vendor

Inspection of respective goods by respective

goods

Accepted

Otherwise rejected

Candle making

Agarbathi making

Stitching

Local community development

Yearly donations to old age homes

They are using the wastage for heating along with coal to prepare cement

4.3 Enterprise level Initiatives:-

Enterprise level initiatives are certain specific efforts taken by firm in line

with its business. The efforts are taken with an objective of enhancing

effectiveness, efficiency and economy in operation of the unit . It is also

believed to enhance quality of products and services, facilitate continual

improvement in the processes and then lead to customer satisfaction and

delight.

Some of the enterprise level initiatives are Six Sigma, ERP, JIT, CRM,

Logistics & SCM and Shared Service Centres.

ERP

ERP system is extensively used for flow of information to various

departments and also e-mails and link communication is used for

communicating between the employees and everyday accountability

meeting gets conducted at all the levels which would speak about all the

key result areas.

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CRM

This is a separate wing which pulls the data from CRM modules which

would have taken feedback from various customers and also individual

survey would be sent after sales and also if any missed sales the data

received would get categorized into product, price, people, organization

categories and specific remedial measures are taken.

Supply Chain Management

Supply Chain Management entails managing the flow of goods and

information through a production or distribution network to ensure that the

right goods are delivered to the right place in the right quantity at the right

time.

It encompasses a wide range of activit ies such as capacity

expansion, make/buy decisions, production, procurement and logistics.

Operational activities such as operations scheduling, batch sizing and issue

of purchase orders.

Logistics

Logistics management is the part of supply chain management that plans,

implements and controls the efficient, effective and reverse flow and

storage of goods, services and related information between the point of

origin and point of consumption in order to meet customer’s requirements.

It includes inbound and outbound transportation management,

fleet management, warehousing, materials handling, order fulfi lment,

logistics network design, inventory management, supply/demand planning.

Logistics management process begins with raw material

accumulation to the final stage of delivering goods to the destination.

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There are some issues like deliveries that fail or damage of goods etc. will

have impact on the buyers. So organization focuses on the best logistics

management practices.

Good collaboration among transportation providers, buyers and

vendors helps reduces expenses and also efficient and safe transportation

provider is vital to business success.

Just-in-time

JIT production which eliminates the waste associated with time, labour and

storage space. On the basis of concept that the company produces only

what is needed, when it is needed and in the quantity that is needed. The

company produces only what the customer requests, to actual orders.

The JIT production process means inventory levels are kept

to a minimum. A low inventory figure on the balance sheet means a higher

inventory turnover ratio, making the company look more efficient.

Advantages of JIT

It keeps stock holding costs to a bare minimum.

It eliminates waste as out-of-date or expired products.

Less working capital is required and minimum re-order level is set.

High quality products and greater efficiency can be derived from following

JIT manufacturing system.

Constant communication with the customer results in high customer

satisfaction.

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Overproduction is eliminated when JIT manufacturing is adopted.

Disadvantages of JIT

There is a high reliance on suppliers whose performance is generally

outside the purview of the manufacturer.

The organization would not be able to meet an unexpected increase on

orders due to the fact that there are no excess finished goods.

Transaction costs would be relatively high as frequent transactions would

be made.

Shared Service Centres

A centre for shared services in an organization is the entity responsible for

the execution and the handling of specific operational tasks such as

accounting, human resources, payroll, IT, legal, compliance, purchasing

and security. There are some benefits of shared services:

Increased Efficiency/Reduced Costs

Gaining economies of scale as well as opportunity to locate the operation

in a low cost to reduce staff and infrastructure costs.

Improved levels of service

It is a key outcome of a shared service approach, centralizing key

operations allows you to adopt best practices in delivering services.

Increased Professionalization

Specialist services give a better opportunity to focus on training and skills

deployed in their delivery which can be overlooked when they were

dispersed around the organization.

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Six Sigma

Six sigma means a measure of quality that strives for near perfection. Six

sigma is disciplined, data driven approach and methodology for eliminating

defects in any process.

DFSS Methodology

DFSS is a separate and emerging discipline related to six sigma quality

processes. This is a systematic methodology util izing tools, training and

measurements to design products and processes that meet customer

expectations.

DMAIC model has been developed within Six-Sigma. DMAIC stands for Define,

Measure, analyze, Improve and Control. It is a five steps procedure to improve process

performance.

This model can be applied to both sub-processes requiring small changes or the whole

process makeover.

1.

Define:

- Investigate the point of view of supplier and customers.

- Identify the customers and their requirements

- Identify the critical factors that have the most impact on supply chain performanc

2.

Measure:

- Measure current process.

- Measure and validate the current processes

- Identify the factors that influence on processes and measure the defects Relative to those

processes

3.

Analyze:

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- Analyze contributors to poor performance and variation.

- Determine the critical causes of defects

- Identify the key variable to understand defects that cause process variation.

4.

Improve:

- Define, test and validate the improvements.

- Remove the causes of defects

- Modify the existing process to provide a better performance

5.

Control:

- Ensure that changes are successful.

- Ensure the success keys working through the modified process

- Determine the processes maintain continuous improvement

5.1 FINDINGS:

1.

Latest technology (Italy) has been used.

2.

Maintaining of i.like web.

3.

Working with online system each and every employee.

4.

Limestone mineral conservation for future generation.

5.

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Chapter 5: Findings & conclusion

Maintaining capable staff.

6.

Good infrastructure.

7.

Nice road facility to staff from city to industry.

8.

Security systems are very good.

9.

Medical facility is available and emergency equipment acts greatly.

10.

Free transportation facilities and meals for employees are running good.

11.

Safety measures

12.

The layout of the production department is effective for good amount of

production and avoids unnecessary movement on site. Inventory conversion

period was increased, it proved that the organization had concentration on

introduction of sophisticated technology for production.

13.

The working staff maintained a good relation between them.

14.

The location of departments is in such a way that there is an easy movement

of goods from each department.

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5.2 Conclusion:

The conclusion that can be drawn from the study is that ZUARI Cement industry is in

India it was growing at high rate in recent years. The main threat to industry is

competitors. The technology using in cement manufacturing is very unique and getting

from Italy.

Staff recruiting is very confidential. Relation with workers is very interactive. Salary

payable is very innovative. It also enhances the personality traits of the trainee

such as communication, presentation, interviewing, observations, report

writing. There is the further scope for in depth study in the same firm

5.3

Recommendations:-

The Finance department is maintaining the records only in soft copy. It

will be better to the company that if it maintain the records not only in soft

copy but also through hard copy

The company is doing mainly exporting of cement rather than selling in the

local market. By using proper statistics it can develop the local market

also.

The present production capacity of the firm is efficient but it will interrupt

the firm at certain point. So i t have to increase the capacity

The raw material used to prepare cement is limestone, bauxite, Iron ore.

o

Limestone is their own mines

o

Bauxite is getting from the location which is near to the plant

o

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Iron ore is getting from Vizag steel plant at free of cost but st ill it was

becoming high cost because of transport . So the firm has to take some

remedies.

The operations and everything was running fluently but stil l the firm have

to do some research on all aspects to survive in the competit ive world.

BIBLOGRAPHY:

Primary data by visiting the plant

Secondary data collected inside the firm

By referring company website & previous records

http://www.yourarticlelibrary.com/organization/8-types-of-organisational-

structures-their-advantages-and-disadvantages/22143/

By using Global cement consumption website

Economic Times

Ndtv profit.com

wikipedia

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