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CII Guardian Organization Study

The document discusses the relay industry. Some key points: 1) Relays are electromechanical switches that open and close circuits under electromagnetic conditions and are used when a low power circuit needs to connect to a higher power circuit. 2) The global relay market faces challenges like excess capacity and rising costs, pushing some manufacturers to automate. Meanwhile, solid state relays are gaining acceptance due to improved efficiency. 3) In India, relay manufacturers supply the domestic and defense industries. Electronic relays are becoming more sensitive due to advances in other electronics like faster processors and smaller components.

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0% found this document useful (0 votes)
988 views

CII Guardian Organization Study

The document discusses the relay industry. Some key points: 1) Relays are electromechanical switches that open and close circuits under electromagnetic conditions and are used when a low power circuit needs to connect to a higher power circuit. 2) The global relay market faces challenges like excess capacity and rising costs, pushing some manufacturers to automate. Meanwhile, solid state relays are gaining acceptance due to improved efficiency. 3) In India, relay manufacturers supply the domestic and defense industries. Electronic relays are becoming more sensitive due to advances in other electronics like faster processors and smaller components.

Uploaded by

Sujith T John
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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1

CHAPTER I

1.1. INTRODUCTION
Today the world growing very fast, the change is unpredictable. The past decades have witnessed a paradigm shift in business. The number of competitor is increased today. In order to face tight competition, the companies need to re-structure their functions. Now the taste and preference of a customer is totally changed, they are more change seeking and value conscious. So it is necessary to a marketing professional to keen insight into the customer taste, preference, and attitude and value expectations. One of the fastest growing industries in the world today is the electromechanical industry. It fulfills an essential infrastructure need of economic development sector and plays a very important role in growth of an industry. Relays are invented in 1835, these are effective device that operate as an electronic switch, opening and closing under the electromagnetic conditions. Relays are used in electronics that have a low voltage power source but require higher voltage to turn them on and operate. Relays are used in commercial aircraft, networking, communication device, medical equipment like heart defibrillator, traffic signals etc. Its application is unlimited. The company Guardian Controls limited is a joint venture of Guardian Controls Ltd. And TYCO electronics in U.S.A, formerly CII Technologies U.S.A world leader in high performance relays. Over the past five years TYCO Electronics has kept place by rapidly growing to become the worlds largest passive component manufactures. In 1996 CII technologies were the world leaders in high performance switching technologies

1.2. SCOPE OF THE STUY


The present study was conducted at CIIG. The study was done to familiarize with different management activities. Hence, the study can also be used to know the functional aspects of the departments of CIIG.

1.3. OBJECTIVE OF THE STUDY


To get familiarize with different management aspects. To get idea about the organization To study the functional aspects of various departments of CIIG To observe workers at their work place and to interact with them To find out the competitors of the company To identify the hierarchical structure followed by CIIG

1.4. REASON FOR SELECTING THE COMPANY


The reason for selecting the CII Guardian International Ltd. is that, they are the largest supplier of automotive, test equipments, power electronics to other industries. Also the company is a joint venture with TYCO electronics in USA.

1.5. STUDY PLAN


The total time of organization study was four weeks. The study starts by collecting data from the organization. I was spent two week in the organization. The first week I was engage in collecting data through direct observation of the functioning of organization and clear watch in companys record and files. The second week I visit each department head, and collect information from them. The last two week I used to processing the collected data and recording it in the form of a .proper report

1.6. METHODOLOGY
Research methodology is the study of research method and rules for doing research work and it is a way to solve systematically the research problems. The methodology used in study involves the collection of primary as well as secondary data. Primary data It is essentially designed to fulfill the data needs of the problem in hand. The primary data were obtained by observation and direct interview with some executives and managers of the company. The persons for interview are selected through simple random sampling. Secondary data The secondary sources of data were collected through files, text books, profile of the company, journals, training report etc. The internal and external sources of data are used as secondary source. This secondary data mainly helped to understand the organization.

1.7. LIMITATION OF THE STUDY


1. There were difficulties in obtaining data from executives and managers due to their busy work schedule. 2. An in- depth study of the company could not be carried out due to shortage of time. 3. The reliability of data used for study is largely depends upon the companies reports and the information given by executives. 4. The company has the limitation to disclose their financial details, so a detailed analysis of financial performance of the company is not possible.

1.8. CHAPTER SCHEME


The present study is arranged in six chapters. The first chapter discloses a brief introduction, scope and objective of the study, reason for selecting the company, study plan, methodology, and limitation of the study and chapter scheme. The second chapter involves the industry profile, world scenario, Indian scenario, and state scenario of relays. The third chapter show details regarding the company profile, objective of the company, history& philosophy, organization structure and different phase of development. The forth chapter describes each departmental details, structure of each department and functions of each department. The fifth chapter shows the SWOT analysis, observation and suggestion of the study.

CHAPTER - II

2.1 INDUSTRY PROFILE


Relays are invented in 1835. Relays are simple yet effective device that operate as an electrical switch, opening and closing under electromagnetic conditions. Relays were used for electronics that have a low voltage power source but require higher voltage to turn on and operate i.e. when a circuit of low power needs to be converted into a circuit of higher power. In some instance, the reverse is true. Relay is an electromechanical device that is electrically controlled to interrupt the input conditions in a prescribed means by the relative movement of mechanical elements under the action of a current in the input circuits. Relays are manufactured in India for domestic and general purpose. Domestic purpose relays are manufactured at DUETSHE INDIA Ltd, Bangalore. These relays are used for communication and for aviation. High performance relays are used in aviation, telecommunication for testing equipments and in defense.

A relay is an electrically operated switch. Many relays use an electromagnet to operate a switching mechanism mechanically, but other operating principles are also used. Relays are used where it is necessary to control a circuit by a low-power signal (with complete electrical isolation between control and controlled circuits), or where several circuits must be controlled by one signal. The first relays were used in long distance telegraph circuits, repeating the signal coming in from one circuit and retransmitting it to another. Relays were used extensively in telephone exchanges and early computers to perform logical operations

2.2 WORLD SCENARIO


Relay manufacturers are struggling to meet growth projections as they face capacity utilization challenges due to falling demand from various end-user industries. In addition, manufacturers left with excess capacities are hesitant to invest in new

8 equipment. Small and mid-sized manufacturers, in particular, are expected to feel the impact of this challenge due to the competition posed by larger manufacturers possessing state-of-the-art infrastructure. The cost of consumables, replacement of machine parts, labor wages, defect trends, and the increased process yield requirements are driving the small and mid-sized manufacturers to adopt automated manufacturing processes in order to increase turnaround time and profitability. Improved SSRs Finding Acceptance in New Applications "Reed relays and EMRs( electromechanical relays) are facing increasing competition from the growing SSR(solid state relays) technology that is increasing in market share due to improved efficiency," says the analyst. "Awareness regarding its increased efficiency, smaller size, longer lifecycle, and reducing prices encourage design engineers to use SSRs in a variety of applications." SSRs offer higher switching speeds and also operate on less voltage, and are being seriously considered for next-generation computing and telecommunications applications. Applications in the automotives industry is also an opportunity for the SSR manufacturers as all leading automobile manufacturers are competing with each other to load more electronics into their automotives. The automotive industry offers harsh and humid environments and requires high reliability relays, which SSR manufacturers are ready to provide. Global positioning systems (GPS), in-vehicle entertainment systems, security devices, and driver assisting systems (DAS) among other applications are expected to become significant revenue generators for the relay market. Strengthening Customer Relationships Will be Key for Future Success Understanding that satisfied customers are inextricably linked with profitability, manufacturers of relays world over are striving to become more customer oriented in their approach. The relay manufacturers that keep abreast with the technological advancements and also understand the changing requirements of their customers are projected to generate greater revenues in the future. Consistent high quality service and reliability are likely to play a key role in retaining customers. Though currently most of the growth opportunities for relays are in the test

9 equipment and security markets, manufacturers are also focusing on end-user industries, such as the industrial, medical, transportation, defense, and consumer electronics. However, meeting the demand for reduced switching times and increased efficiency is expected to be challenging for manufacturers. .

2.3 INDIAN SCENARIO


With the ongoing development of electronic components with faster processors, bigger memories, smaller components and decreasing power consumption protection relays will also become more sensitive to its environment compared to the electromechanical relays in the past. Electronic circuits may be influenced by temperature and may be disturbed by continues and transient electromagnetic phenomena. During normal operation and maintenance protection relays will be subjected to continues and transient electromagnetic phenomena; radio frequency transmitters may be in the neighborhood, a maintenance engineer can be electrostatic charged and will use his mobile phone. Switching operations of disconnections and circuit breakers produce oscillatory waves and fast transients in the power and signal cables. Lightning strikes cause surges in the primary and secondary installations. In Indian scenario also strengthening the customer relation is a key factor. The total production of Electronic equipments in the control, instrumentation and industrial sectors during 2004-05 was Rs 8,300 core as compared to Rs 6,100 core during the year 2003-04. The control, instrumentation and industrial Electronics sector of the Electronics industry play a vital role in the modernization through instrumentation and automation in Indias manufacturing, public utility services and infrastructure sector. As the automation process in the major manufacturing industries like petrochemical, cement, textile, steel, fertilizers, chemicals and manufacturing sectors are likely to increase in the coming years there will be increase in the demand for more process control instruments and equipments. This will have direct impact on the demand for products like Electronic counters and as such the demand for Electronic counters are

10 bound to grow e tin the coming years. Hence there is enough potential for more number of units in this line.

2.4 STATE SCENARIO


The development of relay all over in a very short time, demands on the power system grid increased as generators grew in size and capacity. This resulted in higher voltages to transport the power farther away from the source to serve ever expanding and more complex loads over the world and Indian scenario affect the state scenario. .

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CHAPTER III

12

3.1 COMPANY PROFILE


It was in 1985, Guardian International limited was started as a joint venture between Guardian control limited and CII technology in USA (Communication Instrument Inc.). Initiation of the company was done by the establishment of Guardian control limited in the year 1985, which in 1995 merged with M/S communications instruments incorporated, USA. CIIG is a joint venture with TYCO electronics, where in the management, labor, land is till a part of CIIG where as the other manufacturing assets are completely owned and given by TYCO products. Serve a diverse market including communications, defense, aerospace, medical, industrial commercial and general purpose, applications etc. The CII Guardian International limited entered the electromechanical industry, settled very fast in Cochin Special Economic Zone, Cochin. The company mainly manufactures high performance relays are hermetically sealed device ideally switched for demanding environmental conditions. These relays are backfilled with inert gases and utilize glass to metal sealing technology. The manufacturing facilities at Thodupuzha, in the suburbs of Cochin have more than 300 employees and a team of experienced engineers and technical person. Ministry of science and technology, Govt. of India recognize research and development facility of Guardian International Ltd. as the largest supplier of automotive, test equipments, power electronics, households appliance and other industries. Manufacturing facility is spread over 35,000 square feet, with environmental controlled assembled area. Guardian has its own tool room and fabrication room. Delays are inspected for all operating parameters and random samples are tested in the test laboratory.

13

Mission and vision Mission Guardian group is committed to provide quality products and services through innovation, employee participation and process improvement. Vision To ensure customer satisfaction by delivering products on time, every time defect free at competitive prices. ISO- some importance concepts Today ISO 9001 certification is becoming almost essential for Indian business houses to export their products. One of the requirements of ISO standard is an effective management representative who would be responsible for effective documentation, implementation and coordination of all major activities. The ISO certification is applied to quality management system encompassing quality in all functions such as marketing, design, purchase, assembly, testing, packing, shipping, installation, after sale service and all other activities of an organization. ISO certification is the mechanism by which customers have confidence in a company and is most effective when carried out by a national certification body. Awards 1. 1997- Guardian International Limited was certified ISO 9001-2000 by KPMG for manufacturing and marketing of electromechanical relays under the American National Standard institute society for quality control. 2. 1991- c-dot. Approved the telecom grade miniature PCB relay developed by in house R&D efforts. 3. 1992- The government of India recognized the research and development of Guardian group.

14 4. For the performance and test approval under the provision of JSS 50102, awarded by the ministry of defense, Government if India Products The company is largely producing electromechanical relays. They produce high performance low power relays that are hermetically sealed device. Production facility at CIIG manufactures three types of relays. The special features of these relays are that they are MIL. qualified hermetically sealed relays. Type and application of relays 1. Tyco. To-5 Relays 2. Crystal can relays defense application aviation media level switching aviation testing equipments communication network

3. Kilovac Used in biomedical instruments 4. General purpose relays applications traffic signals signaling device

3.2 OBJECTIVE OF THE COMPANY


1. Customer satisfaction by minimizing customer complaints and sales return (limit customer compliments quarter to less than 3).

15 2. On time delivery with significantly reduced lead time (achieve an overall yield rating of 95%) 3. To increase productivity (turnover / men days) by 10%. 4. Provide reasonable opportunities for employees to participate effectively in improvement activities (introduction of policies, practice or welfare measures to increase employee participation). 5. Overall yield improvement by reducing process rejections (achieve an overall yield rating of greater than 97%).

3.3 HISTORY & PHILOSOPHY


The Guardian Controls ltd. the first company of guardian group of companies was founded by Mr. P.K.KOSHY in 1985 and is located in the lush green village Thodupuzha in the suburbs of Cochin. Guardian Controls Ltd. went into commercial production in 1989. GCL has a wide range of products covering almost the entire gamut of applications. Guardian relays play a vital role in the telephone switching system by its fast and reliable operation. The technology used in relay production is the CII technology in USA. The company guardian controls ltd. at first collaborated with CII technology in USA. However, later the industrial giant Tyco acquired that technology from USA and Guardian Controls Ltd. became a joint venture with Tyco electronics since 2002. Over past five years, Tyco electronics has kept place rapidly growing to become the worlds largest passive components manufacturer, based on the internet technology leadership of AMP products. Tyco electronics has added a full complement of leading component branch including RAYCHEM, ELCON, P and B, and MIA.COM. In 1993, the company pay first dividend to shareholders.

16

17

3.5 DIFFERENT PHASE OF DEVELOPMENT


Today the company stands with a good goodwill; this is done through different development stages. 1985- The company was established in technical collaboration with STC components ltd. UK 1986- The memorandum of understanding was signed with Kerala State Industrial Development Corporation (KSIDC). 1989- Padmasree Paul Pothan, Chairman laid the foundation stone of the company. 1989- The commercial production was commenced on November 1. 1991- C-DOT approved the Telecom Grade miniature PCB relay developed by in house R&D efforts. 1992- The Government of India recognized the R&D of Guardian Controls on December 2 1993- First dividend to shareholders. 1996- Joint venture agreement signed with CII Technologies USA on January 1. 1996- Trial production at CIIG facility at CSEZ, Cochin. 1997- GCL was certified ISO 9001:2000 by KPMG (now Intertek) for manufacturing and marketing electromechanical relays under the American National Standard Institution, Society for quality control. 2000- ISO 9001:2000 certifications was awarded to CIIG on April 7 by KPMG for manufacturing and marketing electromechanical relays under the American National Standard Institute. 2002- Acquisition of CII technology by Tyco Electronics USA. 2003- DSCC (Defense Supply Center, Columbus) approved for CIIG. 2008- ISO 9001-2008

18

CHAPTER - IV

19

4.1 PRODUCTION DEPARTMENT


Production department manufactures different types of relays according to the mil standard as per the production order. Manufacturing department receiving the piece parts from stores and assembles to finished products.

4.1.1 Structure of production department

Figure 4.1 Production manager

Assistant Engineer

Assistant Engineer

Supervisor

Supervisor

20

4.1.2 Functions of production department


The function production department is to produce the goods, i.e. convert input into useful output. The different types of relays manufactured are coil winding, kilovac, 136relays, To-5 relay, minigrid relays and crystal can relay.

Coil Winding
The systematic procedure of coil winding is given below, 1. coil winding 2. coil taping 3. coil stripping 4. Lead wire & jumper welding 5. Coil finishing 6. Encapsulation (coil moulding) 7. Pull test 8. Preflashing & lead trimming 9. Coil loading 10. Hipot test 11. Printing &baking 12. Visual & resistance checking 13. QA inspection

Each station has maintained a machine set up log/ machine operation log. Fixture record % O/S flow of work to be done based on flow chart & route card.

21

KILOVAC RELAY
Main types of kilovac relays manufactured in CIIG are A type & B type. A type means single pole single throw normally open and B type means single pole single throw normally closed. The main use of these relays is in medical equipments. Coil core, assembly, armature, epoxy, cover, accurator spring, contact assembly labels are the main parts of kilovac relays. Each work station has maintained a machine operation log, fixture, record & OIS (operator instruction sheet). Work to be done as per the flow chart and route card. The systematic procedure of manufacturing kilovac as per the route card is as follows; Station 1 Station 2 Station 3 Station 4 Station 5 Station6 Station 7 Station 8 Station 9 Station 10 Station 11 Station12 Station 13 Station14 - Coil resistant checking, Hi-pot test Actuator assembly, baking - Relay adjust - Relay cycling - High voltage test -- processing of relays and baking of relays - Electrical testing - Welding - Date code printing, baking - High voltage test-- baking and processing - Hipot voltage testbaking and processing - Electrical testing - Relay cleaning - Visual and mechanical inspection relay, labeling - QA inspection - packing

136-Relay
The 136 relay manufacturing process are; 1. coil winding 2. Coil taping

22 3. Trimming and taping

4. Taping and resistance checking


5. Shim cutting 6. Core assembly 7. Core / Coil / frame assembly 8. Armature assembly 9. Motor assembly 10. Adjust armature 11. Contact stacking 12. Stationary contact stacking 13. Pile up assembly 14. Pile up to motor assembly 15. Soldering 16. Clean flux 17. Adjust relay 18. Date and ID code printing 19. Cover fixing 20. Electrical inspection 21. Dielectric inspection 22. Visual inspection and packing

To -5 Relay( Transistor outline -5)


To-5 relays are high performance and high reliability hermetic sealed relays which is mainly used for communication networks, aviation purpose etc. To-5 relay parts have mainly two parts, header assembly and motor assembly. In it work in progress is controlled with a route sheet. The quality produced, date, operator number must be filled in route card before parts are moved to the next station. The operator has to check whether the previous operator has completed and signed of the route card.

23 Header assembly 1. Trimming 2. Forming 3. Stationary contact welding 4. Shearing 5. Movable contact welding 6. Return spring welding 7. Backstop welding 8. Header adjustment Motor assembly 1. Armature / actuator assembly 2. Core / armature 3. Lower support welding 4. Motor assembly welding 5. Assembling & peen armature / Core assembly to motor 6. Resistance testing & welding motor to header 7. Coil lead welding To-5 Relays are also available with internal diode for coil transient suppressor.

Mini Grid relays


Mini grid relays are same like To-5 relay, which is only change in the design. These relays are hermetically sealed with a welded enclosure to perform reliably in the most severe operating conditions. These relays have two major parts i.e. header assembly and motor assembly.

24 Header assembly 1. Trimming 2. Stationary contact welding 3. Sub- assembly welding 4. Return spring welding 5. Welding the sub assembly to the header 6. Back stop welding 7. Header adjust Motor assembly 1. Armature 2. Armature / Core assembly 3. Lower support welding 4. Weld motor assembly 5. Assembly & Peen Armature 6. Weld motor to header 7. Weld coil lead

Crystal Can Relay


The main use of this relay is defense application, aviation medium level switching etc. manufacturing process of crystal can relay can be divided into two; header assembly and motor assembly. Header assembly 1. Assembly & brazing the make break and assemble spring and header. 2. Vapors degreasing with a solvent, named hydro chloro fluro carbon. 3. Pre-adjusting the header spring position and its alignment. 4. Adjust header 5. Vapor degreasing. 6. Ultrasonic wash.

25

Motor assembly 1. Staking the first pole piece to core. 2. Staking second pole piece. 3. Hipot and coil resistance checking. 4. Assembling & welding motors. 5. Assembly motor to frame. 6. Frame welding. 7. Weld header and motor assembly. 8. Coil lead welding. 9. Short pole piece welding to frame. 10. Long pole piece welding to frame. 11. Anti-vi assembly to relay. 12. Final adjustment. 13. Calibration using VASAVIATE.

4.2

HUMAN RESOURCE DEPARTMENT

HR department is the most important department in a business concern. Proper management of human resource is very essential.

4.2.1 Structure of HR department

26

Figure 4.2 Executive HR

JR. Executive

HR Assistant 4.2.2 Functions of HR department


Basic functions 1. Recruitment 2. Manpower planning. 3. Welfare functions. 4. Grievance handling. 5. Discipline. 6. Industrial relations. 7. Job descriptions. 8. Training. 9. Performance appraisal. Statutory functions 1. Factory license renewal 2. Companies holydays calendar making 3. Labor welfare fund 4. Professional tax to Panchayat 5. Taxes to SEZ

HR Assistant

27 6. Kerala State Pollution Control Board Certificate 7. Waste dumping inside the CSEZ campus 8. CSEZ identity cards are there for employees Employee selection procedure HRD is recruiting the lower level employees, workers and operators and promoting the employees based on their promotion. Employees are selected strictly based on their educational qualification, work experience, technical know how and age. Remuneration All of the executives, trainee workers and operators earn salary on the last working day of every month. Salary consists of;a) Basic pay b) Fixed DA c) HRA d) Conveyance & other allowance Allowance 1. Dearness Allowance (DA) -- This is given to permanent employees with fixed DA calculated at the rate of 15% of basic salary. 2. Conveyance allowance 3. Washing allowance 4. Shift allowance 5. Overtime allowance

Statutory liabilities

28

1. Provident Fund

From the basic salary the company and employee

contribute 12% into the provident fund account equally. Out of the 12% contributed by the company, 8.33% is transferred to the pension account. 2. Employee state insurance - Company pays around 4.5% of total salary of an employee to ESI, and the employee contribution is 1.75% of total salary. 3. Gratuity - For getting this benefit to an employee, he / she needs minimum 5 years of service. Trade union In this company there is only a trade union called CSEZ workers Association (CITU). Leave Casual leave Privilege leave Sick leave Training The CIIG provide training programs for their employees. There is four types of training methods are followed Orientation training On the job training External training Internal training ; ; 8 days for executives and workers 4 days for executives and workers

; 18 days per year

Training period

29

1. Senior engineer & Managers 2. Engineers & Management trainee 3. Supervisors, trainee 4. Field engineers 5. Operator trainee ( ITC/ ITI) 6. Operator trainee ( SSLC/ PLUS 2 )

- 6 months - 1 years - 1 years - 1 years - 1 years - 2 years

4.3

MARKETING DEPARTMENT
The main and major aim of marketing department is to identify the market

demand and supply the goods as per the demand. Marketing department in CIIG is differential, which mainly focuses on promoting the goods produced and gather a realizable order for the company such that at no time there is stagnation experienced in the enterprise due to lack of orders and such that the delivery can be made as per the predefined data. When we compare CIIG with other similar industries, the advantage is that it is located in the Special Economic Zone (SEZ), which exempts most of the duties and taxes imposed by the government. The labor overhead charges occurring in CIIG is low as compared to the foreign industries. The main marketing point is the QPL of the products on the defense websites where the generalized past numbers and the Tyco past numbers can be compared and can be verified by anybody. The marketing department plays a vital role in the production planning as a constant feedback of the quality of finished products is verified regularly to check the possibility of finishing the production of the user specified products in time.

4.3.1 Structure of marketing department

30

Figure 4.3

Vice President

SR. Manager

JR. Engineer

Market Assistant

4.3.2 Functions of marketing department


1. Quality policy development 2. Management review 3. Internal communication 4. Contract review 5. Customer communication 6. Invoice & Shipment 7. Handling of customer complaints 8. Customer satisfaction

4.4

FINANCE DEPARTMENT

31 For smooth functioning of every organization proper money management is essential. Only through proper money management a firm can identify it strength and weakness in the financial structure. The CIIG also give great important to its financial department.

4.4.1 Structure of financial department Figure 4.4

G.M

Manager

Financial Executive

Staff

Staff

Staff

Significant Accounting policies

32 Basis of Accounting The financial statements are prepared under the historical cost convention on accrual basis, except as otherwise stated and in accordance with the applicable accounting standards. Use of estimates The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of revenues and expenses during the reporting period. Fixed asset are stated at historical cost less depreciation written off and impairment in value, if any, is adjusted. Depreciation 1. Depreciation on assets is provided at the rate prescribed in schedule XIV to the companies Act, 1956 as under; a) In respect of plant and machinery, on straight line method b) In respect of other assets, on written down value method 2. Depreciation on tools and moulds is provided on written down value method at the rate of 33.33% p.a on technical assessment, which is higher than the applicable rate prescribed in schedule XIV to the companies Act 1956.

Investments These are valued at cost and permanent fall in long term investment if any is provided for. Inventories Inventories are valued at lower cost or net realizable value. For this purpose the cost of bought out inventories comprises of the purchase cost of the items and cost of bringing

33 the items to factory on FIFO basis. The cost of manufactured inventories comprises the direct cost of production plus appropriate overheads. Foreign currency transaction Monetary items denominated in foreign currency are reported at the exchange rate prevailing as at the date of the balance sheet and the resultant exchange gain /loss, if any, has been adjusted to the profit and loss account, to the extent they relate to items other than liabilities incurred for acquiring for fixed assets. Those relating to liabilities for fixed assets have been adjusted to the carrying cost of the respective assets. Investment subsidy Investment subsidy received is treated as capital reserve. Sales Revenue is recognized when the significant risk and rewards of ownership of goods have been passed to the buyer. Gross sales are inclusive of excise duty and are net of trade discount. Retirement benefit Liabilities of gratuity for employees determined based on actuarial valuation as on the balance sheet, date is funded with the Life Insurance Corporation of India, and the contribution there of payable is absorbed in the accounts. Liability for leave encashment benefit determined based on actuarial valuation as on the balance sheet date is provided for in the account.

4.5

PLANNING AND PUCHASE DEPARTMENT

34 The planning and purchasing department ensures that the right quality of goods is available at the right time and right place without any delay. Planning and purchase department ensures the availability of the required material at the right time at right quantity to different departments for smooth functioning of the organization. Purchase department interacts with different departments of the organization, suppliers, sub contractors and service providers whenever required. This department includes incoming store, piece parts store, general store and packing store. The incoming store receives the materials from various vendors as per the purchase order. The received raw parts are in the incoming stores and information given to the QA departments through receiving reports. Based on the receiving reports QA inspects the received parts in which the accepted item are transferred to piece parts store and rejected items are transferred back to the incoming stores. The rejected items received by the incoming stores are sent back to the vendors through Return Material Note (RMN) or scrap the material with scrap note. Those parts which can be used after rework are transferred to incoming store from QA as non-confirmed item. After rework the items are again transferred to QA for inspection and improved items are transferred to piece parts store and if again rejection comes they are sending back to vendors through planning and purchase department. Manufacturing department receives piece parts against store requisition from piece parts store. Based on production orders, CARDEX is maintained for each item in the piece parts store. These cardex are updated for every item stored in the piece parts store. Periodical re-inspection of the stored parts is done based on OIS. After QA certification, the finished products are transferred to the packing store. Here each type of relay is packed in specially designed packages so that no damage is caused while transportation.

Structure of planning and purchase department

35

Figure 4.5 Manager

Assistant Engineer

Junior Engineer

Supervisor

Functions of purchase department


1. Material planning 2. Import purchase 3. Local purchase 4. Customs clearance 5. Evaluation of supplier 6. Supplier control

4.6

QUALITY ASSURANCE DEPARTMENT

36 Quality Assurance (QA) department in the company controls the quality of products. The relays manufactured are currently qualified to MIL PRF 39016 LISS50701 specification.

The department can be divided into three. First is the piece part inspection section, which inspects the piece parts and which is imported for manufacturing. The second part is the inspection of finished products and the third one is the calibration. This will calibrates all the instruments used in manufacturing and QA. The products are marketed only after QA certification. All the inspection is done with the help various testing machines and calibrated digital meter.

4.6.1 Structure of QA department Figure 4. 6 DGM

Senior engineer

Assistant Engineer

Assistance Engineer

4.6.2 Functions of QA departments

37 The major function is to make assurance in the quality of products. For it inspection is necessary. 1. Piece parts Inspection The parts required for production are received and stored in the incoming store with receiving reports. This report is received by planning and purchasing departments. After receiving the reports QA verifies all the documents and samples are taken for inspection as per the standards. The sampling is done as per the sampling plan. After inspection the plants are labeled into three categories. They are a) accepted b) rejected c) non-conforming. Accepted parts are transferred into piece parts store along with the report. The rejected parts are transferred into the incoming store along with receiving reports. The non-conforming items are items which can be reworked and stored in the incoming store. These items after proper cleaning are again transferred back to piece parts inspection for re-inspection. The equipment used for inspection are; Dogmatic outside micrometer Dogmatic caliper Profile projector Bend testing fixture Microscope Bearing pin Multimeter Digital height guage Chattilon guage RAM optical instrument Fisher scope Corecimeter 2. Product inspection Here they inspect the product

38 Testing methods Vibration test Moisture test IR & Dielectric test Miss test Gross leak test Visual test IC test

3. Caliberation 4. Reliability test

4.7

UTILITY MAINTENANCE DEPARTMENT


This department is more conscious about the maintenance of machinery, it ensures to contribute key product quality characteristics and ensure continuing process capability.

4.7.1 Structure of utility maintenance department Figure 4.7 Manager Engineer Assistant Engineer Supervisor

39

4.7.2 Functions of utility and maintenance department


When mechanical instruments are purchased new, they are serialized by the purchasing & planning department and they ensure the item is available in user departments for production. The user department seeks the assistance of utility and maintenance department for installation and commissioning of that equipment through job requisition format. Mainly the utility and maintenance department deals with two type of maintenance; preventive maintenance and predictive maintenance. Preventive maintenance All the machines have a preventive maintenance schedule which directly affects the quality of the products and is prepared and maintained in the maintenance department. This schedule is prepared by the previous maintenance history of the equipment. Preventive maintains Intimation is used by the user department to inform maintenance department about the complaint. The routine maintenance work is to be carried out daily or weekly basis by the operator with the assistance of a prepared routine maintenance instruction. Other than those specified in preventive maintenance schedule all the other maintenance work is carried out by the maintenance department. The completion of the work done and the details of the workers are recorded in the equipment history card. Break down maintenance The user departments inform the utility and maintenance department about any breakdown of machines or equipments using a job requisition format. The maintenance person attends the complaints on priority and emergency basis after the job requisition if the break down can be set right by the in house facility. The copy of job requisition is returned to the requesters for their records. In case if the break down cannot be rectified in house the work is transferred to an external agency through purchase and planning department.

40 When the work is completed, it is collected and after verification it is transferred to the concerned department. The details of all maintenance done are recorded in the equipment maintenance chart.

4.8

Enterprise Resource Planning


All department of CIIG function as a part of ERP, which functions as a root base,

thus interlinking of all departments functions effectively so as to result in a smoother functioning of the organization. This department deals with the overall working of the enterprise. Previously each department functioned as a single non-related entity which resulted in restricted access of valid documents between departments. This in turn resulted in a constriction in the working, which was eliminated with the introduction of ERP. It inter related the department and gave access to the documents of each unit to authorized personnel even if that particular person is not a part of particular department. For this purpose ERP uses specialized software, which enables the unit to maintain the record of each department in an ordered manner on an oracle database in user friendly layman terms, hence enabling every person with authorization to access the database. The reports from all departments are incorporated into the database. Initially a user has to sign in on the database with a user ID and password provided. He then gets access to the list of the data from departments which are listed below; Sales Purchase Inventory Finance Costing Fixed assets Human resource Production Production planning Equipment maintenance

41 Shares Customer care System administration Executive information system User area Discover

4.8.1 Functioning of software


The software used in EBZ-frame. The system administration option of CIIG maintains the company details, which is relevant to each department. The administrator can disable the other options, which are available by default on the software.

42

CHAPTER V

43

SWOT Analysis STRENGTH


1. The company situated in SEZ, so they enjoy lots of benefit. CIIG can run their exporting easily and also they enjoy some tax benefits. 2. Dedicated young work force 3. Financial strength of the company 4. Capable marketing personnel 5. Guardian group has nearly 25 years of experience in the design and manufacturing of electromechanical relays. 6. Excellent infrastructure for manufacturing products.

WEAKNESS
1. 90% of company products are exported, so they have less control in domestic market.

OPURTUNITIES
1. To excel as a reliance company for global outsourcing requirements. THREATS

1. Stiff competition in the market.

44

OBSERVATIONS
1. CIIG produce the best relay in world market 2. The company providing direct employment 3. The company is running in a systematic and organized manner 4. The internal communication of the company is doing well 5. Majority employees of CIIG are women 6. The employees are satisfied with the working conditions and working hours of the firm

SUGGESTIONS
1. The company should take necessary steps to expand the business 2. The marketing department can use more board displays for the promotion of the company 3. The company should give importance to some of the welfare measures like educational allowance and medical facilities

45

CHAPTER VI

46

CONCLUSION
CII Guardian International Ltd has provide employment to 400 people with an annual turnover of 3,68,60,909 rupees. For about two decades CIIG has been in this field. It has a manufacturing unit at Thodupuzha, around 200 people are working there. Manufacturing facilities are spread over 35,000 square feet with environmentally controlled assembly area. The company is ISO 9001-2008 certified, for the manufacturing of electromechanical relays. Several products are approved by ministry of defense and centre for development of telemetric ( C- DOT). Guardian is the largest supplier of telecom relays in India and well respected throughout automotive test equipments, power electro mats, industrial control, house hold appliance and other industries. CIIG has a joint venture with TYCO Electronics. 90% of products are expected to TYCO. Only 10% of products are marketed in the Indian market. TYCO is a world leader in high performance relays. Over past five years TYCO electronics has kept pace rapidly growing to become the world largest passive components manufacturer. Based on the internet technology leadership of AMP products, TYCO electronics has added a full employment leading component branch including RAYCHEM, ELCON, P&A, M / Acorn.

47

APPENDICES

48

CONTACT WITH
CII Guardian International Ltd.

PRODUCTION FACILITY
16- B, Cochin Special Economic Zone Kakkanad, Cochin- 682 030 Ph: 91-484 423306, 423612 Email : cii@sathyam.net.in

REGISTERED OFFICE
149, Girinagar, Kadavanthra, Cochin- 682 026 Ph: 914842316606 / 2317031 / 2317040 Fax: 91484- 2317032 Emil : guardian@md2vsnl.net.in

49

BIBLIOGRAPHY

50

REFERENCE BOOK
Annual Report of CIIG (2008- 2009) Training Reports of Engineers (2007-2008)

WEBSITE
www.ciiguardian.net

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