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TABLE OF CONTENTS
PART-A
SI. TITLE
NO. PAGE.
NO
EXECUTIVE SUMMARY
1. INDUSTRY PROFILE
2. COMPANY PROFILE
Background and area of inception of the company
Nature of the business carried
Vision, mission and quality policy
Products/service pattern
Area of operation-global/national/regional
Ownership pattern
Competitors information
Infrastructure facilities
Achievement/ award if any
Work flow model (end to end)
Future growth and prospects
3. McKensy‟s 7`s frame work with special reference to
organization under study.
4. SWOT Analysis.
5. Analysis of financial statement
6. Learning experience
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PART-B
SI.NO. TITLE PAGE
NO
a) General introduction
Statement of the problem
Objectives of the study
1. Scope of the study
Methodology
Limitations of the study
2. Analysis /design, interpretation of results, findings, observations
and suggestions
3. Findings , recommendations &conclusions
Annexure
4.
Questionnaire
5. Bibliography
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PART-A
Executive summary:
As per the curriculum of VISVESWARAYA TECHNOLOGICAL UNIVERSITY,
for the partial fulfillment of the POST GRADUATE DEGREE, MASTER OF
BUSINESS ADMINISTRATION, I had undertaken an organizational study of
established and growing business organization.
I have undertaken the project work at “MADRAS CEMENTS LIMITED COMPANY
MATHOD” . For the project I had the access to meet the employees of various
departments for the considerable time duration which helped me to gain insight about
the type of work they do and study the functions and role of each department in the
organization.
This report is an endeavor to cover the overall organization structure, department,
procedures, and functions of the organization and also covers industry profile and
company profile with their objectives that the company have. The report gives an
inside managerial functions, operative functions towards the product and employee of
the organization.
The report also features the SWOT analysis, STRENGTH, WEAKNESS,
OPPORTUNITY and THREAT of the organization in the present situations. As a
result of the study, It has been able to get hands on experience of the work culture in
the organization.
The summer project entitle “A STUDY OF EMPLOYEE WELFARE “, is carried out
for the period of 10 weeks in “MADRAS CEMENTS LIMITED COMPANY
MATHOD”,
The intention behind taking over this project with MCL to understand the various
welfare measures‟.
This study is aimed mainly to provide the needed and information to make the right
choice. I have collected data thorough questioner method .A part from that I have
made an attempt to understand the MCL COMPANY
After thorough analysis and research of the various findings corresponding to the
study, suitable recommendations and appropriate conclusions were drawn which I
truly believe can help the MCL COMPANY.
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1. INDUSTRY PROFILE
MADRAS CEMENTS LIMITED:
Madras Cements Limited is the flagship Company of Ramco Group
established in 1957 with the first factory at Tamil Nadu with an initial kiln capacity of
200 T P D. The main product of the Company is Portland cement manufactured
through the four advanced production facilities spread over south India.
It was upgraded to 600 TPD in 1963. In 1977, the first largest single dry
process kiln of 1200 TPD in India was installed here. Today its turnover is close to
Rs. 4000 million, a golden testimony to the futuristic vision of the company.
In 1986, the company commissioned its second unit at Jayanthipuram in Andhra
Pradesh with an installed capacity of 8 lakh tones per annum, this plant uses the
FUZZY logic software system, and other advanced DBMS techniques & all that is
latest in cement technology. The plant has been recently upgraded to 11 lakh tones.
Both these plants are considered to be models in the cement industry for energy heat
consumption and uniform cement quality.
The third cement plant of MCL was commissioned in March 1997 at Alathiyur
near Thiruchirapalli, Tamil Nadu. This cement plant is a pride of Madras Cements
Ltd. It is one of the most modern cement plants in the world and easily the best in the
country. The plant has adopted new technologies like vertical mills for cement
grinding, surface miner for clean mining operation, cross but analyses for 100%
continuous chemical analysis of raw material. The vertical roller mill for cement
grinding can produce cement of high fineness with very low power consumption our
cement plants are lacked up by diesel generation power stations to meet the power
requirements in case of grid failure.
The fourth unit is at mathod, the sick unit owned by KMMC Ltd. established
in 1985 closed and referred to BIFR was taken over by Madras Cements Ltd. in 1999,
re-commissioned in 2000 expansion in phased manner from the year 2001 onwards.
The consented capacity of the plant was increased to 1000 TPD of cement from 200
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TPD during the year 2001.
The plant operations are totally computer controlled with sophisticated QC
equipments.
The achieved benefits out of above modifications are:
a. Production & quality improvement.
b. Reduction in power consumption.
c. Reduction in emission levels to within the specified limits.
d. Utilization of industrial waste such as fly ash, mould & chemical gypsum.
Growth of the Industry:
1957:The company near incorporated at Rayapalayam in Tamil Nadu. The company
manufactures cement and allied products. Cement marketed vender brand of „Ramco‟
Portland cement 480 - 6.25% preference and 295 numbers of equity shares issued
without payment in cost arrears Rs. 63,428.
1967:
The company issued 6000 right equity shares at par and 20,000 right
redeemable preference shares 25 (equity preference) during 1962-63.
1878:
Division on all reference shares raised to 11% during 1975-76, 28,000 equity
shares issued during the year.
1982:
44,375 number of equity shares issued at par and allotted to financial
institutions upon part conversion of their loans during 1982-83.
1985:
The company undertook to replace the cement units at its Ramaswamyraja
Nagar works, which were 20 year old, by a single new “combidan cement mill”. The
mill was commissioned towards the end of the year.
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1988:
Two D.G. sets were installed in the middle of the year of meet 60% of the
unit‟s power requirement at Jayanthipuram.
1990:
The company decided to expand the capacity of Tamil Nadu factory by one
lakh tone per annum considering the growing demand for cement in southern stated
and the potential for exports to Srilanka and Maldives.
1994:
The company upgraded the capacity of the Jayanthipuram unit to 1.1 million
tones and also upgraded the cement mills capacity in RR Nagar & J.P. units.
1995:
27 more wind mills with a total additional installed capacity of 10.5 MW were
set up at Poolkaradi in Tamil Nadu
1997:
149 shares allotted pursuant to a contract without payment being received in
cash. MCL has satisfaction commissioned its third cement plant in Alathiyur the
second in Tamil Nadu.
1998:
MCL embarking on farmer integration by setting up a „Ready‟ Mix Concrete
(RMC) plant near Chennai. The plant to be located at Medavkkam will have a
capacity of 45,000 cumters.
The company has tied up with Vishakapatnam Steel Plant (VSP) for procuring slag,
blast furnace residence and a crucial input for slag cement.
1999:
MCL is one of the largest cement companies in south India with 3
manufacturing facilities.
Company was taken over the 4th cement plant at Mathodu, the silk unit owned by
KMMC Ltd. established in 1985.
2000:The company has launched the Ramco super steel cement in Tamil Nadu.
2003. Madras Cements members approve stock split of the existing equity shares
of Rs.100 to 10 shares of Rs.10 each.
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2. COMPANY PROFILE
RAMCO GROUP
INTRODUCTION:
Rambai and Co. Ltd. is the first group of company started its operation in
1957. Since then the company has diversified its operations in many areas including
manufacturing, property development and hire purchase and other fields. Although
the companies were managed as separate units and the policies remain same in all
units providing the best possible products and services to their clients.
RAMCO engaged in diverse fields of manufacturing like textile, cement, fiber,
cement sheets, steam less pipes, biotechnology, surgical products, software etc.
The Ramco group is well known across the world and selected parts of the world for
its business ethics, professional management, management awareness, and
philanthropic activities. The turnover of the group is 225 million U S Dollar.
As per the saying that every big thing has a modest and humble beginning.
Ramco group also had its origin in the form of a small textile mill by name
“Rajapalyam Mills Ltd.” established in the year 1938 by the late visionary
Sri P. A. Ramaswamy Raja as a public limited company at the time when the
reverberations of industrial revolution had not reached and the concept of share
holding was not popular in small and agrarian village like Rajapalyam in Tamil Nadu.
He proved his vision successful as the founder of the group.
His son present chairman Sri. P. R. Ramasubrahmanya Raja has been carrying on his
father‟s dreams and converting them into reality and converging various operations
under one single group. His ambitious and broad outlook add new feathers to the
crown of the group and make it the most sought after cater to the varied needs of
consumer‟s world with the perennial rejuvenated looks.
RAMCO Group is found by Ramaswamy Raj. Ramco Group of industries is one of
the best performing highly efficient group has diversified its operations in many areas
including manufacturing.
Textile business is the first business venture of Ramco Group.
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Sri. P. R. Ramasubramanya was its chairman; Sri. P. R. Venkatarama Raja was Vice
chairman of this group when it was started.
A.Background and inception of the company
Madras cements belong to The Ramco group. Shri.P.A.RamaSamy Raja
founded Ramco group in 1938. Ramco group is a well-respected industrial house in
the country. Cement, software systems, Ready Mix concrete, Cement Fiber products,
Cotton yarn, Wind farms and Biotechnology are major areas of business. Now the
group‟s total turnover is about 1500 crores. The cement division is earliest among and
it is in the process of obtaining ISO-14001 certification.
Mathod unit of Madras cements Ltd, Mathod, Hosadurga taluk, Chitradurga
district, is at distance of approximately 225km from Bangalore was commenced in
2000 as an expansion project by Ramco group. The consented capacity of the plant
was increased to 1000tpd of cement from 200tpd.
MANUFACTURING UNITS
Ramasamy raja Nagar, TamilNadu.
Jayanthipuram, Andrapradesh.
Mathodu, Karnataka.
Alathiyur, TamilNadu.
b) Nature of the business carried:
Manufacturing of cement that is Port land Pozzolana Cement (PPC) 43 grades.
Ordinary Port land Cement (PPC) 43 grade.
The company‟s core belief is, achieving productivity through technology, quality of
product and service. The company‟s quality audit department functions
independently and reports directly to the president / chairman of the company.
The company has been the first to introduce surface miner for clean and efficient
mining operation, first to effectively use cross belt analyzer where 100% continuous
chemical analyses of the raw material is done before feeding into the stacker recliner.
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The company is also the first to install X-ray analyzer with computer back up as part
of quality control for instant analysis of clinker and cement produced, way back in
1981 itself.
The cement production capacity is 6 million tons per annum. The Company is sixth
largest producer in the country and the second largest producer in the south India.
The main product is Ramco super grade cement, which is a world class blended
cement and one of the most popular cement brand in south India.
MCL also produces ready-mix concrete and dry mortar products. In addition the
company also operates one of the largest wind farms in the country.
As on 31st march 2006 the Company has a fixed assets base of 1013 crores and
has a fixed assets base of Rs.1641 crores. It has won many prestigious awards and is
considered as one of the most energy efficient company in the country.
Madras Cements Limited is one of the recognized businesses of Ramco Group. The
company‟s principle activity is to manufacture cement. The company product
includes blended cement, ready mix concrete and dry mortor Mix. The Company also
generates power from windmills. It exports mainly to Srilanka and Iran.
Madras Cements Limited has reported 19.7 percent growth in sales and 20.3
percent increase in net profit for the year ended 31st march 2001 over the previous
year.
It has reported a net profit of Rs. 48.40 crores on a sales turnover of
Rs. 618.33 crores against a net profit of Rs. 40.22 crores on a turnover of
Rs. 516.17 crores the previous year.
Other income for the year was Rs. 442.64 crores depreciation Rs. 52.73 crores
provision for taxation Rs. 11.64 crores.
According to company officials the actual tax payment for the year would be
5.2 crores for the balance 6.4 crores. The company would take credit out of minimum
alternative tax (MAT) paid in earlier years.
According to press release, the second unit at Alathiyur with capacity of 15 lakh tones
per annum was just 9 months from the start of pile foundation. The cdfent mill was
commission owned in May.
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The kiln fitted with cross bar cooler was the first of its kind outside the US, Company
said in the release. The versatile mill for cement grinding was the biggest of its kind
in Asia.
The second kiln at RR Nagar was upgraded in May 2001, with the installation of fixed
segment to the cooler. New calciner and modifying preheated cyclones, thereby
increasing the capacity of the unit from 10 lakh tones per annum to 11 lakh tones of
blended cement. The Company‟s aggregate cement manufacturing capacity which
was 18.50 lakh tones per annum in 1997 would increased to 61 lakh tone per annum
at the end of 2001-02. In spite of increase in Diesel and furnace oil prices due to
better sales realization, cost control, reduction in the cost of borrowing and reduction
in overhead costs.
Mr. Dharma Krishnan said the company last year repaid Rs.160 crores of high
cost loans mainly to IFCI. The loans had been obtained at interest rates of
19 - 19.5%. The Company also ventured into dry mortar products such as renders and
skim coat and dry concrete. This plant proposed to be located near Chennai was
expected to be commissioned in January 2002. The cost of project was Rs. 15 crores.
To spend 20 crores on Karnataka plant.
Madras Cements Ltd. which took over Gokul Cements located at Mathodu in
Chitradurga Dist. of Karnataka will spend about Rs. 40 crores to increase the capacity
of the plant to 3.40 lakh tones per annum.
Gokul cement which belongs to Karnataka Minerals and Manufacturing Company
limited was a mini cement plant with a capacity of 300 tones per day. The plant was
not operating and referred to the Board of Industrial and Financial Reconstruction.
The acquired plant now a division of Madras Cement was formally commissioned on
September 3 2000.
After refurbishing and debottlenecking, the capacity of the unit was increased from
0.66 tones to 1.5 lakh tones per annum
Madras Cement had also acquired the right for about 80 million tones of limestone
close to the Mathodu plant.
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VARIOUS CEMENT PLANTS OF THIS COMPANY:
• RR NAGAR PLANT (TAMIL NADU)
• JAYANTIPURAM (ANDRPRADESH)
• ALITHIYUR (TAMIL NADU)
• MATHODU (KARNATAKA)
• ARIYALUR (TAMILNADU) (Under construction)
c) BUSINESS VISION:
Corporate vision is a short inspiring statement of what the organization intends
to become and to achieve some point in the future.
Vision refers to the category of intentions that are broad all inclusive and forward
thinking. It is the image that a business must have its goals before it sets out to reach
them. It describes aspirations for the future.
Ramco Group continually adapt to its competitive environment. There are
certain core ideals that remain relatively steady and provide guidance in the process of
strategic decision making.
Ramco‟s vision can be understood by understanding three elements.
They are:
• Core values
• Core purposes
• Goals
• Core values:
The following are the core values of Ramco Group:
Excellent customer service.
Pioneering technology.
Creativity.
Integrity.
Social responsibility.
• Core purposes:
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The core purposes are the reason that the firm exists. Core purposes are relatively
unchanging and for many centuries.
The core purposes are:
Clean and green environment in and around the factory.
To provide quality services this maximizes client results.
To conduct our business according to the highest level of ethics.
To do all in our power to pack the customer poundful of value, quality and
satisfaction.
To maintain a management culture that is action oriented, always flexible and
never beaurocratic.
To continue to train ourselves and our associates so that service we give will
be more and more intellectually performed.
To be the efficient everything that we do.
Our client success is our genuine concern.
• Goals:
The visionary goals are the lofty objectives that the firm‟s management
describes to pursue. This vision describes same milestone that firm will reach in the
future and may require a decade or more to achieve.
The goals of Ramco are highlighted below:
Reaching qualitative and quantitative sales targets.
To become role model for others in the field.
Internal transformation.
To increase stake holders value.
BUSINESS MISSION:
The Company lays great emphasis in continuous up gradation of technology to
improve the quality of its production and productivity to achieve newer and better
products for total customer satisfaction. “If there is no customer, there is no business;
customers continued satisfaction and sensitivity to their needs are the company‟s
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source of strength and security.
The following are the missions of the company:
To position ourselves in the cement business as a pace sector and grow in the
same and related businesses.
To seeks green field location for growth on the basis of developed synergies of
the existing operations.
To continuously improve productivity through quality, technological renewal
and customer focused operations.
To continuously seek quality enhancement in product, processes, and response
to various stakeholders.
.
To conserve protect and enhance quality of life for employees and
community.
To preserve the credence in company‟s molts “company real resources are the
human assets”.
QUALITY POLICY:
In order to achieve and maintain leadership in cement industry, co., took steps
in improvement in methods, complete automation of the plant was carried out during
the expansion plans. The plant operation is totally computer controlled with
sophisticated quality control equipments. The achieved benefits are
Production and Quality improvement
Reduction in power consumption
Reduction in emission levels to with in sophisticated limits.
d) Products/ profile:
In a market, where more than 80% of the consumer is ignorant about the
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chemistry of cement and concrete, it is natural that an average customer in India gets
curried away by the various advertisements that is offered to him promoting the use of
Ordinary Portland Cement (OPC)
Ramco group has a strong belief that Portland Pozzoluma Cement (PPC) has got
definite advantage over OPC for many applications. In Madurai, they have been
manufacturing 100% PPC for the last 30 years.
It Jayanthipuram plant also, they have been modeling around 25,000 to 30,000 tanner
of PPC every month in fact, Ramco is the only Manufacture of PPC among the
Andhra Pradesh leased comment plants. Mathodu plant also have been producing
PPC.
PRODUCTS:
Ordinary cement
Portland Pozzoluma Cement
The various positive aspects of PPC over OPC resulting in betterment of concrete.
The basic difference between OPC and PPC is that, OPC cement contains around 95%
of cement clinker and 5% of Gypsum but in PPC, a portion of the
Clinker is replaced (10 to 25%) with pozzolanic material like fly ash, volcanic lava
burnt clay etc., at the end of the grinding process 5% Gypsum is to be added.
Researches and tests have conclusively proved the definite advantages of PPC
over OPC in many developed countries of the world. In fact, in most of these
countries nearly 70 to 80% of the cement consumed is blended cement. Many of the
major constructions of the world like the under water Euro Tunnel between France
and U. K. the famous Dykes of the low lying Holland, the well known NASA
launching sites, innumerable Airports, Bridges, Subways, etc., are all constructed out
of blended cement. Even in India, many of the multi national companies setting up
projects have shown distinct preference for blended cement over OPC. Even the
Indian consumer is increasingly becoming knowledgeable and is showing a marked
preference for PPC over OPC.
DIVERSIFIED BUSINESS OF THE GROUP:
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Textile industry
Cement industry
Ramco system
Wind Power Energy System
Other areas:
Cement roofing sheets
Software development
Wine sector
Cement pipe industry
• Textile industry:
Textile industry is the first industry of this group. The Rajapalyam
mill was started with meager spindles of 6000 with all machinery being imported.
The growth of Ramco textile division is phenomenal today with the spindlage
increased to manifold.
Being committed to customer‟s ecstasy, the division has been modernized with the
latest state of art machinery from world renewed manufacturers like Rieter, Savio etc.
The division has never hesitated to venture by converting the concept to its business
success.
Rajapalayam Textiles
Cement industry:
Ramco Group presently running four cements producing plants across the
India. Cement industry is the money minting industry of this group.
• Ramco systems:
Ramco is a global provider of software and services that create global class
business applications for a variety of enterprises. Ramco‟s Business Process Delivery
System (B P D S) enables fast flexible deployment and change on demand of
processes and applications for maximum flexibility – so when your business changes
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your system changes too.
Ramco systems has office in 9 countries and over 300 customers in 1000 locations
world wide across multiple verticals including banking, insurance, discrete, process,
manufacturing, aviation, transportation, logistics, healthcare,
e- Governance, retail, and more.
e) Area of operation – national :
MCL operates five plants with a total capacity of 10.49 MTPA.
1. R R Nagar, Tamil Nadu (1.5 MTPA)
2. Jayanthipuram, Andra Pradesh (3.65 MTPA)
3. Alathiyur, Tamil Nadu (3.05 MTPA)
4. Ariyalur, Tamil Nadu (2.0 MTPA)
5. Mathod, Karnataka (0.29 MTPA)
The R R Nagar plant commenced operations in 1962 with 200 TPD. It commissioned
the first 1200 TPD dry plant in 1976. A second Kiln with a Capacity of 650 TPD was
added in the year 1993-94.
The Jayanthipuram Plant started the operations in 1988 with 2500 TPD and was
upgraded to 3200 TPD in 1992. It is equipped with a modern computer based quality
control system.
The Alathiyur plant Commenced operations in 1997 with 0.9 MTPA Capacity and
was upgraded by 0.2 MTPA in 1999-2000. It started the Line-2 in 2000-01 with a
capacity of 1.5 MTPA.
Alathiyur is the first plant in India to go in for 100% Mining by Surface Miners. It has
an enviro friendly and energy Efficient MMD Crusher for Lime Stone Crushing Plant
Operations
Ariyalur plant started the operation in 2009 with a capacity of 2 MTPA. It is well
equipped with modern quality control systems.
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The Ready Mix Concrete plant of the company is situated in Medavakkam, a suburb
of Chennai and its capacity is 56 Cu.m per hour.
In addition, there is a production facility for dry mix products near Sriperumpudur.
This plant produces Dry Mortar, Tile Fixing compound and Cement Based Putty.
To help the company to economize the tranportation costs and to provide better
customer service, three Grinding Units with a total capacity of 2.4 MTPA had been
setup in Tamil Nadu and West Bengal.
Two Packing Plants had been setup in Andhra Pradesh and Tamil Nadu. Hyderabad
plant had started Despatch in September 2009 and Nagercoil plant had started
despatch in December 2009.
Operating Units
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f) OWNERSHIP PATTERN:
RAMCO GROUPS is a public company.
Competitors Information:
The Major competitors for Madras Cements Ltd. are:
Zuari Cements
Mysore Cements
Ultratech Cements
Birla Cements
Gujarat Ambuja Cements Limited
The India Cements Limited
L&T
Star cement
TATA
The Associated Companies Limited
g) INFRASTRUCTURE FACILITIES:
PLANT:
Bag Filters for Coal Mill and Cement Mill.
ESP for cooler.
Bag filters for all de-dusting points.
Covered storage yards for Limestone, Coal, Clinker and Additives
Closed silos for Fly ash.
Plant ensures stack emission level within the norms prescribed by
KSPCB.
Provided covered sheds for storage after production.
Revamped raw material grinding circuit with separator and self-
lubricating systems.
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ROADS:
Well-developed 2 kms approach road from main road, 1.7 kms of plant
internals concrete roads and 1 km of colony roads.
Total pollution control equipment of Rs. 2.25 crores.
GREEN BELT:
Well-developed green belt in and around plant to have aesthetic look
and also to suppress the dust from spreading.
Plantations of about 85,000 saplings in and around the factory and
colony for keeping the area green.
MINES:
Noise and dust generation in mining is minimized by proper water
spraying facilities.
TECHNOLOGY:
Automated samplers and X-ray analyzers installed for quality control
and quality assurance during manufacture.
Complete automation of the plant.
Power:
Installed 3.19 MW capacity captive power plants.
Power generated by its own wind power generation plant near to the
site.
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h) ACHIEVEMENTS AND AWARDS:
Madras Cements Ltd - Awards Won
National Award for Energy Conservation
Confederation of Indian Industries
Best Energy Efficient Unit
National Council for Cement and Building Materials
Corporate Performance Award
Economic Times
Best Improvement in Energy Performance
International Congress on Chemistry of Cement
The Analyst Award
The Institute of Chartered Financial Analysts of India
Best allround Industrial performance
Federation of AP Chambers of Commerce & Industries
Visvesvariah Industrial Award
All India Manufacturers Organization
Business Excellence Award
Industrial Economist
Export Performance Award
CAPEXIL
State Safety Awards
Tamil Nadu & AP Governments
Good Industrial Relations Award
Tamil Nadu & AP Governments
Mine Safety Awards
Government of AP
SOCIAL ACTIVITIES OF THE COMPANY:
Ramco always believes in services to social development as the principle in its
overall objective. It is running much educational institution to impact better
education to all sections of the society especially under privileged children.
The institutes include:
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PAC Ramsey Raja Polytechnic College.
Ramco Industrial Training Centre.
PA Chinnaih Raja Memorial Higher Secondary School for Boys.
PACZ Ammaniammal‟s Higher Secondary School for Girls.
Chimaya Vidyodaya (nursery).
Gokula High School.
i) CEMENT MANUFACTURING – WORK FLOW MODEL (End to end)
j) Future growth and prospectus:
Over all production capacity of Madras cements is 3.64mpta with installed capacity of
5.47mtpa .In Mathod unit of Madras cements clinker produced is 1,79,000tonnes in
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the FY2007-2008 compared to 133,000 tonnes in FY2006-2007.Cement produced is
248,000 tonnes in FY 2009-2010and in FY 2008-2009 it was
190,000tonnes.Company is expecting 275,000 tonnes in the year 2010-2011
Among all the units R.R.Nagar and Alathiyur in Tamil Nadu, Jayanthipuram in
Andhra Pradesh and Mathod in Karnataka had shown significant increase in
production of cement compared to the previous year. The capacity utilization of the
company has increased to 95% as against 79% during the previous year.
EXPORTS
During the year, 76,107 tonnes of cement were exported as against 2, 88,777 tonnes
of clinker and 2, 28,198 tonnes of cement during the previous year. The export
turnover of the Company for the year was Rs.17.80 Crores as against Rs.85.20 Crores
of the previous year.
EXPANSION PROJECTS
PROSPECTS FOR 20010-20011
Demand is more for the cement due to the fillips given for the infrastructure projects.
The Company expects to sustain and improve the output levels of all the four units
during the year. The Company continues its endeavor for the sale of Blended Cement.
The Company also continues to concentrate on cost reduction measures in all areas of
production and distribution to protect and improve its profitability.
PROJECTS
A) DEVELOPMENTS WITH REGARD TO EXPANSION PROJECTS
The Company has established additional clinkering facility at Jayanthipuram by
installing a 4000 TPD kiln. The clinkering process will be integrated with the existing
production facilities, leading to an increase of cement manufacturing capacity by 2
million TPA. The estimated project cost is Rs.507.00 crores.
The Company has set up a cement project near Ariyalur with a capacity of 2 million
TPA. To substantially meet the power requirements of the project, the Company is
also installing Wind Electric Generators for an aggregate capacity of 56.70 MW. The
estimated project cost, including the cost of installing the Wind Electric Generators, is
Rs.967.00 crores. .
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B) NEW PROJECTS
The Company is proposing to establish Grinding Units in the States of Tamil Nadu,
AndhraPradesh and West Bengal. Establishment of grinding units near the fly ash
availability areas/major cement consumption areas will help the Company in
economizing transportation costs and better servicing of markets.
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MCKNSY`S 7S FRAME WORK :
The 7-s model is better known as Mc Kinsey 7s. This is because the two persons who
developed this model, Tom peter and Waterman, have been consultants at McKinsey
and Co. They published their 7s model in their article “structure is not organization”
in 1980 and in their books “The art of Japanese management” (1981) and “In search
of excellence”(1982).
The 7-s model is a tool for management analysis an action that provides a structure to
consider the company as a whole, so that the organization problem may be diagnosed
and strategy may be developed and then implemented. The seven-s is a framework for
analyzing organization and its effectiveness.
It looks at the seven key elements that make the organization successful, or not.
The 7 elements are as follows.
STRUCTURE (virtual organization)
SKILLS (Competencies)
STYLE (Culture, Leadership)
STRATEGY (Corporate, Business, Product/market)
SYSTEM (Process)
STAFF
SHARED VALUE
The 7S framework of Mc Kinsey‟s is a value based management model that describes
how one can holistically and effectively organizes a company. These are the “Levers”
which the executives use to influence complex and large organizations. Together
these factors determine the way in which a corporation operates.
Mc Kinsey and co‟s framework provides a useful framework for analyzing the
strategic attributes of an organization. The Mc Kinsey consulting firm identified
strategy as only one of seven elements exhibited by the best-managed companies.
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Structure Strategy and systems can be considered the „hardware‟ of success. They can
be found in strategy statements of corporate plans, organization charts and other
documentation.
While style, staff, skills and shared values can be considered the „software‟, in which
these soft elements are present, is usually more successful at the implementation of
strategy. These are difficult to describe since capabilities, values and elements of
corporate culture are continuously developing and changing. They are highly
determined by the people at work in the organization .The soft factors are below the
surface, and then also they have a great impact on the hard structure, strategies and
systems of the organization.
The 7s diagram illustrates the multiplicity interconnection of that defines as
organization ability to change. The theory helped to change the managers thinking
about how companies could be improved. It says that it is not just of devising a new
strategy and following it through, nor it is matter of setting up new systems and letting
them to generate improvements. To be effective, organization must have a high
degree of fit, or internal alignment among all 7-s. Each S must be consistent with and
reinforce the other S‟s. All S‟s are interrelated, so a change in one has a ripple effect
on all others. It is impossible to make a progress on one without a making a progress
others. Thus to improve ones organization one has to pay attention to all of seven
elements at the same time. Hence there is no starting point or implied hierarchy-
different factors to drive the business to success in any one organization.
Structure describes the hierarchy of authority and accountability in an
organization. These relationships are frequently diagrammed in organization charts.
Most organizations use some mix of structures-pyramidal, matrix or structured
ones-to accomplish their goals. A structure is the formalizing of relationships, roles
and responsibilities in order to recognize and perform work.
Hard element
Structure
Systems
Staff
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Soft element
Strategy
Share values
Skills
Style
1. STRUCTURE
Madras cements limited is a flagship company of Ramco Group. The company is
headed by group‟s present chairman shri. P.R.Ramasubrahmaneya Rajha and
followed by Business head(cement) and zonal heads, followed by functional
departmental head and moves-up to front line sales officers.
Company follows simple hierarchy in its every department. The company follows
Top-Down approach for decision-making purpose
Vice president
Plant
GM-MARKETING
Gm work GM-FINANCE
GM-R&D
DGM-PERSONEL
ZONE-MANAGER ASS.MGR.ACCTS
DY.MGR-INSTRUMEN
DY.MGR- SUPERVISOR-
ASSISTANT-MANAGR OFFICER-IT
INSTRUMEN CIVIL
DGM-P&QC ASS.MGR.ACCTS
ASSISTANT- OFFICER-
AREA MANAGERS SUPERVISOR-
MANAGR IT MANAGER-MECH
Sr. MANAGER-ENGG CIVIL
FIELD-STAFF ASST-MGR-ELCTRCL
MANAGER-MECH
CHIEF.MGR-MTRLS
Sr. MANAGER-
ENGG ASST-MGR-ELCTRCL
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CHIEF.MGR-
MTRLS
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ORGANISATION CHART: MCL-MATHOD :
G.M.WORKS
DGM- DGM-P&Q
C.MGR-MINRLS
PERSONNEL
SR.MGR-MINES SR.MNGR-ENGG SR.MGR-PROCESS
DY.MNGR- DY.MGR-QUALITY
maintained MGR-MECH
DY.MGR-QUALITY.
ASST.MARKETIG
ASST.MGR.ACCTS
SUPERVISOR-CIVIL
OFFICER-IT
ASST.MGR-
ELECTRICA
ORGANISATIONAL HIERARCHY:
The organization of MCL consists of four levels. They are as follows:
• Top level: Managing and Technical Directors.
• Middle level: General and Senior managers.
• Bottom level: Deputy Managers and Officers.
• Fourth level: Clerks, Assistant and workers.
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As MCL is a manufacturing concern of a moderately large size we can see
here function wise departmentation. It facilitates effective utilization of manpower
and resources and it is a simple economical and reasons
FUNCTIONAL AREAS:
The various departments of MCL are:
• Purchase Department
• Production Department
• Personnel and Administrative Department
• Finance Department
• Marketing Department
• PURCHASE DEPARTMENT:
In every manufacturing industry nearly 60-70 % of the cost is incurred
towards materials and its control including carriage, insurance and freight etc.
Purchase department in MCL has given special consideration to control materials.
Purchase to avoid unnecessary wastages was created. The proper purchase of
materials and merchandise and the procurement of the materials at the right time are
of greater importance to the organization as it reflects the cost of production.
Purchasing policy and Goals:
The functions of purchasing department is to ensure continued supply of required
raw-materials, spare parts at the most favorable terms so as to reduce the ultimate cost
of the product.
Parameters in a purchasing policy:
Right time
Right place
Right quantity
Right transportation
Right source
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Other parameters are:
Securing an adequate & complete description of needs calls for the exercise of
tact on the part of the purchasing officer.
Avoid excessive investment in materials.
Selection of sources.
Ascertaining the price.
The purchasing officer in MCL ascertains the price by sending enquires to the
various suppliers.
Placing the order.
Follow up the order.
Receipt of Stores receipt voucher.
Checking invoices:
Purchase department checks the invoices of the orders placed whether they are
accurately filled and billed.
Maintenance of records and files:
Purchase Department maintains records and files pertaining to purchase
transactions to provide legal evidence are any conflict arises in further.
Minimum wastages.
There should be minimum possible wastage of materials while these are being
stored in the godowns by storekeeper or used in the factory by the workers.
Purchase order execution system:
Requirement of materials for the plant this is generated based on:
Production plan:
The production plan is for monthly plan or yearly plan. The requirement of
materials for the plant is decided on the basis of the production plan of the company.
Maintenance Plan:
Maintenance plan for plant and machinery for regular maintenance this plan is also
for annual maintenance or monthly maintenance this helps in deciding what to buy
and when to buy.
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Inventory level:
In each material hoe much they have in stock, this depends only on type of material,
location of the wonder, price, changes respected and quality of the material.
Requirement raised by the department is by the authority of the company. After
authorized it comes to materials department.
Enquiry:
It will float to the prospective vendors, it will indicate material required quantity, and
quality drawing or specifications will be mentioned. It indicates likely date of the
offer that is on or before of the quotation.
Vendor selection:
By comparison of cost with quotation basis the vendor will be selected here purchases
of materials for the plant.
Financial approvals for the proposed cost to be incur, they will get financial approvals
as per the authority schedule.
Purchase order:
After approval purchase order will be released indicating.
Type of materials.
• Quantity
• Price
• Payment terms
• Delivery schedule
• Penalty guarantee
• Purchase order follows up of supplier for receipt of supply that can be
through phone, fax, e-mail etc.
• PRODUCTION DEPARTMENT:
Production means conversion of inputs into outputs or production means
conversation of raw-materials into finished goods.
Functions of Production Department:
Lime stone handling.
Raw grinding.
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Raw material storage and homogenization.
Preheating and grate cooling.
Coal / lignite grinding and firing system.
Cement grinding.
Cement storage and packing.
Chart-2
MCL, MATHODU WORKS
PROCESS SEQUENCE DIAGRAM
MINES
Blasting sizing of lime stone
Lump sum to small size
Vehicle Transportation
Crusher Primary
& Secondary
Raw Mill hopper
ADDITIVES
Raw material handling
RAW MILL
BELENDING SILO
COALSTORAGE
CONVEYOR
PREHEATER & CALCINER
CONVEYOR CGAL MILL
KILN
A
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Production department covers various operational areas of the plant.
They are:
Mines section
Mechanical section
Materials and stores section
Quality control section
Electrical section
Maintenance section
Other sections are:
Information Technology section
Instrumentation section
Works section etc.
Mines Section: This department mainly concentrates on mines functions such as
escalation, digging, supplying raw material to production of cement etc.
To control traffic movement within the mines.
Mines manager for overall supervision and control.
Shift manager to manage with available resources till then.
Security main gate to inform senior persons and to prevent and un-authorized
entry.
Fire fitting stations for sending fire fitting team.
Mines section is responsible for holding leases and getting raw materials in the
manner prescribed by the Government. Mines section assess the raw materials
requirements of the plants and get leases for the in time supply of limestone for the
smooth functioning of production department.
The department of mines is responsible for the survey and exploration of minerals to
the company. Noise and dust generation in mining is minimized to a
great extent. Water spraying is done regularly in the mines and roads to suppress dust
generation. Wet drilling and proper usage of sharp drill bits is done to prevent dust
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generation. Inactive dumps were terraced and afforestation is carried out. Mines are
ECO friendly.
Mathodu plant currently holds 9 leases, and applied for 3 more leases. But the plant
currently using only 2 leases. Remaining is not in use. Environment clearance
certificate is given only for these two leases. Remaining is under the process.
Chart -3
Manager - Mines
Manager - Mines
Asst. Mines Manager
Mines Foreman
Asst. Surveyor
Supervisor -
Mines
Driller - 1
Blaster
Driller - 1
Attendant
Expl. Van
Driver - 1
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Mechanical Section: The main purpose of this department is to maintain the
automated plant.
The main functions are:
Repairs and maintenance of automated plant.
Up gradation of plant.
Modernization of plant.
Increasing the efficiency of the plant.
Proper up keeping is the main responsibility of mechanical department.
In Mathodu plant around 25 people is working in mechanical department.
The employees are from technical background. They are recruited through the head
office at Chennai.
Mechanical department covers two sub departments.
Process section
Dispatch section
• Processing Department: Processing department is nerve centre
in the Mathodu plant. All the raw materials purchased will supply to processing
department. These raw materials are stored in the convenient place. These raw
materials are processed with the automated plant.
The following raw materials are used to manufacture the cement:
Lime stone
Silica
Ply ash
Gypsum
Potash
Some chemicals.
Kokane
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In Mathodu plant cement is produced in four important processes.
They are:
Coal mill
Raw mill
Kiln department
Cement mill
Coal Mill: In this department coal is crushed, grinded and converted into the
powder. Then the powder moves further for the kiln department. The use of
this powder is to supply heat to the clinker.
Raw Mill: Raw mill is also cooperating with production process.
Kiln Department: Kiln plays a crucial role in the production process. Kiln is
subdivided into various parts. In Mathodu plant, the diameter of kiln is three meters
and breadth is forty five meters.
Clinker (the preliminary stage of cement) is moved through this from 120 degree
centigrade to 1500 degree centigrade which is the optimum temperature.
This temperature is produced by burning the crushed coal. Coal is crushed and
powder supplied continuously to the kiln for heating the clinker. After heating the
clinker in maximum temperature it falls down to further process. The idea behind
falling is to cool the clinker to the temperature of 120 degree centigrade. By doing
this, properties of clinker may be saved. Because the properties of clinker may lost by
over heating.
Cement Mill:
Cement mill will get the clinker from kiln and stored in a big tank. Remaining raw
materials like ply ash, potash and chemicals are mixed and again grinded in a rolling
tanker. Then fine powder comes out from that grinder. Waste is separated from
automatic machines. Then the pure cement powder moved to packing section.
Dispatch Department: Dispatch section is final department in the production
process. Cement is packed in packing section. The average weight of packs is 50 kg.
Dispatch section keeps the trucks ready to load the cement. This section load the
trucks weigh them and send to the desired markets.
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Central Control Room:
Mechanical department covering central control room, where the four processing
areas are controlled through the well established technology. Micro computers are
installed there and four processing areas are connected with this system.
If there is any problem in any of the four mills will be identified in the central control
room and problems shall be announced so that every one in the plant will be listening
the problem and became alert to make it correct. So it is a boon of advanced
technology to the cement industries.
• Materials and Stores Section: The stores department is separate
miscellaneous stores department for raw materials, finished goods and tools. Each
and every department maintains the stock through the collection of batch wise
production documents from each part and the products are stored and kept ready for
dispatches in an orderly manner by the contractors who are appointed on weight and
from age basis.
The Inventory norms are met by each & every stores department depending upon
various parameters like demand, production level and availability of raw materials.
The materials are maintained at FIFO method.
Chart no -4
Stores Department Structure
AGM
ASST. MANAGER
Personal Attendants
Officers Senior Assistant
Assistants
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Functions of Stores Department:
Receiving goods into stores.
Carefully examines all the goods & materials on receipt & arranges for
systematic & efficient storing of the same.
Arranges for the distribution of all items to factory department as required
under material requisition notes.
Arranges for keeping efficient quantity records of the movement of stocks and
accounts for all goods which have come in their charge.
Arranges for prevention of any theft wastages or deterioration of stock.
Issue of materials to production department.
Checking the invoice with materials received and purchase order in respect of
quality and quantity of materials received.
• Quality Control Section: This department plays a very dominant
role in the plant. Production department is completely dependent on this department.
All the raw materials for the production will be first arrive to quality control
department in order to check the available raw materials are of good quality or not.
Functions of quality department:
Carry out approval of inspection in all stages.
Identify and approval of critical parameters.
Maintaining of weighs, tests reports and results from researches.
Responsible for rising and closing non conformances.
Responsible for communicate/display quality status of the company.
Responsible for improving the product quality in all stages.
• Electrical Section: This department is named as POWERICA. Madras
Cements Limited, Mathodu plant getting power supply from both external sources
like Electricity Board and internal sources like Powerica.
Diesel Generators popularly known as DG‟S are installed in the plant to generate the
power by using the crude oil. It is cheapest mode of generating power from oil.
POWERICA produces surplus power to the plant. Diesel generators are consuming
some amount of crude oil, distilled water, electricity and coal for the generation of
power.
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• MAINTENANCE DEPARTMENT:
This department is operating in the organization to maintain the plant
effectively and efficiently to work all the plants and machineries. The following
functions are absorbed:
Maintain and update master list of machineries
Prepare preventive maintenance schedule covering all materials
Maintain list of spares for all critical machines and machine history sheet.
Carry out breakdown/preventive maintenance and record the same
• PERSONNEL AND HUMAN RESOURSE DEPARTMENT:
Human resource management is a management function that helps managers
to recruit, select, train and develop the required members for an organization.
SR.GM -HR
PA
Sr. Mgr Manager Manager Sr. Welfare Sr. Med.
(IR & PA) (PA) (Security Officer Officer Officer
) (T & D)
The department functions are:
Recruitment and selection
Salary and wage administration
Training and development
Welfare activities
Health and safety
Organization development interventions
Personnel and administration
Industrial relation
Public relations
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Employees data base
The part of management which deals with human resource in the organization is
known as HRD. Human resource management is the process of achieving the best fit
between individual‟s jobs, organization and environment. The management of
manpower is a very important and challenging job not of managing men, but of
administering a social system.
Transfers:
In MCL both inter and intra departmental transfer‟s takes place based on the
requirements. For Vacancies management no needs to pay extra. Usually transfers
will be affected once in a year preferably in the month of April and May.
Training and Development:
Training is a short term process utilizing a systematic and organized procedure
by which non-managerial personal learn, technical knowledge and for definite
purposes.
After recruiting the new employees MCL shall give training for the employees about
their job. Development of employee‟s attitude towards highest standard of house
keeping in factories.
Madras Cements Ltd. gives its core philosophy of making its work men as
knowledgeable workers imparts structured training both in behavior sciences as well
as skill development. Besides this training on quality of work life are also organized
both for the employees and their family members.
In addition to internal training given to employees are also sponsored to the premier
technical institute NCBM confederation of Indian industry for having their on the job
skills. The personnel department identifies the training and prepares for training and
evaluates instructor programmers. The training programs are both for the employee
initiated and management initiated.
Training methods of MCL:
On the job training method:
The most important type of training is on the job training. The
experience of actually doing something makes a lasting impression.
The worker under these methods learns to master the operations involved on the
actual job situation.
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Some of the methods are:
Job rotation:
It involves the employees been set through different jobs thereby providing them wide
exposure.
Training by experience workman:
Training is imparted to the new workmen by his supervisor. It is useful to the
department in which workmen advance through successive jobs to perform an
operation.
Off the job training:
Methods of off the job training:
Workers education scheme:
The object of this scheme is to well inform and responsible labour force which is
capable of organizing and running trade unions on sound lines.
Guest lecturers:
Lectures are regarded as one of the simplest way of imparting knowledge to the
trainees especially when concepts, theories and problem solving abilities are to be
taught.
Computer training:
The computer training is imparted to all the employees in order to make them
computer literate, the employees are trained in various aspects of computers, which
are related to their job.
Technical training:
Training is imparted to the technical staff by sending them to different training
institutions.
Training is not a part of every job activity, the actual location may be in the company
classroom in places, which are owned by the company or in universities associations,
which have no connections with the company.
LABOUR WELFARE ACTIVITIES:
As per our founder “a contended worker shall give maximum output to his
employer”. There are innumerable schemes to motivate our worker to earn their full
wages.
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They are:
• Unique pension schemes for ten years after retirement.
Loan facilities at subsidized interest rates.
Collective purchases of home needs.
Annuity and accident insurance facilities.
Corpus fund for assistance on accident and death.
Recreational facilities and holiday home facilities.
Visit India assistance.
Cash and gift to efficient workers.
Build your own house loan.
Labour education scheme.
Educational subsidies to the children of the employees.
Ramco has some ambitious plans in the anvil to open diagnostic centre for healthy
tomorrow. Apart from this, generally contributing to the Govt. hospitals named after
its founder Sri. P. A. Ramaswamy Raja.
Mode of Operation:
Deputy General Manager of Marketing draws the annual plan and
disaggregated monthly and weekly plans, allocating targets to the marketing staff in
conformity with that set out the annual budget. To formulate the product / marketing
strategies and function in a competitive environment. DGM - Marketing ensures
periodical market surveys, competition and competitor‟s analysis, product pricing and
positioning. He works out appropriate strategies to ensure continuous growth of sales
and expansion of the market.
Madras Cements Limited has sole marketing department for all the four plants. The
Madras Cements Limited Mathodu plant also not having its own marketing
department.
2. SKILLS
A skill is the ability, knowledge, understanding and judgment to accomplish a task,
skills may be defined as what the company does best; the distinctive capabilities and
competencies that reside in the organization.
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Madras cements has variety of skills in doing its business. The company analyses the
potential market so that it can market its products in the efficient manner. The
company salesperson is trained and provided with skills to deal with customers
personally to know their needs and wants. Company also strives in providing the
better career growth. It has skilled staff which also provides market information
regularly, which helps to study about competitor‟s move. Madras cements also
educate its customers to be aware of market conditions. Skills are parallel to core
competencies and whenever there is a shifting in the strategy, firm may have to
acquire expertise in the new skills and older skills.
3. STYLE
Different organizations follow different style of operations and decision
making such as it may follow participative or authoritative type of leadership
and it may follow bottom up or top down form of decision making.
“MADRAS CEMENTS LTD., MATHOD” fallows participative type of
leadership which motivates employees and creates a virtual informal
environment within the organization which is very suitable to this
organization.
4. STRATEGY
Strategy is a process of setting up of organizational objectives in order to mobilize
resources in order to gain substantial advantage over the competition. Strategy is the
art of devising and employing a system of activities in order to stay in the market.
The Madras cements main strategy is in efforts of technology absorption,
adaptation and innovation. The benefits of these efforts are
Product improvement
Cost reduction
Product development
Import substitution etc.
In this regard the mathod unit is had its own power generation plant called
Ramco wind farm near to the plant.
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5. SYSTEM
System refers to processes and information flows that link the organization
together. System refers to the rules, regulations and procedures both formal and
informal that complement the organization structure. This includes the way the
functions of different departments are carried out.
The existing expertise in IT and rich domain knowledge in servicing and allied
areas, Company is strengthened in its IT linkages within the group by having its own
diversified industry called RAMCO SOFTWARE SYSTEMS.
Management information system
Inventory control system
Quality control systems
Enterprise resource planning
Core subsystems of ERP are
Sales and marketing
Master scheduling
Materials requirement planning
Capacity requirement planning
Bill of materials
Purchasing
Shop floor control
Accounts payable/receivable
Logistics
Human resource management
6. STAFF
Staff means that the company has hired able people, train them and assign them to
the right jobs. Employees are the functional unit of the organization. Their
selection, training, placement, and induction everything is important for the
organizations staff.
• Top level: Managing and Technical Directors.
• Middle level: General and Senior managers.
• Bottom level: Deputy Managers and Officers.
• Fourth level: Clerks, Assistant and workers.
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The duties of some important groups of staff are as follows
FOR DIRECTORS
A Director being a Trustee of the Shareholders shall –
Act always in the best interest of the Shareholders.
Maintain a high standard of probity in his relations with the Company, its
subsidiaries, employees, contractors, suppliers and customers.
Maintain confidentiality of the Company on matters that come to knowledge
as Directorship and thereafter as well.
Conduct him self always in a manner that befits his position.
FOR SENIOR MANAGEMENT PERSONNEL
A Senior Management person is one who occupies the rank of General Manager
or above and notified from time to time as a Senior Management person. Senior
Management personnel shall –
By his personal behavior and conduct, set an example to his fellow employees
Conduct himself in a manner that upholds his integrity, rectitude and fair name
of the Company and give no occasion to the Management to explain his
actions or behaviors.
Refrain his position for personal benefit from the employees, contractors,
suppliers and customers of the Company.
Not divulge to any member of the press or media any matter concerning the
company unless authorized by the Management.
Not engage himself in any business relationship or commercial activity with or
without remuneration, without the prior written permission of the
Management.
INCHARGE OF QUALITY ASSURANCE
Member of management review meeting
Carryout and maintain inspection at in-coming. In-process and final stage
Approval of pre-delivery inspection report
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Approval of normalizing log register
Ensuring calibration of all instruments periodically, maintain history cards for
all instruments.
In-charge for all shifts as personnel responsible for product quality and have
the authority to stop production in case of quality problems.
7. SHARED VALUES
Values should be followed by each and every individual in an
organization for smooth functioning of it.
A value has to be communicated properly and in the local language so
that each employee can understand it.
Goals which can be achieved must be set.
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4) SWOT ANALYSIS:
When conducting strategic planning for any company, it is useful to complete
an analysis that takes into account not only your own business but also your
competitors business and the current business environment as well.
The following description will highlight the strengths, weakness, opportunity and
threats of the Madras Cements Limited.
STRENTHS:
Organization: The management of MCL with all precaution with future 25
years requirements has planned in such a way that there are no shortcomings
in the raw materials and labour requirements. And timely investment of
capital by the management has accelerated the production and achievement
both in the field of quality and quantity of cement industry.
Capital: “It‟s oil to the productive machinery”. Ramco Group has invested
96.25 million (385crs) capitals in the Mathod unit. This has grown the
company into one of the biggest and largest producer of OPC.
Transportation: -The Company is established in a place where it can have
advantage of transportation facilities. railways is abating to the industrial
place as well as national highway, four ways NH-4 is passing just adjacent
(35km) to the industrial place which makes the transportation convenient with
the unit.
Labour: - The northern part of Karnataka was industrially backward area.
When the MCL was established there were no opportunities in rural mass.
And labour class was available as such the industry developed and achieved
more than expected progress, in production and expansion.
Land: - Esteemed Ramco sponsors the industry. It has got abundant land at a
cheaper rate in which it uses to grow its raw material that is limestone. The
land is available both for extension and establishment. It has utilized the land
for establishment of staff colony and for labour purposes.
H R professionals comprising of commendable background thus providing a
platform for continuous improvements in all the H R related activities.
Need based behavioral / technical training is imparted to all employees.
Appropriate infrastructure for condition of training.
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Partnership with various technical and management institutions, for providing
a Continuous supply of fresh graduates.
Stream lined system of recruitment.
Industrial and legal relations are very conducive for the smooth functioning of
the unit.
Providing the necessary welfare facilities for the employees in the comfort
zone and increase in the retention level of employees.
Healthy competition within the Group in terms of quality, quantity and cost.
The following are the few important strengths of company:
Madras Cements Limited is the Market leader in cement industry.
MCL is the lowest cost producer among the peers.
MCL giving good after sale service.
MCL is having good packaging and logistic management.
MCL is having strong distribution network.
MCL is having good connectivity.
MCL is in sound financial position.
MCL automated its operation.
Quality production.
Low cost energy generation.
MCL won so many Environmental awards
WEAKNESSES:
It is the area where Madras Cements Limited has to struggle. What customer
complaints about Madras Cements Limited? What are the unmet needs of Madras
Cements Limited‟s Sales force?
The following are some weaknesses of Madras Cements Limited:
MCL under utilizing available capacities.
MCL facing wastage problems.
MCL not completely modernized.
MCL is having excess staff in plant.
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Employment generation is very low in MCL.
Lack of procedural awareness among workers.
Poor scrap maintenance in MCL.
Ownership issues (Authoritativeness).
Political interference.
Technical problems.
OPPORTUNITIES:
It is area where Madras Cements Limited‟s strengths are not being fully
utilized. The opportunities which are in front of industry:
Growing construction industry.
Increasing demand.
Excess capacity in plant.
Well connected road network.
Availability of skilled workers.
Policy support.
Government support.
Huge export opportunities.
Other producers are in problem.
Access for latest technology.
Market share expansion.
THREATS:
These are inside and outside things, that there could damage the business of industry.
They are:
Tight competition from other producers.
Fluctuating policies of the Government.
Ecological imbalances.
High cost of installation of plant.
Availability of raw material.
Threat from Govt. officials.
Other cement industries surrounding the area.
Competitors are coming with new technology
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Analysis of the financial statement
Balance sheet of madras cements limited company mathod
Balance Sheet of Madras Cements ------------------- in Rs. Cr. -------------------
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10
12 mths 12 mths 12 mths 12 mths 12 mths
Sources Of Funds
Total Share Capital 12.08 12.08 11.90 23.80 23.80
Equity Share Capital 12.08 12.08 11.90 23.80 23.80
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 381.10 654.28 941.95 1,236.40 1,534.36
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Networth 393.18 666.36 953.85 1,260.20 1,558.16
Secured Loans 190.78 158.64 660.13 1,762.88 1,884.28
Unsecured Loans 411.67 518.70 975.51 700.57 682.23
Total Debt 602.45 677.34 1,635.64 2,463.45 2,566.51
Total Liabilities 995.63 1,343.70 2,589.49 3,723.65 4,124.67
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10
12 mths 12 mths 12 mths 12 mths 12 mths
Application Of Funds
Gross Block 1,640.53 1,798.98 2,714.45 3,917.59 4,811.14
Less: Accum. Depreciation 650.64 718.45 808.31 917.91 1,118.62
Net Block 989.89 1,080.53 1,906.14 2,999.68 3,692.52
Capital Work in Progress 11.30 178.44 576.48 635.37 317.70
Investments 88.67 88.75 88.76 88.61 88.74
Inventories 100.95 128.24 242.70 328.89 412.54
Sundry Debtors 49.35 65.34 61.61 89.80 155.51
Cash and Bank Balance 49.31 56.57 22.92 38.33 35.53
Total Current Assets 199.61 250.15 327.23 457.02 603.58
Loans and Advances 127.47 364.60 451.98 456.50 532.01
Fixed Deposits 0.00 0.00 0.02 0.28 0.07
Total CA, Loans & Advances 327.08 614.75 779.23 913.80 1,135.66
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 379.95 469.59 653.36 825.24 1,011.56
Provisions 44.55 150.72 110.75 105.03 119.78
Total CL & Provisions 424.50 620.31 764.11 930.27 1,131.34
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Net Current Assets -97.42 -5.56 15.12 -16.47 4.32
Miscellaneous Expenses 3.18 1.53 2.99 16.46 21.39
Total Assets 995.62 1,343.69 2,589.49 3,723.65 4,124.67
Contingent Liabilities 58.61 380.97 393.82 294.52 748.26
Book Value (Rs) 325.54 551.72 801.38 52.96 65.48
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6) LEARNING EXPERIENCE:
I have done my project in Madras Cements Limited, Mathod. It was basically
Three weeks of in-plant training. This period I learnt many things, which would not
have been possible inside the classroom. It means that how the classroom learning
concept adopted inside the organization that is, working conditions, behavior of
employees, employer and employee relationship, financial background strengths,
weakness, etc
The things, which I learned, will help to understand the concepts of
management. The Madras Cements Ltd. is a cement producing company and it is
having customer across the country. I found that the relationship between the
employer and employee is good and healthy. However the outcome of my inplant
learning experience are:
In the beginning of the first week, I started collected data such as inception
and background of the company, nature of the business, vision, mission, quality
policies, competitors in India, achievements and awards, future status of the cement
market position etc., are collected.
In the second week I started to collect the data as per the Functional
Department. The summary of my learning process in the organization.
Structure
Each department has clear-cut standards and respective departmental heads are
responsible to achieve those goals through proper functioning of their
departments.
I learnt how various departments like production department, purchase
department etc functions.
Skill
Helped to know what are the different skills that are required for a
particular position in an organization such as soft skills communication,
analytical skills, decision making skills and technical skills.
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On the job training is usually conducted by respective departmental heads
through the methods.
off the job training is conducted by Human Resource Department who are
responsible for conducting the programs offered by professional bodies
and academic institutions to impart the soft skills required for employees
in the course of employment.
Style
Different organizations follow different style of operations and decision
making such as it may follow participative or authoritative type of leadership
and it may follow bottom up or top down form of decision making.
“MADRAS CEMENTS LTD., MATHOD” fallows participative type of
leadership which motivates employees and creates a virtual informal
environment within the organization which is very suitable to this
organization.
Staff
Even though these days it is necessary to computerize all the operations, it is
the human resource which acts as an important input to the organization which
is required to operate and develop those machines and computers.
Staffs require proper training and they should posses‟ suitable qualifications
and skills. Hence, it is necessary to properly select the right candidate during
the time of interview i.e., right man for a right job which is followed in this
company.
Organization is also providing basic facilities such as toilets, canteens,
drinking water facility, rest rooms that are required for the staff.
System
How different systems work and their interconnection with each other through
computer systems.
Learnt different techniques that are used for performance appraisal such as
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ranking method, management by objectives, group appraisals.
Characteristics on the basis of which appraisal is done.
Shared values
Values should be followed by each and every individual in an
organization for smooth functioning of it.
A value has to be communicated properly and in the local language so
that each employee can understand it.
Goals which can be achieved must be set.
In the third and fourth week, I started to collect SWOT Analysis of cotton yarn
position in the world scenario and MCL SWOT position. In addition to this, I
discussed with auditor about financial statement of MCL and drawn a conclusion.
In “MADRAS CEMENTS LTD.MATHOD”, they guided me the functioning
of different equipments, Strategy, skills required for the organization, style used in the
organization, etc., in addition to overall activities of the organisation. This inplant
training gave me an in-depth knowledge of unit operation, mechanical operations and
many more processes.
The company is concentrating on cost reduction concept. The company is
spending more money on quality, which reduces the volume of profit. Even the R and
D expenses are too high.
Employees are in different skills, talents, abilities, attitudes etc and how they
are being utilized in optimum manner in achieving organization goals and importance
of policies, procedure, rules, regulation of the company, which guide in performing
the work.
Quality control and assurance guide entire organization in providing quality
product to customer, thereby improving loyalty from customer side.
Here I got the importance of group effort when compared to individual effort
in organization. Also importance of human relations which helps in getting things
done through and with others.
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Finally I conclude that, Inplant training has made me to expose myself to the real
working environment of an organization. This training helped me to get a clear
picture of the company‟s operations. I hope that this will help me in my future
to be effective
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PART-B
a) General introduction:
Welfare has been described as a concept of desirable, positive, relative and totality. It
is a state of existence in involving physical, mental, morale and emotional well-being.
It interconnects the three aspects i.e. man, his family, his community. But the
characteristics of welfare vary from time to time, region to region depending upon the
economic and social development.
Employee welfare is a comprehensive term including various services, benefits and
facilities offered to employees by the employer. Through such generous benefits the
employer makes the life worth living for employees.
The concept of employee welfare however is flexible, elastic and differs from
industry to industry, country to country, and time to time as it depends upon the value
system, level of education, social custom, degree of industrialization and the general
standard of socio-economic development. It is moulded according to the age group,
gender, cultural background, marital status, economic status and educational level of
the employees in various industries. In brief employee welfare covers all the efforts
that employers make for the benefit of their employee over and above the minimum
standard of the working condition.
Employee welfare is an important factor of industrial relations, the extra dimension
and giving satisfaction to other workers. It is originated in the desire for a
humanitarian approach to the suffering of the working class. Later, it becomes a
utilitarian philosophy, which worked as a motivating force. But, today it has become a
controversial topic, as the employee requires something more to keep his body and
soul together.
Laws related to social security:
1) Workmen‟s compensation act, 1923.
2) Employees` state insurance act, 1948.
3) Employees` provident fund & miscellaneous provisions act, 1952.
4) Payment of gratuity act, 1972.
Welfare measures and activities in MCL
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Medical
Medical facilities are made available to employers through first aid
centre for immediate relief. Also some of the hospitals in and around
Bangalore city have been recognizing to enable the employees and their
dependents to avail hospitalization treatment.
MCL employees co-operative society:
This enables the employees to take provisions, cosmetic items, household
items, etc at concessional rates on credit basis.
To overcome financial stress, during April/may of every year,
yearbooks are issued to the employees and recovery is made
through payroll. Also cloth loans are issued twice in a year to
all employees.
Blood donation comp is also organized for needy persons. As
per rules a day‟s off is given for donating the blood to the
employees and their dependents.
Reimbursement of school fees to the employee‟s wards.
Incentives for acquiring additional qualification.
Service certificates and gifts.
Supply of milk and vitamin tablets to children‟s of workers.
Suggestion awards.
Canteen facility has been provided in the factory premises. It
offers good quality of good for the employees.
Shelters, restrooms, and lunchroom are provided for the
employees.
Reading room and library has been provided to the employees.
Title of the study:
“A study on employee‟s welfare in madras cements limited company method”.
Statement of the problem :
A study on employee welfare and employee is supremely important in an
organization because it is what productivity depends on if your employees are
satisfied they would produce superior quality performance in optimal time and
lead to growing profits. Satisfied employees are also more likely to be creative
and innovative and come up with break troughs that allows a company to grow
and change positively with break troughs that allows a company to grow and
change positively with time and changing market conditions.
Employee‟s welfare defines as “efforts to make life worth living for workmen”,
these efforts have their origin either in some statue formed by the state or in some
local custom or collective agreement or in the employer‟s own in initiative.
So I have selected “employee‟s welfare” as my topic in “madras cements limited
method”.
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Objectives of the study:
The manufacturing sector plays an important role as the prime mover of growth
of the economy and has been considered as an engine of growth. With the on set of
new production system and changing industrial structure, factors of production are
getting more importance in production activity. At the same time employee as the
prime production factor has been influenced by the industrial structure, price, and cost
of margin, performance and productivity. As a consequence employee and its welfare
have been emerging as a new thrust in production activities. In this context the study
has been attempted to verify the following objectives.
To analyze the present industrial scenario and the condition of employee
welfare in MCL.
To identify the relationship between employee welfare and employee
productivity.
To identify the role of employee in improving the performance of the industry.
To assess the role of employer, institutional factors in improving the condition
of employee welfare.
To identify the impact of recent macro economic reforms including new
industrial policy, new trade policy on the industrial structure in terms of
employee welfare.
To interpret the various employee welfares undertaken in MCL
To know the views of employees about the employee welfare measures
undertaken in MCL
Scope of the study:
The study has been intended to focus on employees of Madras Cements,
Mathod.. At the same time an attempt has been made to investigate the improvement
in the employee welfare in the changing economic and social perspective. Through
research recommendations have been given, which the company may / may not
consider.
Methodology:
Research Methodology is a way to scientific and systematic search for pertinent
information on a specific topic and solves the research problem. Research is a
systemized effort to gain new knowledge.
Internal sources: internal sources are the company own record, registers
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documents etc,.
External sources: all other sources of information are sources of data.
Another way of classifying the sources of information is.
Primary data: I collected information by observation and interacting with the
organization employees and various departmental mangers‟ used Direct
interview, Questionnaires which is given to employees, observation, etc.
Secondary data: company‟s booklets, test books, different types of
encyclopedia, magazines and other sources, website of the company, graphs
and charts annul reports, etc…..
Sampling plan:
Questionnaires were provided to the employees relating to welfare measures. A
total of 18 questions were framed which are binary and multiple choice. The
questionnaires were provided to 100 employees, this includes officers, contract
employees, supervisors.
Likert Scale
This tool is used to know the satisfaction level of the employees towards the
Employees welfare in the organization.
Limitations of the study:
The study focuses only on employee welfare measures and their role in
improving the condition of the employee welfare in MCL. The study
had limited time duration i.e. for 10 weeks
Short period of time makes me, not able to understand all the activities
and daily routine of the company.
The accuracy of the data depends upon the source of the data therefore
the study it subject to any such discrepancy.
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Analysis and interpretation
Table 1: Table showing opinion towards conditions of the work environment
particulars No. of respondents Percentage of
respondents%
Excellent 40 40%
Good 30 30%
Satisfactory 20 20%
Poor 10 10%
total 100 100%
Analysis
From the above table, 40% of employees say the conditions of work environment is
excellent , 30% say it is good , 20% say it is satisfactory and 10% are not satisfied.
Graph 1:
The graph showing working conditions of the employees:
Poor
10%
PERCENTAGE OF RESPONDENTS
%
Satisfaction Excellent
20% 40%
Good
30%
Interpretation:
From the above graph, we can interpret that most of the employees are having fair
opinion about the working conditions. Still few of the employees expect improvement
in working
Conditions.
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