AN ORGANISATION STUDY AT

AUTOKAST LIMITED

CHERTHALA

Report submitted in partial fulfilment of the requirements for the award of

Degree of

MASTER OF BUSINESS ADMINISTRATION

Of

MAHATMA GANDHI UNIVERSITY KOTTAYAM

By

Abishek P Kumar
Reg. No. 85051

Under the guidance of

Mr. Santhosh S
Asst. Professor

Scms School of Technology and Management (SSTM)

Kalamassery,Cochin
(Affiliated to Mahatma Gandhi University, Kottayam & Approved by AICTE, New Delhi)

2016 – 2018
 SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT

KALAMASERY,COCHIN

CERTIFICATE

This is to certify that the project report titled “Organization Study at

Autokast Limited, Cherthala” is a bonafide record of the work done by
Mr.Abishek P Kumar as part of the organizational study at Autokast Limited in
partial fulfillment of the requirements for the award of the Degree of Master of
Business Administration of the Mahatma Gandhi University.

Faculty Guide Principal

Mr.Santhosh S Dr. Shasi Kumar

 DECLARATION

I, hereby declare that the study entitled “An Organization Study at

AUTOKAST LTD, Cherthala, Alappuzha District”, submitted to
Mahathma Gandhi University in partial fulfilment for the award of Master
of Business Administration, is a record of the original study done during
the period of study in SCMS, Cochin School of Business, Prathap Nagar,
Ernakulam District, Muttom, Kerala under the guidance of Santhosh S,
Faculty guide, MBA Department. I hereby declare that this report has not
been submitted in full or part thereof for award for any degree or diploma
to any other University or Institution.

ABISHEK P KUMAR

Place : ERNAKULAM

Date :
 ACKNOWLEDGEMENT

First and foremost, I thank the Lord Almighty for his perpetual showers of blessings,
which led to the successful completion of this organizational study. I take this
opportunity to express my deep sense of gratitude to all those who have helped me
throughout this organizational study. It gives me immense pleasure to acknowledge all
those who have rendered encouragement and support for the successful completion of
this work. I would like to convey my sincere thanks for giving me proper directions
and suggestions and make use of this opportunity to express my heartfelt gratitude to
Mr. P.V JITHEESH, (HR manager, Autokast) for providing me all the faculties for
making my project a successful one.

I express my deep sense of gratitude to Mr. SANTHOSH S, faculty member of SCMS

SCHOOL OF TECHNOLOGY AND MANAGEMENT,COCHIN for the guidance
and his valuable suggestions in this study. I would like to thank all those who have
directly or indirectly contributed to the success of this study. I also take this opportunity
to express profound gratitude to my parents and family members.

ABISHEK P KUMAR
 CONTENTS

CHAPTER TITLE Pg.No

1. INTRODUCTION 1

1.1 OBJECTIVES OF THE STUDY 3

1.2 SCOPE OF THE STUDY 3

1.3 METHODOLOGY OF THE STUDY 4

1.4 LIMITATION OF STUDY 4

2. INDUSTRY PROFILE AND COMPANY PROFILE 5

2.1 INDUSTRY PROFILE 6-7

2.2 WORLD SCENARIO 8-9

2.3 INDIAN SCENARIO 10-13

2.4 COMPANY PROFILE 14-23

2.5 PRODUCT PROFILE 24-29

3. GENERAL MANAGEMENT PRACTICES 30

3.1 DUTIES AND RESPONSIBILITIES OF TOP 31

LEVEL MANAGERS

3.2 ORGANISATION CHART 32

4. FUNCTIONAL DEPARTMENTS 33

4.1 HUMAN RESOURCE DEPARTMENT 34-39

4.2 FINANCE DEPARTMENT 40-41

4.3 PRODUCTION DEPARTMENT 42-46

4.4 QUALITY CONTROL DEPARTMENT 47-48

4.5 ENGINEERING & PATTERN SHOP 49-50

4.6 MARKETING DEPARTMENT 50 51-52

4.7 PURCHASE & SUBCONTRACT 53-54

 4.8 PROJECT DEPARTMENT 55-56

4.9 PRODUCTION PLANNING & CONTROL 57-60

4.10 ELECTRICAL DEPARTMENT 61-62

5. SWOT ANALYSIS, 63-70

FINDINGS, SUGESTIONS
AND CONCLUSION

BIBILOGRAPHY 71
 LIST OF CHARTS

Chart No: Chart Title Page

3.2 Organizational Chart 32

4.1.1 Human Resource Department 39

4.2.1 Finance Department 41

4.3.1 Production Department 46

4.4.1 Quality Control Department 48

4.5.1 Engineering & Pattern Shop 50

4.6.1 Marketing Department 52

4.7.1 Purchase Department 54

4.8.1 Maintenance Department 56

4.9.1 Production & planning control Department 60

 1

CHAPTER 1

INTRODUCTION
 2

INTRODUCTION

The primary purpose of this study is to fulfillment of the requirements for the degree of
MBA. For this I conducted my Organization Study in Autokast Limited, Cherthala for
a period of one month. The era of liberalization has opened up new vistas for Indian
Economy. In the fast changing economic scenario it is imperative for every aspiring
entrepreneur to have a vivid understanding of the functional application of the new age
business. Organizational studies is “the examination of how individuals construct
Organizational structures, processes and practices and how these, in turn, shape social
relations and create institutions that ultimately influence people. Organizational studies
comprise different areas that deal with the different aspects of the Organizations.
 3

1.1 OBJECTIVE OF THE STUDY

The primary objective of the organization is to make the students to know the practical
applicability of the theoretical concept in to business decisions of the organization.

 To study each department function as practically

 To understand the aspects of delegation of the authority, responsibility,
coordination, team work etc.
 To gain experience from the industry
 To integrate practical experience with theoretical concepts
 To gain all round view of management options
 To analyze the present status and future strategy of the company
 To understand the behavior and culture of an organization

1.2 SCOPE OF THE STUDY

This project reports covers the functioning of all major departments of Autokast
Ltd. Cherthala. The findings of the study would give valuable information about
improving the current performance of the Organization towards its goal
achievement. It also includes the Organizational structure of the firm.

 Helps to understand the Organizational structure of the firm.

 Helps to get a practical knowledge about the functions of different
departments of Autokast Ltd.
 It helped to apply the Management theories into practice
 Helps to focus on positive and negative aspects of the Company
 4

1.3 METHODOLOGY

The data are obtained from primary and secondary sources.

Primary data are collected through personal interviews and personnel discussion
with managers and other officials of the Organization. And also through
observation. The information obtained relates to what is currently happening in the
Organization. The study needs to have a personal visit to the different departments
of the company.

Secondary data are from published and unpublished records of the firm. Published
sources include annual report of the Company, newspaper articles, journals of the
firm etc. Unpublished sources of data are files and records maintained by the
Company.

1.4 LIMITATIONS OF THE STUDY

 The study was conducted for a limited period and the time is a major limiting
factor for an in-depth study.

 Secret nature of certain files, records and information that could not be
revealed.

 Lack of experience of researcher

 Since the official were busy, it was difficult to spare their time for detailed
discussion.

 Lack of corporation from the part of workers.

 5

CHAPTER 2
INDUSTRY PROFILE AND COMPANY PROFILE
 6

2.1 INDUSTRY PROFILE

Steel production in India Started early 1900’s with the installation of an

integrated iron and steel plant at Jamshedpur. Great advances have been achieved in
capacity of production of casting in our country during the last 40 years after the
independence. Though substantial progress have been made in the past foundry is
facing problems like shortage, poor quality, and high price of input materials like pig
iron, steel scraps etc.

Autokast is subsidiary of Steel Industries Kerala Limited put up a sophisticated

foundry unit at Cherthala incorporating some of the latest foundry techniques using
latest mechanism available in the world today.

Autokast Ltd. Is the equipped with most modern and sophisticated equipment
such as inductions furnaces, high pressure molding etc. Autokast Ltd. Had related
various component of different nature including automobile casting were tested and
proven on the machine before it has exhibited. Autokast was established in 1984, it is
fully equipped to manufacture all kind of ferrous casting weighing form 5 kg to 8000
kg to single piece. The annual production capacity is 1800 metric tons. Autokast
produces and markets different grades of grey iron and SG iron casting for the domestic
and international markets.

It is estimated that the total number of founding units in the country in the large
medium, small and tiny sectors put together vary between 7000 to 8000. Out of this
states of Kerala has around 150 units connected with act of foundry mostly on the small
scale barring a few units of medium sized capacity. It is a pleasant task to list Autokast
Ltd. In to this selected brand of industry fearing up to latter the needs of sophisticated
casting in the industry.
 7

INDUSTRY DESCRIPTION

The manufacturing sector comprises of establishment engaged in the

mechanical, physical or chemical transformation of materials, substances or
components in to new products in considered manufacturing, except in cases where the
activity is approximately classified in to construction.

Establishment in the manufacturing sector are often described as plants or mills

and characteristically used power driven machines and material handling equipments.
However establishments that transforms materials or substances in to products by hand
or in workers home of those engaged in selling to the general public products made on
the same premises from which they are sold, such as bakeries, candy stores, and custom
tailors be also included in this sectors. Manufacturing establishment may process
materials or may contract with other establishments to process their materials for them.
The materials, substances, components, transformed by manufacturing establishment
are raw materials that are products of agriculture, forestry, fishing, mining or quarrying
well as products of other establishments. The materials used may be purchased directly
from producers obtained through customary trade channels or secured without recourse
the market by transferring the product from one establishment to other, under the same
ownership. The new product may be finished in the sense that it is ready for utilization
or consumption or it may be semi-finished to become an income for an establishment
engaged in future manufacturing.

For example, the product of alumina refinery is the input to an aluminum wire
drawing plant and aluminum wire is the input for the fabricated wire product
manufacturing establishment.

There are significant differences in the industrial processes, products, facility,

size and environmental impact between die casters and foundries, in addition to metal
casting, some foundries and die casters carrying our further operations on their cast
parts. Example include heat treating, case hardening, quenching decaling, cleaning,
painting, masking, and plating.
 8

2.2 WORLD SCENARIO

The metal casting industry provides approximately 1% of the manufacturing

GDP. The industry employees a quarter of million people in all states with a total
annual pay roll to $7 billion (1996). Small and medium sized foundries dominate the
industry with about 80% of all foundries employing fewer than 100 people and only
6% having a staff larger than 250 (kanicki 1998)

The United States led all othe countries in the world in producing metal casting
in 1997, supplying one-fifth of the world’s total shipment of 67 million. The nearest
competitor in China, with about 16% of the total public and private institutions and
organizations are part of infrastructure of metal casting in industry. Research and
development expenditures in 1997where about evenly divided between non ferrous
metals and ferrous metal (NFS) 1997.

According to Biblical records casting technology can be tracked back to 5000

BC. It is possible that metal casting technology, using moulds originated in Middle
East. However there are suggestions that this process may have been developed in India
and China. It is said that first steel products were made in India in 500 BC, but the
process was lost. The earliest records of casting methodology are the writing of the
monk Theophilus Presbyter in his book “Schedula Diversarum Atrium” He is
described in detail the casting of the famous peruses and head of medusa. The casting
is a crucial factor that leads to the progress of each civilization. The important ages of
the prehistoric time is named after the metal that was prevalently used in that age. Some
of the important ages are:

1) Copper age : Stone age is followed by copper in the prehistoric time.

Mankind found copper in the fires from copper bearing ore that he lined his
fire pits. Copper found an instant liking with man because it can be melted
and molded in to any described form
 9

2) Bronze age : Eventually, he learned that tin could be mixed with copper to
produce a stronger, durable and attractive metal which was called bronze.
He found bronze favorable because it could be used to make artifacts and
tools like knife, armor, pottery that we more durable and harder
3) Industrial age : Also known as the age of technical revolution this age say
rapid increased in the demand for casted products. Mass production was
made possible by the intervention of new machines in the age. Iron casting
was used not only for the creation of decorative objects but was also for the
production of machined component and house hold articles.

Important castings at the time of ancient period are listed below:

3300 B.C. Ortiz, the oldest natural mummy had an axe with copper casted axe head

3200 B.C. A frog casted in copper is the oldest proof that shows the complexity
and intricacy of molding

3000 B.C. Weapons and cult objects made of copper of this age recovered from the
Middle East and India

1400 B.C. Iron where excavated which indicates the earliest production of steel

800-700 B. C. First Chinese production of cast iron

645 B.C. Earliest known sand molding

233 B.C. cast iron plow shares are poured in India

500 A.D. cast crucible steel is first produced in India

 10

2.3 INDIAN SCENARIO

There have been almost revolutionary changes in the global iron scene fierce
competitive pressure.

On performance, productivity, price reduction and customer satisfaction.

National boundaries have melted to encompass an ever increasing world market. Steel
products have been on the upswing with the production facilities of both the developed
and developing countries complementing each other in the making of steel of different
grades. The Indian steel industry comprise of the producers of finished steels and semi
finishes steels and pig iron.

Major Companies in India

 Southern Alloy Foundries, Chanmar

 Simples Castings, Billai
 Several Engineering Works, Coimbatore
 Ashok Iron Works, Belgam
 Autokast Ltd, Kerala
 Ennore Foundries, Chennai
 LPC Ltd., combatore
 Ductron casting, Hyderabad
 Gadghe Patel Industries, Kolhapur

Industrial Process in the Metal Casting Industry

Many different metal casting techniques are in use today. They al have in
common construction of mould with a cavity in the external shape of desired cast part
followed by the introduction of molten metal in to mould.

For the purpose of their profile, the metal casting process has been divided in to the
following five operations:

 Pattern making
 11

 Mold and core preparation and pouring

 Furnace charges preparation and metal making
 Shake out cooling and sand handling
 Quenching, finishing, cleaning and casting

All five operations cannot be applied to each casting method. Since the major
limitation between processes occur in different type of moulds used, moulds and core
preparation is divided and sub divided in to subsections describing the major casting
process. In addition to casting technique described below, there are numerous special
processes and variations of those processes that are not discussed here as it is outside
the scope of this report. Nevertheless, such processes may play an important role in the
facility’s effort to comply with environmental requirements.

Characterization of the metal casting industry

Foundries and die casters that product ferrous castings generally operate on a
job or order basis, manufacturing casting for sale to other companies. Some foundries
termed captive foundries produce castings as a subdivision of a corporation that uses
the casting to produce larger products such as machinery, motor vehicles, appliances or
plumbing fixtures. In addition many facilities further work on castings such as
machinery, assembling and casting.

Silent Features of Casting Industry.

 Adaptability and absorption

 Exports
 Technology progression
 Wide product range for diverse usage
 Self-sufficiency and vibrant marketing setup

INTRODUCTION TO CASTING
 12

Casting is one of the most ancient ways of forming metals. Man has derived a
multitude of other watts of forming metals. Casting may be very small weighing few
grams and very big weighing of tons. Casting may be custom made or mass produced.
They can be cast in to many combinations of alloys. The first step of casting is to melt
the metal. The molten metal is poured in to the mould which is an important step in
casting that is going to be made. The steam of molten metal lighting up the foundry
like sunray vanishes in the gat of the mould. As soon as the metal has become solid,
the mould may be broken up, it has served its purpose and cleansed of clinging and
core.

Moving on from metal casting process, Autokast has its own facilities to
discharge liquid metal to intended chemistry, from modern induction and electric area
furnaces in to sand moulds prepared from conventional moulding machines and also
through high Foundry or casting is the process of producing metal alloy component
parts of desired shapes by pouring the molten metal alloy in to prepared mould and then
allowing the metal alloy to cool and solidify. The solidified piece of metal or allow is
known as casting.

Foundering or casting is one of the oldest manufacturing process which date

back to approximately 4000BC. The first foundry Centre came in to existence in the
days of Shan dynasty in climes. Number of foundries using cast iron as structural
material came into being after industrial revolution.

The Indian Foundry industry is striving to rewrite history and emerge as green
history. India is currently one among the tenth largest producers of ferrous and non
ferrous casting and has over 6500 foundries in the small, medium and large sectors.

SIGNIFICANCE OF FOUNDRY INDUSTRY

Foundry Industry is Major feeder to following sectors:-

 Automobiles & Auto Components

 Railways
 Power Sector
 13

 Tractor Industry
 Earth moving industry
 Pumps, Compressors, Pipes Valves & Pipe fittings
 Electrical/Textile/Cement/Agro Machinery
 Machine Tools & Engineering Industries
 Sanitary Castings
 Engineering Exports

Approx 32% Output of Foundry Industry goes to Auto Industries & balance to other
downstream Engineering Sector.

Automotive Mission Plan (AMP) 2006-2016 envisages 4-Fold Growth by 2016 ie

from $34 Billion Industry to $ 122-160 billion Industry and employing about 25 million
by 2016 AMP 2006-16 will drive demand of Castings from Foundry Industry.
Corresponding Growth in Foundry Sector vital to sustain growth in Auto & other
Engineering Sectors.
 14

2.4 COMPANY PROFILE

Autokast was established in the year 1982 as a subsidiary of Steel Industrials

Kerala Ltd. (SILK), a Govt of Kerala undertaking for the manufacture of Grey Iron and
Spheroidal Graphite Iron Castings. Autokast limited was started on with the aim of
manufacturing all types of ferrous Casting unit under the Steel Industrials Kerala Ltd
(SILK). On May 21 1984 incorporated as separate subsidiary on SILK and renamed as
Autokast Limited, which is located at S N Puram near Cherthala and is a modern
industrial Casting unit an ISO 9002 :2008 Company. The unit has an optimum capacity
of 18000 tons per annum and covers an area of 21500 square meters. The plant
comprises of two distinct production lines via, the conventional moulding line and the
high pressure moulding line. The Company can manufacture ferrous Castings of all
grades and sizes ranging from 5kg to 8000kg.

The conventional moulding line is semi automatic system in which large

Casting is manufactured, whereas high pressure moulding line is fully automated
system in which smaller Casting are manufactured in large quantities. The plant
manufactures intricate high precision item of mass production like cylinder block and
cylinder heads for the entire range of automotive engine.

Produce all grades of Grey Iron Castings up to 8.5Mt single pc (18700 lbs) and
all grades of Ductile Iron Castings up to 7 MT single pc (15500 lbs) and Steel Castings
weighing up to 3MT single piece. Commonly produced grades are IS 1030 and WCB
range Casting, Induction melting furnace of 5MT and 3MT are exclusive.

Autokast has the following range of manufacturing facilities

1. Air impulse type high pressure moulding line with box size of 750 x 750 x
400/350mm capable of producing 80 moulds per hour. The line is fully computer
controlled and is supported by automatic core shooting machines employing
different sand systems like cold box, shell core etc. Product range varies from 10kg
to 130 kg.
 15

2. Conventional hand moulding line capable of manufacturing Castings ranging from

200kg to 4000kg single piece weight.
3. Mahchine moulding facility having a mould box size of 790x790x400/400 mm and
1190x700x400/400 mm capable of manufacturing castings ranging from 30kg to
160kg
4. Liquid metal is generated from 2 numbers of 6MT Mains Frequency Induction
Furnaces and 2 High Frequency Induction Furnace of 3MT and 5MT capacity

Pattern shop at AKL acts as a service shop for pattern equipment used in production.

Autokast is fully equipped with state of the art testing facilities like:

1. Well equipped wet analysis laboratory

2. Twenty six channel, Baird make vacuum spectrometer imported from USA
3. Mechanical testing lab with 60T UTM, Brinnel hardness Tester, Rock well
hardness tester etc.
4. Metallographic facilities
5. Ultrasonic testing facilities
6. Magnetic particle testing facilities and
7. Liquid penetrant tests

The Company’s products at present cater to the needs of following segments of Indian
and overseas Industries.

1. Automotive
2. Tractor
3. Butterfly Valve and Disc assembly
4. Agricultural
5. Wind mill energy and
6. General Engineering Industries

Clientele

List of major products

Agricultural sector
 16

 Eicher tractor – Carater housing, crank housing, fly wheel housing, crank case
(3 bore etc)
 KAMCO main gear case cylinder frame etc
 International Tractors Differential Housing
 TAFE hydraulic lift cover

Heavy Engineering Sector

1. Fouress engineering – Butterfly valve bodies and discs

2. Autokast India Ltd – Butterfly valve bodies and discs
3. MacawberBeekey Ltd – Bome valve bodies, adapters, ash vessels
4. KakathiKarshak Industry Ltd – Vacuum pumb castings
5. Bharath pumps and compressors – Pump compressors castings
6. Kerala Electrical and Allied Engineering Rope Drums etc.
7. Instrumentation Ltd valve bodies
8. Equatorial intenal Ltd. Castings fro heavy earth moves (wheel rings) sussor lift
wheels
9. Bharath fritz warner for machine tools (columns, knees, tables etc)

Automotive Sector

 Ashok Leyland Brake Drums

 Addison’s Flywheels

Power Sector (Wind Mills)

 NEG Micon India Ltd Wind mill hub, Br-disc (GGG 40.3)
 Suzion Engery Ltd wind mill hub, Extenders (GGG 40.3)
 Vestas RRB wind mill castings GGG 40.3
 Pioneer Wincon Wind mill castings in GGG 40.3
 NEPC wind mill casting in GGG 40.3

Marine Engineering

Kirloskar Oil Engines Heavy Duty Blocks for marine application and components

BMD Air Impulse High pressure Moulding system

 17

In South Asia, Autokast is first to implement BMD (MisBadischeMarchienen Fabric

Duciach) Air Impulse Technology for sand compression, which is the latest in the field
of casting. Autokast has always been with the trend of technological changes.

The high pressure molding line can produce grey iron and graphite. Iron in casting,
which are repetitive in nature and required in large numbers. The entire mechanism is
controlled through a computerized control panel. The system can produce 8 mould per
hour and its best suited for more production of precise casting required for automobile
and engineering industries. This high precise system is separated by modern core
shouters from M/s Roperwerk from West Germany, using hard box, card box and shell
process and equipped with core handling transport system.

Location

The location has yet significance. It is located near sand mine (pallipuram). Sand even
though not a raw material is most important supporting material which is significant as
the raw materials.

Export

From a modest beginning Autokast Ltd has grown strength over the years in meeting
the requirements of casting in the overseas market. The company is leading towards a
turnover of one crore in the current financial year which is expected to have quantum
jumps in such current year. At present castings from the company are exported to USA.

Customer base

From an ordinary foundary unit in 1981, Autokast come great way through to become
one of the most sophisticated foundries in India. It is the level of sophistication and
precise quality control that helped Autokast to built is strongest customer base.
 18

The different customers of the Autokast Ltd are as follows:

The domestic customers are:

 Kirloskar, Nasik
 ABM steel, Delhi
 Mecawber, Delhi
 OSM, Delhi
 Pioneer, Pondicherry
 Global, Mumbai
 Kakathi Karshak Pvt Ltd, Hyderabad
 KAMCO (Kerala Agro Machinery Corporation), Kerala

The foreign customers of the company

 American March, America

 Flow Serve, America

Competitors

 LMW Foundry, Coimbatore

 Simplex Casting, Bhilai
 Southern Alloy Foundries, Chennai

In South Asia, Autokast is the first to implement BMD (Mis Badische Marchienen
Fabric Duciach) Air Impulse Techonology for sand compression which is the latest in
the field of casting. Autokast has always been with the trend of technological changes.

From a modest beginning Autokast Ltd has grown strength over the years in meeting
the requirements of casting in the overseas market. The company is leading towards a
turnover of one crore in the current financial year which is expected to have quantum
jumps in such current year. At present castings from the company are exported to USA
 19

The high pressure molding line can produce grey iron and graphite iron in casting,
which are repetitive in nature and required in large numbers. The entire mechanism is
controlled through a computerized control panel. The system can product 8 mould per
hour and its best suited for more production of precise casting required for automobile
and engineering industries. This high precise system is separated by modern core
shouters from M/s Roperwerk from West Germany, using hard box, card box and shell
process and equipped with core handling transport system.

Autokast Ltd is fully equipped with the stat of the art test facilities like:

a) Well equipped wet analysis laboratory

b) 26 channels, Baird made vacuum imported from USA
c) Mechanical testing lab with 60 TUTM, Brunel hardness tester etc
d) Metallographic facilities
e) Magnetic particles testing facilities and
f) Liquid penetrate test

MISSION

 Production in large volume and cost effectiveness in all segments

 Produce technologically superior products
 Achievement of customer delight through benchmarking global practice
 Consistent production through harmonious industrial relations
 Strengthen supply chain management

VISION

 To raise the company as a leader of Casting Industries in India

 The company should be recognized and respected as manufacture of the world
class product serving customers by supplying quality castings at right time.
 20

SCOPE & FIELD OF APPLICATIONS

This quality Management system covers manufacture, inspection, testing and supply of
Steel, Grey Iron and nodular Iron Castings for automotive, tractor, butterfly valve wind
mill energy and general Engineering Industries.

Autokast manufactures casting to customers design only. Likewise, all product of

Autokast can be verified by subsequent monitoring and testing. All activities of
Autokast are covered under the quality Management system to continually improve the
quality of its products as well as to ensure complete customer satisfaction.

ISO CERTIFICATION

Autokast is an ISO 9002 : 2008 certified Company. It has got the certification in 1990.
ISO 9000 is a family of standards for quality Management systems. ISO 9000 is
maintained by ISO, the International Organization for Standardization and is
administrated by accreditation and certification bodies. The ISO 9002 : 2008 agency in
Autokast is Netherlands agency KEMA. The agencies studies on various department
and prepares a manual on each department. There is managing committee on ISO 9002
: 2008 certification procedure. If there is any default or defect in the department, the
agency prepares a detailed copy of changes to each department for modification. The
Autokast which has export relationship with the foreign companies, the ISO
certification enables a prompt on the functioning procedure. The agency also does
Internal Audit in the Company. The NVT is the Indian Agency which does the
certification procedures. It is granted by KMEA.
 21

QUALITY POLICY OF AUTOKAST

EXCELLENCE IN THE FIELD

BY ACHIEVING
COMPELETE CUSTOMER SATISFACTION
THROUSH
CONTINUAL IMPROVEMENT
AS WELL AS
INVOLVEMENT OF EMPLOYESS
AND,
CONTRIBUTING ITS MITE TOWARDS
NATION BUILDING
THROUGH
INCREASED EXPORT ERANINGS

BUSINESS PURPOSE

SERVING CUSTOMERS BY SUPPLYING QUALITY

CASTINGS AT RIGHT TIME
 22

QUALITY OBJECTIVES

The Quality Policy is translated in terms of specific measurable objectives as given

below:

A. CUSTOMER SATISFACTION

1. Minimize customer complaints

2. Minimize rejection at customer ends.

3. Cutting down lead time for sample development.

4. Minimize delivery slippages

B. CONTINUAL IMPROVEMENT IN OPERATIONS

1. Bring down shop floor rejections

2. Minimize reworks.

3. Improvement in overall efficiency of critical equipments.

C. EMPLOYEE INVOLVEMENT

Meetings conducted under various shop councils & Defect Analysis review
committee.

D. IMPROVEMENT IN EXPORT TURNOVER

Continual growth in export turnover.

 23

The quality policy, quality objectives and targets are reviewed annually for it
continued suitability

Quality policy objectives shall be made known to all Employees by means of

Bills at different locations in the plant any by personal communication by department
heads.

Every Employee of Autokast shall be committed to achieve this objective by

strictly following the documented quality system.
 24

2.4 PRODUCT PROFILE

Autokast is the foundry unit producing iron castings for a variety of industries. The iron
castings made of cast iron, cast iron is general terms that describes iron, carbon, silicon
alloys which are produced by pouring the molten metal in to sand/metal moulds. Cast
iron is brittle and grey in colour. The carbon content in cast iron is more than that in
steel which makes it less malleable. By varying the silicon and carbon content at alloy,
several types of core iron can be produced each with different properties and uses

“IF YOU CAN DIESGN IT, WE CAN CAST IT” is the caption of Autokast Ltd. Over
the year Autokast has developed the expertise of manufacturing iron castings for a
variety of industries and different casting material like cylinder blocks and IC engine
cast iron.

Machine tool structures and water pipes for underground purpose are grey iron.
Hydraulic cylinder, valves, pipe fittings, cylinder head for compresses and diesel
engines are in spheroidal cast iorn.

The major product line of Autokast are:

1) Automotive casting

Cylinder head, cylinder blocks, break drum housings

2) Machine castings

Machine tool castings

3) Pump castings
4) Vacuum and slurry pump casting

5) Casting for pressure tight application

Control valves, pressure vessel casting etc

 25

Grey cast iron

Grey iron can be readily cast in to desired shapes by pouring in to moulds. So it is the
most commonly used type of cast iron for the manufacture of castings. The other
distinguished characteristics of grey iron are

 Lowest melting point of all ferrous alloys

 Carbon in grey iron is found on the forms of graphite flakes
 Low cost combined with harness and rigidity
 High compressive strength
 High resistance to weather

Spheroidal graphite iron

SGI or nodular cast iron is higher grade of iron because unlike structures grey iron, the
graphite in SGI is precipitated as spheroids. This attained by adding sheroidizingagents,
which changes the solidification characteristics and account for notarization.

PRODUCTION FACULTY

Pattern making : The pattern making section is capable of making any

kind in wooden and exposy resin pattern, simple metallic
pattern aluminum and SGI are also made

Moulding : Autokast Ltd is using three type of moulding

Hand Moulding : Hand Moulding is used for items ranging

from 200 Kg to 4000 Kg

 26

Conventional machine Moulding : The conventional machine

moulding can handle Items from

50 Kg to 150 Kg

High Pressure Moulding : Used for items ranging from 30 to

120kg

Melting and casting : The Company uses induction

melting and sand casting

Fettling and finishing : Only 40% of the casting is done in

house, the rest is subcontracted

Calibration Facility : The Company doesn’t have its

own calibration. Works are sub

contracted

Major Raw materials

The major raw materials used for manufacturing are silica sand, it is obtained from
silica sand mines in Pallipuram, a place near Cherthala. Mid Steel and CRACA scrap
pig iron are raw materials obtained from MSTC

Monitoring and measurement of products

Purpose

To ensure conformity of product requirements by monitoring and measuring

characteristics of the product at appropriate stages of production process.
 27

Scope

All products including purchased or outscored products at inter mediate states and final
product.

Functions

Receiving Inspection

Quality plan or documented procedure are established to verify whether procured

materials are as per specified requirements.

It is ensured that any accepted materials are released for further processing.

When incoming materials are released for urgent production without proper verification
it is positively identified and recorded in order to permit immediate recall and
replacement in the event of non confernments and requirements.

In Process Inspection

Quality plan or documented procedure is established to inspect in process product of

their conformance to requirements at pre-determined stages. Only the accepted items
are released for further use.

Monitoring and measuring information‘s are recorded and maintained.

Finished Products
 28

All finished products are inspected and tested in accordance with documented
procedure or quality plan to verify conformance of the finished products to the
requirements.

No products dispatched or released for next stage until all the activity specified have
been satisfactory completed.

Quality plan or documented procedure are established to verify whether procured

materials are as per specified requirements.

It is ensured that any accepted materials are released for further processing.

When incoming materials are released for urgent production without proper verification
it is positively identified and recorded in order to permit immediate recall and
replacement in the event of non conferment ‘s and requirements.

Grey iron can be readily cast in to desired shapes by pouring in to moulds. So it is the
most commonly used type of cast iron for the manufacture of castings. The other
distinguished characteristics of grey iron are

 Lowest melting point of all ferrous alloys

 Carbon in grey iron is found on the form of graphite flakes
 Low cost combined with hardness and rigidity
 High compressive strength
 High resistance to weather

Quality plan or documented procedure are established to verify whether procured

materials are as per specified requirements

It is ensured that any accepted materials are released for further processing.

When incoming materials are released for urgent production without proper verification
it is positively identified and recorded in order to permit immediate recall and
replacement in the event of non conferment ‘s and requirements.
 29

The major raw materials used for manufacturing are silica sand, it is obtained from
silica sand mines in Pallipuram,, a place near Cherthala. Mid steel and CRACA scrap
pig iron are raw materials obtained from MSTC

Grey iron can be readily cast in to desired shapes by pouring in to moulds. So it is the
most commonly used type of cast iron for the manufacture of castings. The other
distinguished characteristics of grey iron are:

 Lowest melting point of all ferrous alloys

 Carbon in grey irons is found on the form of graphite flakes
 Low cost combined with hardness and rigidity
 High compressive strength
 High resistance to weather

Machine tool structures and water pipes for under ground purpose are grey iron.
Hydraulic cylinder, valves, pipe fittings, cylinder head fir compresses and diesel
engines are in spheroidal cast iron.

Foundry casting is the process of producing metal alloy component parts of desired
shaped by pouring the molten metal alloy in to prepared mould and then allowing the
metal alloy to cool and solidify. The solidified piece of metal or allow is known as
casting.

Foundering or casting is one of the oldest manufacturing process which date back to
approximately 4000 BC. The first foundry Centre came in to existence in the days of
Shan dynasy in climes number of foundries using cast iron as structural material come
in to being after industrial revolution.
 30

CHAPTER 3
GENERAL MANAGEMENT PRACTICES
 31

3.1 DUTIES AND RESPONSIBILITIES OF TOP LEVEL MANAGERS

The main functions of top level management are as follows:

(a) Determine objectives for the organisation: Objectives may relate to profit,
business growth, survival, prestige, competitive pricing, marketing method, widening
the area of sales, relations with workers, customers, public etc.

(b) Frame the policy: To frame the policy and chalk out the plans to carry out the
objectives and policies. Policies may relate to different aspects of the organisation.
For example, production policy deals with the quality, product variety, scheduling of
production to meet the market demand etc.
1) Market policy: This policy deals with such matters as advertising and
sales promotion techniques, pricing product, channel of distribution, commission,
discount, placements, training, remuneration promotion, appraisal of performance etc.
of the personnel.
2) Financial policy: This relates to the procurement of funds, source of finance,
management of earning, etc.

(c) Organisational Frame Work: Top management determines the organisational

structure for the purpose of executing the plans that have been laid down. Execution
of plans is necessary to carry out the objectives and policies.

(d) Assemble the Resources: For the purpose of executing the plans, the resources of
men, machines, materials and money have to be assembled. This again is the task of
top management.

(e) Control the operations through organisation: Controls the top management
regarding operations through budgets, cost and statistics quality control and
accounting devices.
 32

3.2 ORGANISATION CHART

DEPUTY MANAGER ASSISTANT

MANAGER
(MARKETING) (MARKETING)

MANAGER ASSISTANT
MANAGER
(ENGG &PATTERN)

MANAGER
(MARKETING) MANAGER ASSISTANT
CONTROLL MANAGER

MANAGER ASSISTANT
MAINTANANCE MANAGER
MANAGING MAINTANANCE
MARKETING

MANAGER ASSISTANT
MANAGER PPC &
( PPC & MATERIAL) MATERIAL
MANAGER (PCO)

MANAGER PPC & ASSISTANT

MATERIAL MANAGER ( PPC &
MATERIAL)

MANAGER ASSISTANT
(MELTING) (MANAGER
MANAGER
MELTING)
(FINANCE)

MANAGER
OFFICER (HRD & A)
(HRD & A)
 33

CHAPTER 4
FUNCTIONAL DEPARTMENTS
 34

The activities of the organizations are performed by number of officials at various

departments.

The different departments are:

 Human resource and Administration Department

 Finance Department
 Production Department
 Quality and Control Department
 Engineering And Pattern Shop Department
 Marketing Department
 Purchase And Sub Contract Department
 Maintenance Department

4.1 HUMAN RESOURCES AND ADMINISTRATION

It is specialized branch of management which deals with the employees and other
people. This department strives use human resources in effective manner so as to
transform them for releasing the objectives of the organization. It aims at relating people
at work with the activities necessary to achieve goals.

It’s people in an organization that carry out many important work activities. Managers
and the HR professionals have the important job of organizing people so they can
effectively perform these activities. The requires viewing people as human assets, not
cost to the organization. Thus human resources are exactly it says: resources for
humans- within the work place. Its main objective is to meet the organizational needs
of the company it represents and needs of the people hired by that company. In short,
it is the hub of the organization serving as a liaison between all concerned. Also
organizations are managed and staffed by people. The challenge, the opportunities and
the frustration of creating managing organizations frequently stem from people related
problems that arise between them. People related problems arise mainly because people
are not alike. These differences demand attention so that each person can maximize his
or her potential, maxi so that organization can maximize their effectiveness.

To ensure its success, a company must establish a hierarchical reporting system. The
funnel of responsibility is critical to the efficiency of a smoothly operating business
entity in which there is a clearly defined understanding of who is responsible for what.
 35

They provide consultation to a company’s management team to identify what the

company’s core business and culture is about, and proceeds to plan and map the
company’s organizational infrastructure to support those needs.

Human Resource Management is a process of bringing people and organization

together so that the goals of each are met. It is the art of procurind, developing, and
maintaining competent workforce to achieve the goals of an organization in an effective
and efficient manner.

DUTIES AND FUNCITONS OF OFFICE STAFF

 Salary and wage preparation

 Issue of order relating to promotion grade change, incremented
 Sending of the quarterly SC/ST returns or monthly PF statement etc
 Sending half yearly contribution to labor welfare fund
 Renewal of factory license
 Estate administration inviting and finalization of tenders
 Issue of salary certificate
 Canteen coupon issue and collection and counting of coupons received
 PF and ESI related to canteen employees contract labors
 Court cases and related work
 Recruitment and training of apprendices, workmen and supervisors
 Assisting management in implementing ISO coordination
 Any Other matters as when required

Objectives

 Fulfillment of training programs

 Ensuring effectiveness of safety measures
 Ensuring a good employees management relationship
 36

The Time and Shift of Company

General shift : Office and administration

Timing : 08.30 am to 05.30 pm

Timing and shift in production department

First shift : 06.00 am to 02.00 pm

Second Shift : 02.00 pm to 10.00 pm

Third shift : 10.00 pm to 06.00 am

Sunday : Holiday

Recruitment Process

It is an important function of human resource and administration management.

Recruitment is done by the corporate personal and administration department as per the
delegation of powers issued from time to time.

Sources of recruitment

 Through employment exchange as per the provisions of the employment

exchange

(Compulsory notification of vacancies)

 Though public service commission in respect of posts exclusively

reserved for P.S.C.
 Promotion of existing employees form lower scale to meet the
prescribed standard
 Direct recruitment from outside candidate, who meet the prescribed
standard

Recruitment Procedure

Manpower budgets : Information about the vacancies.

Selection Committee : Representatives from variables listed department

 37

from the Human resource and administration

and representative from Other department.

Advertisement for open selection

Registration and screening

Selection, interview and wait listing

Candidate are called for interview

Appointment – It include medical checkup, verification report, signing of appointment

order after approved by appointing authority, joining time, joining formalities,
deputation.

Performance Appraisal

Performance appraisal is another important human resource and administration

department. It is evaluated by the following analysis

 Quality of the work

 Aptitude
 Job knowledge
 Dependability
 Attitude
 Leadership
 Responsibility
 Communication
 Decision making ability

It’s peoples in an organization that carry out many important work activities. Managers
and HR professionals have the important job of organizing people so they can
effectively perform these activities. This requires viewing people as human assets, not
cost to the organization. Thus human resources are exactly it says resource for humans-
within the work place. Its main objective is to meet the organizational needs of the
company it represents and need of the people hired by that company. In short, it is the
 38

hub of the organization serving as a liaison between all concerned. Also organizations
are managed and staffed by people. The challenge, the opportunities and the frustration
of creating and managing organization frequently stem from the people related
problems that arise between them. People related problems arise mainly because people
are not alike. These differences demand attention so that each person can maximize his
or her potential, maxi so that organization can maximize their effectiveness.
 39

4.1.1 STRUCTURE OF HR DEPARTMENT CHART

MANAGING DIRECTOR

MANAGER & HRD

OFFICER & HRD

TIME TECH JR. SWEEPER UNSKILLED

OFFICER ASSISTANT, OPERATOIN STENO WORKERS
& STAFF SKILLED (TELEPHONE)
WORKERS
 40

4.2 FINANCE DEPARTMENT

Finance Department is concerned with the maintenance of books of accounts and

operations and the financial statements. It performs various related activities such as
preparation of wages statements, disbursement of wage and salary

The terms finance is defined as the provisional of capital required at the time when it is
needed. The finance is needed for making goods and service and for their distribution.
Every functions of the firm depends on how effectively the finance utilized

Objectives

 Preparation of budget annually and enforcing financial discipline to work within

in the budget
 Casting of activities and suggesting cost control measures
 To recommend necessary training needs
 To initiate necessary disciplinary action against subordinate staff who do wrong
action against organization

Functions

All financial transactions of Autokast company Ltd through the finance department,
which is called amount department

 All receipts in cash and deposits and withdrawal of cash are entered in the cash
book by this department
 It is the finance department that enters all transactions of the company in the
bank book
 Finance department enters all purchase bills regarding suppliers account, bill
passed, payment made etc in purchase journal and ledger and the expenses
incurred like general expense to expense ledger
 Sales tax for central and state government is finance department
 The audit file for every financial year to be certified by the auditor is prepared
by finance department
 The finance department prepare ash flow budget, capital expenditure, revenue
budget and budget variance statements.
 41

4.2.1 FINANCE DEPARTMENT CHART

MANAGING
DIRECTOR

MANAGER
FINANCE

ASSISTANT
MANAGER

CLERK BILLS CLERK UNSKILLED

CLERK BILLS
PAYABLE SALARY WORKERS
 42

4.3 PRODUCTION DEPARTMENT

The production department deals with various activities of production. It provides

relevant data for production, planning, budgeting, and performs other function related
to production

The conversion of raw materials in to finished products or semi-finished product with

the help of machine and man power is carried out by this department. The main aim of
production department is to produce economically the goods and service required by
customers. Another duty of this department is to purchase and make available the
material need for production.

Objective

 It facilitate and coordinates activities with the kind, amount, location, movement
and timing of various material used in and produced by firm
 It aims to produce the right product in right quality, right quantity and the right
time
 It aims at optimum combination of resources and methods so that there is lowest
average cost of production
 It requires minimum inventories of raw material and finished products so that
capital investment is reduced resulting in high return on investment

Production department consist of four subsidiary departments. They are:

 Conventional Moulding Line Department

 High Pressure Moulding Line Department
 Melting Department
 Fettling Department
 Conventional Molding Department

The heavy casting of Autokast ranging from 80 kg to 8000 kg are manufactured section
 43

Objectives

Percentage achievement of production against set target

Percentage of achievement of qualifying product against set target
Ensuring quality at every stage of production

 High Pressure Moulding Line Department

Small casting of the firm are done in this section. The line of manufacturing section has
the same objective of conventional moulding line.

 Melting Department

The melting of pig iron, scrap steel and other chemical component for casting are
provided by this section.

Objectives

 To achieve production target

 To minimize reduction
 Fettling Department

In this department the black casting is whitened in a shot blasting machine using small
steel balls. Then the runners and the raisers of the whitened casting are removed
wherever necessary, to turn in to finished goods.

Objectives

 Meet the fettling schedule

 Fettle the casting with minimum rejection
 Sub contract fettling
 44

Production Process

Stage 1 : Moulding Sand

Sand is a principle moulding material in the foundry shop where it is used for all types
castings. The most important characteristics of sand are its refractory nature and
chemical resistivity, high degree of permeability and flexibility these property vary
from sand to sand and only those and are characterized by the forgoing features which
is considered for moulding works of casting.

Stage 2 : Core sand core making

Core may be defined as that portion of the mould, which forms the hollow interior of
the castings or a hole through the casting cores must have sufficient hardness, strength
in dry and green states, permeability and collapsibility, temperature resistance and
should produce only maximum amount of gas when it contact with molten metal.

The ingredients of core are sand and binder. Generally high silica sand containing a
very little clay is found best suited as it can withstand high temperature. The function
of core binder is to cement the grey of sand in to desired shape and to impart sufficient
strength to the core to prevent breakage, distortion and erosion in the core making.

Stage 3 : Melting

Pig iron which is the most important raw material is melted in furnace in to molten iron.
Scrap steel is also melted. For this purpose Autokast use induction furnace

Stage 4 : Pouring

It is process by which molten metal is poured in to prepared sand moulds. Pouring is

complicated process in which may things are to be noted. The metal should be poured
at the right temperature of about 1450 C

If it is too hot it will produce a technical defect called low holes in casting and if it is
too cold due to premature solidification, proper filling will not be attained.

Stage 5 : knock out and decoding

 45

When cooling period is over, the casting is removed from the mould. Then the core in
the casting is removed

Stage 6 : Fettling

Fettling is the process by which un wanted parts of the castings are cut cleaned and
finished. This include removal of gates, resersetc from casting, removal of fins and
other unwanted projections etc.

Stage 7 : Shot blasting

Even after fettling there may be minute sand particles attached to casting. These are
removed by shot blasting. Shot blasting is the process by which cast iron shots are
blown to the surface of castings to remove the adhesive sand. Product process is carried
out in the following departments:

 Engineering and pattern shop

 Melting
 Conventional moulding line
 High pressure moulding line
 Fettling and dispatch

The production department deals with various activities of production of products. It

provides relevant data for production, planning, budgeting, and performs other function
related to production.

The conversion of raw materials in to finished products or semi-finished product with

the help of machine and man power is carried out by this department. The main aim of
production department is to produce economically the goods and service required by
customers. Another duty of this department is to purchase and make available the
material needed for production.
 46

4.3.1 STRUCTURE OF PRODUCTION DEPARTMENT CHART

MANAGING

DIRECTOR

MANAGER

MANAGER MANAGER
MANAGER
MAINTENANCE MELTING
MATERIALS

ASSISTANT MANAGER DEPUTY MANAGER ASSISTANT MANAGER

MAINTENANCE MATERIALS MELTING

MAINTENANCE ASSISTANT MANAGER OPERATION &

HELPERS
TECHNICIAN MATERIALS
 47

4.4 QUALITY CONTROAL DEPARTMENT

The essence of modern economic process is quality. Quality refers to the degree of
excellence of a product. Modern age is “era of quality” . Every employee in company
spends a lot of effort to make quality products and thus tries to maximize the profit.

Autokast has an effective quality control department with a spetro lab capable of
detecting whether the casted products have the standard quality. The company has
adopted service measure to ensure quality.

Objectives

 Total customer satisfaction

 Continuous improvement of process to increase product quality
 Employee’s improvement in all quality programmers
 Releasing only qualified input material

Inspection Department

Under quality control department, Autokast has another department known as

inspection department. In this department there is specro lab where the right percentage
of chemical substance in the sample of casting is tested using spectrovac and
microscope in the lab show the casting structure.
 48

4.4.1 STRUCTURE OF QUALITY CONTROL DEPARTMENT CHART

MANAGING

DIRECTOR

MANAGER

MANAGER
MANAGER CONTROLL
ENGG & PATTERN

ASSISTANT MANAGER ASSISTANT MANAGER

QUALITY INSPECTION QUALITY CONTROL

LAB TECHNICIAN ASSISTANT

 49

4.5 ENGINEERING AND PATTERN SHOP DEPARTMENT

In this department of Autokast, pattern of the object to be casted is constructed

according to the sample provided by the customer. The sample may either be a drawing
or one in the form of what customer needs. The patterns thus constructed is hollow
inside and outer surface is covered. Black colored surface of pattern where core is
place indicated that the casting of that part of pattern should be hollowed , yellow
colored portion of the pattern is the machining portion that indicates the hollows or
threatened portion to their inside the casting and the red color indicate the finished
furnace.

The pattern is the pattern shop is only a half part of one to be casted. The BMD high
pressure moulding system in Autokast allows two such halves of the pattern combine
to a single casting as the customer requires.

Objectives

 Time taken for development of casting should be within 30 days

 Manufacturing/servicing of pattern equipment has to be set as per time
 90% of timely submission of feasibility report
 Number of attempts to develop casting shall be reduced to maximum of 3 times
 50

4.5.1 ENGINEERING AND PATTERN SHOP CHART

MANAGING DIRECTOR

MANAGER

(ENGG & PATTERN)

ASSISTANT MANAGER

ENGINEER

SKILLED WORKERS
 51

4.6 MARKETTING DEPARTMENT

The department deals with firms and records relating to staff of finished goods, their
marketing and advertisement etc. This department also conducts carnivals and market
the programmers, advertisement and market research etc. It prepares sales invoice and
delivery of products and maintenance of sales journals.

Marketing is the process in which considerable amount of planning, organizing and

controlling are needed. It is involved in pricing, promotion and distribution of products.
The basic function of marketing it to design the product according to customer
preference jointly with production make it available with the right customers at the right
time at the right place at the right price, so that both the customers and company
objectives will be achieved

FUNCTIONS

Marketing involves various, which may be called as marketing function. This aims at
achieving the final objectives of the company fulfilling the customer satisfaction.
Marketing function is an act, operation or service by which the original procedure and
final customer are linked together.

 The marketing departments conduct market study and find out the taste and
preference of the customers
 They formulate the pricing strategy
 The export formalities ae handled by marketing department.
 52

4.6.1 MARKETING DEPARTMENT CHART

MANAGING DIRECTOR

MANAGER MARKETING

DEPUTY MANAGER ASSISTANT MANAGER

OUTSIDE KERALA MARKETING KERALA

ASSISTANT 1 ASSISTANT 2 ASSISTANT 3 ASSISTANT 4

 53

4.7 PURCHASE AND SUB CONTRACT DEPARTMENT

The company’s purchase of raw material is from applied suppliers only. The approval
is given on the basis of quality text of the raw materials, price negotiations and delivery.
The company to make forecasting on purchase. The raw materials purchased by
Autokast is copper, manganese, and CRCA scrap pig iron. The company adopts mainly
just in time purchase.

Procedure followed by purchase

Any person who needs a material can make a purchase requisition, but it has to
authorized by the department head. This has to be routed through engineering store. In
case of items involving capital expenditure, it should have capital nature that is not
required. Based on indent, necessary quotations are invited and purchase orders are
releases. The copy of purchase order is send to the supplier, indenter, accounts, stores,
file copy for plant purchase.

Functions

 Preparing an external purchase order

 Preparing a schedule and circulate it to each department
 The shipment is done through ship and air
 The scheduled is reviewed in every week

Objectives

 Procurement of quality material within the targeted period

 To provide raw materials to store in time
 To make profitable and quality sub contracts
 54

4.7.1 STRUCTURE OF PURCHASE DEPARTMENT CHART

MANAGING DIRECTOR

DIRECTOR

PURCHASE MANAGER

OFFICE ASSISTANTS
 55

4.8 MAINTENANCE DEPARTMENT

Since Autokast uses several machines and large electric power for its operation, there
exists a department to maintain machines and electric equipment called maintenance
department.

Objectives

 Reduce the down time of equipment

 To follow predictive maintenance management
 To provide fast maintenance with less time

Under this department there are two other department that are as follows:

Electrical Maintenance Department

The company has a 110KV substation in itself which serves the required electric power
for the company, 110KV is stepped down to 11KV and 440KV for the working of
induction furnace and as a power of other machines and lighting facilities. The
maintenance and necessary replacements of electrical items done by this department.

Mechanical Maintenance Department

The failure of machines and other repair in machine are done in this department. The
induction furnace in the conventional molding line requires huge copper wires to be
wounded over it. Mechanical maintenance does this work.
 56

4.8.1 STRUCTURE OF MAINTANANCE DEPARTMENT CHART

MANAGING DIRECTOR

ASSISTANT MANAGER

MAINTENANCE

ENGINEER MAINTENANCE

DEPUTY ENGINEER

ASSISTANCE ENGINEER

SKILLED WORKERS

UNSKILLED WORKERS
 57

4.9 PRODUCTION PLANNING AND CONTROL DEPARTMENT

Production planning is a process of planning production in advance of operations,

routing the materials and controlling the whole production accounting to the plans
specified and scheduled. This department take care of feeding and supporting materials
such as sand, coal dust etc. to the production.

The PPC department plans the product realization process. They prepare the production
and dispatch schedule, material planning, production follow up, dispatch and
improvements. The departments also monitors the stage wise progress of the process
and it is recorded.

Process Planning

 Based on word order, collected all input documents from marketing department
and check the input for adequency, if adequate, call for required data
 Prepare pattern method drawings and arrange to manufacture
 Customer supplied patterns are to be procured from vendors, forward four sets
of patter drawing to purchase department to arrange procurement
 Major raw material requirement are assessed and necessary indents are raised
for procurement
 Prepare a draft quality plan and circulate it to production, quality control and
inspection department
 Open up a product file which shall contain all input documents together with
method drawing and copy of quality plan
 Based on quality plan, the make arrangement for necessary inspection and
testing activities
 58

Production Planning

 Based on work order from marketing department, monthly, scheduling for

pouring felting and related activities shall be prepared
 Copy of this planning sheet shall be prepared and communicated to concerned
departments, under intimation to MD and PM
 Dispatch schedule for the month shall be closely monitored and status reported
to MD/PM through a daily report
 Requirements of major raw materials for engineering and pattern shop shall be
planned and purchase requisition rose accordingly
 Product stock position shall be maintained up to data and monthly stock position
prepared and submitted to MD
 Physical verification and inventory of castings shall be done annually and report
submitted to MD
 Prepare pattern method drawings and arrange to manufacture
 Customer supplied patterns are to be procured from vendors, forward four sets
of patter drawing to purchase department to arrange procurement
 Major raw material requirement are assessed and necessary indents are raised
for procurement
 Prepare a draft quality plan and circulate it to production, quality control and
inspection department

The high pressure molding line can produce grey iron and graphite. Iron in casting,
which are repetitive in nature and required in large numbers. The entire mechanism is
controlled through a computerized control panel. The system can produce 8 mould per
hour and its best suited for more production of precise casting required for automobile
and engineering industries. This high precise system is separated by modern core
shouters form M/s Roperwerk from West Germany, using hard box, card box, and shell
process and quipped with core handling transport system
 59

Autokast Ltd is fully equipped with state of the art test facilities like,

a) Well-equipped wet analysis laboratory

b) 26 Channels, Baird made vacuum imported from USA
c) Mechanical testing lab with 60 TUTM, Burnel hardness tester etc
d) Metallographic facilities
e) Magnetic particles testing facilities and
f) Liquid penetrate test
 60

4.9.1 PRODUCTION PLANNING AND CONTROL DEPARTMENT CHART

MANAGING DIRECTOR

MANAGER PPC

ASSISTANT OFFICER

SKILLED
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4.10 ELECTRICAL DEPARTMENT

Production of castings depend upon number of operations like moulding of sand,

movement of moulding box using EOT cranes, shot blasting etc. which requires a large
supply of electric power. Thus for all productions activities to run smoothly the
company has a KSEB 110 KV substation of its own. The electrical department is
responsible for the administrative functions such as liaison work with KSEB, electrical
implementation and inspections of various electrical works. The department is also
responsible of activities like scheduling, planning, and execution of day to day
maintenance activities.

The maintenance activities include both preventive break down maintenance works,
spare parts management, coordination with purchase and user departments,
maintenance records, labor management and cost control in maintenance. The objective
of this department is thus to minimize the down time and keep all machineries in good
condition for maximum utilization of equipment’s to achieve the maximum quality
production, as instructed in the quality policy of Autokast.

The company cannot use the 110 KV electricity supplied by KSEB for running its
machines. So by using 20 MVA transformer the 110 KV is step down to 11 KV. This
110 KV is again step down to 440 V with help of 1 MVA transformers. In total company
has transformers

 20 MVA
 1 MVA TR-1
 1 MVA TR-2
 1 MVA TR-3
 Maintain frequency induction furnace 1700 KVA
 Medium frequency 2300 KVA

For HP line there is separate substation

Equipment’s used

These are the equipment’s used in the company that run on electricity. In the brackets
number of those items used in Autokast is given
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 EOT ( Electric Overload Trolley) crane (12)

 Induction furnace (4)

6 ton capacity (2)

3 ton capacity (1)

5 ton capacity (1)

 Shot blasting machine (3)

 Core shooter (2)
 Swing frame grinder ( above 15)
 Hand foulding machine
 HP line
 Sand dryer
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CHAPTER 5
SWOT ANALYSIS, FINDINGS, SUGGESTIONS AND CONCLUSION
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SWOT ABALYSIS

Identification of the treats and opportunities in the environment and strength and
weakness of the firm are the cornerstone of business policy formulation; it is these
factors that determine the course of action to ensure the survival or growth of the firm.
The environment might present opportunities but a Company might not have the
strength to exploit all opportunities. Similarly a firm will not have the strength to meet
the environment threats.

STRENGTHS

 Have sophisticated machinery, facilities and equipment’s

 Availability of good quality Silica sand
 Nearness to seaport infrastructure
 Versatility in production process- ability to produce a wide range of products
 There is no problem of power failure. Authokast has got 24 hours power supply
 Good reputation for quality
 Good quality castings
 Well established customer base, customer loyalty and satisfaction
 Tailor made products – made to order to suit requirements
 Qualified and well trained Employees
 Installed capacity to produce large volume- break even at 50% capacity
 Good potential for export
 Products strength and quality
 Government ownership
 Production innovation and technical superiority
 Efficient and motivated sales force
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WEAKNESS

 Long development time for new products

 High fixed overheads
 Insufficient fettling or machining facility
 Situated away from major customers
 Heavy burden of past liabilities
 Absence of cost control mechanism
 Reduced man power
 Nature of the industry in general and low demand
 Improper use and shortage of working capital
 No financial assistance form government 2001
 Non availability of bank finance
 Shortage of raw material
 Frequent threat of power disconnection from Kerala Electrical Board because
of non payment of past areas
 Lack of maintenance of plant and machinery
 Weak research and development support
 Long development time for new products
 High fixed overheads
 Insufficient fettling or machining facility
 Situated away from major customers
 Heavy burden of past liabilities
 Absence of cost control mechanism
 Reduced man power
 Nature of the industry in general and low demand
 Improper use and shortage of working capital
 No financial assistance from government 2001
 Non availability of bank finance
 Shortage of raw material
 Lack of maintenance of plant and machinery
 Weak research and development support
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OPPRTUNITIES

 The new joint ventures with railway will open a wide opportunity for future
growth of the company
 There is high potential for export to Europe and USA due to better quality of
product
 Reduction in input cost is possible
 Less competition for wind mill casting
 Composited foundry can produce 5 Kg in size of 5000 kg. GU &SGI casting
for different applications
 Access to global source for raw materials at competitive due to globalization
 Highly satisfied overseas customers who encourage for more exporting of
products

THREATS

 General recession in the market

 Cheaper imported products an account of import from countries which are
signatories to Regional Trading Agreement (RTA)
 Survival of the company depends on government policy regarding revival
 Major investment required to project healthy financial position
 Global competition
 Continuous increase in the price of iron, which accounts for nearly one by third
of the total raw material cost
 More bargaining power of customers and suppliers
 Political intervention in the company proceedings
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FINDINGS AND SUGGESTIONS

Autokast Ltd manufactures all types of ferrous Casting under the same roof.
Autokast is a modern industrial Casting unit with ISO 9002 Certification. The
Company has an optimum capacity of 18000 tons per annum and covers an area of
21500 sq. meters. The Company can manufacture ferrous Castings of all grade and
sizes ranging from 5 kg to 8000 kg.

FINDINGS

 Autokast Ltd has the potential for producing good quality Castings
 It owns all sorts modern testing equipment’s
 The location of Company is advantageous while considering the availability
of Silica sand which is a major raw material, but when considering the
major Customers and other Raw materials the problem of transportation
arises.
 The company has lot of skilled workers, but influence of trade unions
weakens the Management
 Recruitment is not often done in the Company. Now they make only
temporary selections which results in low commitment of Employees
towards Organization.
 Promotional activities for their products are not conducted efficiently.
 The Company is in loss and it has heavy burden of past liabilities
 The Company lost major portion of its equipment due to insufficient
maintenance
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 The Company provides less motivational factors

 Autokast does not provide much safety measures for their workers
 In the early stages Autokast have the facility for making the Factory
environment clean and dust free using the Dust Controller Machine. But
now it’s not working and no measure taken so far for making it in working
condition
 Lack of Professionalism in almost all areas
 There is no Cost Control Techniques adopted
 Some of the newly purchased machineries for Steel Plant is not yet start
functioning and it says back as dead money
 There are several areas of opportunities to maximize its profit. But the
political influence on Autokast is barrier of its development
 Autokast does not take the advantage of newest IT Technology
advancements. It sticks on to the conventional methods
 Low capacity utilization
 Lak of proper training to Employees
 High operating expenses
 The Management may not able to take decisions effectively, because of the
limited capability to withstand political pressure
 The Company is not trying to expand its market

SUGGESTIONS

 Company should focus on giving more motivations to Employees. At present

Company lacks motivational activities. By introducing Participative
Management the morale of the Employees can be increased
 Introduce the new advancements in IT Technology to the Company. Usage of
modern software such and Magma will help in Production by reducing rejection
rates. With Casting simulation tools we can simulated and visualize, on the
computer screen, the entire process of Casting the part, including pouring,
solidification and shrinkage formation. Using this information, we can fine tune
our design to produce the best casting possible, at the lowest cost. Now
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Company uses trial and error method for pattern drawing. Also introduce SAP
based Technology to the Organization.
 Give more importance to R&D Department. Find out methods for reducing the
operating expenses. Recruit more experienced people to R&D. At present there
is a lack of manpower. With the help of R&D department the Company will be
able to diversify its product line and find alternative uses for its existing
machinery.
 Implement Cost Control techniques aiming at reducing cost to be more
competitive. Establishment of a costing department will help the Company to
analyze the cost structure and find out the loopholes
 Increase the capacity utilization. The present production of the Company is less
than its total capacity. If the Company utilize the capacity at its best, it can
generate profits.
 Give importance to Customers. A consumer analysis will help to trace out the
reasons, which makes them turn to Autokast. This will help to know the
strengths and weakness of the firm. So a consumer analysis will help the
Company to understand the consumer more and cater to their needs more
successfully. Continuous and healthy client relations should be maintained.
 Deliver proper maintenance to the existing machineries. Shut down
maintenance is not done so far. It’s always better to give Preventive
maintenance rather than waiting for the machinery to breakdown
 Provide some safety methods to the workers for ensuring protection to their life
 Company officials and government authorities should collectively interact and
evolve plans for implementing the decisions for revamping the firm to potential
areas. Effort for overcoming the political bias is required
 Make more sales realization in the domestic market. Generating more sales in
the market can reduce cost burden of the Company and thereby increase the
profit
 As the Company is owned by government, they should take initiatives to settle
the loans, which are already overdue and prepare the ground for the Company
to obtain working capital support.
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CONCLUSION

Organization study in Autokast Limited, Cherthala helped me in several area like

understanding about the Organization, understanding its work culture, difficulties in
maintaining of the business etc. An Organization Study is essential for all studies. The
main objective of this study was to understand the day to day functioning of an
Organization. Purpose of this study understand how the theoretical knowledge can be
applied to the practical situations and examine an Organization’s functions and identify
its opportunities/ problems and also suggest corrective measures. This study is also very
necessary to gain confidence and become aware of the mechanism of an Organization.

Autokast is a modern Industrial Casting unit with ISO 9002 : 2008 Certification. The
unit is located at S N Puram near Cherthala. The Company has an optimum capacity of
18000 tons per annum and covers an area of 21500 sq. meters. Autokast is the largest
Foundry in the Public Sector in South India. Most of its customers are located outside
Kerala. The Company exports Castings to USA and Europe also. In spite of its past
liabilities Authokast is striving to turn around. Even though it is a Public Sector
Company it does not enjoy any privilege or patronage from public bodies. It is
competing with the private sector in the open market.

The company has specialized in the manufacture of Castings required for the
Windmills. Windmills from non-conventional energy source and therefore the
functioning of this Company contributes towards a priority sector of the economy

The Organization Study gave me a chance to understand the internal functioning of a

manufacturing Company in the Engineering Industry.
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BIBLIOGRAPHY

www.autokast.com

www.google.com
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