Vous êtes sur la page 1sur 93

Organizational Study Report Cochin Shipyard Limited, Cochi

ORGANIZATIONAL STUDY AT COCHIN


SHIPYARD LIMITED.

An Organization study Report submitted to Mahatma Gandhi University for the


partial fulfillment of the Award of Master of Business Administration

Submitted By

KISHORE RAVEENDRAN
(Reg No 40117)

Caarmel Engineering College, Perunadu


Under the Supervision of

ARAVIND.M
Asst. Professor MBA

DEPARTMENT OF MANAGEMENT STUDIES

2013 June

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

ACKNOWLEDGEMENT

On completing this Organizational Study it is my pleasure to thank to


acknowledge and extend my heartfelt gratitude to the following people who made the completion
of this Organizational Study possible:

My Faculties, Assist.Prof. Pradeep.S and Aravind.M for his vital encouragement and support.

Mr.Ramesh K.J (DGM- HR), and Mr. A.K Subhash, Assist.General Manager, Cochin Shipyard
Limited, for the invaluable contribution and support, all the employees of CSL who are helped
me in this Organizational Study.

My friends and family and specially my father‟s friend and his family who are gave me the
physical and moral support in completing this Organizational Study in time.

Just because of all his grace , the Almighty for showering His blessings in abundance upon me
during the course of this Organizational study.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

DECLARATION
I hereby declare the report entitled “Organizational Study of ALUMINUM
INDUSTRIES LTD (ALIND), SWITCHGEAR DIVISION, MANNAR”,
submitted by me for the award of the degree of Master of Business Administration
of M.G. University is my own work under the guidance of Mr. Aravind.M
Department of Management Studies, Caarmel College of Engineering, Perunadu.

I also hereby declare that this report has not been submitted for the award of any
other degree of M.G. University.

KISHORE RAVEENDRAN

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

TABLE OF CONTENTS
Sl.No Chapters Topic
1
SCOPE AND METHODOLOGY OF STUDY

2 OBJECTIVES OF THE STUDY


Chapter 1
3 LIMITATIONS OF THE STUDY

4 INTRODUCTION
Chapter 2

5
INDUSTRY PROFILE

6 INDIAN SHIP BUILDING INDUSTRY

7 INDIAN SHIP BUILDING INDUSTRY

8 COMPANY PROFILE

9 Chapter 3 STAGE VISE DEVELOPMENT

10 GRAWTH TO INTERNATIONAL SHIPYARD

11 SHIP BUILDING

12 SHIP BUILDING INCOME (Graph)

13 SHIP REPAIR

14 SHIP REPAIR INCOME (Graph)

15 FINANCE DEPARTMENT

16 Profit and Loss Account

17 BALANCESHEET
18 FINANCIAL HIGHLIGHTS
19
MAJOR FACILITIES AND ASSETS

20
Chapter 4 BUSINESS DEVELOPMENT DEPARTMENT (MARKETING)

21 PERSONNEL AND INDUTRIAL RELATIONS DEPARTMENT (HUMAN


RESOURCE)

22 RECRUITMENT POLICY IN CSL


23
PERFORMANCE APPRAISAL OF WORKMEN

24
MARINE ENGINEERING TRAINING INSTITUTE (METI)

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

25 SHIP DESIGN DEPARTMENT

26 SAFETY AND FIRE SERVICE DEPARTMENT


27 INSPECTION & QUALITT CONTROL DEPARTMENT

29
SINGLE BID TENDER

30 TWO BID TENDER


31
SHIP REPAIR DEPARTMENT

32 VIGILANCE DEPARTMENT
33 MEDICAL CENTRE

34 STORE DEPARTMENT

35
Stores Department Table

36
UTILITY AND MAINTENANCE DEPARTMENT 8
37 PROJECT DEPARTMENT

38
OFFICIAL LANGUALE IMPLEMENTATION CELL

39 .

INSPECTION & QUALITT CONTROL DEPARTMENT

40 AIR DEFENCE SHIP AND MATERIAL PLANNING DEPARTMENT

41 SWOT ANALYSIS

Chapter 5
42 CONCLUSION

43 FINDINGS

44 Chapter 6 SUGGESTIONS

45 BIBLOGRAPHY

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

LIST OF FIGURES

SL.NO CONTENTS No Of
Figure
1. Ship Repair Income 3.1
2. Ship Building Income 3.2
3. Bill structure 4.1
4. Profit and Loss Account for the year ended 31st March 2012 4.2
5. Balance Sheet as on 31st March 2012 4.3
6. Financial Highlights 4.4
7. Major Facilities of assets 1 4.5
8. Major Facilities of assets 2 4.6
9. Performance Appraisal for workmen 4.7
10. Performance Appraisal foe Executives 4.8
11. Department Structure of Personnel and Industrial Relations 4.9
Department (HR)
12. Marine Engineering Training Institute (METI) Structure 4.10
13. Department Structure of Ship Design Department 4.11
14. Department Structure of Safety and Fire service Department 4.12
15. Department Structure of Information Systems Department 4.13
16. Department Structure of Materials Department 4.14
17. Single Bid Tender 4.15
18. Two Bid Tender 4.16
19. Department Structure of Ship Repair Department 4.17
20. Stores Department Table 4.18
21. Department Structure of Utility and Maintenance Department 4.19

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

CHAPTER 1

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

SCOPE AND METHODOLOGY OF STUDY

The Study in Cochin shipyard Limited was done from 1st June to 15th June,
2013. Both primary and secondary data were used for the completion of Organizational Study.
Primary Data was mainly collected through direct conversations between AGMs and DGMs
in the departments, and also staffs and trainees very much helped to build up this study.
Secondary Data were collected from the company website (www.cochinshipyard.com),
relevant books and documents such as Certified Standing Order, Settlement Of Amendment
(1973-2010), Performance Appraisal Form, Annual Report 2011-2012, previous Reports etc.
Also I did a small job, i.e. Sorting of Applications of Rejected Candidates. It is very much
helped me to understand the Recruitment Policies and Methodology. Mainly the candidates are
rejected because of the shortage of Experience, No relevant Certificates, No proof for himself.
And any candidates who have the experience and proper Proofs will be accepted.
During this time there is another 3 persons from other colleges to do the same Organizational
Study with me. They helped me and I also helped them.

OBJECTIVES OF THE STUDY


 To familiarize the students with a business organization
 To familiarize them with the different departments in the organization and their
functioning.
 To enable the students to understand how the key business process are carried out in
organizations.
 Understand how information is used in organization for decision making at various
levels and
 To provide a link between theory with practice.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

LIMITATIONS OF THE STUDY


► Allotted time given by college is too short. June1-15. I got only 12 days. (Because 2
Sundays and 1Second Saturday). June is the busiest time in CSL because of half
Yearly Financial Statements making and Parliamentary Board Meeting.

► Material Department has the Negative approach to Managerial Trainees. So I used


only secondary data to make the report of that Department.

► I tried 7 days to get an appointment between Finance Department, and I got it in the
7th day. I lost half an hour in each my valuable 6 days.

► DGMs/AGMs didn‟t give me the time that I expected to ask questions.

► Laptop is not allowed in CSL by Security reasons, if is not banned, I will be more
comfortable and I just want few time for preparing this report.

► No specific Guiding from anyone.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

CHAPTER 2

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

INTRODUCTION

Cochin Shipyard was incorporated in the year 1972 as a fully owned Government of
India company. In the last three decades the company has emerged as a forerunner in the Indian
Shipbuilding & Ship repair industry. This yard can build and repair the largest vessels in India. It
can build ships up to 1,10,000 DWT and repair ships up to 1,25,000 DWT. The yard has
delivered two of India‟s largest double hull Aframax tankers each of 95,000 DWT. CSL has
secured shipbuilding orders from internationally renowned companies from Europe & Middle
East and is nominated to build the country‟s first indigenous Air Defense Ship.

Shipyard commenced ship repair operations in the year 1982 and has undertaken repairs
of all types of ships including up gradation of ships of oil exploration industry as well as
periodical layup repairs and life extension of ships of Navy, UTL, Coast Guard, Fisheries and
Port Trust besides merchant ships of SCI & ONGC. The yard has, over the years, developed
adequate capabilities to handle complex and sophisticated repair jobs.
The Shipyard also trains graduate engineers to marine engineers who later join ships both Indian
and foreign as 5th Engineers. 100 are trained every year.

COCHIN Shipyard Ltd. launched the third Fast Patrol Vessel (FPV) being built for the
Indian Coast Guard (ICG). The vessel is the third in a series of 20 numbers FPVs contracted by
CSL for the ICG. The contract was signed in 2010 with delivery of the last vessel slated for
2017. The vessels are being built under the dual classification requirements of ABS and IRS. The
50 metre x 7.6 metre x 4.65 metre vessels have a designed speed of 33 knots. The primary role of
the vessel include fisheries protection and monitoring, patrol within exclusive economic zone
(EEZ) and coastal patrol, anti smuggling, search and rescue operations and for anti piracy
operations. The vessels have a secondary role of providing communication link & escort convoys
during hostilities and war time. These high speed Fast Patrol Vessels, though small in size are
extremely complex and technologically challenging. The ships are propelled by water jets to
attain a speed of 33 knots. The high speed boats are weight sensitive and extensive use of
Aluminium in the super structure has been made. Cochin Shipyard has developed special
techniques to ensure high quality welding and fabrication of Aluminum structures.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

CHAPTER 3

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

INDUSTRY PROFILE
Ship building and ship repair has accelerated the economic growth of several
countries in the near past; ship building has played a significant role in Economic development
of Japan, South Korea and China. South Korea continues to enjoy the lion‟s share of the world
ship building and likely to keep this supremacy for at least another 10 years. Japan is number
second. China is in the 3rd spot. The distinct feature of this industry is that it can provide
immense opportunities, to a very wide cross section of population viz, unskilled, semi-skilled,
Highly Skilled hi-tech as construction of ship entails wide variety of jobs from plumbing,
Carpentry, Painting, Cleaning to CAD/CAM designing the precision engineering. If we are
aiming at balanced and resilient economic growth, the best bet is ship repair industry. The
shipbuilding and repair section which was experiencing an unprecedented boom till September
2008, encountered sudden and very scenario recession in the market from October 2008
onwards, Freight rates have come down to unbelievable leaves . Suddenly ship owners ran out of
cash options with a meltdown in financial market and bankruptcy of esteemed institutions.
Shipyard now has no new for almost 4 months and need to protect its cash outflow.
However when the immediate cause of this sudden down turn viz- bankruptcy of
some esteemed financial institution and consequences there on are set right, market is likely to
pick up again owing to the inherent strength and prospectus of the sector. The dynamic increase
in global trade, witnessed in recent times with opening up of many economies increased energy
requirement leading to offshore support and IMO (International Maritime Organization)
regulation for replacement of all single hull taker to double hull are some of the factors which
would contribute long term favorable outlook.

Other factors that prompt ship building and ship industry are,
1. It is a strategic sector of equal prominence as Agriculture; Ships are the only established
means of transport in International trade for the last 100 years and will remain so far
years to come. Lack of ship building and ship repair capability would undermine
inherent economic strength of the nation just as agriculture is nourished at all cost, ship
building and repair also be nourished for economic resilience and Trade of India.
2. India has abundance of primary requirements in this industry such as;
1) Low Cost Labour
2) Long Cost Lines
3) Adequate qualified engineers and technical hands at reasonable cost
4) Long Maritime Traders

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

INDIAN SHIP BUILDING INDUSTRY

The Indian ship building Industry was reserved for public sector under Intellectual
Property Rights of 1956, and thus protected from both foreign and domestic competitions.
India has 23 shipyards, of which 7 are under administrative control of the Central Government,
2 with State Governments, and the rest in the private sector.
The assured support from Shipping Corporation of India and other private companies, the
domestic ship building industry was shielded from competition and hence plays little attention
towards productive issues. At present private sectors such as L&T Shipyard, Bhatathi Shipyards
have emerged in shipbuilding activities Gornlarhe Ocean going ships.
India is in an advantageous position with its lower man-hour recovery rate compared with
most of the other maritime nations. The policy should aim at exploiting the lower wage cost. The
labour cost advantage is visible but the cost of capital is very high in Indis compared with other
maritime nations.
The strategic option for domestic industry is to raise the productivity levels to outweigh the
capital cost advantage of advanced maritime nations.
Ship building industry should avail the benefits of emerging liberalization environment to
deliver ships in time. With changing priorities of Government of traditional maritime nations the
subsidies extended to ship building industry appears to be withering away.
Coupled with high wage rates ship building industry will relocate in low wage countries in the
medium and long term.
The domestic industry must be in a position to top this medium to long term opportunity in
the global market.

Current and future market situation

• The Indian shipbuilding industry has around 28 shipyards comprising of 8


public sector, 6 yards under central and 2 under state governments with
around 20 private shipyards.
• The Indian shipbuilding turnover for both the private and public shipyard
sector reached 1.6 billion dollars in 2010.
• Government owned Cochin Shipyard Limited and Hindustan Shipyard Limited
are the major shipyards in India.
• Private shipyards are more in numbers, but are severely limited by capacity
and size of ship they can build.
• The Indian ship building industry does not only produce Indian and
International cargos, but also provides facilities such as ship repairing.
• The Indian shipbuilding industry is estimated to double from its 2010 revenue
of $1.6 billion in the next five years.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

Main Segments in the Indian Shipbuilding Industry

Shipbuilding industry is mainly divided into the following:

New ship building yards


• New building ship yards are mainly active in building commercial and defence
vessels
• Commercial vessels are mainly built for European owners and Defence
vessels are for Indian Navy
• Ship yards mainly build vessels for European owners
• Major yards are ABG Shipyard, Bharti Shipyard, Modest, Pipavav Shipyard, L&T
Shipyard, Cochin Shipyard, etc
• Ship repairing
• Indian ship repairing industry consists of around 7 ship repair units (SRU‟s), namely
Alcock Ashdown & Co. Limited, Chennai Port Trust, Hindustan Shipyard Limited,
Mumbai port Trust, Cochin Shipyards, Garden Reach Shipbuilders and Mazgaon
Dock Limited who have been given the permanent approvals as SRU‟s.Ejvind Vøgg – Own Man
in India

Major shipyards in India


•ABG Shipyard
•Alcock Ashdown
•L&T Shipyard
•Pipavav Shipyard
•Bharati Shipyard
•Chowgule &
Company
•Goa Shipyard
•Bharati Shipyard
•Mazgaon Dock
•Hindustan Shipyards
•Cochin Shipyard
•Tebma Shipyard
•Garden Reach Shipyard
•Hooghly Docks
Note
•ABG has 2 shipyards in Gujarat
•Bharati Shipyard has 3 shipyards in Maharashtra

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

COMPANY PROFILE

Cochin Shipyard Limited (CSL) is a growing International


Shipyard focused on delivery of quality ships on time. It has a good customer base and product
profile. Health and environment practices are world class and workforce has a high morale and
motivation level displaying a strong some of belongingness the company.

Vision
“Ours in an endeavor to emerge as an internationally competitive yard and facilitate to
emergence of India as a dominant Ship Building and Ship Repair centre of the region. Cochin
Shipyard promises you quality service, outstanding workmanship, timely delivery, reliable
personnel and excellent coordination that do not leave you feeling at sea…”

Management Team
Cochin Shipyard Limited

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

Mission
To Build and Repair vessels to International Standards and provide value added engineering
services.

History
Cochin shipyard was conceived of in the year 1969 when a team surveyed various
locations in India before selecting Cochin for the launch of the first Greenfield Shipbuilding
Yard in the country. The yard facilities in the first phase were completed by 1982. The yard was
designed and constructed under technical collaboration with M/s Mitsubishi Heavy Industries
(MHI), Japan. The company was legally incorporated in the year 1972. The yard commenced the
ship building operations in 1978, Ship Repair in 1981, Marine Engineering Training in 1993 and
Offshore Up gradation in 1999. Cochin Shipyard‟s recent success in securing export orders have
been achieved through consistent improvement in productivity and also aggressive marketing
undertaken in the last few years. The yard could reduce the average time of construction of large
ships in the last decade through augmentation of facilities, up gradation of ship design
department with installation of Tribon and CAD/CAM software and adoption of Integration Hull
Outfitting and Painting system (IHOP) of construction. The Shipyard commenced Ship Repair
operations in the year 1982 and has undertaken repairs of all types of vessels including up
gradation of ships of oil exploration industry as well as periodical lay up repairs and life
extension of Ships of Navy, UTL, Coast Guard, Fisheries and Port Trust besides merchant fleet.
The yard has, over the years, developed adequate capabilities to handle complex and
sophisticated repair jobs.

NUTSHELL

1. Cochin Shipyard was conceived of in the year 1969 when a team surveyed various locations in
India before selecting Cochin for the launch of the first Greenfield Shipbuilding Yard in the
country.
2. The yard facilities in the first phase were completed by 1982. The yard was designed and
constructed under technical collaboration with M/s Mitsubishi Heavy Industries (M.H.I), Japan.
The company was legally incorporated in the year 1972.
3. The yard commenced the shipbuilding operations in 1978, ship repair in 1981, Marine
Engineering Training in 1993 and Offshore Up gradation in 1999.
4. Cochin Shipyard‟s recent success in securing export orders have been achieved through
consistent improvement in productivity and also aggressive marketing undertaken in the last few
years .

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

5. The yard could reduce the average time of construction of large ships in the last decade
through augmentation of facilities, up gradation of ship design department with installation of
Tribon and CAD/CAM software and adoption of Integrated Hull Outfitting and Painting system
(IHOP) system of construction.
6. The shipyard commenced ship repair operations in the year 1982 and has undertaken repairs of
all types of vessels including up gradation of ships of oil exploration industry as well as
periodical lay up repairs and life extension of ships of Navy, UTL, Coast Guard, Fisheries and
Port Trust besides merchant fleet. The yard has, over the years, developed adequate capabilities
to handle complex and sophisticated repair jobs.
Strategic Tie-Ups
7. CSL has established tie-ups with select specialist firms from near-east, far-east, South-east,
Europe and USA for technology transfer & material packages for shipbuilding, shiprepair,
platforms, rigs & upgradation of yard facilities

Board of Directors
Cmde K Subramanyam : Chairman & Managing Director
Ravikumar Roddam : Director (Finance)
P. Vinayakumar : Director (Technical)
Capt. R. S Sunder : Director (Operations)
M.C Jauhari, IAS : Official Part Time Director,
Joint Secretary (Shipping), Ministry of Shipping
L. N Vijayaraghavan, IAS (Retd) : Non Official Part Time Director
S. K. K Krishnan, Vice Admiral (Retd) : Non Official Part Time Director
M. Raman, IAS (Retd) : Non Official Part Time Director

Company Secretary
Smt V. Kala

Management Team
Jose Mathew : Executive Director (Design)
Baby Thomas : Executive Director (Materials)
Joe Joe Peter : Chief General Manager (Planning & IQC)
Sunny Thomas : General Manager (Technical)
Paul Ranjan : General Manager (Finance- 1)
N. V suresh Babu : General Manager (Ship Repair)

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

Madhu S Nair : General Manager (Marketing)


Bejoy Bhaskar : General Manager (Defence Projects)
K .J Ramesh : General Manager (Human Resource)
T.N Sudhakar : General Manager (Finance- 2)
Murugaiah .M : General Manager (Hull and HE)
M.D Varughese : General Manager (Industrial Relations & Administration)
K.I Koshy : General Manager (Materials)

Bankers
State Bank of Travancore
State Bank of India
Syndicate Bank
Union Bank of India

Auditors
M/s Menon & Ayyar
Charted Accounts, Ernakulam

Registered Office
Cochin Shipyard Limited
XXXXIX/6080, Administrative Building,
Perumanoor
Kochi- 682015, Kerala, India

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

Stage Vise Development

1971-1981
During the 1st decade the yard contracted to build three bulk carriers, one for Shipping
Corporation of India, one for Ratnakar Company and 3rd for Chowgule steamship. First two or
three year‟s project implementation was at full stream and therefore the actual operation
commenced only in the later years. Only one ship was delivered in this decade. The 1st bulk
carrier “Rani Padmini”, delivered on 24th July 1981. The accumulated loss on the first decade
was 13 Crores of Rupees.

1981-1991
During this decade shipyard commenced the ship repair activities, shipyards increased
losses on ship building is mainly due to the pricing policies existing on that time. The cumulative
losses increased to 166 Crores of rupees in 1991, during this decade shipyard delivered 5 ships
includes four bulk carriers and one oil tanker.

1991-2001
Commencement of this decade ship yard had an accumulated loss of Rs 166 Crores,
considering this Government of India approved for capital restructuring on March 1994, during
this decade yard marketed its ship repairing facilities globally and developed ship repair as a
major stream of revenue. As a result of these activities yard started generating revenue and
getting profit from 1994-1995, and wiped out its entire accumulated loss in March 2003. During
this decade shipyard was able to deliver one oil tanker, three tugs five patrol boats to various
Indian owners.

2002-2008
The main achievement of Cochin Shipyard in the last six years was gaining a foray in to
international market; yard delivered one barge for NPCC Abudabi, this period only yard was
nominated to build the first Indigenous Aircraft Carrier for Indian Navy.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

GRAWTH TO INTERNATIONAL SHIPYARD


The growth of CSL has been a phenomenon since 2002. The decision to compete globally
acted as catalyst. The first small order was completed six days ahead of schedule sending a
signal in market of CSL‟s capability and determination. A nine-ship order from sand Arabia
followed:

When first three of these nine performed very well and delivered on schedule CSL was a force to
reckon with. A huge order of six bulk carriers from a major ship owner valued at over 700 Cr
followed. These were delivered from months ahead at schedules heralding the yard‟s arrival in
global market. Orders for 35 ships poured in.

CSL which has originally building one ship every three years was delivering 5-7 ships a year. At
present CSL has more than 20 PSV in its order book contracted to deliver beyond 2010. All
these orders are for foreign owners from various nations like UK, US, Norway, Greece etc.

SHIP BUILDING

CSL has been achieved full capacity utilization in last two years. In last 3 years, the
yard has delivered 6 bulk carriers, Nine fire fighting tugs and eight platform supply vessels
(PSV) for various international owners.
The company could achieve a total ship building income of Rs 1260 Crs during 11-
12 as against 1320 Crs in 10-11.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

SHIP BUILDING INCOME

1400

1200

1000

800

600

400

200

0
2007-08 2008-09 2009-10 2010-2011 2011-2012

Fig 3.1
(Rs in Crores)

SHIP REPAIR
Commenced in 1982 and till date about 1800 vessels have been repaired. The company
has undertaken repairs of all type of ships including up gradation of ships of oil exploration
industry as well as periodical lay-up repairs and life extension of ships if Navy, Union Territory
of Lakshadweep, Cost Guard, Fisheries and Port Trust besides merchant ships of Shipping
Corporation of India (SCI), Oil and Natural Gas Corporation (ONGC) etc. The existing ship
repair Dry Dock can accommodate 125000 DWT vessels. The yard ventured into offshore
repair/up gradation business in 1999. CSL undertakes clapmon projects, fabrication and
installation of new platforms and revamping of existing platforms. The yard has over the years
developed adequate capabilities to handle complex and sophisticated repair jobs.
During 20007-08 , CSL diversified into the offshore and dredging market and
undertook repairs to the oil rigd Sagar Bhushan of ONGC, oil rig trident for M/s Transocean,
USA and Dredgers Sagar-Hansa for Vanword ACZ shipping Management, Denmark and
Aquarus for Dredging Corporation of India. In the current year, the yard has also undertaken a
project for conversion of fishing vessel to seismic Research Vessel for M/s Nordic, Singapore.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

Cochin Shipyard could achieve a ship repair turnover of Rs.252.14 Crores during 2007-
2008 as compared to Rs 241.53 Crores in 2006-07, i.e 5% increase.

SHIP REPAIR INCOME

300

250

200

150

100

50

0
2007-08 2008-09 2009-10 2010-11 2011-12

(Rs in Crores) Fig 3.2

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

CHAPTER 4
DEPARTMENT STUDY

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

FINANCE DEPARTMENT

In the modern concept Finance is not only a Life blood of the business; it is the
„LIFE‟ of the business. The finance department in CSL plays an important role enhancing the
efficiency and overall improvement of the organization it is the department, which controls the
procurement and allocation of funds the business operations. In CSL, the financial department is
common to all department of the organization. It is working with the Director Finance as the
head.

FUNCTIONS
 Management of funds including working capital and transacting business with Banks and
other financial institutions, managing all transactions relating to foreign exchange etc.
 Participation in negotiations with unions/associations for finalization of proposals for
revision of wages, salaries, other perquisites etc.
 Evaluation of Investment proposals, project appraisals etc, with specific reference to
finance perspective and examination of all proposals for financial concurrence and giving
suggestions to effect economy.
 To submit all information as required by Government and to other statutory authorities.
 Preparation of Annual budget/MOU with Government.
 Payment to suppliers, contractors, employees and other agencies.
 To report to CMD matters which have adverse impact on the working of the company.
 To organize and conduct statutory audit, internal audit, Income Tax audit, Sales Tax audit
etc.
 To attend to C&AG audit queries and reviews and related matters.
 Attending to Tender Committees/negotiations.
 To maintain proper books of accounts of the company as prescribed by Law and to
comply with statutory provisions with regard to Companies Act/ Accounting Standards.
 To render advice to CMD/HOD on all matters having any financial implications.
 Compliance of provisions, procedures and rules with reference to various taxations and
other Acts.
 Finalization of accounts and audit of the same and declaration of annual financial results.
 Attending to all tax matters relating to the Company.
 Attending to issues arising from operation of shipbuilding and other contracts.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

DIFFERENT SECTIONS
† ADS Finance
† Central Accounts
† Financial Planning
† Bills Section
† Ship Repair Finance
† Ship Building Sections
† Establishment
† Taxes & Invoice
† Cash
† Internal Audit

ADS FINANCE

 Scrutiny and payment of bills relating to procurement of materials of Capital & Revenue
nature and payment to ADS.
 Attending to Tender Committees/ PNC.
 Payment of WOT Expenditure.
 Preparation of Annual Budget of ADS.
 Preparation and Submission of bills to Navy-Infrastructure/ Cost Plus.
 Liaison with WOT/ Navy.
 Vouchers processed.
CENTRAL ACCOUNTS

 Maintaining proper Books of accounts.


 Preparation of Financial Statements in
Compliance with Companies Act 1956 and Accounting Standards etc and to present
periodical accounts to the Board.
 Arranging Audit of accounts by Statutory Auditors and C& AG.
 Costing and compilation of cost information on periodic basis.
 Material Accounting
 Fixed Asset Accounting
 Preparation of periodical reports.
 Maintenance of records relating to machine utilization, labour utilization etc.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

BILLS

» Concurrence of all purchase proposals.


» Work relating to tender committee.
» Scrutiny and payment of bills relating to procurement of materials of Capital and
Revenue nature.
» To arrange foreign remittances with Income tax clearance.
» Scrutiny and payment of Customs duty, freight charges etc.
» Arranging payment of temporary advances/ imprest / Cash purchase.
» METI (Marine Engineering Training Institute) receipts and payments of METI
expenditure.
» Valuation of GRV and reconciliation.
» Maintenance of Vendor Ledgers under ERP.

Fig 4.1

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

FINANCIAL PLANNING

 Liaison with Banks.


 Arranging Short term Loans.
 Preparation of MOU.
 Preparation of Budget (Capital & Revenues) and Budgetary Control.
 Preparation of Annual Plan.
 Preparation of periodical reports.
 Ensure that Cash and Bank balance position is adequate for the smooth
operation of business.
 Undertake Short-Term and Long-Term fund requirement planning and initiate
action for any shortfall or surplus.
 Treasury operations and management.
 Foreign currency transactions and hedging.\

SHIP BUILDING FINANCE

► Scrutiny and payment of bills relating to Civil, U & M, SBOC, SSD and IQC.
► Concurrence of all proposals of Civil, & M, SBOC, SSD and IQC.
► Settlement of Temporary advance & settlement.

SHIP REPAIR FINANCE

 Material Accounting of Ship repair


 Settlement of Temporary advance & settlement.
 Scrutiny and processing of Ship Repair bills relating to Materials, sub contract and other
expenditure
 Attending to tender committees for finalizing subcontract of SR.
 Scrutinizing purchase proposals/ works contracts.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

ESTABLISHMENTS

 Employees Income Tax recovery, issue of IT certificates and remittance and preparation
of annual returns.
 Maintenance of Provident Fund Account of all employees and final settlement of PF,
Gratuity and other retirement benefits.
 Scrutinizing and payment of bills relating to establishment expenses like stationary,
telephone, canteen, advertisement, entertainment etc.
 All payment relating to employees.
 Payments to Trainees/ Contract workers.
 Payment of CISF establishment.
 Scrutinizing and paying PF advance.
 Maintenance of transactions connected with Family Pension Fund and DLI.

TAX AND INVOICE

 Preparation of Invoices other than SR.


 Arranging Insurance.
 Maintenance of Sundry Debtors and follow up of receivables.
 Handling of matters relating to VAT, Central Excise and Service Tax.
 Attending to IT, VAT, customs cases/ appeals.
 Handling matters relating to Central Excise/ Customs.
 Handling of matters relating to Service tax.
 Arranging of Income Tax audit, Sales Tax audit and filling of returns/ appeals.
 Ship Building contracts.
 Attending to Tender Committee for scrap sales.
 Ship Building subsidy.

CASH

⇋ Receipt, payment and safe custody of cash, cheque, DDs, Bank Guarantee etc.
⇋ Preparation of Cheque – arrange DD/TT etc.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

INTERNAL AUDIT

☞ Preparation of internal Audit Programme.


☞ Liaison with Internal Auditors.
☞ Attending to Government audit queries.
☞ Collection of data from various departments and preparation of draft reply.
☞ Liaison with audit Committee.
☞ Surprise verification of Cash.
☞ Preparation of annual progress reports for Statutory Auditors/ Government Auditors.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

Profit and Loss Account

For the year ending 31st March 2012 (In Lakhs)

Particulars Note No For The Year ended 31st For The Year Ended
March 2012 31st March 2011

1.Revenue From Operations 18 140485.15 146171.53

2.Other Income 19 7669.33 12745.88

3. Total Revenue 148154.48 158971.41

4. Expenses

Cost of Materials Consumed 20 167192.58 71590.08

Changes in Inventories of work 21 1699.99 (1362.79)


in progress

Sub Contract and other Direct


Expenses 22 21607.03 19373.99

Employee benefits expense 23 16611.22 16649.62

Finance Costs 24 1312.09 2898.09

Depreciation and Amortization 25 1807.27 1705.60


Expenses
26 12011.30 122665.80
Other Expenses
27 616.07 995.96
Provision for anticipated losses
and expenditure.

122857.55 124516.35

Total expenses 0.00 2.91

(Less) Expenses Allocated to Capital 122857.55 124494.44


Works
25296.93 34422.97

5. Profit Before Tax (3-4)

6.Tax Expenses 10 7713.61 8711.20

Current Tax

Deferred Tax

Prior Year Tax Adjustment 1340.90 2959.00

7.Profit Of The Year (990.27) 0.00

17232.69 22752.77

Fig 4.2
Caarmel Engineering College, Perunadu
Organizational Study Report Cochin Shipyard Limited, Cochi

BALANCESHEET

As on 31st March 2012 (In Lakhs)

Particulars In.N As 31st March 2012 As 31st March 2011


o

1.EQUITY AND LIABILITIES

1.Shareholders funds

Share Capital 2 15242.20 19242.20

Reserves and 3 89841.05 77537.57


surplus

2.Non Current Liabilities

Other Long Term 4 492.22 980.75


Liabilities

Short-Term
7 18560.23 28153.42
Provisions
260238.39 255659.18
TOTAL

2.ASSETS

1.Non Current Assets

FIXED
ASSETS 8 19247.99 19035.57

Tangible 12.95 31.91


Assets 9

Intangibl 6361.79 3717.00


10
e Assets

Capital
In Work-
In-
Progress 11 19.18 19.18

Current
Investme
nts

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

Differed 12
Tax
Assets(N
et) 971.57 2312.47

Long
Term
Loans
and
Advance
s 13 613.79 611.43

Other
Non-
Current
Assets
14 5745.99 8125.13
2.Current Assets

Inventories
15 36253.66 23475.88
Trade
Receivables 16 77992.10 110260.53

Cash and Bank


Balance 17 90889.60 69025.09

Short Term
Loans and 14164.15 7337.84
Advances

Other Current 1 7965.62 11657.15


Assets
29-40
TOTAL 260238.39_____________ 255659.18___________

Significant Accounting Policies

Other Notes on Accounts

Fig 4.3

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

FINANCIAL HIGHLIGHTS

Particulars 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011-
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Turnover 210.25 235.16 228.44 276.48 375.53 719.74 833.79 1256.21 1248.50 1461.72 1404.85

Total Income 253.84 282.07 267.94 323.31 452.89 845.64 857.17 1383.26 1326.49 1589.17 1481.54

EBDIT 36.62 35.72 37.18 28.03 43.79 104.17 162.66 276.42 364.68 390.27 284.16

Depreciation 5.40 6.80 6.47 7.24 10.62 7,89 9.69 9.80 15.24 17.06 18.07
and Write
offs
Profit After 16.41 16.49 17.78 12.10 18.23 58.11 93.85 160.07 223.04 227.53 172.33
Tax (PAT)
Equity Share 111.28 113.28 113.28 113.28 113.28 113.28 113.28 113.28 113.28 113.28 113.28
Capital
Reserves & 15.68 25.86 34.19 36.83 55.06 93.67 199.64 336.70 490.54 775.38 898.41
surplus
Net Worth 245.43 255.66 264.03 266.62 284.85 323.45 429.43 566.49 680.32 967.8 1050.83

Gross Fixed 198.86 205.00 195.86 204.65 206.92 217.18 206.92 233. 349.68 362.10 376.73
Assets
Net Fixed 84.92 86.30 74.09 78.30 76.33 81.91 92.16 121.64 189.75 190.67 192.61
Assets
Number Of 2232 2189 2175 2109 2075 2084 2059 1962 1907 1818 1900
Employees
Earnings Per 147.47 145.57 156.96 106.81 160.97 513.00 828.51 14.13 19.69 20.09 15.21
Share (EPS)
Face Value 1000 1000 1000 1000 1000 1000 1000 10 10 10 10
Per Share
EBDIT/ Gross 17.4 15.2 16.3 10.1 11.7 14.5 19.5 22.0 29.2 26.07 20.21
Turnover (%)
Net Profit 7.80 7.01 7.78 4.38 4.88 8.07 11.26 12.74 17.86 15.57 12.27
Margin (%)
Return on Net 6.74 6.45 6.73 4.54 6.40 17.97 21.85 28.26 32.78 23.51 16.40
Worth (%)
Return on 4.22 4.28 4.33 20.45 3.65 11.70 23.28 29.09 38.57 27.44 18.76
Capital
Employed (%)
Capital 389.25 392.75 410.98 493.63 499.64 496.60 401.33 550.31 578.32 829.27 918.68
Employed

Fig 4.4

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

MAJOR FACILITIES AND ASSETS

Facilities and Assets Details


Land 170 Acres
Cranes 71 Nos
Quay 1 for Repair 290 m
Quay 2 for Repair 208 m
Quay 3 for fitting out 460 m
Covered Shop Area 35000 Sq.m
Steel Stockyard 13000 Sq.m
CNC Plasma Cutting Machine 2 Nos
Steel Fabrication Facility 2000 Tonnes per Month
Marine Coating Shop
Fig 4.5

Docks Size Capacity Range

1 270x45x12m 125000 DWT 2010 & 5t

2 255x43x9m 110000 DWT 150 7 50t

Fig 4.6

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

The company achieved a turnover of Rs.1405 Cr with a PAT of RS.172Cr. the company
contributed RS.111 Cr to the National Exchequer by way of VAT, Income Tax, FBT, Excise
Duty, Customs Duty and Service Tax. The yard is proposing to declare a dividend of Rs.5 Per
share on the 11,32,80,000 fully paid equity shares of Rs,10 each and Rs.70 per share on the
3,91,420, 7% Preference Shares of Rs.1000 each for the year 2011-2012. The total outgo on the
dividend and the dividend tax is approximately Rs.23 Crs. The company has also redeemed
4,00,000, 7% preference Shares amounting to Rs.40 Crs during the year 2011-2012. With this,
the preference share capital of the company to be redeemed before 2015 would be Rs.39.14Crs.

Financial Performance

Cochin Shipyard Limited (CSL) continued to achieve good performance in the year 2011-
2912 albeit a marginal reduction in the turnover and profits. The turnover for the year was
marginally lower at Rs.1404.85 Crores as compared to Rs.1461.72 Crores in the year 2010-2011.
The net profit was Rs.172.33 Crores as compared to Rs 227.53 Crores for the previous year. The
performance is creditable considering the economic recessionary conditions and the downturn in
the shipping and ship building sector. The reductions in the profits and turnover during the year
were owing to several factors, primarily due to the reduction in turnover from Indigenous
Aircraft Carrier (IAC) and the lack of ship building subsidy.
Cochin Shipyard is hopeful of concluding the Phase 2 contract with the Ministry of Defense
(Navy) for IAC in the near future. The yard is also on the threshold of signing a contract for one
multipurpose vessel for the Director General of Lighthouses and Lightships. Discussions with
ONGC are in an advanced stage to secure an order for a multi streamer Seismic survey vessel.
The lack of fresh ship building orders due to the continued oversupply in the shipping market is
of concern.

DIVIDEND

The Directors are pleased to recommend a dividend of Rs.1.5 per share on the 11, 32,
80,000 fully paid Equity Shares of Rs.10 each and Rs.70 per 3, 91,420 Preference Shares of
Rs.1000 each for the year 2011-2012. The total outgo for dividend and dividend tax would
be approximately Rs.22.93 Crores.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

BUSINESS DEVELOPMENT DEPARTMENT (MARKETING)


The BD Division of CSL is unique in itself. Unlike marketing departments in
other companies the BD division of CSL, does not have the usual procedures of advertising.
Never in its lifetime has it got a situation where it had to advertise for its product (Ship). The
major function of the BD division begins when the company is designing a new design or after a
particular customer approaches the company. Let us take each situation separately.
Once the company is making a new Design, the BD division with the help of
shipbrokers finds suitable customers for the ship. But these are not the trend that is being
followed today. The company does not concentrate on designing ship. Rather it buys the designs
from an outside designing company and search for customers.
The next situation is when a customer approaches the company for building ship. This is
the pattern that is followed nowadays in shipyard where a customer specifies all their needs or
core specifications like the speed limits of the ship measured in knots, the facilities within the
ship etc.
In both the cases the customers are given priority in deciding what all should be included
or excluded from the design while building. In the previous situation, even if the company is
giving the design, the customer has the full freedom to finalize upon the design.
It is the duty of the BD division of CSL to select the company from whom the required
equipments are to be bought. The selection is usually made looking the key concept of:
-Technical Specification
-Least Cost.

The usual pattern is to look technical proficiency to a certain extent, just enough to meet the
basic requirement and then select the one which provide at lower cost. Being a public sector least
cost company is given more importance.
Another major function of the BD division is the forward planning. Forward
planning as it means planning for future, it done at the top management level and involves
formulation of strategies and policies. In case of BD division it involves the areas of market
development, market penetration, product development and diversification. CSL has adopted all
three strategies except diversification of its products and services to strengthen its presence in the
global shipbuilding and ship repair business.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

Functions

1. Basic Design calculations and Drawings for ships and small crafts.
2. Material cost estimation for ships and small crafts.
3. Computer applications, data bank.
4. Development of Computer programmes for ship design calculations, cost estimation etc.
5. Data collection for technical, details of vessels, material cost etc.
6. Maintain a record of Rules and regulations concerned with shipbuilding and keep track of
its amendments.
7. Updating the design capabilities with the latest trends in design.

Initially the contract between the customer and Cochin Shipyard is made by this
department and the most basic function of the forward design section is to make a basic
design of the ships which is later handed over to the design department, materials
department and the ship building department

Functions of Commercial section

1) Market survey ships, small crafts and other engineering works for utilizing the
installed capacity.
2) Preparation of Quotations.
3) Preparation of Contract documents.
4) Negotiation with owner.
5) Liaison with owners and after sale service/ guarantee repair claims- verification-
Negotiation-Settlement etc.
6) Reporting relevant matters to ministry and other Government agencies
7) Legal opinion, Arbitration proceedings.

The Business Development division of CSL in itself unlike marketing departments


in other companies the BD division of CSL does not have the usual procedures of
advertising. Never in its lifetime has it got a situation where it had to advertise for its
product (ship). The gins, major function of the BD division begins, when the
company is designing a new design or after a particular customer approaches the
company. Let us take each situation separately.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

PRODUCT MIX

► Bulk Carrier
► Oil Tanker
► Aframax Tanker
► Clamp-on Structures
► Platform Supply Vessel
► Passenger Ship
► Tugs
► Dredgers
► Patrol Boats and Luxuary Launcher
► Aircraft Carrier

MAJOR SUPPLIERS LIST

 Rolls Royce Marine


 Karm
 Hyndra Marine
 TIS
 Abas
 Aker Brats Vaagwinch
 Suezer

CUSTOMERS LIST

 Coast Guard
 Cochin Port Trust
 Customs
 Shipping Corporation of India
 Essar Shipping Company
 French Navy
 Indian Navy
 ONGC
 Fisheries Department
 Clipper Group Bahamas
 National Institute of Oceanography
 National Petroleum Construction Company, Abudabi

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

MARKETING CHANNELS AND PRODUCT PROMOTIONS

The main marketing channel used by Shipyard is the ship brokers who have under
them 200-300 employees spread all around the world collecting information from MNCs about
the requirements of ships. These MNCs take them into confidence to recommend the name of a
ship building yard which would best suit their requirements.
CSL also advertise themselves in magazines like “Offshore Support Journal” but they
consider it just a method of visibility and not marketing.

MARKETING RESEARCH

The Business Development division of CSL conducts its own market research to know about
the recent trends in the Ship Industry. They mainly have membership and subscribe in sites
having controlled access through payment and provide the updated information on ship building
industry. CSL is also conducting third party research for this purpose. The company is issuing
shipping weekly. A gain the company is taking internet support also for this .The third party
online researchers of the company include Clarkson, Offshore support, Trade Winds etc.

CONTRACT
There are mainly two types of contracts that Business Development division of CSL makers
one contract is design contract and another is ship building contract.

One of the major functions of the BD division of the company is to prepare and design
the ship building contract with the customers. The contract should be supported with the
specification as to which company‟s equipments are to be used while building the ship. For
example, a customer could demand through the specification that, the engine must be bought
from the given companies like Rolls Royce Marine, TTS,Abas. Once the company fails to meet
the specification it could be fined by the customer. The specification will include the demand on
capacity of the ship and also the expected speed. If these too are not satisfied, the customer could
charge fine on the company. The contract also includes the cost, payment terms and warranty
and also delivery date.

Another type of contract that the BD division has to make is the design contract.
This contract is made between the company and the company, which gives the design for the
ship. This contract includes the specification (mainly the technical specifications) cost, payment

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

terms and the warranty period usually is 24 months from delivery date of the equipment or one
year from the date of vessel delivery.

The contract should include details regarding the following;

 Cost Of the ship


 Duration of Completion
 Date of handing over
 Payment terms
 Warranty period.

Once the ship is being delivered to the customer, who then become the owner of
the ship, could claim warranty If any defects happen to it, But the claim should be made
within the warranty period. If the defect is on the equipment in the ship, the maker
company will deal it, and If the defect is on the installation, then it will be dealt by CSL.
This is also the duty of the Business Development Division.
PRICING STRATEGY

The CSL is looking is diversify into high value added products such as;
» Dynamically positioned vessels
» Floating Cranes
» LNG Carriers
» Offshore Structure
» Dredger.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

PERSONNEL AND INDUTRIAL RELATIONS DEPARTMENT


(HUMAN RESOURCE)

HR VISION
Emanating from the goals and objectives enshrined in the corporate mission statement, the
strategic Human Resource Vision of Shipyard is to strive and create a unique institution that
integrates creativity, innovation, technology, business and good corporate governance practices
for all round improvement in the quality of work life of the yard‟s workforce.

HR MISSION
To provide a vibrant platform for all those working in the yard to give their best and ensure
all round growth both for the individual and organization.

HR POLICIES
HR Policies are oriented towards the right mix of HR, their empowerment and enrichment
so as to meet organizational targets and results.

HR OBJECTIVES
 Effectively play the role of strategic team member.
 Planning for pragmatic man power, induction, re-skilling, deployments and retention of
HR.
 Develop and position right mix of person at the right time.
 Create, maintain and nurture a healthy employer and employee relations.
 Evolve and implement best industrial practices with transparency in approach,
competitive reward and incentive system for excellence in performance.
 Provide effective and meaningful social support to the community, society around.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

Current HR Status in CSL


The total manpower of the company as on 31 March 2012 was 2017 employees.

HR SYSTEMS

 Manpower planning, recruitment and Induction


 Carrier development Policies covering all categories
 Performance appraisal systems
 HR Training and Development
 Employee participation
 Employer-Employee relations
 Reward and suggestion scheme
 Attendance Recording and wage Administration
 Statutory Obligation towards contract workmen
 Welfare and social Commitments.

PLAN OF ACTION
 Business Objectives – short term/ Long Term.
 Chalk out plans for HR requirements matching current and future business requirements.
 Identify core and non core areas of work.
 Arriving at right mix for outsourcing work both in core and non core areas.
 Continual improvement for Skill and knowledge updation.
 Conscious cost cutting measures. Integrated attendance and payroll system.
 Extension of offline services.
 IT enabled record maintenance and employee self service system.
 Total solution for electronic attendance cum access control.
 Finalization of productivity linked variable payment scheme.
 Sundry and supplementary work.
 HR as profit centre.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

RECRUITMENT POLICY IN CSL

Executive Recruitment

The recruitment to the executive post in CSL is done on all India basis. The selection process is
done on the basis of the degree or educational qualification, followed by written test and finally
interview.

The weight age for the above said is given as below:

Degree – 50%

Written Test – 30%

Interview – 20%

The test and the interview would be conducted on the same day itself. The results will be
published on the same day itself, after the approval of CMD of Cochin Shipyard Limited.

The executive positions are filled by 50% recruitment from external sources and 50% by
promotions. In the case of promotions to the past of an officer the eligibility to write the
promotion test is as followers:-

For Engineering Degree holders = 6 Years service as supervisor in CSL.


For Diploma holders = 8 Years service as supervisor in CSL.
For ITI holders = 10 Years service as supervisor in CSL.

Workers Recruitment

The Recruitment to the workers post will be done through the employment exchange. As and
when there is a vacancy in the workers post the company informs the employment exchange. As
per the court order, in this regard, the vacancy notification is given in employment exchange and
also an open advertisement is provided in the newspapers. This is also done in an all India basis.
The procedure for selection also includes practical tests.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

MANPOWER
Manpower Strength of the company as on 31st March 2012 was 1900, consisting officers,
supervisors and workers. The complement of CSL as on 31st March 2012 is shown in the table
below.

Catagory SC ST OBC PWD Ex Women Others


Servicemen/
Dependents
Officers 34 9 48 2 7 28 139
Supervisors 26 6 1 5 2 17 148
Workmen 142 25 169 40 17 76 881
Canteen 5 0 51 1 0 3 18
TOTAL 207 40 269 48 26 124 1186

PERFORMANCE APPRAISAL OF WORKMEN

Name Code No: Department


Date of Joining Date of Birth Period from 1st April
31st March
Date of present Designation PHOTO
Grade
Nature of Duties
Performed

PART 1 PERFORMANCE FACTORS FOR ASSESSMENT


Description Total Marks Given
Marks Initiating First Final
Officer Reviewing Reviewing
Officer Officer
1.Job Knowledge and Skill
(a) Intelligence and Ability 15
to Comprehend
(b) Quality Of Work 10
2. Quality of Work 10
(Rejection Rate,
Accuracy, Promptness,

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

Neatness)
3.Work Attitude
(a) Initiative and 10
Commitment (Cost
consciousness and
desire to learn)
(b) Team work (Co- 10
operation/ interpersonal
Relationship)
(c) Morale- Level of 10
Enthusiasm
4.Dtsciplne
(a) Attendance 10
(CL+SL+EL=35 Days)
(b) Physical Fitness 10
(c) Safety Consciousness 10
(d) Sincerity / Sense of 5
Responsibility
Total 100
RATING AWARDED
5.Integrity
A. Above Board, B. Open to Doubt A B A B A B
Signature
Name
Designation
Date Of Appraisal

RATING
Outstanding (O)- Above 90% , Superior (S)-80 to 89%
Very Good (VG)-65 to 70% Good (G) – 51 to 64%
Fare (F) – 40 to 50% Poor – Less than 40%

PART 2

REMARKS
(to be filled with specific achievements only for those marked Superior and above / drawbacks for
those rated poor)

Initiating Officer
Signature : Designation :

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

Name : Date :
First Reviewing Officer
Signature : Designation :
Name : Date :
Final Reviewing Officer

Signature : Designation :
Name : Date :
OVERALL ASSESSMENT- (To Be Filled by Personnel Department)

(a) Average Marks


(b) Grading
Fig 4.7

PERFORMANCE APPRAISAL OF EXECUTIVES

1. Competencies
(a) Subject knowledge
awareness of Duties.
(Responsibilities) 20
(b) Application of
Knowledge in work 15
3. Attitude
(a) Ability to Co-operate
and get along with team 10
mates.
(b) Positive Approach to
work problem 10
(c) Morale-Level of
Enthusiasm 10
4. Leadership
(a) Achievement in Training
and Inspiring
Subordinates.
(b) Capability to assume
higher responsibility

Fig 4.8
Caarmel Engineering College, Perunadu
Organizational Study Report Cochin Shipyard Limited, Cochi

DEPARTMENT STRUCTURE

P & IR AD GM IR & Admin


GM HR (Chief Welfare
Officer)

Industrial
Hindi Cell PFSO Medical Welfare DGM IR Canteen

Assistant
Manager Deputy
Manager

Supervisor
(AAO) Assistant
Manager
Senior
Assiatant
AAO

JCA

Fig 4.9
PFSO- Port Facility Security Officer
Industrial Canteen – CSEC (Cochin Shipyard Employees Canteen)
AAO- Assistant Administration Officer
Office Trainees (Apprenticeship)

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

MARINE ENGINEERING TRAINING INSTITUTE (METI)

CSL also runs a state of the art METI and basic advanced fire fighting courses. Since
inception more than 1000 trainees have passed out of Institution. The institute has been rated
OUTSTANDING by Independent rating Agencies continuously for last 6 years. More than 1000
officers are converted from Mechanical Engineering/ Naval Architecture to Marine engineering
with a 3600 approach to Marine engineering on different types of ships.
The Apprenticeship programme is conducted as per statue (Apprenticeship Act), the
NTAC (National Trade Apprenticeship Council) test is conducted for trainees.

Training
Institute

Training
Hostel Blocks FFTC
Institute

Facilitator Facilitator Facilitator

Fig 4.10

APPRENTICESHIP TRAINING

CSL imparts apprenticeship training as per 1961 Act and a consequent revision in 1973 &
1976, as per the Act CSL selects students with National Trade Certificate issued by the
Government of India for apprenticeship training. The different trades under which they are
provided training are:-

 Office Trainees
 Electrician
 Mechanist
 Fitter
 Painter

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

 Instrument Mechanic
 Draftsman Mechanical
 Pipe Fitter
 Ship Wright Wood

The trainees are trained in the above trades for a period of two years. At the end of the training
period all the trainees will have to undergo an all India examination and certificates are issued
for the pass outs. The trainees may be taken as advanced trainees by CSL. It is usually for the
period of 1 to 3 years according to the nature of trade and requirement.
For degree and diploma holders apprenticeship training is imparted according to
Apprenticeship Act 1973. It is one year course and certificates are issued on successful
completion of the training and trainees are sent to different Departments of CSL to have an
exposure according to their qualification and branch in rotation basis minimum for 3 months.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

SHIP DESIGN DEPARTMENT

Ship Design Department is the Department of designing the ship. It means it realizes the
expectations of the owner about his ship. In CSL, Design Department and Business Development
Department doing the ship design process. Designing process mainly classified into two.
Primary Designing and Detailed Designing. Primary Design is done through BD Department and
the Detailed Designing is done by SD Department. Every Ship is designed under the rules and
regulations of The International Ship Building Committee.
According to the laws, a ship cannot be change the ownership. So every ship has some
specifications. The owner submits the quotation consist, about Security Systems, Basic
Requirements, Additional Requirements, another extra specifications etc.SD Department shall
raise indents for bought out items as also fabricated items procured from outside.

In the case of work progresses, Ship Design Department mainly divided into 6.
» HSD
» MOD
» HOD
» AOD
» EOD
» Forward Design and Defense Marketing

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

DEPARTMENT STRUCTURE

GM

AGM (D- Office Administrator


DGM (EOD) AGM
IAC) (Triboon System
Admin)

Manager Manager Forward Manager (M-


AGM (MOD) HOD ADS)
Manager (AOD)
(HSD) Design
Commercial

AM AM AM AM AM AM AM

DM DM DM DM DM DM DM

Manager Manager Manager Manager

Fig 4.11

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

SAFETY AND FIRE SERVICE DEPARTMENT

Safety and Fire Service Department is doing safety services in CSL. They
provide all the Safety requirements in the yard and in the ship. This department is functioning
under the Indian Factories Act 1948. They are continuously monitoring to the Ship Building
area. They provide the basic safety requirements such as Lights, Ventilators, Switch Boards, and
Tools etc to the Ship Building and the yard area. Safety and fire Service Department have two
sections/ wings.
> Safety Section
> Fire and Rescue Centre.

SAFETY SECTION

Safety Section deals with all the safety requirements in the yard. They ensure Safety
Helmets, Shoes, Lightings, Ventilators, and Oxygen Cylinders, Face Masks, Body Armor, Safety
Belts safety Cloves etc in the work area for the employees. And also they are giving proper
instructions about the safety and its requirements to the workers. They conduct Importance of
Safety programmes to the CSL employees for building up the awareness about safety and
carefulness in the job. Programmes like Seminars, Notices, Pluck Cards, and Flex Boards etc.

FIRE AND RESCUE CENTRE

Fire and Rescue Centre is 24x7 working department in CSL. They provided the
requirements of preventing the Fire. They provided water pipes, fire cylinders etc in the whole
CSL area. And also they have 3 F&R Vehicles which are ready for anytime work. In this
Department they have 23 (17 permanent and 5 Trainees) employees. And also they are
monitoring the electricity equipments and welding materials and their environment for assuring
safety against fire.
Employees working in this section under shift method. Fire and Rescue Department
prepares Reports Monthly/Quarterly/Annually about their working procedures. This will help for
comparison of current and previous data.

Main Functions
 Protect CSL from any kind of Fire

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

 Giving Awareness about fire safety


 Creating a protective atmosphere in CSL
 Make CSL 100% Free from fire

DEPARTMENT STRUCURE

DGM

Cheif Security Fire and


Officer (AGM) Rescue Centre

Manager 1 Deputy
Manager 2 Fire Officer
(Fire) Manager

Assistant Fire
Officer

17 Members

Fig 4.12

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

INSPECTION & QUALITT CONTROL DEPARTMENT

The Inspection & Quality Control dept co-ordinates the activities of the various
functional Groups in the Organization such as to have production at the most economic level
without staking product quality and customer satisfaction. Quality Assurance Process:-

Quality Assurance Process starts right when a quotation for components is accepted and the
Information is intimated by planning to I& C. I & QC check the quality of the samples provided
by the suppliers. I & QC finally issues the accept/reject order of quotation.

Once the supplier sends the goods to the stores; Stores on receipt of goods issue Goods
Receipt Inspection Report (GRIR) to I& QC. I & QC checks the quality of components send and
issue the accept/ reject proposal. The inspection report is send to planning as well as concerned
production floor.

If I& QC rejects the component, a Non Confirmation Report, is sent back through the
Material Department. Supplier does necessary servicing of the parts or the replacement of goods.

But If the components has to accepted in spite of rejection offered by I & QC, because of
urgency in production or the concerned part will not harm the assembly or the extra ordinary
delay involved in fresh delivery, The planning Department issues deviation concession note and
gets the approval of I & QC then use the component in Production.

Inventory Control Technique


The Inventory control techniques mainly used are:
1. ABC Analysis
2. Review Stock
3. Standardization
4. Codification (Symbolic approach & Engineering drawing nos.)

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

Registration of Vendors
After initial vendor list is prepared the following procedures are followed to register their
name in approved list.

1. Application for Registration (forms available in website)


2. Applicants shall satisfy through documentary evidence then financial stability, income
tax clearance, capacity to perform and produce performance certificate from those whom
they are already supplying.
3. Establish office with telephone for direct contact is essentials.
4. The firm‟s premises may be inspected by the officers to verify the quality standards of
products manufacture and other details shown in the application. Performance report
from Government department and PSU‟s will be considered for registration.
5. A reference may also be made about their performance to excising clients. SSI shall
satisfy registration requirement.

Vendor evaluation and rating cards


Vendor Rating Card maintained by CSL for evaluating performance of vendor against each
order. Default in fulfilling the terms and conditions of the order and general faults are recorded
and the performance is renewed every year by Material Department.

Removal and Black Listing of Vendors


The Vendors are temporarily removed from the approved the list depending on gravity of
default.

The vendors may be:


» Put on hold in case of furnishing insufficient or vague information and wasting time
on clarification.
» Blacklisted or delisted If they supply false and misleading information or If found
unreliable in supply.
» Banned If they are bankrupt, insolvent or partitioned.
When negotiating an international sales contract, both parties need to pay as much attention
to the terms of sale as to the sales price. To make it as clear as possible, an international set of

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

trade terms (INCOTERMS) has been adopted by most countries that defines exactly the
responsibilities and risks of both the buyer and seller including while the merchandise is in
transit. The CSL complies with this.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

INFORMATION SYSTEMS DEPARTMENT (ISD)


The most specialty of this department is ISD comes under by the Department of Finance.
Mainly they are doing E-mail creations, Intranet networking and Website updation.ISD in CSL
previously known as Enterprise Resource Planning Department (ERP), provides a basic for
integration of organizational Information processing. All the computer systems in CSL are
licensed or full versioned protected by Symantec, AVG Anti Virus software. All the computer
systems are running by the Operating System of Windows 7. Information System in CSL
satisfies the diverse needs of different departments through a variety of systems such as query
systems, analysis systems, modeling systems band decision support systems. CSL used the IS
system provided by RAMCO ERP applications. It is a general organizational ERP system
satisfies the common objectives and provision for developing the system to various applications
required with their technical support in tune with the economical and the technical feasibility if
the yard. Now Cochin shipyard Limited fully changing to SAP, Information Systems Department
doing all the major procedures of that.
There are 14 permanent employees working in this Department. Executive Trainees will
become Permanent after he fulfills the one year training period.

DEPARTMENT STRUCTURE

CGM Finance

AGM (IT)

Executive Assistant
Manager Trainees JCA
(IT) Manager

Deputy Deputy
Manager Manager Project
Officers

Fig 4.13

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

Objectives Of Information System in CSL

 Handling of a voluminous data.


 Confirmation of the validity of data and transaction.
 Complex processing of data and multidimensional analysis.
 Quick search and retrieval.
 Mass storage.
 Communication of the Information System to the user on time.
 Fulfilling the changing needs of the Information.

MAJOR FUNCTIONAL SUB SYSTEMS

 Finance and accounting


There are mainly 6 system modules in CSL to carry over its activities they are:
1. Accounts Payable
2. Accounts Receivables
3. Fixed Asset
4. General Ledger
5. Finance Management
6. Management Accounting

Functional Support:
 To conduct financial analysis.
 Cost analysis.
 All financial transactions of the Company.

Input Transaction and Documents

Transactions are payment and receipts and they are documented through journal vouchers,
bills, debit notes, receipt note and transfer documents and these are documented through the
typical format appropriate to the system.
The objective of production management system is to provide manufacturing services to the
organization. This involves the manufacture of ships of certain specified quality and within
certain costs in a stipulated time fulfilling the promises given to the customer.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

Functional Support

1. Production Planning and control.


2. Industrial Engineering.
3. Maintenance and Quality Control.

Input Transaction and Documents


1. Production Programme
2. Production Schedule
3. Process Planning Sheet
4. Job Card
5. Material Requirement etc.

 Material Management System


Functional Support:
1. Forecast and Planning
2. Procurement
3. Purchase Ordering
4. Goods receipts
5. Bill passing and Control.

The system modules for Materials Management are:


 POMS (Purchase Order Management System); which fails to access to vendor
details.
 IMS (Inventory Management System); this gives item details, Receipts, issue,
Adjustments and returns etc.

 HR System
The system modules for HR Management are:
 Payroll Module
 HRM module (Gives employee details).

Functional Support:
 Planning personnel requirements.
 Analyzing Performance.
 Payroll module.
 Salary administration etc.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

Other Important Specifications

Types of Network: Fiber connected network.


Office Automation: Supported by Ramco ERP System.
Types of Servers: There are mainly 20 servers in CSL. Some of them are;

 Mail server.
 ERP Server.
 Intranet Server.
 Tribon Server and modeling.
 Web based application server.
 Domain controller.

Security Systems:
 UTM (Unified Threat Management System, which is a security system. It protects against
antivirus angiosperm, intrusion detection, filtration etc.
 Antivirus Software
 Spyware Protection
 Content Filtering

Internet Connectivity: Four Broadband Internet Connections

Types of operating Systems used:


 Client Windows 7
 Server Windows-2007 server
 Mail server- Linux, deep root

The ship repairs Department, for its convenience uses a tailor-made ERP system separately,
known as ISRS (Integrated Ship Repair System) in which the commercial and financial aspects
are entered and frequently updated to the RAMCO system.
Thus all system facilitating functions for other departments are done by the IS department.
The intranet has many facilities which also facilitates the employers and employers to access to
their individual data regarding No. of leaves, pay structure, late attendance, overtime, pay slip
details etc.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

MATERIALS DEPARTMENT

Material Department deals with the procurement and storage activities. Materials are
procured on request arising from different departments. The materials are purchased at right
quantity, right time and right price and from right suppliers.
Objectives
a. Ensure required materials, equipment, machineries and services etc. Of presented
specifications from reliable sources in the required quantities at competitive price
and right time to support production, plant and keep and other requirements.
b. Uniformity of approach of all concerned departments in procurement activity.
c. The purchases are made following fair and transparent practices with a view to
ensure equitable opportunities between participating suppliers and contractor in
tender situation.
d. Total lead time for procurement system.
e. Ensure the legal commercial interests of company are safeguarded at all times.

Scope
The material department covers various aspects of purchase and stores procedure in the
Organization namely.
a) Identifying Requirement
b) Developing vendor base
c) Raising demands
d) Tendering
e) Receipt of bids
f) Bid evaluation
g) Placement of orders
h) Order follow up
i) Payment
j) Collection, storage and issue of materials
k) Disposal of items
l) Inventory Control

The above procedures are followed for all ship building and capital procurement. The
procedures shall be applicable for all ship repair procurement carries out through materials
department.
Special procedures for procurement in case of certain projects may also be separately issued
by CMD depending on the requirements and the same shall also be applicable only to that
project.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

DEPARTMENT STRUCTURE

CGM(Material and
Quality Control)

AGM (Stores
DGM-M1 DGM-M2 DGM( I&QC)
steel &SC)

Manager (Steel
AGM-M1 Manager-M2
& SC)

Fig 4.14
Materials Divisions
 Materials -1
 Materials -2
 Steel, Stock Control Materials & Stores

Materials 1
Dealing the procurement of
 ADS Materials 1 &2
 Projects Materials-1
 Consumable Materials & Services
 Electrical Spare Materials.

Materials 2
Dealing the procurement of
 Small ship Materials
 Projects Materials- 2
 Mechanical spares materials
 Steel, Stock Control Materials & Stores

Consisting of
 Procurement of steel & Stock Control materials
 General stores
 Outfit Warehouse

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

 Bonded Stores
 Customs Liaison Office

Types of Procurement:
a. Cash Purchase
The Value of Individual indent and purchase will not exceed Rs. 5000/- such indent
will be dealt by cash purchase section.

b. Emergency Purchase
Total value of emergency purchase indent shall not be more than Rs. 25000/- such
indent will be dealt by emergency purchase section.

c. Committee Purchase
In case of items were specification cannot be detailed such as ornamental type of
sanitary pipes, fittings, furnishings selection is to be carried out from the market. For this
purpose a committee of 3 officers will be constituted from:
 Material Department
 Indenting Department
 Finance Department\

The CGM Materials and QC shall be the authorized officer to constitute such Committee.
d. Open Tender

This is used for procurement of project items/ capital equipment and for bulk supplies
of plant, electrode etc. and the services like interstate transport, customs clearance contract
etc. This can be invited through public advertisement in one or two leading news paper of all
India reputed and by displaying details in the internet for items with an estimated cost of
above Rs.25 Lakhs.
Likewise there are other types of procurements such as;
a) Single Tender
b) Limited Tender
c) Website Tender
d) Repeat Order
e) Long Term Rate Contract
f) Sub Contracting
g) Fast Track procurement
h) Procurement of ship repair materials
Two types of Tender Process
 Single Bid Tender
 Two Bid Tender

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

SINGLE BID TENDER


Receipt of Indent

Inviting Tender

Tender Opening

Techno-Commercial Evaluation

Comparitive Statements

Purchase Proposal

Financial Concurrence and approval

Placement of Purchase order - Letter of indent

Receipt of material

Fig 4.15

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

TWO BID TENDER

Receipt Of indent

Inviting Tender

Tender Opening

Techno-commercial Evaluation

Price Bid Opening

Comparitive Statements

Tender Committee

Purchase Proposal

Financial Concurrence and approval

Placement of Purchase Order- Letter of Indent

Receipt Of Material

Fig 4.16

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

SHIP REPAIR DEPARTMENT

The ship repair department functions under the guidance of CGM (Ship Repair). The structure of
this department is shown below:
DEPARTMENT STRUCTURE

CGM (Ship
Repair)

DGM (SSD DGM DGM DGM DGM (SR-


DGM (SR)
& FP) (SRO) (SRC) (SRP) CS)

DGM
(SSD)

Fig 4.17
1. Ship Repair Operations Department
2. Ship Repair Commercial Department
3. Ship Repair Planning Department
4. Ship Repair Common shop Department- Concerned with engine and Machine Shop
5. Small Ship Division and Forward Planning

The above sub departments under the ship repairs, performs the same activities as
that of ship building department, which has been explained previously, But the activities
are for ship repairs and not for building.
The Ship repair department undertakes complex and sophisticated repairs to oil Rigs
& ships of Navy, Coast Guard & Merchant Navy.

Repair division of CSL is capable to undertake:


 Repair Of Ships
 Up gradation of ships of oil exploration industry.
 Periodical Layup repairs
 Life extension of naval ships, Coast Guard, Fisheries and Port trust besides
merchant ships of SCI and ONGC.
The ship repair division constitutes 30 % revenue to the Industry.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

SHIP REPAIR FACILITIES IN CSL

The repair dock of Cochin Shipyard is of dimension like (270 x 45 x 12 m) and it can
accommodate ships up to 1, 25,000 DWT and 3 quays:
 280 m Length with 15 tone carriage,
 208 m Length with 10 tone and,
 5 tone carriage and 469 m Length with 20 tone carriage.
The quays have adequate service lines of oxygen, acetylene, compressed air and
power connections.

The ship repair engine shop is equipped with modern machine looks like Plano miler (up to 30
T), bar boring equipment (up to 300 mm dia), inside grinding machines (up to 300 mm dia),
heavy duty lathes (up to 12 m Length), horizontal drilling machine (up to 100 mm boring and
600 mm drilling), shrinkage equipment (up to 6 m x 900 mm outer dia), cylindrical grinding
machine (630 mm x 2T), horizontal boring machine (up to 560 mm dia), dynamic balancing
machine (up to 3t) etc.
The overall ship repair activities are subdivided in to three.
1. Hull Repair
2. Machinery Repair
3. Electrical repair

These three divisions are handled by the respective departments which come under the ship
repair division.

Repair Facilities

Dock No.1
These three divisions are handled by the respective departments which come under the ship
repair division.
Quays
There are three quays of 280 M length with 15 T carriages, 208 M Length with 10 T & 5T
carriage and 460 M Length with 20 t Carriage. The quays have adequate service lines of oxygen,
acetylene, compressed air and power connections.

Engine and Machine Shop


This shop is equipped with modern machine tools like Plano miler (up to 30 T), Bar boring
equipment (up to 300 mm dia), Inside Grinding Machine (up to 300 mm dia), Heavy Duty lathes

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

( up to 12M Length), Horizontal Drilling machine (up to 100 mm boring & 600 mm drilling),
Shrinkage equipment (up to 6 M x 900 mm O.D), Cylindrical Grinding Machine (630 mm dia x
2 T), Horizontal Boring machine (up to 560 mm dia), Dynamic Balancing Machine (up to 3 T)
etc.

Other Facilities
 Hauling Carriage for safe docking and un-docking of ships.
 High Pressure Water Jet for hull cleaning.
 Blasting and Painting of conventional, epoxy and SPC systems.
 Facility for Boiler re-tubing.
 Facility for Tank Coating.
 Electric shop for overhauling of motors and testing.
 Electric power at 50 Hz & 60 Hz.
 Pipeline supply of compressed air, oxygen and acetylene.

Ship Repair Expertise

Afl oat repairs


The Yard has a term of experienced Engineers and skilled workmen exclusively for
undertaking an afloat repair jobs.

Availability of Sub-Contractors
A captive pool of competent sub- contractors is readily available and can be engaged
for various jobs at very short notice.

Workmanship
The quality of workmanship is of very high order and the owners on many occasions
have gone on record, appreciating the quality work done in CSL. Many vessels have been
repaired and handed over, ahead of schedule.

Experience
CSL has successfully undertaken repairs to more than a thousand ships belonging to a
wide variety of clients including Shipping Corporation of India, Indian Navy, ONGC, Dredging
Corporation of India, Union Territory of Lakshadweep Administration, Fisheries Survey of
India, Ethiopian Shipping Lines, Transocean Offshore Deepwater Drilling Inc and vessels
belonging to various ports of India.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

VIGILANCE DEPARTMENT

Vigilance Department is headed by Vigilance Officer who is directly reporting to


CMD. The vigilance department is continuing its activities with the thrust on creating greater
awareness about vigilance and regular system improvements. At least one vigilance sensitization
programme is being conducted per month. Also monthly meeting among field vigilance officers
arranged to share the vigilance matters at the Vigilance Officers level.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

MEDICAL CENTRE
As per those requirements the medical centre in CSL started as a first aid centre in the
campus. Later on it developed to a routine OP centre, which is seen today. The head of the
medical centre is the Chief Medical Officer, Dr. Jayakumar.B , who is reporting directly to
Executive Director (Tech & HR).

Main activities and facilities

- Administration of first aid to victims of accident.


- OP facilities for employees and their dependents.
- Medical Reimbursement system.
- Pharmacy facility.
- Causality room.
- Minor operation theatre.
- Ambulance.
- Two rest rooms for employees.
- Group insurance policies for employees.
- Medical advance facility for employees and dependents.
- Whole hospital payment made directly by company for those employees.
- Periodical medical check-up on age basis.
- Family health record with medical centre.
- Provide interaction facility between CMO and employees.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

STORE DEPARTMENT

In department store materials, chemicals, gases, equipments, electrical goods, consumable


items, spares etc, which are coded and entered into a database, Stores can be general stores and
bonded stores.
On receiving the purchase order from the materials department stores are intimated that
materials are on the way to be stored.
On carriage inward of materials, the receipt of materials is acknowledged and the quantity and
materials are verified against purchase order. On completion of this initial inspection, GRIR is
issued. On receipt of the GRIR, I& QA or indenting department does the inspection and on
approval, materials are stored at general store and periodically released. GRIR is also issued to
Finance Department.
GRIR contains the details such as the item code no, description, customer, quantity received,
quantity accepted, quantity rejected etc.
Daily receipt of materials is entered into computerized stock ledger. The ERP system helps
indenter and stores in informing the arrival of critical items. All the items reaching the general
store are credited to stores through stores credit note. Database is maintained for each item,
which contains all the details regarding that particular item.
Issue of materials starts with the store requisition from planning. If any complaints arise of
the materials issued at the production floor, stores issue a Non- confirmed Store Requisition
(NSR) to the suppliers. Stores on the basis of commercial agreement with suppliers either return
it to the suppliers, to be replaced or received or treat it as damage or scrap and processed for
fresh delivery.
On completion of the production, the production issues finished goods intimation report, and
the balanced items after production are returned to stores through Stores Return Note (SRN).
Materials in the bonded store will be periodically released after customs clearance at the
request of intending department. Bonded store preserves imported items only. Bonded stores thus
shall attend to customs and clearance and formalities and arrange to keep all equipments and
other items imported under bond (without payment of customs duty) for ship repair and ship
building purpose

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

Stores Department Table

Receipt Custody Sub Store Stock Disposal


Control Section
 Records

 Clearance of
indigenous
items

 Receiving and
Accounting

 Rejected
stores and
disposal of
rejected
materials

Fig 4.18

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

UTILITY AND MAINTENANCE DEPARTMENT


CSL has very efficient and effective maintenance department, which take care of all the
machinery asset maintenance activities. U&M Department provides support to the Technical
Department. They provide Tools, Equipments such as Cranes, maintenance tools etc and also
they creating Infrastructural facilities and Maintenance U &M has four sub-Departments, listed
below:

1. Mechanical Maintenance Department


2. Electrical Maintenance Department
3. Civil Maintenance Department
4. Electronics Maintenance Department

Maintenance Policy in CSL

 Preventive Maintenance
 Breakdown Maintenance
 Predictive Maintenance

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

DEPARTMENT STRUCTURE

DT

CGM Tech

GM

AGM

Electrical Mechanical Electronics Service Transportation

Gas Line Material handling


Ship Repair Mech.
Comprosers Equipments,
Maintenance 1
Travellers

Ship
Building Mech.
Maintenance 2

Main
Receiving
Station

General
Electrical

Fig 4.19

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

PROJECT DEPARTMENT

The project department basically is concerned with overall infrastructural development of


CSL. The project department is headed by DGM projects. This department finds out feasibility
for development and improvements for the company. The whole responsibility of future
development planning is in the hands of this department. Presently the project departments also
concentrate on the small ship division project.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

OFFICIAL LANGUALE IMPLEMENTATION CELL


Article 120,210,343-351 of the Indian Constitution says the importance of official
language. Hindi is the Official language, the law saying that every Central Government
Institution/company must have an Official language Cell. All the Hindi Promotional activities
are taken by this cell. Such as Hindi exams, contests, Programs etc. and also Hindi Offices have
some special allowances. Hindi Cell comes under the Department of Industrial Relations.CSL
have Official Language Implementation committee.

In pursuance of sub rule (4) of rule 10 of the official language (use for official purposes of the
union) Rule 1976, Government of India have notified CSL in the gazette of India as having
acquired working knowledge/ proficiency in Hindi by more than 80% of Ministerial staff of the
company.

Cochin Shipyard received the Rajyasabha Rolling Trophy and Certificate instituted by Kochi
TOLIC (PSUs) for the best implementation of official Language during the year 2010-2011
among the companies having more than 200 employees CSL team won second Prize in the
Official Language Quiz competition organized by Kochi TOLIC (PSUs) in connection with joint
Hindi week celebration.

Two employees were awarded with the cash prize under the incentive scheme for doing
original work in Hindi.

An Official Language Orientation Programme was organized for senior officers of the
company on 30th December 2011. Hindi software has been installed in computers used for
administrative purposes.

As part of the Implementation of Official Language Policy of Government of India, CSL is


observing first Wednesday of every month as Hindi Day. In order to enable easy understanding
by employees transliteration of „Aaj Ka Shabd’ in regional language is being displayed in
Internet as also on the notice board. CSL released the third issue of Hindi house journal ‘Sagar
Ratna’.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

INSPECTION & QUALITT CONTROL DEPARTMENT

The Inspection & Quality Control department co-ordinates the activities of the various
functional Groups in the Organization such as to have production at the most economic level
without staking product quality and customer satisfaction. Quality Assurance Process:-

Quality Assurance Process starts right when a quotation for components is accepted and the
Information is intimated by planning to I& C. I & QC check the quality of the samples provided
by the suppliers. I & QC finally issues the accept/reject order of quotation.

Once the supplier sends the goods to the stores; Stores on receipt of goods issue Goods
Receipt Inspection Report (GRIR) to I& QC. I & QC checks the quality of components send and
issue the accept/ reject proposal. The inspection report is send to planning as well as concerned
production floor.

If I& QC rejects the component, a Non Confirmation Report, is sent back through the
Material Department. Supplier does necessary servicing of the parts or the replacement of goods.

But If the components has to accepted in spite of rejection offered by I & QC, because of
urgency in production or the concerned part will not harm the assembly or the extra ordinary
delay involved in fresh delivery, The planning Department issues deviation concession note and
gets the approval of I & QC then use the component in Production.

Inventory Control Technique

The Inventory control techniques mainly used are:


1. ABC Analysis
2. Review Stock
3. Standardization
4. Codification (Symbolic approach & Engineering drawing nos.)

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

Registration of Vendors

After initial vendor list is prepared the following procedures are followed to register their
name in approved list.
1. Application for Registration (forms available in website)
2. Applicants shall satisfy through documentary evidence then financial stability,
income tax clearance, capacity to perform and produce performance certificate from
those whom they are already supplying.
3. Establish office with telephone for direct contact is essentials.
4. The firm‟s premises may be inspected by the officers to verify the quality standards
of products manufacture and other details shown in the application. Performance
report from Government department and PSU‟s will be considered for registration.
5. A reference may also be made about their performance to excising clients. SSI shall
satisfy registration requirement.
6.
Vendor evaluation and rating cards

Vendor Rating Card maintained by CSL for evaluating performance of vendor against each
order. Default in fulfilling the terms and conditions of the order and general faults are recorded
and the performance is renewed every year by Material Department.

Removal and Black Listing of Vendors

The Vendors are temporarily removed from the approved the list depending on gravity of
default.

The vendors may be:


» Put on hold in case of furnishing insufficient or vague information and wasting time
on clarification.
» Blacklisted or delisted If they supply false and misleading information or If found
unreliable in supply.
» Banned If they are bankrupt, insolvent or partitioned.
When negotiating an international sales contract, both parties need to pay as much attention
to the terms of sale as to the sales price. To make it as clear as possible, an international set of
trade terms (INCOTERMS) has been adopted by most countries that defines exactly the
responsibilities and risks of both the buyer and seller including while the merchandise is in
transit. The CSL complies with this.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

AIR DEFENCE SHIP AND MATERIAL PLANNING


DEPARTMENT

The prestigious Air Craft carrier which is the dream project of Cochin Shipyard Limited is
successfully progressing in the yard. All the materials, planning and controlling of the
construction of IAC is undertaken as a separate wing under the guidance of Director Operations.
The activities are same as that of Ship Building planning. The construction process is on its way
with tight security systems.

The Air Craft carrier will have the following features.


 Length -260 Mtrs
 Breath – 60 Mtrs
 Draft – 8.4 Mtrs
 Depth – 25.6 Mtrs
 Displacement – 37500 Tonnes

The ship will move at max speed of 28Knots and carry about 30 Air Crafts. 17 of these Air
Craft can be accommodated in the hanger.
The hull consists of around 900 blocks of varied tonnage.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

CHAPTER 5

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

SWOT ANALYSIS

SWOT analysis is an effective management technique to evaluate the


business environment of an organization both internal and external to analyze the present
status and future prospectus of the firm. The strength and weakness of the organization,
which are internal to the firm, are identified. The opportunities and threat offered by
business environment, which are external to the organizatio

n, are also analyzed. Then suitable strategy can be formulated by taking both internal and
external factors of the business unit. SWOT analysis for CSL is a step in arriving at the
strategy decision for the organization.

STRENGTH

1. India‟s Only profit Making Shipyard


2. Transparent and Rigid Rules Structure.
3. Innovation and Advanced Technology updation.
4. Willingness to accept and adapt to changes.
5. Lean work force.
6. Inter-Departments Coordination.
7. Reasonable supply chain position including sub contractors.
8. Expanding customer base.
9. Security methods still unknown to a third party. (Eg.36 CCTV Cameras active by 24x7)
10. Availability of Government subsidy.
11. Improved the No of trainees.

WEAKNESS

1. Low capacity of Cranes comparing other International Shipyards.


2. Slow Technology adoption.
3. Slow decision making about Trade Union problems.
4. Outdated technical process.
5. Low productivity.
6. Inadequate Government support.
7. The growth rate is lower in the case of yard development comparing to other competitors.
8. Increasing of Production and equipment costs.
9. Interference of State Government.
10. No new strategy for Improving Good business.
11. No new innovative decisions from Ministry of Shipping

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

OPPERTUNITIES

1. Establishing Good Customer relation


2. Expanding global market.
3. Possible shift of market to low cost countries.
4. Likely emergence of strong and captive domestic market and increased demand from
Navy, Coast Guard and Island territories.
5. Efficient Training and Development makes Employee attraction.
6. Increased the number of Ship repairs.
7. Decreased Government rigidity of process.
8. Awards and achievements give a positive effect on new contracts.
9. CSL have Highest Growth rate comparing last Decade.

THREATS

1. Withdrawal of subsidy scheme from August 2007.


2. Rising cost of man power and material.
3. Increasing Competition.
4. Archaic Labour laws.
5. Increasing Complexity of tax structure, introduction of new taxes, and instance of
administration of taxes.
6. Comparing other International Shipyards, CSL have very low capacity equipments.
7. Increasing the No of Political Trade Unions.
8. Hic of Material waste
9. Decreasing the number of Ship customers in the world.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

CHAPTER 6

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

CONCLUSION

Cochin shipyard is presently operating at 100% capacity


utilization. There is no space capacity available. Presently the yard can
construct ships up to 1, 10,000 DWT. Cochin Shipyard has planned for
enhancing its capacity through a larger dock up to 25000-30000 DWT. The
yard also got GOI approval. The shipyard also plans to introduce Dock arms
and Moveable Hydraulically Activated Platform.

Cochin Shipyard is one of the first yards and largest in India to


use the Integrated Hull Outfitting and Painting (IHOP) system in
construction. Under this technology the ship is constructed in modules, fully
outfitted and painted before assembly. This method of construction is faster
and safer compared to the traditional method of construction. Besides, the
yard was also one of the first shipyards to adopt the Tribon software for ship
design and introducing CAD/CAM. Not only that, presently, the Cochin
Shipyard is the only one in India that has the capability to build large and
modern ships. Another credit is that it is one and only profit making ship
industry in India. It is important to acknowledge and appreciate the historical
role played by CSL in the realm of growth of ship building in our country
and has overcome some of its constraints.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

FINDINGS
1. Cochin Shipyard Limited is the only profit making Shipyard now in India.

2. Rate of profit is little bit decreased last year.

3. CSL have a very good quality workforce.

4. State Government is very much corporative to the CSL programs.

5. Efficient Recruitment polices.

6. Efficient and effective METI Training

7. Efficient Security precautions.

8. Comparing with the other International Shipyards, CSL didn‟t have a high
capacity Cranes.

9. Any employee can approach HR Manager without any permission.

10. No of Trade Unions are decreased.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

SUGGESTIONS
1. Designation boards in the table to the Office staffs will help to
avoid confusions.
2. Increase the Number of Ship repairs.
3. Improve the METI Training Classes facilities.
4. Allowing Projects for Educational Purpose is needed.
5. Increase the quality of food in CSEC (Cochin Shipyard Employees
canteen) by increasing the price of food in 2-5 %.
6. Provide vehicle facility to the Gusts and Visitors within the CSL
area. (Because of different Department have big distance each
other)
7. Modernize the security services by implementing new Technology.
8. Upgrade the employees and trainees‟ Uniform‟s Quality, Design,
colour, style etc.
9. Ensure the Trade Union Co-operation needed.
10.Provide New sign in sign-out points needed for avoiding rush.

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

BIBLOGRAPHY

1. Certified Standing Order (2011)


2. Settlement of Amendment. (1972-2010)
3. Annual Report Cochin Shipyard Limited 2011-2012
4. http://www.cochinshipyard.com

http://wikipedia.com

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

Caarmel Engineering College, Perunadu


Organizational Study Report Cochin Shipyard Limited, Cochi

Caarmel Engineering College, Perunadu