Vous êtes sur la page 1sur 62

Organizational study in TCC

Chapter 1 INTRODUCTION

1

Organizational study in TCC

  • 1.1 SCOPE OF THE STUDY

The study was to get a general awareness of the functioning of the various departments and management of TCC Ltd. The period available for the study was 45 day. Since there were many departments, it was impossible to conduct a deep study on each department due to lack of time. There were many departments like operation, technical personal, marketing, finance human resource development, materials, engineering, project etc. The information from these department help to analyze the strength, weakness, opportunities and threats of the company.

  • 1.2 OBJECTIVES OF THE STUDY

To understand the organization structure and the various functional

departments. To have an exposure of the work environment.

To understand the extent to which the theory matches with the actual practices

seen in the organization. To make an analysis of the organization‘s performance.

To study the relevance of TCC in the chemical industry field in India.

To

study how

the

human resource are managed in Travancore Cochin

Chemicals. To study how the marketing activities are carried out.

To study how the financial matters are dealt with.

To study the production of various products in TCC.

To study co-ordination of various department in their functioning

To understand the strength, weakness, opportunities and threats of TCC

  • 1.3 METHODOLOGY

It is an overall operational framework, which help to collect the required data through primary and secondary means with in the period of one and half month.

PRIMARY METHOD

This is the method by which we collect data directly from the organisation. This is of two types i.e., observation method and interview method. In observation method we observe the work done in the organisation and collect data from that, while in interview method it is the verbal conversation with the workers in the organisation and collecting data directly from them. From this we get different views and ideas of different people. The data collected will be very accurate.

2

Organizational study in TCC

SECONDARY METHOD

This is a method by which we collect data that is already being collected by someone else. And which have already being through statistical methods. This study also used secondary data from websites, magazines etc. This type of data may not be so accurate because it is not collected by us directly. So collecting data through secondary method should be very careful. But this is much easier method than primary data collection.

  • 1.4 LIMITATIONS OF THE STUDY

To understand the organization and study its various functions and ups and

downs a period of 45 days is not enough. TCC is large chemical company; as such accurate data regarding the internal

affairs of the company are not easily available. As there were three different shifts, seeing the workers together for a public

interview or an opinion session was not possible. Confidential data could not be obtained.

The interpretation and analysis may not be accurate because of the limited experience of the researcher.

3

Organizational study in TCC

Chapter 2 INDUSTRY PROFILE

4

Organizational study in TCC

2 INDUSTRY PROFILE

The world economy is developing. This development is accompanied by the development of various industries as well. A wide variety of products are coming into the market. These products require many chemicals in the course of it production. Apart from the production process, chemicals also form a major constituent of the product. Hence many chemical industries producing a wide range of chemicals have come up. A chemical industry can be defined as a company that produces industrial chemicals. This industry utilizes chemical processes such as chemical reactions and refining methods to convert raw materialssuch as oil, natural gas, air, water, metals, and mineralsinto more than 70,000 different products.

Salt is one of the oldest and most popular condiments. What is relatively unknown, is that salt is also the raw material for one of the most potentially profitable chemical industries in the country-Chlor alkali. The chlor alkali industry in India is around 60 years old. It began with a modest capacity of a few thousand tonessper annum. In the process of manufacturing chlor alkali some bye products are assured. For each tones of caustic soda, 860 kg of chlorine and 25 kg of hydrogen will be produced. Some amount of chlor produced is combined with hydrogen to make hydrochloric acid. Caustic soda, hydrochloric acid and chlorine are the basic chemicals and are used by almost all industries. Chemical Industry is highly heterogeneous with following sectors like petrochemicals, inorganic chemicals, organic chemicals, bulk drugs, agrochemicals, paints and dyes and foreign trade.

2.1 INTERNATIONAL SCENARIO

The world chlor-alkali industry is growing. Most major chemicals used are the basic chemicals. It is used in the production of fertilizers and other chemical

compounds. The production has been concentrated in many plants and offices in a number of countries. To achieve low cost of production, the companies locate their factories in the developing countries where raw materials are readily available. But chemicals which require advanced production methods and technologies are located in industrialized countries.

During the 1970‘s Caustic Soda was manufactured by utilizing the mercury

cell technology. It was manufactured by utilizing the mercury cell technology. It was produced by amalgam process. But this technology consumes a lot of energy and power. There was a problem of mercury pollution also. It was during the same period due to the mina Mata disease resulting from the Mercury pollution, the Japan Government issued a direction to all caustic soda plants to change over to other process under a time bound program. This paved the way for the development of Ion Exchange Membrane Cell (IEMC). This process apart from totally avoiding Mercury, consumes 30% less power compared to the conventional process of mercury cell technology.

5

Organizational study in TCC

Membrane,

56%

Diaphragm,
Diaphragm,

Mercury, 15%

29%

In the international scenario, the increase in population has lead to increase in consumption and hence, increase in production. There has been increase in the production of paper, aluminum, soaps and detergents. All this has caused a rise in demand for caustic soda. Global warming is on its rise over the past couple of decades. The Green Peace Movement was seeking the phase out of chlorine usage, especially the CFC (chlorofluorocarbon) compounds. This has resulted in the closing down of many chlorine producing plans in Europe and restricted the production in North American plants, with a drop in its production. But the price of caustic soda has been rising in the world market. The caustic soda was being sold at $50 per tones. But now it has gone up to $300 per ton. The international market has been operating in the context of demand and supply. Situations of shortage and surplus are cyclic as a result of which international price is common. Currently, the total installed capacity of caustic soda in the world is around 78m tones/year, while demand is only 61m tones/year. Global caustic soda capacity is expected to increase by around 5.2m tones/year in 2011, with a bulk of it (3.8m tones/year) coming on stream in northeast Asia. Inorganic chemicals and pulp and paper constitute 14% each of the global caustic soda end-user market, while organic chemicals account for 12% and alumina accounts for 11%. 1 Northeast Asia has become the major exporting region of caustic soda in the world, with Australia and Latin America the major importing destinations.

Chlorine production is one of the largest sectors within the global chemical industry. According to the American Chemistry Council, some 50 million tones is produced worldwide on an annual basis (mostly through the electrolysis of sodium chloride brine solutions to form chlorine gas).Major manufacturers include Dow Chemical, Olin Corporation, Occidental Chemical and PPG Industries. The vast majority is used to make plastics and chemicals for the agricultural and manufacturing sectors, but about 5%, or 2.5 million tones a year, is used for water treatment. At an average price of $550/tonne, that amounts to almost $1.4 billion in yearly spend.

6

Organizational study in TCC

MAJOR COUNTRIES PRODUCING CAUSTIC SODA USA France Russia China India Germany Canada Japan 2.2 INDIAN SCENARIO

MAJOR COUNTRIES PRODUCING CAUSTIC SODA

USA

France

Russia

China

India

Germany

Canada

Japan

2.2 INDIAN SCENARIO

In India caustic soda is produced by electrolytic process. The manufacture of caustic soda started during 1940‘s. The growth was rather slow during 1960‘s but after that the growth picked up substantially. Today there are 38 industries manufacturing caustic soda. Of which 40 are organized sector and the rest belong to the unorganized sector. The total installed capacity of all these units put together comes to about 17,50,000 tones/annum. Indian Chlor-alkali industries follow membrane cell technology mostly. This is highly beneficial because cell membrane technology is more efficient when compared to mercury cell technology.

7

Organizational study in TCC

Membrane, 93% Mercury, 7%
Membrane, 93%
Mercury, 7%

Only 7% of Indian Chlor Alkali Capacity is based on Mercury Cell, which will be phased out by 2012, as per CREP Voluntary Commitment. Technology Share in India has a Total Capacity: 3.2 million MTPA. India was a net importer of chemicals in early 1990s, but has now become a net exporter due to implementation of many large scale petrochemical plants like Reliance, ONGC etc. and also because of tremendous growth of exports in sectors like bulk drugs and pharmacy, pesticides, dyes and intermediates.

Major South Indian Chlor-Alkali Units

Chemplast, Tamil Nadu

DCW, Tamil Nadu

BILT, Karnataka

Chemfab Alkalies Ltd., Pondicherry

Southern Petro Chemical Industries Corp. Ltd, Chennai

Kothari Petro Chemicals Ltd, Chennai

2.3 STATE SCENARIO

Caustic Soda is one of the basic inorganic chemicals manufactured from common salt. There are three technologies used in the electrolytic production of caustic soda. They are diaphragm cell technology, mercury cell technology and membrane cell technology. The Travancore Cochin Chemicals Limited, Udyogamandal is a State Public Sector Undertaking owned by Government of Kerala. Reflecting the quality policy of commitment and excellence TCC has a good track record of profitable operation and healthy industrial relations. A heavy chemical industry engaged in the manufacture and marketing of Caustic Soda, Chlorine and allied chemicals, TCC is accredited with ISO 9001: 2008 certification. 2 TCC is hence a mother company. The installed capacity of TCC is 175 tons per day caustic soda and the products are used in manufacturing of soaps, textiles, plastics etc. There are many small-scale industries in the state, which consumes caustic soda for the production of soaps, plastics and textiles.

In view of the high transportation cost and hazardous nature of chemicals transported, the caustic soda industry in the state is more localized and the consuming units have come nearer to the manufacturing unit. Also because of the high transportation cost, it is not possible to export caustic soda in large volume from the state. TCC is running on the latest technology

8

Organizational study in TCC

Chapter 3 COMPANY PROFILE

9

Organizational study in TCC

INTRODUCTION

The Travancore Cochin Chemicals Ltd, popularly known as TCC Ltd, is a state owned public sector undertaking by the Government of Kerala. TCC is situated at Udyogamandal, Cochin. Incorporated in 1951, TCC is the oldest chlor-alkali unit in the country and also is the only chlor- alkali unit in the state of Kerala. The caustic soda was produced initially using mercury cell technology. TCC was also the first company in India to install the mercury cell plant for the manufacture of caustic soda. TCC is a chemical industry and manufactures products like caustic soda, chlorine, hydrochloric acid, soda bleach and related chemicals. With continuous efforts for up gradation of technology and professional management the company has a good track record of operation and healthy industrial relations. TCC is also an ISO 9001: 2000 certified company. The company supports a large number of industrial units by supplying basic chemicals. TCC is conscious about its social responsibility and is dedicated to maintain the quality of products.

3.1 HISTORY AND GROWTH OF TCC

The Travancore Cochin Chemicals Ltd was established in 1951 and started commercial production in 1954. Initially it had an installed production capacity of 20 tones of caustic soda per day. The technology employed was mercury cell technology. The idea of establishing the unit was conceived by M/s Shehasayee Brothers, the managing agent of FACT. The company was registered under the name Travancore Mettur chemicals (TMC) in 1950 as a joint venture between FACT and Mettur Chemicals. The idea was to supply hydrogen chloride gas to FACT for making Ammonium Chloride for their newly set up ammonia plant. As it was post second world war period, TMC could not raise sufficient fund to take delivery of equipments arrived in Cochin port. Knowing that chlor alkali industry is being set up to other companies (M/S Hindustan Insecticides Ltd and Indian rare earths Ltd) have started setting up their plants at Udyogamandal with the hope to get chlor alkali product for further processing. The financial problem of TMC was taken up by the then Travancore Cochin state Government. As the problem of TMC could affect three other companies, Travancore Cochin state Government gave massive financial assistance to TMC and with that the company was renamed as Travancore Cochin Chemicals Ltd (TCC) in 1951. Commercial production started in 1954 with 20 tons per day caustic soda production capacity. The technology employed was mercury cell technology. The installed capacity was increased stage wise to 160 TPD employing mercury cell technology. In 1997 TCC commission a 100 TPD caustic soda plant employing membrane cell technology from Asahi Glass Company, Japan. In 2002 the capacity of AGC plant was enhanced to 125 TPD. In 2004 the last mercury cell plant was decommission. In 2005 and 2006 a 25 TPD capacity membrane cell plant each were installed and plants were supplied by M/s Uhde Company, Germany. The total installed capacity at present is 175 TPD caustic soda.

10

Organizational study in TCC

 

Travancore Cochin Chemicals is the first unit in India to produce Rayon grade Caustic soda. The company has implemented a number of technical renovations to improve productivity of the plant.

 

PRESENT SITUATION

TCC is the only chlor alkali unit in Kerala. In India, there are about 40 chlor-

alkali units as the company‘s competitors. Now TCC owes 109 acres of land and

around 700 people are working in three shifts. Plants are functioning by using full

capacity. Plants function on a 24x7 basis. The company has helped in attracting new industries to Kerala. These industries include Indian Rare Earth Ltd, Hindustan Insecticides Ltd, Hindustan News Print Ltd, Kerala Minerals and Metals Ltd etc. These industries are dependent on TCC for the supply of the basic chemicals.

At present the company having the installed capacity of 175 TPD of caustic soda. 125 TPD from M/s ASAHI GLASS COMPNAY, Japan, commissioned in 1997. 25 tons per day bipolar membrane cell caustic soda plant supplied by M/s UHDE Germany was commissioned in July 2005 and another 25 TPD membrane cell plant from UHDE, Germany was commissioned in August 2006. The registered office and the factory of the company is situated at Eloor, Udyogamandal -683501, Ernakulam Dist, Kerala. Company has obtained ‗ISO certification 9001-2001‘ in the year 2006. The company is working towards ISO 14000 standards currently.

PRESENT CAPITAL FORMATION

INVESTORS

SHARE(percentage)

 

Govt. Of Kerala

80

 

KSIDC

17

 

FACT

2

 

Vinly Investment Ltd, Chennai

1

 

Total

100

 

INFRASTRUCTURE

 

The company is conveniently situated at Udyogamandal, industrial area, Kerala. It is situated on the banks of Periyar River and hence has abundant supply of water. Out of the 109 acres of land on which TCC is situated, 20 acres are leased out to M/s BSES Kerala Power Ltd. TCC receives lease rent on this. In addition to the plant and buildings, it has a full fledge housing colony for the accommodation of its employees. The company also has a water treatment plant from Periyar River. This water treatment plant has a capacity of 5mgd. For electricity supply, TCC also has a 110 KV electricity substation.

 

11

Organizational study in TCC

3.2 CORPORATE MISSION AND VISION

Mission

TCC is committed to supply quality chemicals at competitive prices

to

customers. Customer satisfaction, concern for environment and safety are their priorities.

Vision

Utmost level of conversation of all resources including energy

Cost effectiveness in all operations.

Regular up gradation of technologies used in processing

Compliance with laws and statutory regulation.

Capacity up gradation by another 50 TPD

CORPORATE OBJECTIVES

  • 1. To produce and market chemicals such as caustic soda, liquid chlorine, hydrochloric acid carefully and in environmentally sound manner.

  • 2. To make maximum profit from projects taken up.

  • 3. To continuously upgrade the quality of Human Resource of the company and promote organizational development

  • 4. To continuously improve the plant and operational safety and abide by the statutory pollution control standards

  • 5. To ensure corporate growth by expansion and diversification.

  • 6. To care the environment around.

  • 7. To maintain optimum level of efficiency and productivity and optimum level of investment.

3.3 POLICIES FOLLOWED BY TCC

QUALITY POLICY

―We are committed to enhance customer satisfaction by providing products and related services complying with a continually improving quality management system.

12

Organizational study in TCC

HEALTH AND SAFETY POLICY  TCC is committed to provide every one of its employees and
HEALTH AND SAFETY POLICY
TCC is committed to provide every one of its employees and the related public
an accident-free and healthy environment in its efforts to manufacture high
quality products at competitive prices. The company will comply with all
statutory requirements in this regard.
The company will provide a work environment in which identified hazards are
controlled, if elimination is not feasible and will provide personal protective
equipments wherever necessary.
Accident prevention is the direct responsibility of the Line – Management and
will be an important criterion for performance appraisal. Line – Management
will ensure that all safety measures are incorporated in the operating and
maintenance procedures as well as in any process technology changes in the
plant/infrastructure.
Consideration of health and safety will be given proper weight age in selection
and deployment of the personnel.
The company will ensure that health and safety aspects are given due
consideration in decision regarding purchase of plant equipments, machinery
and materials.
Every employee of the company shall perform his/her job adopting Safe and
proper work methods and using appropriate Safety equipments understanding
that their career advancement is linked with SAFE performance.
 Contractors, sub-contract workers, transporters and visitors entering the
factory shall be required to observe health and safety practices of the company
in all their activities.
All contract jobs will be carried only through the laid down procedures with
appropriate supervision.
The company will carry out safety audits, risk assessment studies, emergency
mock drills, and periodic assessment of health of its employees as well as
status place hazards be identified, appropriately evaluated and effectively
controlled to achieve this goal.
Appropriate training programs are designed and imparted to suit the
requirements of different groups namely, customers, contract workers, drivers,
cleaners.
Regular and periodic training is imparted to workers and officers in batches in
accordance with a prepared schedule.
Training on safety equipments and handling of hazardous chemicals is
imparted to the employees.

13

Organizational study in TCC

ENERGY POLICY

Travancore-Cochin Chemicals is always committed towards the conservation of energy by all possible means. They strive for:

Technological up gradation to reduce specific energy consumption

Conducting energy conservation studies including energy audit and adopting

the apt measures for conserving energy

Contacting other organizations and enriching our experiences on energy

conservation

Using renewable energy sources to the extent possible

Disseminating knowledge and information on energy conservation to our

employees

Low energy fuels also to be tried depending upon feasibility.

Management of the company

There are 10 directors for the company. As the major shareholder, Government of Kerala nominates the BOD Professionals as well as bureaucrats are being nominated to the board. The managing Director is the only full time director in the board. The Principal Secretary of industrial Department is the chairman.

14

Organizational study in TCC

BOARD OF DIRECTORS

The efficient director board at Travancore-Cochin Chemicals Limited ensures the smooth running of the company affairs. In their able hands, the operations at TCC go well-oiled.

BOARD OF DIRECTORS

Shri K.S.Srinivas, IAS Special Secretary to Government Industries (Investment Promotion) Department Thiruvananthapuram - 695 001

CHAIRMAN

Shri.V.Muraleedharan Nair Managing Director Travancore-Cochin Chemicals Ltd. Udyogamandal. Kochi 683501

MANAGING DIRECTOR

Shri. R. Madhusoodhanan Nair Joint Secretary to Government Industries Department, Thiruvananthapuram -695 001

DIRECTOR

Shri. M.R. Karmachandran, Executive Director, Kerala State Industrial Development

NOMINEE

DIRECTOR

Corporation Limited, Keston Road, Kowdiar, Thiruvananthapuram -695003

KSIDC

Shri .J. Vijayamohanan Additional Secretary to Government Finance Department Thiruvananthapuram -695 001

DIRECTOR

Shri. N.I. Paulose, Nalpat House, Church Road,Koratty, Thrissur - 680308

DIRECTOR

15

Organizational study in TCC

3.4 STAGES OF GROWTH

1956- A continuous caustic fusion plant with a capacity to upgrade up to 20 tonessof caustic soda per day was set up. 1958- A chlorine Liquefied plant was added mainly to meet demand from the newly set up DDT plant of Hindustan Insecticides limited, Ernakulam 1960- Production of caustic soda was raised to 30 tons per day 1963- The caustic soda capacity was raised to new level of 40 TPD. The company established a new unit for the manufacture of sodium hydrosulphate with rated capacity of 30TPD.

1967- The capacity of caustic soda plant was raised to 60TPD as per third stage of expansion 1970- A 60 TPD caustic soda CCF plant was set up along with its own water treatment plant. 1975- As the fourth stage expansion, a 100 TPD caustic soda plant was set up. This employed Mercury Cell Technology. 1976- The company set its own water plumbing and purification station 1980- Export of commercial hydrochloric acid to Gulf countries 1983- Installed and indigenously developed plant to cover mercury from effluents 1987- Installed hydrogen- firing system in continuous caustic fusion plant 1990- Brine Decolonization units commissioned 1992- A Research &Development section was set up 1997- The company planned to setup a technology for the production of caustic soda in collaboration with ASAHI GLASS of Japan, with a capacity of 100 TPD, using Membrane Cell technology. 2000- The company set up a Brine purification plant 2003- The company commissioned a new continuous Caustic Fusion plant and increased the membrane cell capacity to 125 TPD. 2005- The company commissioned a new caustic soda plant with a plant capacity of

  • 25 TPD- M/s UHDE (I)

2006- The company commissioned a new caustic soda plant with a plant capacity of

  • 25 TPD- M/s UHDE (II)

At present total installed capacity is 175 tpd Caustic Fusion plant for 100 tpd.

16

Organizational study in TCC

3.5 ACHIEVEMENTS

TCC is in the forefront to adopt and incorporate the latest technology in its plants. Different innovative and modern schemes were implemented over the course of time. Hence TCC continue to be the competitive strength in the Chlor-alkali industry. With expanded plants and higher production capacity, TCC has come out to be the profitable public sector undertaking. TCC has bestowed with various awards for excellent performance with regard to production, productivity, energy conservation and environmental protection, which is considered as an award for commitment rather than for efficiency.

  • 1981 -Best Performance Award for Safety in the State from Directorate of Factories

& Boilers, Government of Kerala 1988-89 -Best Pollution Control Award under group "Heavy Inorganic Industries" in

Kerala, from Kerala State Pollution Control Board

  • 1989 -Award for Best Performance in Safety in India under "Chemical Industries"

group from National Safety Council.

1989-90 -Prize for Productivity from Kerala State Productivity Council.

  • 1993 -Best Performance award for Energy Conservation in the State of Kerala under

group "Chemical & Fertilizers above 3000 KVA" from Government of Kerala 1994-95 -Best Performance award for the Productivity in the State of Kerala under group "Large Industries" from Kerala State Productivity Council 1995-96 -Best Performance award for Productivity in the State of Kerala under group "Large Industries" from Kerala State Productivity Council.

  • 1998 -Best performance award for Energy Conservation in the State of Kerala under

group "Major Industries" from Energy Management Centre, Govt. of Kerala.

  • 1998 -Performance award for Energy Conservation under group "Chlor-alkali Sector",

Ministry of Power, Government of India.

  • 2003 -Kerala State Energy Conservation Award (2000) in the category of Large Scale

industry

  • 2005 -National Energy Conservation Award "Chlor-alkali Sector"

2008- ―Pollution Control‖ award from Kerala State Pollution Control Board

BANKS

State Bank of Travancore

State Bank of Hyderabad

Union Bank of India

Indian Overseas Bank

ICICI Bank

17

Organizational study in TCC

TRADE UNIONS

Recognized trade union

TCC employees association

Unrecognized trade union

Thozhilali union

AITUC

BMS

TCC employees union (INTUC)

3.6 PRODUCT PROFILE

CAUSTIC SODA, Chlorine and Hydrochloric acid form the backbone of

chemical industry. These are important to the country‘s economy very much steel and

cement .TCC‘s main raw materials are common salt (sodium chloride) electricity and water. The company requires about 3700 units of electricity and 2 tones of salt per tones of caustic soda produced. Common salt is mainly imported from Gujarat and Tamil Nadu. Major products are the following.

PRODUCT-1

Caustic Soda (NaOH) Caustic soda is a basic alkali. It came into being in the latter half of 19 th century with the development of electrolysis. Caustic soda Lye, obtained from Membrane Cell is a clear colorless, odorless and soapy liquid. TCC is producing two types of Caustic Soda Lye of concentration 30-33% and 50%.

USES

a chemical for dissolving out extraneous matter from wood

For preparing pure cellulose and for the preparation of Alkali cellulose

and for the production of viscose solution As specification agent

In bleaching, dyeing and mercerizing.

For processing monazite and refining of Bauxite.

A purification agent and absorbent for acidic gases

A clearing agent

For refining petroleum fractions

Reagent for production of various organic chemicals.

18

Organizational study in TCC

INDUSTRIES SERVED

Rayon

Paper

Soaps

Textiles

Mineral and rare earth elements

Fertilizers

Heavy Chemicals

Engineering

Drugs& Pharmaceuticals

Petroleum refining

PRODUCT-2

Chlorine (Cl2)

Chlorine, a product obtained in the manufacturing process of Caustic soda is an equally important basic chemical. It is renowned water purifying chemical. It is greenish yellow gas. Chlorine as sold after liquefying.

USES

Producing insecticides(DDT, BHC etc.) and pesticides like Aldrin

In purifying drinking water and sterilizing sewage effluents.

For manufacturing PVC & allied co-polymers

As a bleaching agent

For producing chloramines & it organic derivatives

For upgrading titanium content in limonite

INDUSTRIES SERVED Insecticides

Water purification

Plastics

Paper& pulp

Textiles

Sugar

Mineral processing

19

Organizational study in TCC

PRODUCT-3

Hydrochloric Acid(HCl)

TCC also produces high purity Hydrochloric acid, it is yellowish green colour.

The HCl produced have concentration 30-34%

INDUSTRIES SERVED

Fertilizers

Minerals

Ossien

Starch Industry

Plastic

Engineering

PRODUCT -4 Sodium hypochlorite:

Sodium Hypochlorite, known as soda Bleach, finds its application in bleaching& disinfectant and also in the extraction of rare earth chemicals. It is a pale yellowish green colour liquid. Soda bleach is the only branded product that company producing, brand name is ―Ekoclean.‖ USES

As a bleaching agent

As germicide& cleaning agent For sterilization

INDUSTRIES SERVED Textile

Paper industry

PRODUCT-5

Caustic soda Flakes

Caustic soda Lye

is

fused to product

Caustic Soda flakes. There

is

a

continuous caustic fusion plant that produces Caustic soda flakes. It is white deliquescent solid in flakes form. Caustic soda flake have concentration 98.99%.

20

Organizational study in TCC

Chapter 4 ORGANIZATION STRUCTURE

21

Organizational study in TCC

4 ORGANIZATION STRUCTURE

The organizational structure involves arrangement of activities and assignments for the achievement of organizational goals. It is way by which various parts of an organization are tied together in a coordinate manner. It also illustrates the various relationships among various levels of hierarchy within the organization as well as horizontal relationship among various aspects of the organizational operations. A well planned organizational structure results in better use of resources The main functional departments are

Operation department

Marketing department

H R D department

Finance department

Materials department

Engineering department

Electrical and Instrumentation department

Projectl department

22

Organizational study in TCC

4.1 ORGANIZATION CHART MD GMT FC MM MM CS DGMT PM DFC SM MIC MS MP
4.1 ORGANIZATION CHART
MD
GMT
FC
MM
MM
CS
DGMT
PM
DFC
SM
MIC
MS
MP
OM
CSO
SAO(GA&F)
SSO
APO
EM
DM(P&W)
SAOCASH
PM
ASPO
SAO(E&EDP)
SM
SAO(CO)
MTS
SAO(PF)
CEPC
CETS
SETS
SOQC
CES
MHRD
MCP
CE

23

Organizational study in TCC

Chapter 5 DEPARTMENTS

24

Organizational study in TCC

5.1 OPERATIONS DEPARTMEN

Operations department is the most important department of TCC. This department carries out the manufacturing of all the products. The company carries out continuous production and hence this department plays a very crucial role in TCC. This department is headed by Manager Operation, who is reporting to the General Manager Technical.

DUTIES

AND

RESPONSIBILITIES

OF

ASSISTANT

GENERAL

MANAGER

Head of operations department

Fixes the monthly target according to the market operations

AGM is the designated emergency controller during any hazardous incidents

of leakage and emission of toxic gases/fluid etc. He has the administration control over the operations department.

DUTIES

AND

RESPONSIBILITY

OF

PLANT

MANAGER

(PLM):

The custodian of the plant.

Plans production activities to meet the production target set by the AGM

He is responsible for the material consumption

He plans the shut down activities and carry out the maintenance work of the

plant. He coordinates the operation functions with the manager of other departments for the smooth functioning of the plant.

OBJECTIVES OF OPERATION DEPARMENT

Maximizing production confirming to product specification

Optimizing the consumption on electricity and purification chemicals

Maximize the availabilities on electrolyses operation

Minimize the production overheads

EVOLUTION OF TECHNOLOGY

I st Generation: Diaphragm cell Technology

TCC started with this technology. It consists of an anode, cathode and diaphragm. Anode portion and cathode portion is separated by an asbestoses diaphragm. The main drawback of this technology is that it gives NaOH having concentration only 15%. This technology was replaced by Mercury Cell Technology by 1964

25

Organizational study in TCC

II nd Generation: Mercury Cell Technology

Here Mercury was used as cathode and Titanium as anode. It gives caustic soda with 50% concentration. But the main draw backs are high energy consumption and pollution. Because of pollution problem this technology have removed completely and replaced by membrane cell Technology by 1990s.

III rd Generation : Membrane Cell Technology This is the latest technology being used now. It started from 1997. The ion exchange membrane cell plant is equipped from 20 electrolyses consist on three clocks on monopole fitter press type electrolyses and it corresponds to three electrolyses. The electrolysis consists of copper cathode and titanium anode chambers separated by in ion exchanges membrane made of tetra fluro ethylene and vinyl ether.

PLANTS IN TCC

Three plants are involved in the production.

AGC Plant

It is designed and commissioned by ASAHII Glass Company Ltd., Japan. The plant was commissioned on 29 th May 1997. The products are caustic soda (NaOH), commercial hydrochloric acid (HCl) and liquid Chlorine. It consists on 20 electrolyses.

Products

 

Capacity

NaOH lye

 

170TPD

Liquid chloride

90

TPD

Commercial HCL

150

TPD

Sodium hypochlorite

40

TPD

Caustic soda flakes

100

TPD

UHDE II Plant

The plant is designed by UHDE infrastructure Ltd, Germany. The plant was commissioned on 2005. The plant produced only 25 TPD of 32% caustic soda lye. It consists of only one electrolyser with 54 elements.

UHDE II Plant

The plant is designed by UHDE infrastructure Ltd, Germany. The plant was commissioned only 15 th August 2006. this has also a production capacity of 25 TPD of 32% NaOH lye with one electrolyses with 54 elements.

26

Organizational study in TCC

RAW MAERIALS USED

The raw materials used in the production in TCC are

Common salt

Electricity

Water

PRODUCTION PROCESS FLOW DIAGRAM

RAW SALT

BRINE

SOLUTION

RAW MAERIALS USED The raw materials used in the production in TCC are Common salt Electricity

BRINE

PURIFICATION

RAW MAERIALS USED The raw materials used in the production in TCC are Common salt Electricity

ELECTROLYSIS

RAW MAERIALS USED The raw materials used in the production in TCC are Common salt Electricity

DECOMPOSITION

RAW MAERIALS USED The raw materials used in the production in TCC are Common salt Electricity

DECHLORINATION

 
CHLORINE HYDROGEN 32% CAUSTIC GAS SODA SALE TREATMEN CHLORINE HYDROGEN TREATMENT CHLORINE HCL
CHLORINE HYDROGEN 32% CAUSTIC GAS SODA SALE TREATMEN CHLORINE HYDROGEN TREATMENT CHLORINE HCL
CHLORINE HYDROGEN 32% CAUSTIC GAS SODA SALE TREATMEN CHLORINE HYDROGEN TREATMENT CHLORINE HCL
CHLORINE HYDROGEN 32% CAUSTIC GAS SODA SALE TREATMEN CHLORINE HYDROGEN TREATMENT CHLORINE HCL

CHLORINE

HYDROGEN

32% CAUSTIC

 

GAS

SODA

 
SALE

SALE

TREATMEN CHLORINE
TREATMEN
CHLORINE

HYDROGEN

 

TREATMENT

CCF PLANT

 

CHLORINE

HCL

LIQUIFICATION

SYNTHESIS

RAW MAERIALS USED The raw materials used in the production in TCC are Common salt Electricity

LIQUID

CHLORINE

COMMERCIAL HCL ACID

27

Organizational study in TCC

TECHNOLOGY USED FOR THE PRODUCTION OF TCC

The technology used in TCC is the membrane cell technology which is the latest technology.

PROCESS FOLLOWED

The process followed for the production in TCC is electrolysis of brine.

PROCESS DESCRIPTION

Preparation and purification brine (solution of raw salt and water) are common for AGC, UHDE I & UHDE II plants.

The stages on production processes are:

  • 1. Brine preparation and primary braise purification

  • 2. Secondary brine purification

  • 3. Electrolysis

  • 4. Chlorine treatment and liquefaction

  • 5. Hydrogen treatment and HCL synthesis

  • 6. Continuous Caustic Fusion

  • 7. Soda bleach preparation

Brine Preparation and Primary Purification

Sodium Chloride or salt is fed into the saturator using bucket elevators, where it gets mixed with water. This solution of required concentration goes to precipitation tank A& B and a mixer tank where chemicals like barium carbonate, sodium carbonated and caustic soda are added to remove sulphates, calcium , and magnesium impurities. The solution then goes to the clarifier where 90% of the precipitates are allowed to settle. The clarified brine is passed through Anthracite filters where 10% precipitates are separated.

HCL is added to the filtered brine tank to convert impurities to ionic form. At the suction of filtered brine pump sodium bisulphate solution is added to remove the chlorine content and caustic soda lye is added to make the pH between 8.5 & 9.5. Brine is to be admitted to the secondary purification system only after the desired purity level is attained.

28

Organizational study in TCC

Secondary Brine Purification

The secondary brine purification system consists of four ion exchange filters. The primary purified brine is passes through the ion exchange filters where it undergoes ion exchange process .Ion exchange materials are insoluble acids and bases, which when converted to salts remain insoluble. The most popular ion exchange materials are synthetic organic polymers. These ion exchange materials are used in columns in which solution containing ionic impurities likes calcium and magnesium is in contact with the resin usually through downward flow through the resin bed. The saturated resin is then regenerated to its original state by using acid and alkali solutions. The regenerated resin is then reused. The purity of the feed brine in the Membrane cell process is very important and it affects the performance and life of the membrane.

Electrolysis

The secondary purified brine is fed to the brine head tank after cooling and is admitted for the electrolysis. De-mineralized water is also admitted to the electrolyser. Direct current (DC) supply is connected to the anode and cathode and current is applied to the electrolyser. During electrolysis, caustic soda is produced at the cathode, which is of 32% concentration. Hydrogen gas is also formed in the cathode chamber. Chlorine is formed in the anode from where the depleted or weakened brine solution also comes out. Caustic Soda is pumped into storage tanks, hydrogen and chlorine goes to the respective treatment sections.

Chlorine Treatment and liquefaction

Chlorine treatment involves cooling, washing, filtration, drying, compression, storage and filling. The chlorine from the anode chamber of electrolyzes is first cooled to 30 o C with cooling tower water. A final trace of salt is removed by using a wet chlorine filter; it is then again cooled to 1 o C. After this, the chlorine is separated for the HCL synthesis and liquefaction. The chlorine is compressed using acid ring compressors. The compressed chlorine passes to a liquefier where it is cooled using a refrigeration system in which Freon is used as refrigerant. The chlorine turns into a liquid from and are stored in liquid chlorine storage tanks. The filling of chlorine into cylinders of capacities 1 tones, 100Kg etc is done at the liquid chlorine filling station, using dry compressed air. Chlorine for the HCL synthesis units is fed by using chlorine blowers. Before this the chlorine is cooled. It is then fed into ovens along with hydrogen for the synthesis of HCL acid.

HCL synthesis and hydrogen treatment

Hydrogen gas from the electrolyzes is washed with water in a washing chamber, cooled to about 30 0 C with a heat exchanger, and admitted directly to hydrogen holder, after separating the condensate. The hydrogen gas is used for the HCL synthesis and also a part as fuel in the CCF plant operation. Hydrogen for HCL synthesis is fed to an oven using hydrogen blowers. Here it is burned in the presence of chlorine. The resulting HCL gas is absorbed in water flowing down the oven. The hydrogen holder has a pressure venting mechanism whereby the excess hydrogen is allowed to escape to the atmosphere.

29

Organizational study in TCC

Continuous Caustic Fusion

Caustic fusion is done in CCF (continues caustic fusion) plant, CCF plant is mainly for concentrating 32% NaOH Lye to 50% and 98-99% as flakes. The 32% NaOH Lye is stored in the main storage tank, a part of which goes for sale. The remaining part of 32% passed through three evaporates. (EV1, EV2& EV3) In 1 st evaporates (EV1) the NaOH is heated using the vapors generated in EV2 and EV3. The stream from EV1 is then passed to EV2 and it is evaporated in vacuum at 70-80 0 C. Then it passed through a shell and tube heat exchanger and the outcome will be 50% NaOH Lye. A portion of 50% NaOH lye goes for sales. The remaining portion of NaOH lye is passed through EV3 and heated using a eutectic mixture which containing 53% KNO3, 40% NaNO2 and 7% NaNO3 and finally we get 98- 99% NaOH as flakes.

Soda Bleach Preparation

Soda bleach plant, which is a part of AGC plant, is developed for the

utilization of excess and waste chlorine. Chlorine can‘t be disposed as a waste gas. So

it has to be absorbed and stored somewhere. Even though soda bleach is considered as a side product, the main objective is the efficient and harmless disposal of waste chlorine. A part of 32% NaOH lye and chlorine is used for the preparation of soda bleach. The excess chlorine at the time of plants shut down goes for soda bleach

preparation.

IRON EXCHANGE MEMBRANE CELL PROCESS

For electrolysis, secondary purified brine is fed into the anode chamber and purified water is fed into the cathode chamber. The reaction of the substance in the electrolyses will take place upon applying DC current to the cell. The electrolysis process in the cell starts with the salt solution (sodium chloride- NaCl) being fed into the anode chamber of the cell. The electrolysis of sodium chloride occurs, converting chloride ions into chlorine at the anode mesh. Sodium ions move into the cathode chamber through the ion exchange membrane. Generated chlorine gas flows up to the anode gas separator by the driving force due to the lift effect. The chlorine gas is separated here and the anolyte is recycled over as depleted brine. The depleted brine solution is removed from the anode chamber through an outlet at its bottom. In the cathode chamber, decomposition of water occurs, producing hydrogen gas and hydroxide (OH-) ions. Hydroxide ions form caustic soda together with the sodium ions from the anode side. The hydrogen gas and caustic soda gas flows up to the cathode gas separator by gas lift effect. The caustic soda lye is recycles through the circulation pipe. The membrane neither permits the movement of chloride ions and NaCl diffusion to the cathode side, nor the transfer of the hydroxide ion to the anode chamber. Transfer of these ions will result in loss of current efficiency. Hydrogen ions if any, diffused from the cathode chamber to the anode chamber will produce oxygen gas, hypochlorite and chlorate by reaction with chlorine gas.

30

Organizational study in TCC

ADVANTAGES OF MEMBRANE CELL PROCESS

  • 1. Flexibility in operations

  • 2. High purity product

  • 3. Reduces power consumption of membrane to 270 KW per hour compared to 4000 KW per hour of mercury cell

  • 4. Lower cost and high tolerance for power fluctuations

  • 5. Elimination of environmental pollution through the avoidance of the use of mercury

WATER TREATMENT PLANT

The water supply consists of a pumping station at Edamula river side near Kalamassery Bridge located near TCC colony, clear water reservoir and pump house at the factory site and pipelines. The quality of water available from the Edamula river is within the acceptable limits with respect to various parameters except for PH correction and sterilization. It consists of coagulation, sedimentation, filtration and chlorination process.

CCF PLANT

This plant has one of the most advanced technologies. It is suitable for the production of export grade caustic soda flakes from NaOH solution, which is generated in ion exchange membrane cell. It is designed for optimum low energy consumption. The equipments and plant are proven to be safe in operation.

TYPES OF MACHINES USED

NO

MACHINE

NUMBER OF MACHINE

1

MEMBRANE CELL ELECTROLYSER

20+2

2

CHLORINE COMPRESSOR

3

3

HCL SYNTHESIS OVEN

6

4

CHLORINE LIQUIFIER

2

5

RECTIFIER

4

6

AIR BLOWER

4

7

AIR COMPRESSORS

6

8

WATER PUMP

3

9

BRINE PUMP

4

10

SALT ELEVATOR

4

11

BRINE SLUDGE FILTER

2

12

BOILER

2

31

Organizational study in TCC

5.2 MARKETING DEPARTMENT

TCC is the only chlor-alkali unit in Kerala and hence it is more or less a monopoly in Kerala market. However, nationwide there are around 40 competitors. TCC gives high importance for customer satisfaction. They maintain close contact products. Type of market is buyer market. Marketing department consists of two sections:

  • a. Office section

  • b. Issue section

All documentation works come under office section and all the work relating to sales come under issue section. TCC adopts marketing strategy according to the product nature, market situation, demand for the product etc. TCC currently has about 80% of the total market share in the state. Of the total production, 60% of the goods are sold outside Kerala and 40% within the state.

MAIN FUNCTIONS OF OFFICE SECTION

Preparation of sales quotation, letters, amendments etc, maintenance of sales officers register books and other necessary information Preparation of sales budget, sales plan, monthly allotments etc, correspondence with parties and follow up of routine and regular matters Preparation of sales order, dispatch and delivery notes Up keeping of all files up to date

MAIN FUNCTIONS OF ISSUE SECTION

Preparation of schedule of dispatch and actual dispatch

Execution of sales offers

Advising parties about the dispatch effected

Maintenance of daily stock registers

DUTIES OF DEPUTY MARKETING MANAGER

  • 1. Is directly responsible for the sales and distribution of the products.

  • 2. Is responsible for maintaining customer satisfaction.

  • 3. Is responsible for implementing the product policy.

  • 4. Is responsible for organizing and coordinating various aspects of marketing including market research, sales forecast, advertising,

  • 5. Sales promotion and transport.

  • 6. DMM have crucial role in price fixation.

  • 7. Is responsible regarding after sale service and Complaint handling.

32

Organizational study in TCC

DUTIES OF MARKETING MANAGER (SALES)

  • 1. Concerned with the office section of the department

  • 2. Responsible for tender issue process.

COMPETITORS

There are about 40 companies in India which are producing the same kind of products that TCC in manufacturing. Of the 40 companies, 12 are concentrated in the southern part of India. All these companies are private sector companies except for TCC. Some of the competitors are:

  • 1. Chemfab Alkalis Ltd, Pondicherry

  • 2. Andra Sugar Ltd

  • 3. DCW Ltd, Mettur

  • 4. Kothari Petrochemical Ltd

  • 5. Tamil Nadu Petro products Ltd

  • 6. SPIC Chennai

  • 7. Sree Royal Seema Alkalis, Andhra Pradesh

  • 8. Chemplast, Mettur

  • 9. Chemtab, Pondicherry

CUSTOMERS

  • 1. Kerala Water Authority

  • 2. Hindustan Unilever Ltd

  • 3. Hindustan Insecticides Ltd

  • 4. Bharat Petroleum Ltd

  • 5. Kerala Ceramics Ltd

  • 6. Kerala Minerals and Metals Ltd

  • 7. Hindustan Raw Earth Ltd

  • 8. Steel Authority of India Ltd

  • 9. Tamil Nadu Newsprint Ltd

    • 10. Indian Oil Corporation

    • 11. Indian Aluminium Company Ltd

    • 12. Kerala Chemicals and Proteins Ltd

    • 13. Travancore Titanium Products Ltd

    • 14. South India Viscose Ltd

    • 15. Karnataka Soap and Detergents

    • 16. Hindustan Organic Chemicals Ltd

    • 17. Grasim Industrial Ltd

    • 18. Pigments India Ltd

    • 19. Hindustan Newsprint Ltd

    • 20. Binani Zinc Ltd

    • 21. Travancore Rayon‘s Ltd

33

Organizational study in TCC

THE MARKETING MIX

PRODUCT:

Caustic soda is a basic alkali entering into the manufacturing of a host of articles of daily use like soap, paper, textiles etc. The caustic soda industry actually came into existence in the latter half of 19 th century, with the development of the electrolytic process. Chlorine, a co-product in the process of making caustic soda is equally important for the manufacture of plastic, textiles, insecticides etc. Hydrochloric acid and sodium hypochlorite are the other 2 products which are used for the manufactures of Ossian, extraction of raw earth rutile etc. Chemical industries in the state, big and small, depend on TCC for the supply of caustic soda, chlorine, HCL and soda bleach.

Product development:

―EKO CLEAN‖ is a sanitation product. It is used as a preventive chemical in the present scenario against the various contagious diseases in the state. Eko Clean is sodium hypochlorite. This product reaches the market either via direct marketing or through government agencies.

PRICE:

PRODUCT

PRICE PER TONNE (Rs.)

CAUSTIC SODA

25500

CAUSTIC SODA FLAKES

26500

LIQUID CHLORINE

9800

HCL ACID

3000

SODIUM HYPOCHLORITE

4500

Pricing policy:

The Company has adopted differential pricing policy. The price is fixed through negotiation for long term contracts. An open body named Alkali Manufactures Association of India (AMAI) fixes the selling price for a particular period. Price of the product is fixed by adding the production cost, excise duty, VAT and freight charges. Tenders are issued to the customers with a price quoted and if it turns out to be a lowest bid and satisfies the customers after the sales are done. The major markets are Kerala, Karnataka and Tamil Nadu. Except caustic soda, all other products are sold in South India. Long term contracts are being entered with customers. Price concessions are given to long distance customers taking freight element into account for transportation of the product, raw materials and all other logistic purpose. Company has given contracts to outside agencies. The contracts are made for each material and this is done on an annual basis.

34

Organizational study in TCC

PLACE:

Place is concerned with various methods of transporting and storing goods and then making them available for the customers. Getting the right product to the right

place at the right time involves various distribution channels and systems. Channels include direct selling to customers. There are no intermediaries as such. For caustic soda, there are some agencies outside Kerala for marketing. The entire marketing Functions are done from company office at Udyogamandal and no marketing office outside the Company. All payments take place through SBT (State Bank of Travancore).

PROMOTION:

All the products are industrial products. Since TCC is the only manufacture of its product in the state, there is no real competition in the local market. The customer are aware of the existence of the company and where and how to get the products. Hence, there are not much promotional activities. Marketing factor is price, which depends on the national and international price. The company does advertise is some academic and trade journals. The promotional activities include regular press releases, creation of documentation etc. Other promotional channel includes the company website i.e. www.tcckerala.com.

ACTIVITIES OF MARKETING DEPARTMENT

Whenever a company places an advertisement regarding the requirement of chemicals like caustic soda lye or flakes with the specification for the chemical payment terms, quantity required, validity required, the companies that are ready to supply viz., TCC, will send tenders to the required company. This is known as a tender document. In a tender document mainly two documents are specified:

  • a. Technical bid This is the specification about the quality aspect of the product, how much quantity can be given within a period as specified by the customer company etc. These terms are well explained in the technical bid

  • b. Price bid This is a part of the tender document which specifies the basic prices of the company products. The document rate is given for bulk purchaser, payment terms are also experienced. Along with the tender to the customer company, an attractive Earnest Money Deposit (EMD) is also offered. This deposit is for the purpose of assuring the customer company that if they accept TCC‘s offer, certainly the product will be supplies to the customer. The deposit will be refunded by the customer company after the purchase is made. The EMD is attached only in the case of bulk purchase. After accepting the offer placed by TCC, the customer company will place a purchase order. The purchase order explains the details of the product, quantity, price etc. Sales order is placed and will be verified by Deputy Marketing Manager. He makes arrangement in respect of supplying product to the customer. The acceptance offer is usually by selecting the lowest price.

35

Organizational study in TCC

SALES FORCE OF TCC

The sales force includes the Marketing Manager, Deputy Marketing Manager and the employees in the department. The sales force is remunerated according to the grade provided by the company. The sales force strategy is to motivate the sales force and earn more sales for the company.

CREDIT POLICY

TCC has flexible credit policy. The companies which purchase above 200 tones in a session are given 30-60 days credit. For 5-10 tones of purchase, ready payment is to be made. The Marketing Manager and the Finance Manager divided the companies for which the credit should be given and how much credit has to be given. The Managing Director takes the final decision.

MARKET ANALYSIS

During the year 2005-06, the company achieved a record turnover of Rs.1.26 cores (including excise duty). This was due to higher production, increased demand and better sales realization. There was recession toward the end of that financial year but it was not reflected in TCC as the contracts were already signed. As a result of the further recession, the company profit level was decreasing. It has been determined that the company is on running on profits again in this financial year.

OBSERVATIONS

DEPARTMENT

AND

LIMITATIONS

OF

MARKETING

The Marketing Department of TCC is structured as line organization. There is no formal committee system existing in TCC. Products of TCC face a tough competition in the market. The competitors are private companies. TCC is the only Public Sector Undertaking (PSU) Company. In order to survive in the market, market research is conducted to explore the new market and find out new customers. Sodium

hypochlorite, names as ―Eko Clean‖, is a cleaning agent. It has been launched in the

market. But there exists no proper system for the promotion of this product. Eko Clean is a very promising product but proper product awareness programs and sales promotion activities are not taken up. Customer satisfaction trials are also not taken up. Due to the lack of market analysis, there is no product innovation and hence TCC is unable to compete in the market.

36

Organizational study in TCC

5.3 MATERIAL DEPARTMENT

Materials are important factors of production. The department plays an important role in reducing cost and increasing profit. Materials department is headed by Manager (Materials) and reports to DGMT. Going with the technological change, it has computerized purchases and inventory control system. The main materials used in the industry are given a 10 digit to avoid complexities in handling it. TCC have well defined materials department with three sections

  • 1. Purchase section

  • 2. Store section

  • 3. Inventory Control Section

PURCHASE DEPARTMENT

This section handles the purchase activities of the company. This department procures various raw materials needed for production at the right time at the right quality from the suppliers. If purchase value is more than 5 lakh, notification should be given in any two newspaper and select the lowest bid according to the verification by a committee, which includes purchases manager, internal auditor and one person from finance department. If purchase value is 5 lakh or less, purchase section itself can select the supplier either by past experience or by the advice of the users of that particular material

Steps in Purchasing

Purchase intent: intender raises material procurement request to inventory section. If the material is not available, the form is send to purchase department Enquiry: purchase department send enquiry to approved vendors Receiving quotation: quotations are received and opened by committee, which contain a member of purchase department, one from finance and one from internal audit. Preparation of comparative statement: quotation is tabulated and purchase department prepare comparative statement. It is send to indenter. The indenter gives recommendation Approval: it is verified by audit section Concurrence from audit department is obtained Purchase order is send to the concerned party

STORE AND INVENTORY CONTROL DEPARTMENT

Stores department stores materials about 6,000 items are stored which may include raw Materials, chemicals, electronics goods, equipments, sparer, instrumentation etc. The various items are given 10 digit codes for easy handing. It has computerized system of material handling.

37

Organizational study in TCC

Steps in Receiving Materials

  • 1. Visual Inspection: First check the purchase order especially purchaser order number. Only after this the materials is received and stored.

  • 2. Preparation of receiving report

  • 3. Inspection report: check whether the material is actual and inspection is done by manager (stores)

  • 4. Inspection report is made

  • 5. Payment: Check the material, receiving intents and inspection report is dispatched to finance department, purchase deparement5 and originator after the inspection. Payment is done only after this.

  • 6. Preparation of rejection report: If the material is no satisfied the specifications goods rejection note is made. It is sent to purchase department. They inform this to the party; new supply is done only after this.

Inventory Control Section

Inventory control is an essential function of store department. It helps to reduce and increase profit of the organization. If the material is not coded, codification is

done by MIC for controlling the inventory, certain levels of inventory such as maximum, minimum and recorder level is prepared. When the stock reaches the recorder level, purchase request is made.

Functions

  • 1. Maintaining a minimum stock of items required by various departments.

  • 2. Preparation of various reports regarding inventory

  • 3. Evaluation of MPR

  • 4. Preparations of material code system various items are given a 19 digit codes for easy handling

  • 5. Fix various level such as minimum level maximum level recorder level, danger level etc. for each item

  • 6. Calculate and minimize lead time

  • 7. Separate materials into Indian/import

Inventory Control Technique used in TCC

ABC Analysis It is based on consumption and cost. Here the inventory is divide into 3 categories A, B, and C based on the value of stocks. Among the various items in the stores 10% cover 70% of total cost of stocks are included in the A category. Another 20% of stock covers 20% of total cost and falls in the B category. The remaining 70% of materials in the stores contribute 10% of total cost of materials and are include in the C category. Different controlling techniques are applied for each category

38

Organizational study in TCC

Objective of Inventory control

Unwanted piling up of inventory is prevented

material codification to avoid duplication

To determine the item to be stored

To determine which and how much to replenish

To keep suitable records.

To disclosure absolute

5.4 HUMAN RESOURCE DEPARTMENT

Human resource is considered as the most vital assets of an organization. TCC has a well-defined employee power. Human resource department is headed by the manager (HRD). He organizes the training and development programs for workers and managerial staff. Training helps in increasing the knowledge and skills of the employees for specific purpose. It also helps in improving the performance of the employees in the present job thereby improving their capability to take up new assignments. MHRD does not come under the Personnel department, the manager HRD reports to the DGMT.

MAIN FUNCTIONS OF HUMAN RESOURCE DEPARTMENT

  • 1. Identifying training needs

  • 2. Importing the required training

  • 3. Maintain the training records

Apart from these three functions, HR department also looks into:

  • 1. Staffing

  • 2. Formulation and implementation of personnel policies

  • 3. Disciplinary actions

  • 4. Wage and salary administration

  • 5. Recruitment

6.

Selection

SCOPE

The procedure covers all aspect of training. Arrange suitable training for

employees for updating skills based on the identified training needs Training advisory committee is responsible for suggesting training

requirements of various departments and disciplines Formulating training programs on yearly basis.

The committee proposes a training calendar every year

Training needs for the year are identified and recorded by the department heads.

39

Organizational study in TCC

The details are handed over to the training department by the respective department heads. Training department does compilation of the identified training needs of the employees. Necessary training programmers are arranged by training department to cater the identified training needs of the employees. Training department organizes training programmers using internal faculties or engaging faculties from reputed organizations. The training department in consultation with concerned department heads organize in-house training programmers on special requirements. From the employees who attend the in-house training a feedback about the usefulness of the training is obtained and consolidated. The concerned department then evaluate the feedback from the participants after a period of 2-3 months to ascertain the effectiveness of the training programmed. Employees are also sent to other reputed institutions for training. A feedback from these institutions is received after the completion of the training. Based on this feedback, the effectiveness of the training is evaluated.

The achievements against annual training calendar is reviewed half yearly by the departments. The number of programmers held, number of employee participation, highlights of training, effectiveness, feedbacks etc is evaluated. The training department maintains a register on the training programs attended by the employees. The training department also maintains the format received from participants after getting it evaluated by the concerned department heads. The managerial personnel of the company are imparted training to improve their managerial capabilities at the HRD centre of the company and outside institutions that are depending upon TCC. Training is imparted using both on the job and off the job training methods. Training programs can be broadly classified as:

Internal Training

The HRD Department has the provision for conducting training. The HRD centre is a hall, which can accommodate around 40-50 people and has a public address system and an LCD projector. Every month a three day training program is held for workers. The workers education centre, under the labour ministry conducts these programs on a contract basis, which is recorded annually. 20-25 workers from various sections are selected every month. 4-5 officers from WEC conduct the training program and towards the end fixes the dates for the programs next month in consultation with the manager HRD. The topics covered include personality development, management development program, interpersonal relations, impact of globalization, effective communication and others. Other in- house programs are conducted by agencies like Kerala State productivity Council. In such programs the officers and the subjects are selected by TCC. These are conducted mostly for workers on pollution, safety etc. During installation of the Membrane plant, officers were sent to Japan for training. They came back and trained others here. There for on-the- job training is prevalent in all the sections of the company.

40

Organizational study in TCC

External Training Programs

TCC staffs are sent for external training based on the intimations received from external agencies, Officers had been sending to Madras, Thrivananthapuram and other places. But now since the company is not financially sound, it does not send its employees to other states. The management doesn‘t keep aside budget for training need.

Various other training Programs

  • Need based training: Here initially, it is to be determined that what is the level of knowledge and skill an employee requires in a particular job. Next is to determine how many employees have to be given this training. On the basis of these needs, training is given to the employees.

  • General Training: In order to provide this type of training, one has to determine what would be the trainee‘s growth potentials, up to what level he can grow in the organization etc. A performance appraisal has to be done to evaluate his present performance. Training is then given on the basis of the results of appraisal.

  • Induction Training: This training is mainly provided about the activities, procedures, rules and polices etc. of the organization. It is also done to know different people in different departments to get introduced to their colleagues.

  • Customer Training: Customers and drivers of transportation are given classes and training about handling chlorine and other products under various situations. If any leakage happens during transportation, what are the steps to be taken to counter the harmful effects that these chemicals cause.

  • Technology Training: The employees are trained on the new technologies that are entering the market. With efficiency of the employees in these technologies, the company can increase its production. Feedback from the employees about the training is obtained and consolidated. The department also ascertains the effectiveness of training program from the feed back after a period of 2-3 months.

  • Personality Development Programs : These programs are conducted by experts from various reputed organizations and training is mainly for managerial staff.

41

Organizational study in TCC

WORKERS PARTICIPATION IN MANAGEMENT

TCC encourages its workers to take part in the management of the company. The workers are often consulted through their unions while implementing major welfare programs of the company. In addition to this, workers are also included in some of the committee for taking management decisions. These committees are:

  • a. Canteen management committee

  • b. Safety committee

  • c. Shop floor committee

  • d. Grievance committee

  • e. Complaint committee

  • f. Tri-party committee

PERSONNEL DEPARMENT

FUNCTIONS OF PERSONNEL DEPARTMENT

Recruitment: This is done through professionals, executive employment

exchanges and P.S.C. Manpower planning: Ascertaining the number of vacancies

Welfare functions: Including statutory and non- statutory welfare measures.

Grievance handling as per the provisions of Industrial Dispute Act and as per

Factories Act. Maintaining company discipline: as per standing order act

Industrial relations

Public relations

Job descriptions

Job specification

Job Analysis

Training

Staffing

Performance appraisal

Wage and salary administration

General Administration

MAN POWER OF TCC

As per employee statement as on 01 July 2010

Category

Number

Managerial Staff`

144

Employees

664

Total

778

42

Organizational study in TCC

LABOUR POLICIES

There was no labour unrest in the company for the past 20 years. An atmosphere of trust and mutual understanding is developed between the management and the labour unions. Long term agreements are in force for various periods. They are intended to maintain, promote and improve industrial and economic relations between the Company and its workers. The guidelines for wage patters, promotion policies, leave grievance, fringe benefits, production incentives etc, are determined in the agreement. These agreements are the means for the settlement of all disputes and grievances, and these lead to an efficient production and productivity.

The last long term agreement was signed in 2000 for a period of 4 years; subsequent to this an interesting revision was given with effect from 1-04-2004. The purpose of this agreement is to channelize collective bargaining relations, to ensure speedy and fair disposal of grievance to maintain harmonious relation between the Company and its men, to establish reasonable wage and their working conditions to prevent strikes, shutdown and lockouts to increase productivity, to ensure uninterrupted relationship based on a well understanding of each other for the benefit of the industry and the nation.

MAN POWER PLANNING

An important function of the PM is that of manpower planning. The list of retiring employees is prepared 3-4 year in advance and call for recruitment has to be approved by the MD. The company will inform the vacancies to the Public Service Commission around five years in advance. Any need for immediate recruitment is made known to P.S.C.

Internal Sources

Kerala Public Service Commission

Technical and District Employment Exchange

Direct recruitment by advertising

PROMOTION POLICY

Promotion policy is divided into two, Non managerial Promotion Policy and Managerial Promotion Policy.

Non Managerial Promotion Policy

Vacancies, other than to be filled by the recruitment through PSC, will be filled as per the policy and procedure which are laid down through the terms of settlement. If a prospective employee has the minimum qualification and stipulated service, then he can be considered for promotion upon evaluation of attendance, services record and quality of work. If hands are not available for promotion in the respective section/ department, it is notified on the company notice board. Candidates with the same grade and stipulated length of service considered can apply. If the candidates are not found available after test, a lower grade with stipulated service can be given double promotion.

43

Organizational study in TCC

Managerial Promotion Policy

Here a stipulated length of service in the immediate lower grade is the main criterion of promotion. Promotion from worker category to officer cadre shall be ordered only with Board resolution and permission of Government. Time bound grade promotions are considered in the case of the lowest two managerial scales. Periods of ten years service can be considered for promotion.

WAGE AND SALARY ADMINISTRATION

A sound wage and salary administration plan exists in the organization. It has established a fair and equitable compensation offering i.e., similar pay for similar works. The settlement of wage and salary is done by the accounts department. The trade unions/ management have a hand in making the wage and salary plan. Managerial staff is allowed a maximum of 60 minutes late arrival in the morning during a payroll month and workers allowed 5 minutes late moving in a working day the worker/ manager is eligible to four hours short leave in the evening. Punching cards helps to check in and aid check out of both workers and managers. There are separate punching machines for the staff and managers. Over time allowances are covered as per the Factories Act.

The workers work in shift. There are three shifts

  • 1. 8am-4pm

  • 2. 4pm-12am

  • 3. 12am-8am

The employees are paid shift allowances as per the shift. The night shifts are the most well paid shift. The employees either work one shift i.e. 8am-4pm shift or they work two shift i.e. 4pm-8am shift. Hence the employees need to work only 2 night and 2 day shifts in a week.

ADMINISTRATION OF LABOR WELFARE

The labour welfare measures of the company are planned, implemented and monitored by its personnel department. The DPM & WO is in charge of co-operating the labour welfare activities. He acts as a liaison officer between the employees and employer. He puts the grievances of the labour before the management and take all steps redress them. He assists the management in exercise of their rights vis-à-vis each other.

WELFARE PROGRAMME

Labour welfare measures in India can be classified as statutory and non- statutory. Statutory welfare comprises those provisions which are binding on employers by law. These relate to certain essential working conditions and standards of health. Non- statutory welfare programs are provided voluntarily by employers. For example, housing, education, recreation, transportation etc are examples of non- statutory welfare measures. Thus statutory welfare ensure a bare minimum of facilities and reasonably good working conditions, employers are free to provide, non- statutory measures in varying degrees.

44

Organizational study in TCC

Statutory Welfare Measures

Accident benefits

Annual Bonus

Drinking water

Occupational Health Centers

Rest rooms and Lunch rooms

Sitting facilities

Storing and drying facilities

Toilets and bathrooms

Allowances to employees

Educational Allowances

Bata( Perquisites or Amenities)

Overtime Allowances

Leave

Non- Statutory Welfare Measures

Housing Facilities

  • 1. Main Colony

  • 2. main Colony Annexed

  • 3. Pathtalam Colony

Medical Attendance Scheme

Group Accident Policy

Production Bonus

Voluntary Retirement Scheme

T.C.C. Canteen

Security and protection

Working Time

Performance Appraisal

45

Organizational study in TCC

Leave

The number of leave/holidays in a calendar year will be as follows:

Privilege Leave 30 days Causal Leave 15 days Sick Leave 15 days (for workmen to cover under ESI scheme)

Holidays

Paid Holidays 13 days (including four compulsory holiday)

Gratuity

Gratuity is paid as per the Gratuity Act.

Bonus

Production Bonus:

Production Bonus is paid on the basics of production. A production linked

bonus is given to the employees and this scheme is called ―Monthly Bonus Scheme –

1998‖. As per this scheme the employees cooperate to maximize production and minimize consumption of raw material and eliminate wastes.

Attendance Bonus:

Attendance bonus is paid to all permanent workmen on payroll month basis along with wages for each month as per the schedules given below. However in a

payroll month in which the working days stipulated below are inadequate and a workman attended all the available working days, he will be paid full Attendance Bonus.

GRIEVANCE REDRESSAL

Grievances are to be solved effectively for smooth functioning of the organization. Grievance redressal committee is hence statutory. It is legally maintained. Trade unions are satisfied with the present condition in TCC and hence there is no grievance redressal committee. The healthy employer- employee relationship favours this.

46

Organizational study in TCC

 

5.5 FINANCE DEPARTMENT

   

FIVE YEAR FINANCIAL HIGHLIGHTS

 
 

2009-10

2008

-09

2007

- 08

2006

-07

2005-06

Sales

10752

12063

9390

12321

10877

Other Income

686

313

1674

219

158

Stock: Increase/Decrease

332

-36

4

199

13

Total Income

11770

12340

11068

12739

11048

Material Consumed

1603

2043

1268

1648

1594

Power, Fuel, Stores & Repairs

6186

6374

5668

6702

5675

Employee Cost

2455

2333

2634

2369

1678

Selling & Administrative Expenses

145

76

71

78

75

Other Expenses

49

38

35

49

12

Total Expenses

10438

10864

9676

10846

9034

Gross Margin

1332

1476

1392

1893

2014

Interest & Bank Charges

660

790

289

964

606

Depreciation

937

969

1012

920

827

Profit/Loss Before Prior Period Items

-265

-283

91

9

581

Prior Period Items

15

10

-47

53

0

Profit/Loss Before Taxation

-250

-273

44

62

581

Provision

Current

0

-1

5

5

48

for Taxation

Tax

Fringe

-1

9

11

8

10

Benefit

Tax

Income Tax Paid (prior period)

0

0

0

0

0

Net Profit / Loss

-249

-281

28

49

523

Net Block

7222

7783

8558

9407

7998

Capital Work In Progress

230

41

11

1

942

Current Assets Loans and Advances

4007

3636

3457

3717

3576

Current Liabilities and Provisions

4898

4701

5474

5583

5859

Investments

2

2

2

2

0

Accumulated Loans

1315

1066

786

813

862

Total utilization

7878

7827

7340

8357

7519

Working Capital (WC)

-891

-1065

-2017

-1866

-2283

Long Term Borrowing

4267

4008

4030

4574

4856

Short Term Borrowing

982

979

807

588

144

Share Capital (SC)

2131

2131

2131

2131

2131

Interest Accrued

125

338

0

1064

388

Deferred Payment liability

0

0

0

0

0

Total Sources

7878

7828

7340

8357

7519

 
   

47

Organizational study in TCC

 

2009-10

2008-09

2007-08

2006-07

2005-06

 
 

Net worth

816

1065

1345

  • 1318 1269

 

Capital Employed

6330

6718

6541

  • 7541 5715

 

Finished Goods

590

247

295

308

109

Work in Progress

19

29

17

0

0

Raw Materials

367

535

244

248

280

Materials in Transit

55

90

62

64

161

Store and Spares

601

603

400

425

413

Sundry Debtors

1130

974

1229

1425

1099

Cash and Bank Balance

59

102

115

139

124

Loans and Advances

1186

1056

1095

1108

1386

Other Current Assets

 
  • 0 0

0

 
  • 0 4

 

Store and Spares in Transit

 
  • 0 0

0

 
  • 0 0

 

Total

4007

3636

3457

3717

3576

Cash Profit / Loss

688

689

1040

969

1350

Finance is a vital part of any business organization. It controls the procurement of funds in the company. TCC has an efficient finance department headed by the deputy finance controller, who is assisted by an efficient finance manager. DFC is responsible for shaping the fortune of the company, preparing budgets, raising funds and keeping different accounts. There is a management information system to assist the finance department. Each cash payment and receipt is stored in computer. The internal audit system is carried out in the company by the initial audit section headed by the charted accountant. Regular reports are given to the department heads for taking the corrective actions where necessary. The budgets are reviewed, deviations are analyzed and necessary corrective actions are taken. The main function of the bill section is passing of bills, which is done after checking quotation, order and production. Bills are passed after seeing that materials received is in conformity with the purchase order. The finance department itself is divided into different sectors like general accounts, costing bills, establishing and provident fund and account section which have its own function.

Information provided by finance department

 

P&L Account

 

Balance sheet

Statement of sales, production and capacity utilization

Cash flow statements

Statements regarding raw materials and process chemical variances

 

Types of bills

Invoice of suppliers

 

Maintenance bills for various departments

Petty work bills

Transportation bills

   

48

Organizational study in TCC

FUNCTION OF FINANCE DEPARTMENT

Purchase bills passing and payments to suppliers

Sales invoice recording

Debt collection

Budgeting and costing

Statutory auditing

Finance control

Handle all auditing and taxes

Sales accounting

Generation and utilization of funds

Finance book keeping and finalizing of accounts

Treasury operation

Cost record

Management information system and co-operate planning

TCC has an exclusive PF trust for their employees. The company gives money to the trust. Trust invests this properly. Retirement benefits are issued from this

fund. The company‘s liability towards gratuity to employees is covered by group

gratuity scheme with the LIC of India.

The following are the banks in which the company has account

  • SBT Tuticorin

  • Indian Overseas Bank, Kochi

  • State Bank of Hyderabad, Kochi

  • Union Bank of India, Kochi

  • SBT Udyogmamdal

  • SBT Ernakulam

  • ICICI, Kochi

Sources of funds

For efficient production and sale there must be adequate finance for fixed assets, raw materials to meet day-to-day expenditure. The company raise funds by mean of equity funds and borrowed fund. The share capital includes authorized, issued, subscribed and paid up capital. Subsidy has been received from DSIR and government of Kerala. Loans are obtained as term from IDBI and material loans from government of Kerala.

49

Organizational study in TCC

CORPORATE SECRETARY AND INTERNAL AUDIT

Memorandum and articles of association, certificate of incorporation and other statutory registers under the companies Act 1956 are maintained in the companies registered office at TCC, Udyogamandal.

DUTIES AND RESPONSIBILITIES OF COMPANY SECRETARY

Conducting board meeting of the organization. The legal interpretation of the profit and loss statement and balance sheet. Filing returns with register of companies. Drafting agreements with the financial institution under the Companies Act. Conducting the annual general meeting and extra ordinary general meeting if required. Gratitude functions of the organization. Providing public information under Right to Information Act, 2005. Liaison with Registrar of companies, LIC official and other government and private agencies.

MANAGEMENT OF THE COMPANY

A Board of Director consisting of one managing director, director finance and three other part time directors of the company. Company has seven share holders. They are government of Kerala, FACT, KSIDC, SHL trading limited and two independent nominees from governmental of Kerala.

INTERNAL AUDIT

The internal audit system in the company has been established since long. The internal audit reports directly to MD. The staff of the department includes on stock verifies and two senior assistants.

FUNCTIONS

Pre audit of all purchase and contract files.

Verification of sales order and related records.

Verification of petrol and wage salary of workers, staff and officers.

Incumbent proposal of management staff, salary fixation etc.

Verification of various vouchers, journal, ledgers, and other records of

financial and cost accounts sections. Operational audit performance, management audit etc. if necessary.

50

Organizational study in TCC

  • 5.6 PROJECT DEPARTMENT

Project department is an independent department. The main function of this department is the execution of new projects for the company. They prepare feasibility reports and to invite tenders for the execution of new projects.

FUNCTIONS OF PROJECT DEPARTMENT

Planning feasibility study and implementation of new projects

Preparation of detailed report

Preparation of feasibility reports if approved by the management

Invitation of tenders through advertisements

Evaluation of tenders

Agreement

Execution

Hand over the new projects to operations department

New Projects in Discussion

Sale on drinking water TCC have a water treatment plant with excess capacity. Serious discussions are going on regarding the sales of water in total area at a reasonable rate. Also, they are discussing on the enhancement of the 175TPD caustic soda production to 225TPD.

New projects in consideration

  • Development on a new rutile plant

  • Transportation through water

  • 5.7 ENGINEERING DEPARTMENT

The department is headed by Manager (Engineering) and has four sections.

Utility and statutes

Mechanical Maintenance

Maintenance planning

Civil section

UTILITY AND STATUTES

This

is

the

services

sector

in

TCC,

which

provides

service

to

other

departments. Utility and statutes section have a well defined structure and more than

100 members under various department sections.

51

Organizational study in TCC

Functions

Provide different utilities including statutory services

Provide operators and transporters for automobile works

Chlorine cylinder maintenance including regular maintenance, painting and

statutory testing Welding, machinery painting and salt charging.

Statutory research of equipment and tools.

Maintain and run workshops for fabrications and machineries.

MECHANICAL MAINTENANCE SECTION

Mechanical section tends to be the backbone of TCC. This section and they handle all types on manual maintenance look forward to maintain the machines is the best possible manner and ensure healthy and sound flow of work within the organization

Objectives

To ensure all equipments engaged in production are good in condition

To reduce down time of critical equipment

To reduce cost due to inefficiently in handling the equipments.

Types of Maintenance

Break down Maintenance: machine checking is done on regular basis to avoid break down Preventive Maintenance: systemic check is done to avoid break down

MAINTENANCE PLANNING SECTION

ACE heads section. The mains objective on the section is

to

assist other

departments and sections namely, U&S, Civil Mechanical Maintenance, Electrical, Instrumentation etc. In planning and implementing engineering works. The section also provides assistance to project department in developing new project

CIVIL SECTION

Civil engineer who is reporting to DGM (Deputy General Manager Technical) heads this section. The main role of this section is the construction of building and other premises of the company. It is also engaged with the social task to ensure the smooth flow of industrial activities

52

Organizational study in TCC

Function

Maintenance of existing building

Painting, insulation and tender issue of civil work.

Roof maintenance work

Tender issue for civil works

Preparing MPR (Material Procurement Requirement) of steel sheets, cement and other construction at materials except sand.

5.8 ELECTRICAL AND INSTRUMENTATION DEPARTMENT

The

department

is

headed

by

instrumentation sections.

M(E&I)

and

has

two

sections,

electrical

and

Electrical Section

Electricity is a raw material for TCC, since the manufacturing process involves electrolysis. The major function of the Electrical Department is to condition the electricity received to such a form that, it can be fed to the process.Electricity is received by TCC from Kerala State Electricity Boar‘s 220KV substation at Kalamassery through two 110KV feeders. The substation to receive this supply and step it down to 11KV level has got 50MVA capacities. The capacity contracted by TCC is at present 20MVA, which is required at the present level of production. The 11KV supply is distributed from an 11 KV panel in the substation to various transformers, rectifiers and other equipments. The rectifiers are equipments, which convert alternating current to direct current at the voltage level required for the process. The rectifiers in plant 1 are 61 KV capacities. In plant I and II there are four auxiliary transformers each. There is a transformer in the water treatment plant located about 3 Km away from the company. The functions of the department include operation and maintenance of the substation, transformers and rectifier systems make arrangements to meet the statutory requirements, periodical inspection etc, take part in the production planning process, provide advice regarding the matters related electricity and electrical equipments etc, to the top management and also documentation and preparation of drawings etc.

Instrumentation Section

Process Instrumentation is a vital part of modern day manufacturing process. It ensures reliable and accurate operation of the equipments and smooth control of the process with minimum human intervention. The modern day processes are all microprocessor controlled. It avoids the errors inevitably caused by the humans. The functions of the section includes preventive and breakdown maintenance of the control equipments and systems, coordination with the external agencies supplying software, hardware etc, provide advice to the top management in related matters, etc.

53

Organizational study in TCC

Chapter 6 SWOT ANALYSIS

54

Organizational study in TCC

  • 6.1 STRENGTH

    • 1. TCC is one and only chlor- alkali unit in the state with 80% market share.

    • 2. There has not been any strike in the company for the past 15 years is a proof of excellent labor relation

    • 3. TCC is a mother industry which feeds other industries.

    • 4. TCC is pioneer of rayon grade caustic soda and the Company has created creditability and reliability among its customers

    • 5. It has good strength of skilled work force, educated staff and professionally qualified managers

    • 6. Products are basic chemicals and considered as building block of several products

    • 7. Strategic location with no other competitors around. The company is located at the centre of the industrial belt where maximum consumption of Chlor-alkali products takes place.

    • 8. The company has excellent facilities such as near to NH railway lines, seaport and airport.

    • 9. No Scarcity of water as it is situated on the bank of Periyar.

10. Good record of production and financial performance in the past.

  • 6.2 WEAKNESS

    • 1. Company has surplus work force and hence employ cost is high when compared to industrial cost.

    • 2. TCC is a public sector undertaking the political condition of the state affect company‘s management. The major decisions of the company have to be approved by the Government, which delays the implementation of plan and thereby creating organizational inflexibility

    • 3. Logistics are unfavorable as the raw materials are brought from distant places

    • 4. Financial options are limited being the company is under the state government.

    • 5. Major markets are distantly located so that the units surfaces from huge transportation cost.

    • 6. Large consumption of energy 60% of manufacturing cost is electricity.

55

Organizational study in TCC

  • 6.3 OPPORTUNITIES

    • 1. The overall improvement in the trade and business in the economy result in bringing more demand for the products of TCC

    • 2. Own generation of power may result in to lower cost of key input, which enables the company to explore the possibilities of international market

    • 3. The per capita consumption of chlor-alkali is very low when compare to developed countries the economic development in the country may result in higher demand for the product.

    • 4. Proposal for hydal project will benefits TCC and power so obtained can be utilized for running of the plant of TCC thus reducing the cost incurred on electricity.

  • 6.4 THREATS

    • 1. Hike in price of electricity

    • 2. Competition from foreign countries

    • 3. The import duty policy of central government is not fair and caused periodic fluctuation in the price of company‘s product.

    • 4. Industry is rather a matured one in the life cycle hence there is a low prospect for the future growth and might be on a decline path if substitutes are found out.

    • 5. The infrastructure of the company rather obsolete compared to others.

  • 56

    Organizational study in TCC

    Chapter 7 FINDINGS, SUGGESTIONS AND CONCLUSION

    57

    Organizational study in TCC

    7.1 FINDINGS

    The major customers of TCC are pharmaceuticals companies, soap industries, insecticides and pesticides industries, paper industries
    The major customers of TCC are pharmaceuticals companies, soap industries,
    insecticides and pesticides industries, paper industries and rayon industries.
    The major competitors are SPIC and Chemplast.
    Location preference, reference and quality are the major criteria for selecting
    manufacturer.
     Company follows management by convenience and not management by
    objectives.
    Pricing policy of TCC is an average, according to the industrial standards.
    TCC have a flexible credit policy, they give credit facility up to 30-45 days
    and they are getting credit of 60 days from suppliers.
    The customers have reported no rejection of TCC product, which shows the
    product satisfaction.
    In case of lead time, it was noted that order processing took too much time due
    to lot of work.
    The strength of TCC is the quality of their products, services and the delivery.
    No strikes have been reported for the last 10 years, it shows the relationship of
    workers and management as better.
     The company is depending heavily on electricity and around 60% of their
    product price is for this.
    New technology of Membrane cell has the advantage of pollution free
    environment and also it brings about 30% reductions in electric power
    requirements.
     No major environment pollution has been reported for the past 50 years of
    operations.

    58

    Organizational study in TCC

    7.2 SUGGESTIONS

    The company can invest more in the R & D cell in order to have new

    inventions in this field.

    TCC should take certain adjustment in the price of the product.

    In order to increase the production the company may try giving some

    motivation to the employees.

    The company shall take necessary actions to maintain the ratios at the standard

    level.

    Improve the first aid facilities by providing free medicines and treatments.

    TCC should try necessary steps to increase the net profits.

    TCC should persuade workers to use safety equipments more effectively

    Eko Clean can be commercialized and hence profit can be reaped

    The company should conduct market research to understand the movement of

    the products in the market and to identify the potential and new customers

    The organizational hierarchy must be checked to avoid organizational blocks.

    59

    Organizational study in TCC

    7.3 CONCLUSION

    TCC was established in 1950, with a nominal production of 20 TPD, TCC have

    the distinction of being India‘s pioneer producer of Rayon grade caustic soda with a

    capacity of 175TPD. TCC have marked changes in the technology of process and also

    stresses importance in productivity, employees‘ morality quality and clean

    environment. TCC is looking forward to achieve more and more greener pastures in the days to come. The study has accomplished several goals. The study has helped to familiarize with working condition of the organization. It has helped to study the coordination among various departments. The study has given a general idea about the functioning of TCC. It helped to analyze and understand the administrative functions. As per the study conducted, it has been observed that the capacity of production has increased and the company is recovering from the fall in profits. Since an organization is a human grouping in which work is done for the accomplishment of some specific goals or mission, this organization is trying to remain on top position by utilizing and maintaining its resources to maximum. Proper management is a challenging job, and here in this organization proper administration and social system are prevailing and it accounts for the strength of the organization on order to attain its objectives.

    60

    Organizational study in TCC

    ANNEXURE

    MD

    -

    -

    Managing director.

    DGMT

    -

    Deputy General Manager.

    PM

    -

    Personnel Manager.

    OM

    -

    Operating Manager.

    EM

    -

    Engineer Manager.

    PM

    -

    Project Manager.

    SM

    -

    System Manager.

    MTS

    -

    Manager Technical Service.

    MHRD

    CEPC

    -

    Chief Engineer Pollution Controller.

    Manager Human Resource Development.

    CETS

    -

    Chief Engineer Technical Service.

    CES

    -

    Chief Engineer Safety.

    SETS

    -

    Senior Engineer Technical Service.

    SOQC

    -

    Senior Officer Quality Control.

    MCP

    -

    Manager Corporate Planning.

    CE

    -

    Civil Engineer.

    DM(P&W)

    -

    Deputy Manager Personnel and Welfare.

    FC

    -

    Finance Controller.

    DFC

    -

    Deputy Finance Controller.

    SAO(GA&F)

    -

    Senior Account Officer General Accounts and Finance.

    SAO(CASH)

    -

    Senior Accounting Officer Cash.

    SAO(E&EDP)

    -

    Senior Accounting Officer.

    SAO(CO)

    -

    Senior Accounting Officer Costing.

    SAO(PF)

    -

    Senior Accounting Officer Provident.

    MM

    -

    Marketing Manager.

    SM

    -

    Sales Manager.

    MM

    Material Manager.

    -

    MP

    - Manager Production.

    APO

    -

    Assistant Personnel Officer.

    CS

    -

    Company Secretary.

    61

    Organizational study in TCC

    BLIOGRAPHY

    C.R. Kothari -Research Methodology, New age International Publishers,

    Second Edition 2004 Philip Kotler - Marketing Management, Prentice Hall of India, PVT LTD

    ,Tenth Edition 2002 Annual Report -2006-2007 Travancore Cochin Chemicals LTD.

    62