A Summer Training Report on Emerald Engineering Company

8/8/2019 A Summer Training Report on Emerald Engineering Company

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ASUMMER TRAINING REPORT ON

EMERALDENGINEERING COMPANY

Submitted to the

ANNA UNIVERSITY COIMBATORE

For the award of the degree of

Master of Business Administration

DEPARTMENT OF MANAGEMENT STUDIES


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CONTENTS

LIST OF TABLES

Chaptr

No

Description Page

No

INTRODUCTION

1. Industry profile

2. Company profile

3. Organizational structure

4.

Functional departments

4.1 Production

4.2 Marketing

4.3 Finance

4.4 Logistics

4.5 Stores

4.6 Human resource

4.7 Research and development

5. PROBLEM FINDING, SUGGESTION

5.1 Problem Findings

5.2 Suggestion

6. Conclusion


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CHAPTER 1

INDUSTRY PROFILE

EMERALD ENGINEERING COMPANY manufacture several kinds of stainless

steel screw, industrial brass rivets, steel rivet, copper rivet, aluminum rivet, brass screw, copper

screw and aluminum screw which are made of copper, aluminum, steel and brass With free

Sampling policy, our products are exported to international market and supplied to local market.

We follow strict quality measures and all the products are tested well before

dispatching for delivery. Our quality management policy enables us to achieve ISO and Onicra

certification as well as National Small Industries Corporation accreditation. We have a team of

experts who work with a set of adroit engineers under the inspection by our CEO Mr. Muthu

Kumar. His excellent skills and industrial experience make us sure to cater our range throughout

the domestic as well as foreign market including Kenya, Tunisia, Australia and Lebanon.

Product Profile

A Rivet is a kind of Fastener which has two ends, one is called buck-tail and the

other is called factory head. It is inserted through a hole and the buck-tail is deformed in order to

expand its diameter to hold the rivet in place; a Screw is a fastener having a thread in a spiral

form which can be inserted through an object by rotating. Our comprehensive range encompass

of stainless steel screw, industrial brass rivets, steel rivet, copper rivet, aluminum rivet, small

rivet, large rivet, clutch rivet, semi-tubular rivet, brass screw, copper screw and aluminum screw.


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Some of the salient features of our rivets and screws are as follows:

y Corrosion resistance

y Durable

y Precise dimension

y High tensile strength

Manufacturing Facility

With the turnover of around 1 to 10 Million every year, we have equipped with

the latest technology, machineries and devices. We are completely dependent and capable of

producing 6, 60, 000 pieces every monthly. A 12,000 Square Feet area is available right in the

heart of the industrial City, Chennai, one of the four main cities of India.

Some of the machinery installed in our manufacturing unit comprises of the following:

y Lathe machines

y Welding machines

y Cutting machines

y Forging machines


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CHAPTER 2

COMPANY PROFILE

2.1 INTRODUCTION

EMERALD ENGINEERING COMPANY was promoted in the year 1984 for the

manufacturing of the textile spare but after two years, it had changed to manufacture of screws

and rivets. The company was started as a partnership firm with four partners.

In the beginning stage the company done business only at the local level, and it is

getting the orders from the companies in and around the Coimbatore.

The company is supplying its materials to the companies like Roots, Pricol, Texmo,

Textel etc.,

In the year 1994, the company was changed in to sole trader concern and it came into

the control of Mr. L. LAKSHMANAN. And he had done hard work for the development of the

company.

In the beginning the company was started with four employees and now there were one

twenty employees working in the company.


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2.2 RECENT DEVELOPEMENT

Currently the company is doing business in and around Tamilnadu and has started

another plant in Coimbatore in the year 2006 for the better delivery of service to its customers.

The company is selling its products too many hardware shops and too many leading

companies in Coimbatore.

The Emeralds growth can be attributed to the untiring dedication, hard work and

professional management of the promoters and executives ably supported by the team of

officers and employees at all levels.

2.3 PRODUCT OF THE CONCERN

The companys main production is screws and rivets which is used in the meters and

horns.

2.4 MISSION:

Be the leader in screws and rivets manufacturing company

Providing quality product to the customers

Be the leader in innovation and research and development

Selling goods at the lowest possible price


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2.5 VISION:

Aim to become a world-class company

Enter into the international company with wide ranging value added products by

implementing strategies and employing the resources

Optimum use of R&D to improve quality and to give a better value for the money

of the customer


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CHAPTER 3

ORGANISATIONAL STRUCTURE

Mr. L. LAKSHMANAN.

(Managing Director)

Sales ExecutivesSupervisor Supervisor

Mr. L. LAKSHMANAN.

(Managing Director)

Mr.RAMESH.

(Production Manager)

Mr.RAMANATHAN.

(Sales Manager)

Mr. L. SUBRAMANIAN.

(Joint Managing Director)

Labour Labour


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CHAPTER 4

FUNCTIONAL DAPARTMENTS

4.1PRODUCTION DEPARTMENT

A business unit is established for the production and distribution of goods or services,

production management. Under takes planning, organization, direction coordination and control

of the production function be produced at the right time in right quantity and at the right cost.

PRODUCTION PROCESS

There are many members of production process involved in the production

department. The finished goods of one production process are the put of the other production

process.

We manufacture and offer superior quality industrial rivets and screws using qualitative

raw material such as copper, aluminum, steel and brass in the production process.

Our comprehensive range of industrial rivets and screws finds their applications in

various industries such as automobile and other industries.

Some of our range of industrial rivets and screws encompass of aluminum rivets, copper

screw and aluminum screw manufacture and offer superior quality industrial rivets and

screws using qualitative raw material such as copper, aluminum and steel in the

production process..


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Steel rivet is mechanical fastener which is used in automobiles and electrical Industries

for switches and relays. Steel rivet consists of a cylindered shaft with a head on one end.

On the other head it has a thread which is unusually longer.

Copper rivet which are mostly used in fashion and baggage industries, especially with

leather items.

Aluminum rivet which are used to fix various types of products in several industries and

to fix joins. Our range of aluminum rivet comprises two different types of aluminum

rivets.

Small rivet having diameter under 1/2" (12mm). Small rivets are always furnished

annealed unless otherwise specified by the user.

Copper screw which have earned great accolades in various industries. Copper screw is

light as compared to steel and brass screws owing to this attribute it is widely used for

paper and wooden work.

Aluminum screws are used for fashion, baggage industries and automobile sector. Some

of ourrange of encompass of aluminum rivets, solid aluminum rivets, sol


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Wire drawing

Heading

Cone punch Second punch Cutter

Slotting Tooling

Threading

Cleaning

Packing


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4.2MARKETING DEPARTMENT

Marketing management refers to the identification of consumers needs and

supplying their goods and services which can satisfy these works. It involves the

following activities.

Marketing me search to determine the needs and expect of consumers.

Planning and developing suitable products.

Setting appropriate prices.

Selecting the right channel of distribution and

Promotional activities like adder testing and salesmanship to communicate with

the customer purchase and stores purchase.

The Marketing department was created to report for strategic planners, international

marketing executives and export managers whose primary concern is the world market

for iron or steel unthreaded screws, screw hooks, rivets, washers, and similar articles.

With the globalization of this market, managers can no longer be contented with a local

view. Nor can managers be contented with out-of-date statistics that appear several

years after the fact.


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The report begins by summarizing the world exporters market for iron or steel

unthreaded screws, screw hooks, rivets, washers, and similar articles. The total level of

exports on a worldwide basis is based on a model that aggregates across over 150 key

country markets and projects these to the current year.

The market is served from a number of competitive countries of origin. Based on

supply-side dynamics, market shares by country of origin are then calculated across

each country market. These shares lead to a volume of import values for each country

and are aggregated to regional and world totals.

The more requirements in the market for this kind of products. So it doesnt need the

aggressive market. The market will reach the big company only from the order will be

mobilize and also this product required regular for their use. So order will be coming in

regular bases.

The company is supplying its materials to the companies like

y Roots Industrial Indian Ltd,

y Pricol,

y Texmo Pumps, Textel etc.,


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4.3 FINANCE DEPARTMENT

Financial management is that part of the management which is concerned with the

planning, directing and controlling of all activities relating to procurement and utilization of the

financial resources of an enterprise for business process.

Finance is a much more important of every business firm to run production and

marketing activities. So finance is life blood of the company. In the company finance department

to organize financial activities may be created under the direct control of the board of directors.

In the department head is financial manager. The manager financial policy matters will be

decided by the finance committee while routine activities are delegated to lower levels.

The finance manager raise capital form capital market (i.e. shares, debentures, loan

from banks, financial institution and public). The manager already known as the capital market

completing firms function and how security prices are determined in the capital market.

The Company has started with the capital of Rs.1,00,000 only but now it has

more than 1,50,00,000 as its capital is increasing directly from the managing

director.

Fund arising from the operations are increasing during the year except 2009-10.The

liquidity of the company is decreasing. The average of liquid ratio throughout the

period is above the standard (1:1), which is good for the company.


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Current assets are properly utilized to affect the given quantity of sales. The Gross

Profit ratio is good except the year 2008-2009.More fluctuations are found in Net

Profit ratio.

Though there is an increase in sales, it is not proportionate with the increase in fixed

assets. Inventories are cleared fast in the concern. Thus the inventory is managed

efficiently by the concern.

The debtors collection period is somewhat high; this indicates the receivable

management is not effective. The Gross Profit and Net Profit are increasing

throughout the study period. There is a steady increase in the sales of the company.


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COMPARITIVE BALANCE SHEET AS ON 31STMARCH 2009

Particulars 2008 2009 Difference % of the

difference

Liabilities & Capital

Capital Account 602141.20 742830.04 140688.84 23.36

Reserves & Surplus 178202.91 -178202.91 -100.00

Loans 688213.00 807475.29 119262.29 17.33

Total Long Term Liabilities 1468557.11 1550305.33 81748.22 5.57

Current Liabilities

Liabilities for payment 110035.67 143360.00 33324.33 30.29

Sundry creditors 1139613.03 1115414.09 -24198.94 -2.12

Other liabilities 224.00 209.00 -15.00 -6.70

Total Current Liabilities 1249872.70 1258983.09 9110.39 0.73

Total Liabilities 2718429.81 2809288.42 90858.61 3.34

Long-term Assets

Fixed Assets 791215.00 939883.00 148668.00 18.79

Deposits 189651.00 268028.00 78377.00 41.33

Investments 32230.00 47050.00 14820.00 45.98

Loans & Advances 10876.00 11027.00 151.00 1.39

Total Long Term Assets 1023972.00 1265988.00 242016.00 23.64

Current Assets

Inventory 154895.00 193653.00 38758.00 25.02

Sundry debtors 943825.71 1249426.44 305600.73 32.38

Cash-in-hand 48325.59 12536.95 -35788.64 -74.06

Bank accounts 547411.51 87684.03 -459727.48 -83.98

Total Current Assets 1694457.81 1543300.42 -151157.39 -8.92

Total Assets 2718429.81 2809288.42 90858.61 3.34


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4.4 LOGISTICS DEPARTMENT

Logistics department is that part of the supply chain which plans, implements and

controls the efficient, effective forward and reverse flow and storage of goods, services and

related information between the point of origin and the point of consumption in order to meet

customer & legal requirements. A p professional working in the field of logistics management is

called a logistician.

The Chartered Institute of Logistics & Transport (CILT) was established in the

United Kingdom in 1919 and was granted the Royal Charter in 1926. The Chartered Institute is

one of professional bodies or institutions for the logistics & transport sectors that offers such

professional qualification or degree in logistics management.

Third-party logistics

Third-party logistics involves the utilization of external organizations to execute

logistics activities that have traditionally been performed within an organization itself. According

to this definition, third party logistics includes any form of outsourcing of logistics activities

previously performed in-house.

Warehouse management system and warehouse control system

Although there is some functionality overlap, the differences between warehouse

management systems (WMS) and warehouse control systems (WCS) can be significant. To put

it simply, the WMS plans a weekly activity forecast, based on such factors as statistics, trends,

and so forth, whereas a WCS acts like a floor supervisor, working in real time to get the job

done by the most effective means.


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For instance, a WMS can tell the system its going to need five of SKU A and

five of SKU B, hours in advance, but by the time it acts, other considerations may have come

into play or there could be a potential logjam on a conveyor. A WCS can prevent that problem

by working in real time and adapting to the situation by making a last-minute decision based on

current activity and operational status. Working synergistically, WMS and WCS can resolve

these issues and maximize efficiency for companies that rely on the effective operation of their

warehouse or distribution center.

Business logistics

Business logistics can be defined as having the right item in the right quantity at the

right time at the right place for the right price in the right condition to the right customerand is

the science of process and incorporates all industry sectors. The goal of logistics work is to

manage the fruition of project life cycles, supply chains and resultant efficiencies.

In business, logistics may have either internal focus (inbound logistics), or external

focus (outbound logistics) covering the flow and storage of materials from point of origin to point

of consumption (see supply chain management). The main functions of a qualified logistician

include inventory management, purchasing, transportation, warehousing, consultation and the

organizing and planning of these activities. Logisticians combine a professional knowledge of

each of these functions so that there is a coordination of resources in an organization. There are

two fundamentally different forms of logistics. One optimizes a steady flow of material through a

network of transport links and storage nodes. The other coordinates a sequence of resources to

carry out some project.


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Production logistics is getting more and more important with the decreasing batch sizes.

In many industries (e.g. mobile phone) batch size one is the short term aim. This way

even a single customer demand can be fulfilled in an efficient way.

Professional logisticians are often certified by professional associations. Some

universities and academic institutions train students as logisticians, by offering

undergraduate and postgraduate programs.

Logistics has been done through their own vehicles to the market and also they regularly

send the good to another part of India through private carrier only.


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4.5 STORES DEPARTMENT

Store plays a vital role in the operations of a company. It is in direct conduct with the

user department in its day-to-day activities. The most important objectives of store are to

provide is located nearer to the production with to save material cost in as effective manner.

Functions of the Stores Department

The following are the important function of stores section.

Management of receipts.

Issue control on material.

Documentation received.

Inspection of materials.

Computerization of the data received from user department.

Codification of materials.

Physical verification of stores.

Stock vacation.

These stores thus get the raw material one after tools and raw punch through EOQ

(Economic Ordering Quantity) method and also by requires demand in the market.


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4.6 HUMAN RESOURCES DEPARTMENT

In organizations, human resource is important to determine both current and

future organizational requirements for both core employees and the contingent workforce in

terms of their skills/technical abilities, competencies, flexibility etc. The analysis requires

consideration of the internal and external factors that can have an effect on the resourcing,

development, motivation and retention of employees and other workers. The external factors

are those largely out-with the control of the organization and include issues such as the

economic climate, current and future trends of the labor market e.g. skills, education level,

government investment into industries etc. On the other hand internal influences are broadly

within the control of the organization to predict determine and monitor, for example the

organizational culture underpinned by management behaviors (or style), environmental climate

and the approach to ethical and corporate social responsibilities.

Framework

Human Resources Development is a framework for the expansion of human capital

within an organization or (in new approaches) a municipality, region, or nation. Human

Resources Development is a combination of training and education, in a broad context of

adequate health and employment policies that ensures the continual improvement and growth

of the individual, the organization, and the national human resourcefulness.


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Adam Smith states, The capacities of individuals depended on their access to

education. Human Resources Development is the medium that drives the process between

training and learning in a broadly fostering environment.

Human Resources Development is not a defined object, but a series of organized

processes, with a specific learning objective (Nadler, 1984). Within a national context, it

becomes a strategic approach to intersectional linkages between health, education and

employment.

Structure

Human Resources Development is the structure that allows for individual

development, potentially satisfying the organizations, or the nation's goals. The development of

the individual will benefit the individual, the organization, or the nation and its citizens. In the

corporate vision, the Human Resources Development framework views employees, as an asset

to the enterprise whose value will be enhanced by development, Its primary focus is on growth

and employee developmentit emphasizes developing individual potential and skills (Elwood,

Olton and Trott 1996). Human Resources Development in this treatment can be in-room group

training, tertiary or vocational courses or mentoring and coaching by senior employees with the

aim for a desired outcome that will develop the individuals performance. At the level of a

national strategy, it can be a broad intersectional approach to fostering creative contributions to

national productivity.


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Training

At the organizational level, a successful Human Resources Development program

will prepare the individual to undertake a higher level of work, organized learning over a given

period of time, to provide the possibility of performance change (Nadler 1984). In these

settings, Human Resources Development is the framework that focuses on the organizations

competencies at the first stage, training, and then developing the employee, through education,

to satisfy the organizations long-term needs and the individuals career goals and employee

value to their present and future employers. Human Resources Development can be defined

simply as developing the most important section of any business its human resource by,

attaining or upgrading the skills and attitudes of employees at all levels in order to maximize the

effectiveness of the enterprise .The people within an organization are its human resource.

Human Resources Development from a business perspective is not entirely focused on the

individuals growth and development, development occurs to enhance the organization's value,

not solely for individual improvement. The broader concept of national and more strategic

attention to the development of human resources is beginning to emerge as newly independent

countries face strong competition for their skilled professionals and the accompanying brain-

drain they experience.

Recruitment

Employee recruitment forms a major part of an organization's overall resourcing

strategies which seek to identify and secure the people needed for the organization to

survive and succeed in the short to medium-term.


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Internal recruitment can provide the most cost-effective source for recruits if the potential

of the existing pool of employees has been enhanced through training, development and

other performance-enhancing activities such as performance appraisal, succession

planning and development center to review performance and assess employee

development needs and promotional potential.

Modern concept of human resources have been part of business and organizations

since the first days of agriculture, the modern concept of human resources began in

reaction to the efficiency focus of Taylorism in the early 1900s.

Responsibilities of Supervisor:

y Administer benefits for approximately 300 employees (union and non-union).

y Maintain good union relations with two UAW locals and administer the union

contract.

y Manage Affirmative Action program, including testing and audits.

y Process Disability Claims.

y Provide new employee orientation/training.

The company has started with only the person now it has more than 100 people are they get the

work through local area support and through H.R company.


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4.7 R & D DEPARTMENT

R&D has a special economic significance apart from its conventional association

with scientific and technological development. R&D investment generally reflects a

government's or organization's willingness to forgo current operations or profit to improve future

performance or returns, and its abilities to conduct research and development.

In 2006, the world's four largest spenders of R&D were the United States

(US$343 billion), the EU (US$231 billion), China (US$136 billion), and Japan (US$130 billion).

In terms of percentage of GDP, the order of these spenders for 2006 was China (US$115 billion

of US$2,668 billion GDP), Japan, United States, and EU with approximate percentages of 4.3,

3.2, 2.6, and 1.8 respectively.

In general, R&D activities are conducted by specialized units or centers

belonging to companies, universities and state agencies. In the context of commerce, "research

and development" normally refers to future-oriented, longer-term activities in science or

technology, using similar techniques to scientific research without predetermined outcomes and

with broad forecasts of commercial yield.

New product design and development is more often than not a crucial factor in

the survival of a company. In an industry that is fast changing, firms must continually revise their

design and range of products. This is necessary due to continuous technology change and

development as well as other competitors and the changing preference of customers.


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A system driven by marketing is one that puts the customer needs first, and

only produces goods that are known to sell. Market research is carried out, which establishes

what is needed. If the development is technology driven then it is a matter of selling what it is

possible to make. The product range is developed so that production processes are as efficient

as possible and the products are technically superior, hence possessing a natural advantage in

the market place.

Research and development is nowadays of great importance in business as the level of

competition, production processes and methods are rapidly increasing. It is of special

importance in the field of marketing where companies keep an eagle eye on competitors

and customers in order to keep pace with modern trends and analyze the needs,

demands and desires of their customers.

Unfortunately, research and development are very difficult to manage, since the defining

feature of research is that the researchers do not know in advance exactly how to

accomplish the desired result. As a result, higher R&D spending and does not guarantee

"more creativity, higher profit or a greater market share.

The company will support the worker more and they pay more offers through the

company growth and they will give a special care to the employees.


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CHAPTER 5

PROBLEM FINDING, SUGGESTION

5.1 PROBLEM FINDING

The main problem facing by the company right now is the energy problem that is

electricity.

Lack of Raw material in the local market and its cost is high. The company is planning to

buy in north side but it transport wise cost is very high.

For industry new skilled labour are required but it not easy to get the employees.

There is a steady increase in the sales of the company.

More fluctuations are found in working capital position.


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5.2 SUGGESTION

For electricity problem they using generator to solve but the cost are extendable.

Now the company is planning to set the new plant to produce their own raw material in

their concern.

They are providing special training to the employees to get skilled by own.

It is advisable to the management to keep optimum level of inventory in the company.

The company has to give importance in utilization of all the assets effectively.


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CHAPTER 6

CONCLUSION

The organization study has been done to know the overall process of the

Emerald Engineering Company. From the study they are producing screw and rivets according

to the required sizes by using machineries. The wastage of the production is 2%. The quality of

the product is good. The capital will be flow directly from the managing director. They are

marketing their product to the company by their own vehicles. The short term as well as long

term financial position of the company is effective, hence the overall study reveals that the

efficiency and effectiveness of the company in managing the fund is good.


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BIBLIOGRAPHY

S.N.Chary, Productions and Operations Management, Tata McGrawHill Publishing,

2004.

R.Paneer Selvam, Production and Operations Management, Prentice Hall of India, 2007.

Crainfield, Marketing Management, Palgrave Macmillan, 2007.

K.Aswathappa Human, Resources and Personnel Management, Tata McGrawHill

Publishing, 2005.

Kothari, Research Methodology, New Age Publishers, 2005.

A Summer Training Report on Emerald Engineering Company

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