In-Plant training Report on PVC PUMPS PVT LTD

8/20/2019 In-Plant training Report on PVC PUMPS PVT LTD

1/54

PVC PUMPS PVT. LTD., DAVANGERE

Bapuji Academy Of Management & Research 1

An Overview of Indian Pump Industry

Pumps play a dominant role in the sectors like agriculture, production of oil and natural gas,

petroleum refining, petrochemicals, power generation, domestic and household utilities, etc,

and contribute a major part in nation‟s economy.

Rajiv C. Amin

Pum p is not a new concept in the Indian industry. In fact, the „Pichkari‟ which Lord Krishna

and his playmates used for splashing colored water on Gopi's, can be termed as the oldest

reference to a pump concept, especially of the reciprocating plunger type. Thus, pumps must

be an Indian invention, but commercial production of pumps in India, as contemporarily

understood, is quoted to be way back in the first decade of twentieth century.

Manufacturing Scenario

Presently, the gross value of pump‟s production in India is estimated to be in the order of

US$ 450 million (approx. 1.2 million No.).The scales of production and corporate structures

of manufacturers range from the small scale industries, medium to large scale industries, both

in the unorganized sectors and also public sector units.

In terms of drive ratings, the range of manufacture extends from fractional horsepower

designs to large pumps of drive rating of the order of three MW. Almost all types of pumps,

manufactured internationally, are also made in India.

Demand and Supply Situation

Indian pumps have contributed to the nation‟s economy significantly. Prominent sectors

amongst them are agriculture, onshore and offshore production of oil and natural gas,

petroleum refining, petrochemicals, mining, ship-building and marine duties, power

generation, public water supply and sanitation, domestic and household utilities, process

industries producing fertilizers, insecticides, pesticides, drugs and pharmaceuticals, textiles,

soaps and detergents, cosmetic and health care products, dairies, vegetable oil and processed

and packed food products, breweries, paints, etc.

Indian pump manufacturers seem to fulfill all the demands of pump-usage, since imports are

not very significant. Some special construction pumps of special materials used for special

duties like requirements of very fine vacuum are also imported. The quantities are small

although the unit cost of these pumps may be high.

Globalization of Indian economy increased enthusiasm of some importers to sporadically

import a few container-loads of run-of-the mill type pumps for agriculture and domesticduties. However, those events do not seem to have caught any fancy in the Indian markets.


2/54



Pump automatically gets imported with systems, not de-packaged for items that can be

procured indigenously. Yet,

Users do seek import substitutes due to the cost-effectiveness of Indian manufacture and for

better guarantee of support with respect to after-sales service.Technologies, Collaborations and Indigenous R&D

Most of the world-renowned technologies have been operative in India. Majority of them

seem to be European, to name a few, KSB, Seltzer, Weir, SPP, Allweiler, Bornemann,

Alsthom, Stork, Terromecanica, Godiva, Pleuger, Grundfos, ABS, Flight, Denver Orion, etc.

Amongst them American, Japanese and Australian technologies can be sighted in

Worthington-Dresser, Ingersoll Rand, Gould‟s, Durco, Ebara, Asia LMI, Warman, etc. Indian

technical skills and engineering aptitudes have shown good capabilities of almost immediateabsorption of the involved design, manufacturing and quality control specifications and

application engineering needs. That gives a good picture of the internationally competitive

field already in play in India.

The Indian craftsman often enterprises in reverse engineering at very competitive costs.

Amongst the notable achievements of indigenous development and R&D can be cited, the

primary coolant pumps and sodium coolant pumps for nuclear power, large 2250 mm

delivery-size vertical turbine pumps and concrete volume pumps for cooling water circulation

in thermal power generation can also be cited.

Cavitations studies and CFD (Computational Fluid Dynamics) analysis of flow patterns at

pump suction and deriving improvements in pump and sump designs are all becoming

common practice.

Indian pump industry: Marching on the growth path

India has been a traditional producer of pumps with a seven decade history. However, it is

only with the recent globalization that the country is marking and increasing its presence inthe world pump market.

While major global economies are still feeling the effects of the 2009 recession, signs of

strength are occurring in the Indian economy. Investor confidence has largely been restored,

and investments that had been suspended due to the slowdown in demand are beginning to

pick up pace.

Water has become a crucial commodity in many regions, India not excluded. Emphases on

water quality, coupled with stringent wastewater discharge regulations, are creating


3/54



opportunities for the water and wastewater space to see the potential for significant growth.

This creates an opportunistic scenario for pumps suppliers.

Reasons for pump market growth

India has been a traditional producer of pumps with a seven decade history. However, it is

only with the recent globalization that the country is marking and increasing its presence in

the world pump market. India produces more than two million pump units per year, with

about 95 percent of demand accounted for by domestic manufacturers and imports making up

the remaining percentage.

The water and wastewater sector is one of the top three end-user markets for pumps in Indiaand is expected to be a strong area of demand for pump manufacturers through the next

decade.

Several key factors are driving opportunity and growth in the Indian water and

wastewater industry, as well as the pump industry as a whole:

Maintaining and enhancing water quality: Increased regulations, efficient legislation and

pragmatic guidelines are expected to be areas of focus. This is important if environmentaldegradation is to be eventually controlled and reversed. Compliance will become an

important measure for the industry.

Infrastructure expansion: India‟s gross domestic product (GDP) growth has hovered at

about 8 percent, and infrastructure-related development investments in the 11th Five Year

Plan are planned in the multiple billions.

Challenges in water management, created by several factors:

1. India‟s growing economy, increasing middle class, expanding inf rastructure and vast

agricultural region are contributing to water challenges. India is the world‟s largest

user of groundwater, using about 230 cubic kilometers every year (more than one

quarter of the global total). With the prevalent drought conditions in many arid states

due to inadequate rainfall, groundwater levels have been depleting at a rapid pace.

This is expected to increase demand for pressure booster and deep well submersible


4/54



pumps to draw water from greater depths.

2. Urbanization of the country has lead to the migration of more than one billion people

from villages to major cities, creating pressure on the existing infrastructure,including the delivery of utility water after removal and treatment of wastewater.

3. Rising consumption and decreasing supply of uncontaminated water is driving the

growth of desalination plants in this country, also a boon for pumps.

India‟s emergence as a low-cost manufacturing hub India has a dual advantage of low-cost

labor and highly technical, skilled manpower. This is an enticing proposition to the western

multinational pump manufacturers that can set up manufacturing facilities and reduce production costs by substantial levels. This scenario facilitates not only addressing the

increasing domestic demand but also in exporting pumps to neighboring regions, including

the Asian growth engine countries. Growing real estate/housing sector growth in this specific

portion of infrastructure is expected to increase demand for energy efficient water pumps,

offering both cost savings and reduction of carbon footprint.

Market challenges

While this market holds great promise for increasing pump revenues in the water and

wastewater space, many factors challenge sustained market growth. One is the continued

potential for political instability, which can have significant negative effects on projects

funded by the government. A change in government tends to delay or abolish planned

projects, particularly in the water and wastewater sector. A further issue is the inconsistency

in the implementation of environmental standards at the state level. This is a major restraint

on market growth in the most states don‟t have systems in place to monitor water pollution

levels sufficiently, systematically and consistently. Moreover, environmental agencies have

not been granted firm support or influential legislative mandates, limiting their capacity to be

effective. A lack of conscious efforts for the enforcement of environmental legislation can

affect the growth in the pumps market.

Projected growth

In spite of these issues, the overall Indian pumps market in the water and wastewater sector is

expected to continue in growth mode. The figure 1 shows forecast for this industry through


5/54



2016. In figure 1, revenues in the base year of 2010 were an estimated 5,635.8 million Indian

rupees (INR), which translates, based on January 2011 conversion rates, to just under $124

million (which includes both centrifugal and positive displacement [PD] pumps). Currently

centrifugal is the bulk of this number, constituting approximately over 95 percent ofrevenues. While growth is expected for both types of pumps, centrifugal units are expected to

continue to be heavily favored in demand. The compound annual growth rate for pumps in

this sector is forecast at just over 18percent, based on the growth trends indicated for the

country as well as the industry.

Centrifugal pumps play a pivotal role in municipal water supply and irrigation projects. With

many projects lined up in both these areas during the forecast period, strong growth is projected for these units. PD pumps are largely confined to wastewater treatment and sanitary

requirements. Lack of awareness among end users and consultants about the energy savings

potential from these units is a deterrent for growth in this type pump. Overall, rising water

demand in India due to increasing population and rapid urbanization is expected to drive a

variety of infrastructure activities, from industrial/commercial/ municipal water treatment and

distribution to wastewater applications to desalination projects. Additionally, increased

regulations and more strict compliance enforcement point to a robust scenario for the water

and wastewater sector in India over the next decade.


6/54



COMPANY PROFILE

3.1 BACKGROUND AND INCEPTION OF THE COMPANY

Name of the company - PVC Pumps Private Limited

Year of Incorporation - 1989

Board of directors: - Mr. T.M Chandrakhanth

Smt. Latha

Smt. Sumithra

Smt. Parvathamma

Legal Status - Private Limited Company

Unit Under reference - Lokikere cross Davangere.

PVC Pumps private ltd is leading manufacturer and of Submersible pumps, PVC PUMPS.

PVC Pumps (P) Ltd in 1989 which is registered as a private limited company under

companies act.

Approach wise company will keep minute to minute touch with their associates whether it

may be creditors, Vendors, Customers, Employees to enable the company to achieve lasting

companionship.

3.2 NATURE OF BUSINESS CARRIED

PVC Pumps Private ltd is a Manufacture of Submersible pumps:

Submersible pumps

The product ranges are as below:

100 mm single phase pumps

100mm 3 phase submersible pumps



7/54



Open well 3 phase submersible pumps


Self Fleming pumps

The material of pumps shall conform to the grades as per IS 8034 and 9283 are any other

standard as per customer requirements. The pumps capacity for 0.5HP to 20HP and installed

capacity 500 pumps per month.

The list is exhaustive however PVC PUMPS will make anything and everything clients look

for in precision Submersible pumps.

It includes purchase of raw materials and conversion of raw material into finished goods and

selling of finished goods into their clients.

PVC PUMPS purchase raw material from:

High-Tech Industries Jaipur

CVC Trading Co (Bangalore)

Kaveri Engineering Co

Minol Enterprises

Ganesh Engineering Works (Ahmadabad )

3.3 VISION, MISSION AND QUALITY POLICY

Vision:

“To be the most successful submersible pump manufacturer/ supplier in Karnataka”

Mission:

“To manufacture and supply quality submersible pumps at right time to satisfy continuous.”

Quality Policy:

‟ To manufacture and supply quality submersible pumps as per Is-standards at right

time to satisfy customer requirements through continuous improvements‟‟


8/54



The quality policy was declared by managing director in a meeting of all employees called by

him on 25.03.2001. He explained the meaning of quality policy & intention of management

in terms of organisational commitment.

He explained the roles of each and every individual towards achievement of quality policy

through quality objectives.

The quality policy boards written in both English & Kannada are displayed in the

organisation at prominent places.

The deployment of quality policy among the staff is done through ground discussions.

Deployment of the quality policy among the workman is done through group discussion by

respective HOD.

“We at PVC pumps private ltd are committed towards achieving total customer satisfaction

by providing quality product at right time, through team work at all levels of our

organization”

PVC pumps have been giving a better quality product to their clients from many years. Since

they are producing better quality products, now they have already got ISO 9001:2008

Quality policy is realized throughout the organization by

Communicating the quality policy to all the employees in a systematic manner

Monitor and follow-up results on a continuous basis

Implementing continual improvement processes throughout the organization

Quality objectives of the organization are

To define and document customer requirements and review effectively so as to

ensure customer satisfaction.

To procure quality materials and services from approved sources.

To process quality products through continues monitoring and improvements in

process and technology.

Optimum utilization of resources to supply quality products consistently.

To work as a team and motive each other each other to common goal.


9/54



To shoulder social responsibility by keeping safe and hygienic environment.

Optimal utilization of critical machinery as well as consistently meeting the customer

delivery requirements.

PRODUCT PROFILE

PVC PUMPS manufactures a wide range of pumps components based upon the specific

needs of their clients. The various products of PVC PUMPS are as follows:

Submersible pumps

The product ranges are as below:

100 mm single phase pumps





Self Fleming pumps

3.5 AREA OF OPERATION:

Plot No 1-C, K.IADB. Industrial Area,

Lokikere Road, DAVANGEREGE – 577005

3.6 OWNERSHIP PATTERN:

Name of the shareholder Relationship with promoters Share in capital

Mr. Prasad Promoter 60%

Mr. Vijayakumar Cousin 20%

Mr. Chandrakhanth Cousin 20%


10/54



Competitor’s information

Asian Pumps Pvt Ltd,

Bangalore.

Vinayaka Industry,

Hiriyur.

Bairavi Industries,

Sondur.

INFRASTRUCTURAL FACILITIES:

All infrastructure facilities required to support the organizational processes are provided. This

includes buildings, workspace and associated utilities, process equipment, tools and

supporting services.

Area:

Unit 1: 2400 sq. ft built up area and 50000 sq. ft open area

Other facilities:

It has a separate plant and modern technology for producing product.

Rest room facilities

Water facility

Company provides security measures for employees.


11/54



ORGANISATION STRUCTURE AT PVC PUMPS

Chart No: 1 showing organisation structure Of PVC Pumps.

MANAGING DIRECTOR

SIC Stores SIC - QA

HOD PURCHASE HOD - QAHOD -PPC HOD –MARKETING

MANAGERASST.MANAGER


12/54



FUNCTIONAL AREA’S AT PVC PUMPS

Chart No: 2 showing functional areas of PVC pumps.

5.1 PRODUCTION DEPARTMENT

5.2 FINANCE DEPARTMENT

5.3 MARKETING DEPARTMENT

5.4 HUMAN RESOURCE DEPARTMENT

5.5 QUALITY DEPARTMENT & QMS

5.6 MAINTENANCE DEPARTMENT

5.7 SUBCONTRACTOR & LOCAL LOGISTICS RECEIVING


13/54



PRODUCTION DEPARTMENT

STRUCTURE OF PRODUCTION DEPARTMENT AT PVC PUMPS

Chart No: 3 showing structure of production department of PVC pumps.

PRODUCTION

Production is the process by which raw material and other inputs are converted into finished

goods.

PRODUCTION MANAGEMENT

Production management refers to application of management principles to the production

function in a factory. In other words, production management involves application of

planning, organizing, directing and controlling to the production process.

Production function can offer competitive advantages to a firm in the following areas:

Shorter new- product-lead time.

More inventory turns.

Shorter manufacturing lead time

Higher quality.

Better customer service.

Reduced wastages.

BOARD OF DIRECTORS

MANAGING DIRECTOR

ASST.MANAGER PRODUCTIONOFFICE ASST. SUPERVISORS

OPERATORS

& HELPERS


14/54



PRODUCTION ACTIVITIES AT PVC PUMPS:

PVC PUMPS comprises of advanced production unit guided by assistant production

manager. The activities of production department start from production planning.

The responsibilities and authorities vested with production in-charge are as follows:

Daily production planning.

Production monitoring.

Review of non-conforming products.

Production as well as quality control.

Production equipment maintenance and repair.

Health and safety.

ISO Documentation.

Attending external audits.

MANUFACTURING (PRODUCTION) PROCESS AT PVC PUMPS:

The basic step involving in manufacturing process consists of:

Incoming Inspection

Cutting


15/54



Lathing

Pressing

Winding

Assembling

Fitting

Quality Test ( Performance Test )

Painting

Packing

Forwarding

MANUFACTURING PROCESS FLOW CHART:

Chart No: 4 Showing Manufacturing Process Flow Chart.

RECEIVE

CUSTOMER ORDER

PURCHASE PO TO

SUPPLIER

RECEIVE RAW

MATERIAL FROM

SUPPLIER

INCOMING INSPECTION

CUTTING

PRESSING

LATHING

WENDING ASSEMBLING

FITTING

QUALITY TESTING

PERFORMANCE CHECKING

RECEDICLARATION OF ISI

FINAL INSPECTION

PAINTING

DISPATCH

PACKING


16/54



Customer order is received on monthly basis. Raw material and subcontract parts are received

through Invoice/DC as applicable along with the Self inspection reports or Test certificates,

where applicable.

Incoming Inspection:

Preliminary inspection is done by the stores personnel for verification of the part no, grade,

quantity, and packing etc. The discrepancies on the preliminary inspection is entered in the

DC/invoice and communicated to the supplier. For hardware no inspection except for

quantity carried out. Consumable and spares are inspected against, visual defects, brand

name, type code and quantity and updated in the Bin Card. Inspections of all incoming

material are taken up against the General Inspection plan and the respective drawings or

specifications. The results of the inspection are recorded. Tools are inspected for specification

and against drawings as necessary for the purchase of the same. On occasion of material

rejected at the incoming stage, a supplier Defect notice is raised and is forwarded along with

rejected parts to the supplier and the same is followed up by the QA In charge

Lathing

A lathe is a machine tool which rotates the work piece on its axis to perform various

operations such as cutting, sanding, knurling,drilling, or deformation with tools that are

applied to the work piece to create an object which has symmetry about an axis of rotation.

Lathes are used in metalworking, metal spinning, Thermal spraying/ parts reclamation, and

glass-working. Lathes can be used to shape pottery, the best-known design being the potter's

wheel. Most suitably equipped metalworking lathes can also be used to produce most solids,

plane surfaces and screw threads or helices. Ornamental lathes can produce three-dimensional

solids of incredible complexity. The material can be held in place by either one or

two centers, at least one of which can be moved horizontally to accommodate varying

http://en.wikipedia.org/wiki/Machine_toolhttp://en.wikipedia.org/wiki/Axis_of_rotationhttp://en.wikipedia.org/wiki/Cuttinghttp://en.wikipedia.org/wiki/Sandinghttp://en.wikipedia.org/wiki/Knurlinghttp://en.wikipedia.org/wiki/Drillinghttp://en.wikipedia.org/wiki/Deformation_(engineering)http://en.wikipedia.org/wiki/Rotational_symmetryhttp://en.wikipedia.org/wiki/Axis_of_rotationhttp://en.wikipedia.org/wiki/Metalworkinghttp://en.wikipedia.org/wiki/Metal_spinninghttp://en.wikipedia.org/wiki/Thermal_sprayinghttp://en.wikipedia.org/wiki/Potteryhttp://en.wikipedia.org/wiki/Potter%27s_wheelhttp://en.wikipedia.org/wiki/Potter%27s_wheelhttp://en.wikipedia.org/wiki/Potter%27s_wheelhttp://en.wikipedia.org/wiki/Potter%27s_wheelhttp://en.wikipedia.org/wiki/Potteryhttp://en.wikipedia.org/wiki/Thermal_sprayinghttp://en.wikipedia.org/wiki/Metal_spinninghttp://en.wikipedia.org/wiki/Metalworkinghttp://en.wikipedia.org/wiki/Axis_of_rotationhttp://en.wikipedia.org/wiki/Rotational_symmetryhttp://en.wikipedia.org/wiki/Deformation_(engineering)http://en.wikipedia.org/wiki/Drillinghttp://en.wikipedia.org/wiki/Knurlinghttp://en.wikipedia.org/wiki/Sandinghttp://en.wikipedia.org/wiki/Cuttinghttp://en.wikipedia.org/wiki/Axis_of_rotationhttp://en.wikipedia.org/wiki/Machine_tool


17/54



material lengths. Other work-holding methods include clamping the work about the axis of

rotation using a chuck or cullet, or to a faceplate, using clamps or dogs.

Examples of objects that can be produced on a lathe include candlestick holders, gun

barrels, cue sticks, table legs, bowls, baseball bats, musical instruments (especially woodwindinstruments), crankshafts, and camshafts.

PURCHASE DEPARTMENT

Purchase department is responsible for co-coordinating the acquisition of the goods and

ensuring that the management receives the beast value for its money spent on its goods and

services.

MISION OF PURCAHSE DEPARTMENT

The mission of purchase department is to purchase equipment, materials, supplies and

services when needed, in the Right Quality, in the Right Quantity, at the Right Price and from

the Right Source.

STRUCTURE OF PURCHASE DEPARTMENT AT PVC PUMPS

Chart No: 5 Showing Structure Of Purchase Department At PVC Pumps.

PURCHASE DEPARTMENT

MANAGER

ASST. MANAGER

http://en.wikipedia.org/wiki/Candlestickhttp://en.wikipedia.org/wiki/Gun_barrelhttp://en.wikipedia.org/wiki/Gun_barrelhttp://en.wikipedia.org/wiki/Cue_stickhttp://en.wikipedia.org/wiki/Furniture#Tablehttp://en.wikipedia.org/wiki/Bowl_(vessel)http://en.wikipedia.org/wiki/Baseball_bathttp://en.wikipedia.org/wiki/Woodwindhttp://en.wikipedia.org/wiki/Woodwindhttp://en.wikipedia.org/wiki/Crankshafthttp://en.wikipedia.org/wiki/Camshafthttp://en.wikipedia.org/wiki/Camshafthttp://en.wikipedia.org/wiki/Crankshafthttp://en.wikipedia.org/wiki/Woodwindhttp://en.wikipedia.org/wiki/Woodwindhttp://en.wikipedia.org/wiki/Baseball_bathttp://en.wikipedia.org/wiki/Bowl_(vessel)http://en.wikipedia.org/wiki/Furniture#Tablehttp://en.wikipedia.org/wiki/Cue_stickhttp://en.wikipedia.org/wiki/Gun_barrelhttp://en.wikipedia.org/wiki/Gun_barrelhttp://en.wikipedia.org/wiki/Candlestick


18/54



PURCHASE DEPARTMENT AT PVC PUMPS

Purchase department at PVC PUMPS involves highly qualified personnel for the best

purchase. Purchase department is concerned with purchasing all the materials required in the

operation of the company. Purchase includes both cash and credit purchase.

PVC PUMPS has developed a supplier evaluation form whose criteria should be met by the

required supplier based upon which supplier are selected i.e., approved vendor list is prepared

for those who are being selected.

Production department identifies the need for the raw materials and notice to purchase

department and finally purchase department take purchase action.

The responsibilities and authorities vested with purchase head are as follows:

Purchasing of raw material/brought out items.

Supplier corrective actions.


VENDOR’S LIST FOR SOME RAW MATERIAL

CAST IRRON SUPPLIERS:

GANESH ENGINEERING WORKS (AHAMEDA BADH)

BLACK PAIPS SUPPLIERS:

CVC TRADING CO (BANGALORE)

45 MM BASED STEEL SHAFT SUPPLIERS:

KAVERI ENGINEERING CO

MINOL ENTERPRISES

WENDING WIRES SUPPLIERS, SUBMERSIBLE 3 CORE PLANT CABLE

HIGH-TECH INDUSTRIES JAIPUR


19/54



PURCHASE PROCESS AT PVC PUMPS

Chart No: 6 Showing Purchase Process At PVC Pumps.

STORE DEPARTMENT

STRUCTURE OF STORE DEPARTMENT AT PVC PUMPS

Chart No: 7 Showing Structure Of Store Department At PVC Pumps.

PURCHASE INDENT

PURCHASE ORDER

QUALITY INSPECTION

GRN (GOODS

RECEIVED NOTE)

PREPARATION

INWARD (MATERIAL)

STORE DEPARTMENT

MATERIAL HANDLER


20/54



STORE

According to oxford dictionary definition:

“Store as building where goods are kept.”

Stores or storage is the function of receiving, storing and issuing material. Store is not meant

for stocking purchase material alone. Partly finished goods, finished goods, spares and

consumables stores are also kept in store.

FUNCTION OF STORES

To receive raw materials and account for them.

To provide adequate and proper storage and preservation to the various items.

To meet the demands of the consuming departments by proper issues and account for

the consumption.

To minimize obsolescence, surplus and scrap through proper codification,

preservation and handling.

To highlight stock accumulation, discrepancies and abnormal consumption and effect

control measures.

To ensure good housekeeping so that materials handling, materials preservation,

stocking, receipt and issues can be done adequately.

To assist in verification and provide supporting information for effective purchase

action.

VARIOUS TECHNIQUES OF INVENTORY CONTROL USED BY STORE HEAD

FIFO

LIFO

TWO BIN system

STORE DEPARTMENT AT PVC PUMPS

At PVC PUMPS all the material purchase are systematically stored by assigning certain

numerical codes to particular materials so that the required components/materials can be


21/54



easily located at the time of requirement. Store department works in cordial relationship with

purchase and production department.

INVENTORY CONTROL TECHNIQUES USED AT PVC PUMPS

FIFO(First In First Out)

LIFO(Last In First Out)

The responsibilities and authorities vested with store head are as follows:

Receipt & issue of accepted materials.

Bin card maintenance.

Maintaining of minimum stock.

Monthly stock statement preparation.

Shelf life items monitoring and control.

Control of hazardous materials.

ISO Documentation.



22/54



FINANCE DEPARTMENT

STRUCTURE OF FINANCE DEPARTMENT AT PVC PUMPS

Chart No: 8 showing structure of finance department at PVC pumps.

FINANCE

Finance may be defined as the provision of money at the time when it is required. Finance

refers to the management of flows of money through an organization. It concerns with the

application of skills in the manipulation, use and control of money. Finance is so

indispensable today that it is rightly said to be the lifeblood of an enterprise.

BUSINESS FINANCE

Business finance can be defined as an activity or a process which is concerned with

acquisition of funds, use of fund and distribution of profits by a business firm. Thus, business

finance usually deals with financial planning, acquisition of funds, use and allocation of

funds and financial controls.

According to Guthmann & Dougall:

“Business finance can be broadly defined as the activity concerned with the planning, raising,

controlling and administrating the funds used in the business.”

The finance department has been the brain of the organization. That‟s why it is called as the

lifeblood of the organization.

ADMINISTRATIVE DEPARTMENT

ACCOUNTS

ASST. MANAGER ACCOUNT

ACCOUNT ASSISTANT


23/54



The basic functions of financial department are as follows:

Monitoring the financial transaction.

Capital expenditure analysis.

Raising and managing the funds.

Working capital management.

Analysis and interpretation of financial statement.

FINANCE DEPARTMENT AT PVC PUMPS

PVC PUMPS has a well developed finance department which is headed by managing

director, director technical and assistant manager‟s account. Finance department play an

important role in the functioning and coordinating of all department of the organization.

The total turnover of the company is more than 2 crores in the last 2010 – 2011.

PVC PUMPS has a well established finance department which is computerized using

TALLY.

Mostly used source of finance at PVC PUMPS is bank finance.

Major functions of financial department at PVC PUMPS are as follows:

Maintaining of books of accounts.

Bills payable.

Cash and bank payments.

Raw material purchase payments.

Dispatch documents.

Central exercise and sales tax.

Inventory and store evaluation.

ISO Documentation.

Attending external audit.


24/54



MARKETING DEPARTMENT:

TYPICAL STRUCTURE OF MARKETING DEPARTMENT

Chart No: 9 showing typical structure of marketing department.

MARKETING

According to American Marketing Association

“Marketing is the process of planning and executing the conception, pricing, promotion and

distribution of ideas, goods and services to create exchanges that satisfy individual and

organizational objectives.”

IMPORTANCE OF MARKETING

Chart No: 10 showing importance of marketing.

MARKETING DIRECTOR

RESEARCHSALES

PROMOTION

IMPORTANCE OF MARKETING

To consumers To societ To the firm

-Provide information

-Provide satisfaction

-Selection facility

-Increase standard of living

-Creation of utilities

-Provide employment

-Delivery standard of living

-Protection from depression

-Increases national income

-Business planning and

decision making

-Developing successful

exchanges

-Helpful in increasing profits

-Communication with societ


25/54



MARKETING DEPARTMENT AT PVC PUMPS

Every organization involves marketing department. However, the degree of marketing

depends upon the nature, product of the organization.

PVC PUMPS doesn‟t have any specialized or particular product i.e., product are designed

and produced as per the needs and order of the customer. So, PVC PUMPS lacks an effective

marketing department.

Major product of PVC PUMP is:

Submersible pump

The formulation of marketing strategies is originated towards the 4p‟s of marketing are

explained below

PRODUCT

Product is anything that can be offered to satisfy customer need.

PVC PUMPS doesn‟t deals with any particular types of product. Since it fabrication

based industry it produces any variety of products as per the design and need of

customers.

PVC PUMPS products are unique and high quality. It has designed its strategy

keeping in view the customer satisfaction and quality products released to the market.

The following features of the product are considered before releasing a product for

sale.

- Quality

- Brand

- Packing

- Design etc

PRICE

Price stands for the amount of money customers have to pay to obtain the product.

The marketing manager should determine the price in such a way that the firm is able


26/54


27/54



5.4 HUMAN RESOURCE DEPARTMENT

TYPICAL STRUCTURE OF HR DEPARTMENT

STRUCTURE OF HUMAN RESOURCE DEPARTMENT AT PVC PUMPS

Chart No: 11 showing structure of human resource department at PVC pumps.

HUMAN RESOURCE MANAGEMENT

Human Resource Management (HRM is about managing people. It is concerned with

management of human energy and competencies.

According to Decenzo & Robbins:

“HRM is responsible for getting competent people, training them, getting them to perform at

high effort level, & providing mechanisms to ensure that these employees maintain their

productive affiliation with the organization”.

Basic HR function involves recruitment, selection, training & development, motivation,

performance appraisal, compensation management, labor relation/industrial relation,employee welfare etc.

PROMOTER

MANAGER

CLERKS

HUMAN RESOURCE DAPARTMENT

PRODUCTION PURCHASE

STORE

QUALITY & QMS

MAINTENANCE

SUBCONTRACTOR

& LOGISTICS


28/54



HUMAN RESOURCE AT PVC

Human resource department at PVC PUMPS is managed under the control of manager Mr.

NAGARAJ. PVC PUMPS consists of highly experienced semi skilled staff directing the

operation in PVC PUMPS. All personnel go through regular training.

PVC PUMPS currently employed 10 employees as:

6 permanent workers including

4 temporary workers including

Team comprises of various individuals involved in various activities such as:

Raw material procurement staff.

Quality checkers.

Production specialists.

Machine operators.

Semi skilled & unskilled labors.

RECRUITMENT

According to Edwin B Flipped:

“Recruitment is the process of searching for prospective employees and stimulating then to

apply for the job”.

INTERNAL RECRUITMENT AT PVC PUMPS

At PVC PUMPS mostly the following internal recruitment takes place:

Employee referrals.

EXTENAL RECRUITMENT AT PVC PUMPS

PVC PUMPS mostly recruit employees externally through:

Labor contractor


29/54



Besides, employees referrals too.

Advertisement

INTERVIEWS conducted at PVC PUMPS are mostly

Face-To-Face interview.(oral)

Interview by assigning the actual task to perform to those who have gained

experienced in that field.

TRAINING & DEVELOPMENT PROGRAMMES AT PVC PUMPS

According to Dcenzo & Robbins:

“Training is a learning experience in that it seeks a relatively permanent change in an

individual that will improve the ability to perform on that job.”

PVC PUMPS spend adequate amount of time and money on training and development

programmers such as:

Once in a year “safety training” is conducted.

Orientation classes are conducted to make the new recruits adaptable to the

organization culture, organization environment.

Training from superiors

EMPLOYEE WELFARE/SERVICES AT PVC PUMPS

PVC PUMPS have good HR policies for employee salary & wages, Incentive, medical care,

accident relief and insurance as mentioned below:

Salary & wages depends upon qualification, level and experience of the employees.

At PVC PUMPS,

Minimum salary Rs.4000 (Gross)

Maximum salary Rs.15000 (Gross)

Bonus employees working for 1 month are eligible for bonus.

Bonus is calculated minimum 8.33%

Incentive is almost double of salary.


30/54



Employee state insurance (ESI) scheme of INDIA is a multidimensional social security

tailored to provide socio-economic protection to worker population and their dependents

covered under the scheme.

ESI is applicable for only those whose gross salary is less than Rs.15000. premium is not

refundable. ESI premium is calculated on the gross pay (salary) as:

1.75% of gross pay-----Employee side

4.75% of gross pay------Employer side

Medical care includes ESI scheme, First aid box.

PVC PUMPS provides cool and safe drinking water, washing and well maintained toilet

facilities within the company premises.

Uniform is provided twice a year.

SAFETY AND HEALTH MEASURE AT PVC PUMPS

PVC PUMPS is highly concerned about employee safety and health measures.

For ensuring safety and health they provide:

Safety shoes.

Gloves.

Safety training once in a year.

Eye care glasses.

First aid box


31/54



QUALITY DEPARTMENT AND QMS

STRUCTURE OF QUALITY DEPARTMENT AT PVC PUMPS

Chart No: 12 showing structure of quality department at PVC pumps.

QUALITY

Quality may be defined as sum total of features of a product which influence its ability to

satisfy given demand. Dimension of quality includes performance, features, reliability,

serviceability, appearance, customer service, safety.

QUALITY CONTROL

QC refers to all those functions or activities that must be performed to fill the company

quality objectives. “It is an approach to prevent the defects rather than detecting the defects.”

QUALITY CONTROL AT PVC PUMPS

Quality policy of PVC PUMPS

“We at PVC PUMPS private Ltd are committed towards achieving total customer

satisfaction by providing quality product at right time, through team work at all levels of our

organization.”

QC department of PVC PUMPS includes highly qualified and experienced workforce. They consistently monitor and verify all components at every phase of the

manufacturing cycle from inception of raw material to final inspection of Finished Goods.

The responsibilities and authorities vested with QC head are as follows:

Inspection of incoming, process and finished goods.

Preparation of inspection Reports.

Attending the customer complaint.

QUALITY DEPARTMENT

QUALITY MANAGER


32/54



Interact with customer on non- conformities.

Interact with supplier on quality issue and develop action plan for improvement.

Monitoring of customer complaints and communicating to relevant personnel in the

organization.


MAINTENANCE DEPARTMENT:

STRUCTURE OF MAINTENANCE DEPARTMENT AT PVC PUMPS

Chart No: 13 showing structure of maintenance department at PVC pumps.

MAINTENANCE

Maintenance is defined as the function of production management that is concerned with day

– to-day problem of keeping the physical plant in good working condition.

MAINTENANCE MANAGEMENT

Maintenance management is concerned with planning, organizing and directing the resources

in order to control the availability and performance of the industrial plants to some specified

level.

MAINTENANCE TYPE

Break down or corrective maintenance.

Preventive maintenance.

Predictive maintenance.

Routine maintenance.

Planned maintenance.

DIRECTOR

MAINTENANCE DEPARTMENT


33/54



MAINTENANCE DEPARTMENT AT PVC PUMPS

Maintenance department in PVC PUMPS is concerned with maintaining the healthy

condition of the machines and equipment of the company for regular operations.

In PVC PUMPS daily, weekly, monthly maintenance activities are carried on. Maintenance

department at PVC PUMPS.

The responsibilities and authorities vested with maintenance department are as follows:

Preventive and Breakdown Maintenance of machines of machine

Maintenance of tools.

New installation of equipment.

Keeping stock of spares.

Plant protection.

Waste disposal.

ISO Documentation.

Attending external audits

SUB - CONTRACTOR & LOCAL LOGISTICS RECEIVING:

STRUCTURE OF SUB-CONTRACTOR &LOCAL LOGISTICS AT PVC PUMPS

Chart No: 14 showing structure of sub-contractor &local logistics at PVC pumps.

SUB-CONTRACT INCHARGE

METERIAL HANDLER

SUB CONTRACT & LOCAL LOGISTICS RECEIVING


34/54



SUB-CONTRACTOR

A sub-contractor is an individual or in many cases a business that signs a contract to perform

part or the entire obligation of another‟s contract.

LOGISTICS

The process of planning, implementation and controlling the efficient, effective flow and

storage of goods, services and related information from point of origin to point of

consumption for the purpose of conforming to customer requirement.

SUB-CONTACTOR AT PVC PUMPS

PVC PUMPS deals with several sub-contractors in course of manufacturing the particular

product.

A product may comprise of several parts. Thus for cost effectiveness, time-saving, quality

etc PVC PUMPS enter into sub-contracts manufacturing of such components/assemblies.

The responsibilities and authorities vested with the In – charge of sub-contractor andlocal logistics receiving are as follows:

Receipt of the inward material, verification of qty, physical damage and documents

GRN preparation and offering to inspection

Sending materials for job work and receiving materials from job work

ISO Documentation.



35/54



MC KINSEY’S 7S MODEL

Chart No: 15 showing MC KINSEY‟S 7S model.

Application of Mc Kinsey‟s 7s model

The 7-S model is better known as McKinsey 7-S model. This is because of two

persons who developed this model, Tom Peters and Robert Waterman, have been consultants

at McKenzie‟s & co. at the time. The model starts on the premise that an organization is not

just structure, but consists of seven elements.

The 7-S model is a tool for managerial analysis and action that provides a structure with

which to consider a company as a whole so that the organizations problems may be

diagnosed and a strategy may be developed and implemented. The 7-S is a framework for

analyzing organizations and their effectiveness. It looks at seven key elements that make the

organizations and their effectiveness:

Structure

Skill

Style

Strategy

System

Staff

Shared value.


36/54



Description of 7 Ss

SYSTEMS:

Every organisation has some systems or internal processes to support andimplement the strategy and run day-to-day affairs. For example, a company may follow a

particular process for recruitment. These processes are normally strictly followed and are

designed to achieve maximum effectiveness.

RECRUITMENT SYSTEM

INTERNAL RECRUITMENT AT PVC PUMPS

At PVC PUMPS mostly the following internal recruitment takes place:

Employee referrals.

EXTENAL RECRUITMENT AT PVC PUMPS

PVC PUMPS mostly recruit employees externally through:

Labor contractor

Besides, employees referrals too.

Advertisement

TRAINING SYSTEM

PVC PUMPS spend adequate amount of time and money on training and development

programmers such as:

Once in a year “safety, first aid and fire fighting training” are conducted.

Orientation classes are conducted to make the new recruits adaptable to the

organization culture, organization environment.

Training from superiors

Operative Training

STYLE:

This includes the Leadership style of top management and the overall operating style

of the organization. Style impacts the norms people follow and how they work and interact

with each other and with customer.


37/54



The management training is totally democratic there are no restrictions to any

employee to express his opinion. PVC Pumps has got open door policy i.e. any level of

employee can meet directly to his superior or managing director without any hesitation. This

leads to the free flow of communication within the organization.STAFF:

The people / human resource management- processes used to develop managers, socialization

processes, ways of shaping basic values of management cadre, ways of introducing young

recruits to the company, ways of helping to manage the careers of employees.

PVC PUMPS consists of highly experienced semi skilled staff directing the operation in PVC

PUMPS. All personnel go through regular training.

PVC PUMPS currently employed 10 employees as:

6 permanent workers including

4 temporary workers including

Temporary workers Permanent workers Total

Technical 4 2 6

Nontechnical 1 3 4

Total 5 5 10

Table No: 1 showing type of employees in PVC pumps.

SKILL:

Skills include the distinctive competencies that reside in the organization. These can

be distinctive competencies of people, management practices, systems and technology.

The employees need to have both specific as well as generic skills. Generic skillmean problem solving skills, decision – making skills, communication skill etc. Specific skill

means time management, shop floor management, building teams, leadership, Motivation,

creativity and environment. Shop floor employees are ITI and Diploma holder Mechanical

engineer Technicians.

STRATEGY:

Strategy refers to the systematic action and allocation of resources to achieve the

companies aim. The company is procuring the good quality of raw materials from local

suppliers, which increases their quality of the finished goods to meet the customer


38/54



expectations. The integrated vision and direction of the company as well as the manner, in

which it drives, articulate, communicates and implements that vision and direction. It can also

be defined as the choice of direction and action that the company adopts to achieve its

objectives in a competitive situation.

VISION, MISSION

Vision:

“To be the most successful submersible pump manufacturer/ supplier in Karnataka”

Mission:

“To manufacture and supply quality submersible pumps at right time to satisfy continuous.”

INVENTORY CONTROL TECHNIQUES USED AT PVC PUMPS

FIFO(First In First Out)

LIFO(Last In First Out)

The responsibilities and authorities vested with store head are as follows:

Receipt & issue of accepted materials.

Bin card maintenance.

Maintaining of minimum stock.

Monthly stock statement preparation.

Shelf life items monitoring and control.

Control of hazardous materials.

ISO Documentation.

SHARED VALUES/SUPER ORDINATE GOALS: All members of the organisation share

some common fundamental ideas or guiding concepts around which the business is built.

This may be to make money or to achieve excellence in a particular field. These values and

common goals keep the employees working towards a common destination as a coherent

team and are important to keep the team spirit alive.


39/54


40/54



PVC pumps having old machineries.

Lack of labor availability.

OPPORTUNITIES:

It is the major favorable situation in an organization‟s external environment. It provides

position of superiority in relation to competitors.

Government5 is given some exemptions to the company.

It can produce the pumps according to demand.

New technologies are increasing.

Increasing demand for pumps.

THREATS:

It is a major unfavorable situation in an organization‟s external environment. It provides

position of inferiority in relation to competitors.

Strong competitors.

Changes in technology.

Political or Environmental changes.

Lacks in financial strength.

Low quality materials supplied by the suppliers.

Insufficient supply of power.


41/54



PROFI T & LOSS ACCOUNT FOR THE YEAR ENDED 31 ST MARCH 2010 & 2011

Table No: 2 showing profit & loss account of PVC pumps.

PARTICULAR SCH NO

For the year ended

31st March 2010 RS

For the year ended 31st

March 2011 RS

1. INCOME :

Gross sales

Other

Total

2. EXPENDITURE:

Raw Materials Consumed

Manufacturing Expenses

Salary to Staff

Other Expenditure

Depreciation

Total

Net Profit Before Tax

Provision for FBT

Provision Of Current Year Tax

Profit After Tax

8

9

10

11

42,855,938

489,151

51,712,778

457,382

43,345,089 52,170,160

38,541,746

853,684

760,000

1,872,182

72,232

45,485,506

1,147,326

760,000

1,908,331

61,515

42,099,844 49,362,678

1,245,245

4,089

375,083

2,807,482

11,340

858,634

379,172 869,974

866,073 1,937,508


42/54



BALANCE SHEET AS ON 31 ST MARCH 2010

PARTICULAR SCH NO.

Rs As at 31st

March2010

SOURCES OF FUNDS:

Share holders’ funds :

Share Capital

Unsecured Loans

Subsidy

Secured Loan

TOTAL

APPLICATION OF FUNDS:

Fixed Asset :

Gross Block

Depreciation

Net Current Asset:

Current Assets Loans And Advances:

Closing Stock

Sundry Debtors

Cash in Hand

Cash at Bank

Deposits

Other Assets

Less: Current Liabilities & Provisions

TOTAL

1

2

3

4

6

5

7

100,000

1,935,340 2,035,340

355,000

27,900

1,160,605

3,252,479

587,124

3,578,845

2,665,355

913,490

225,000

6,509,920

77,302

1,384,918

6,779,082

787,259

15,763,481

14,849,991

3,578,845

Table No: 3 showing balance sheet of PVC pumps.


43/54



BALANCE SHEET AS ON 31 ST MARCH 2011

Particular SCH

NO.

Rs As at 31st

March2011

SOURCES OF FUNDS:

Share holders’ funds :

Share Capital

Unsecured Loans

Subsidy

TOTAL

APPLICATION OF FUNDS:

Fixed Asset :

Gross Block

Depreciation

Net Current Asset:

Current Assets Loans And Advances:

Closing Stock

Sundry Debtors

Cash in Hand

Cash at Bank

Deposits

Other Assets

Less: Current Liabilities & Provisions

TOTAL

1

2

3

4

6

5

7

100,000

3,872,848 3,972,848

355,000

27,900

3,252,479

648,639

4,355,748

2,603,840

1,751,908

355,650

5,321,245

65,595

847,622

4,739,851

1,305,879

12,635,842

10,883,934

4,355,748

Table No: 4 showing balance sheet of PVC pumps.


44/54



Ratio Analysis

SL NOs Type of ratio Standard ratio Company ratio

2011 2010

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

Current Ratio

Quick ratio

Debt equity ratio

Net profit ratio

Gross profit ratio

Operating profit ratio

Profitability ratio

Cost of goods sold ratio

Operating cost ratio

Debt to asset ratio

Fixed asset turnover ratio

WC turnover ratio

Stock turnover ratio

Debtor turnover ratio

Creditors turnover ratio

Current asset turnover ratio

Asset turnover ratio

Return on asset

Return on investment ratio

Basic earnings power ratio

Debtors collection period

ratio

2:1

1:1

0.50:1

-

-

-

-

-

-

-

-

-

1:1

-

-

-

-

-

-

-

-

1.13

1.13

1.30

3.71

3.36

5.38

0.25

90.06

98.00

0.36

16.04

3.36

161.84

0.88

0.92

9.9

3.28

11.10

56.1

17.7

37.23

1.06

1.05

1.92

2.0

2.11

2.87

0.11

88.90

96.28

0.36

13.18

2.11

135.7

0.73

3.34

8.40

2.28

4.96

29.89

6.55

54.82

Table No: 5 showing ratio analysis of PVC pumps.


45/54



INTERPRETATION:

Table No 5 showing ratios

1) CURRENT RATIO

Current Ratios =

Current Assets

Current Liabilities

It shows the relationship between current assets and current liability. The ideal ratio is 2:1according to this for every 1 Re of current liability, 2 Rs of current assets should be there. But

the company is having Rs 1.06 of CA for every 1 Re of CL even though it has increased,

when it compare to last year. The company has to concentrate on its liquidity position.

2) QUICK RATIO

Quick Ratio =

Quick Assets

Current Liabilities

According to Industry standards liquid ratio must be 1:1 but the company is having 1.13:1 in

2011 which is greater than the industry standards & previous year ratio is 1.05:1 which is

greater than the industry standards. Hence by seeing this we can interpret that it has been

increased compare to previous year.

3) DEBT EQUITY RATIO

Debt Equity Ratio =

Long Term Debts

Long Term Equity

It shows the relationship between debt and equity. The ideal ratio is 0.50:1. That is for every

50 paisa of debt, 1Rs of equity should be there. The company is having Rs 1.30 of debt for

every 1 Rs of equity. Hence by seeing this we can interpret that it has been decreased

compare to previous year. In present case, the debt-equity ratio is more than one in both the

years. So we can say that it is a lever firm. We can do more trading on equity. It is very beneficiary to shareholder if the firm having more EBIT. When the EBIT is more and more


46/54



over a period of time, interest cost cannot be change proportion to changes of EBIT. Interest

is a fixed cost. So, if EBIT is higher in a particular period we cannot pay the higher interest.

PVC Pumps pvt ltd. is under profit in 2011.

4) NET PROFIT RATIO

Net Profit Ratio = Net Profit

*100 Net Sales

It shows the relationship between net profit and net sales. This ratio indicates the profitability

of the firm. The company is having net profit of 3.71 in 2011 which is high compare to

previous year (2010) i.e. 2.0. This shows that the company‟s net prof it has been increased

compare to previous year. So the company has maintained a good profitability in the firm.

5) GROSS PROFIT RATIO

Gross Profit Ratio =Gross Profit

*100Sales

The company is having gross profit margin of 3.36 in 2011 which is high compare to

previous year (2010) i.e. 2.11. This shows that the company‟s gross profit has been increased

compare to previous year.

6) OPERATING PROFIT RATIO

Operating Profit Ratio =EBIT

*100Sales

It shows the relationship between EBIT and net sales. It is computed to analyze cost of

operation in relation to sales. Operating expenses include office expenses, administrative

expenses, selling expenses and distribution expenses. The company is having operating profitof 5.38 in 2011 which is high compare to previous year (2010) i.e. 2.87. This shows that the

company‟s operating profit has been increased compare to previous year.

7) PROPRIETARY RATIO

Proprietary Ratio =

Share Holders Fund

Total Asset (CA + FL)


47/54



It shows the relationship between Share Holders Fund and Total Asset. The company is

having Proprietary of 0.25 in 2011 which is high compare to previous year (2010) i.e. 0.11.

This shows that the company‟s Proprietary has been increased compare to previous year.

8) COST OF GOODS SOLD RATIO

Cost of goods sold Ratio =

Cost of goods sold

*100

Sales

The company‟s cost of goods sold ratio is 90.06 in 2011 which is more compare previous

year (2010) i.e. 88.90 . It shows that the company reduced its cost on sale of goods which is

good for company.

9) OPERATING COST RATIO

Operating Cost Ratio =

Cost of Goods Sold

*100

Net Sales

It shows the relationship between Cost of Goods Sold and Net sales. The company‟s

Operating Cost ratio is 98.00. In 2011 which is less compare previous year (2010) i.e. 96.28.It shows that the company decreases its Operating Cost which is helpful for companies Profit.

10) DEBT TO ASSET RATIO

Debt to Asset Ratio =

Long Term Debt

Total Asset (CA + CL)

It shows the relationship between Long term debit and Total Asset. The company is havingDebt to Asset of 0.36 in 2011 which is equal compare to previous year (2010) i.e. 0.36. This

shows that the company‟s Debt to Asset is Equal compare to previous year.

11) FIXED ASSETS TURNOVER RATIO

Fixed Assetturnover Ratio =

Sales

Fixed Assets


48/54



It shows the relationship between Net sales and Fixed Assets. The company‟s Fixed Asset

Turnover ratio is 16.04. In 2011 which is more compare previous year (2010) i.e. 13.18. It

shows that the company increases its Fixed Asset Turnover which is good for company.

12) WORKING CAPITAL TURNOVER RATIO

WC Turnover Ratio =WC (CA-CL)

*100Sales

Company‟s net working capital ratio is 3.36 in 2011 & 2.11 in 2010, this clearly indicates

that the company‟s working capital is more compare to previous year; hence it is good for

smooth work flow in the organisation.

13) STOCK TURNOVER RATIO

Stock Turnover Ratio =Cost Of Goods Sold

Average Stock

It shows the relationship between Cost of Goods Sold and Average Stock. The company‟s

Stock Turnover Ratio is 161.84. In 2011 which is more compare previous year (2010) i.e.

135.7. It shows that the company increases its Stock Turnover.

14) DEBTOR TURNOVER RATIO

Debtor Turnover Ratio =

Sales

Average Debtors

It shows the relationship between Sales and Average Debtors it needs to be noted that debtors

should be taken before making any provision for doubtful debts... The company‟s DebitTurnover Ratio is 0.88. In 2011 which is more compare previous year (2010) i.e. 0.73. It

shows that the company increases its Debit Turnover.

15) CREDITORS TURNOVER RATIO

Creditors Turnover Ratio =

Credit Purchase

Average Creditors


49/54


50/54


51/54



FINDINGS

There is a lack in infrastructural facilities like factory building , sanitation problem,drinking water facility, store maintenance etc.

Company is facing a problem of bottleneck because of old and outdated machineries.

It is lagging behind in promotional activities like advertising and all.

It is supplying most to government organisation but not concentrating on general public.

It is facing problem of power supply, labor, and technology.

More computation from other large scale industries.


52/54



SUGGESTION

The Company has to adopt the concept of TPM (Total Preventive Maintenance)

which will help them to avoid the breakdowns and delay in production. And The

Company has to construct the new building for the convenience of employees for

reducing the material handling time. The company has to recruit permanent workers

& company has to give Proper training to present workers and also company have to

provide drinking water and they have to improve the quality of storage of row

materials.

In the present competitive market, promotion plays a significant role in business and

maintaining the image of the company, thus the company needs to concentrate more

on various promotional measures like advertisements, contests, customers meets etc.

to reach and create awareness among the customers.


53/54



LEARNING EXPERIENCE

Firstly I would like to place on record my sincere thanks to the management of

PVC PUMPS PRIVATE LIMITED, DAVANGERE for their kind permission toundertake 30 days implant training in their organization. It‟s a fabulous experience

what I studied in organizational study.

I studied many practical aspect as compared to theoretical aspects and it is also

exposed me about working of an organization, to relate the theoretical concepts learnt

in the classroom to organizational functioning, decision making crotalarias and real

life application of management.

I have got the practical orientation of the functions of the various departments of

the company.

I was able to analyze the performance of the company.

I understood the application of theoretical concepts into business decisions in the

organization.

I understood the aspects of delegation of authority, responsibility, co-ordination, and

team work etc.

I have gained knowledge about all round view of the management operation.

I got the knowledge about the Analyses‟ of the present status & future strategies of the

company.


54/54


BIBLIOGRAPHY

Company annual report – 2010 – 2011

TEXT BOOK

Financial Management 5th Edition by M.Y KHAN & P.K JAIN page No: 6.1 to 6.37

Marketing Management “by Philips Kotler dorling kinderlo of publishers, New

Delhi 5th edition, 2012 page no :- 4,6,50,58

Human resource management “by VSP Rao Anurag jain publisher New Delhi 2nd

edition year 2010, page No:- 123,137,143,144,189-191,340,342.

Websites

http://www.google.co.in/ McKinney 7s Model last accessed (August 3 2012)

http://www.google.co.in/ PVC Pumps pvt ltd last accessed on (June 15 2012)

http://ww.wikipedia.org/ wiki. pump industry last accessed on (28/07/2012)
http://www.google.co.in/http://www.google.co.in/http://www.google.co.in/http://www.google.co.in/http://ww.wikipedia.org/http://ww.wikipedia.org/http://ww.wikipedia.org/http://www.google.co.in/http://www.google.co.in/

In-Plant training Report on PVC PUMPS PVT LTD

Documents

Transcript of In-Plant training Report on PVC PUMPS PVT LTD