TO ANALYSE DIFFERENT FUNCTIONS OF FINANCE DEPARTMENT

8/7/2019 TO ANALYSE DIFFERENT FUNCTIONS OF FINANCE DEPARTMENT

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Guided by: Prepared by:

Mr. Amit Shrivastava Shashank Mishra

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Hindustan Aeronautics Limited (HAL) based in Bangalore, India, is

one of Asia¶s largest aerospace companies.

Came into existence on 1st October 1964 by amalgamation of

Hindustan Aircraft Limited & Aeronautics India Limited.

Its Principal activities are manufacturing aircraft , aerospace

navigation, and instruments for communication purposes.

Also involved in Designing, manufacturing, and collecting aircraft,

jet engines, helicopters, along with their elements and spares.

It has 19 Production Units and 9 Research and Design Centers in 7locations in India.

It made Advanced Light Helicopter Dhruv, Light Combat Aircraft

Tejas ,Various military and civil upgrades.

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To analyze how Cost can be controlled at HINDUSTANAERONAUTICS LIMITED and besides this also studied thegrowth of the organization in terms of Control of Cost.

To gain more & more about organizational culture, and

therefore to enhance my knowledge and skills in the same. To know how the departments works and co-ordinates with

each other.

To gain knowledge & experience & know how to work in theorganizational environment.

To know the method of reducing of cost of the organization.

To see the difference between the theoretical knowledge &practical knowledge.

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The Research was exploratory in nature.

The collection of data is done both from primary & secondary

sources.

Primary data has been collected through personal interview anddepartmental analysis while secondary data through Website of

HAL,Company monthly journals & Training manual on cost

reduction provided by HAL.

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Response / Levels Management level Labor level

Aware / Yes 98% 87%

Not aware / No 2% 13%

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1.Awareness level of the web by the workers inthe organization



Customers who contact Percentage

Defense customers 70%

State government 20%

Corporate customers 7%

Civil customers 3%

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Customers Percentage

Defense customers 85%

Foreign customers 45%

Corporate customers 6%

Civil customers 5%

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y Company aims at best quality product at lowest price.

y In HAL standards are fixed for time consumption and also for costincurred.

y It also implements the technique of classification and codification for

cost reduction and control.y Process layout is used for the study of various operations.

y Method study is implemented during production process and themethod which is less time consuming and having less cost isaccepted.

y component costing is used for calculating the cost of eachcomponent.

y work is done on contract basis i.e. outsourcing is done.

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y There should be facility of intranet so fax and such other things

must be done through it.

y For attendance finger print system should be adopted.

y

The time delay between rising of purchase order andpreparation of it should be reduced.

y Wages to direct workers should be given through piece rate

system.

y

Employees should be included in brainstorming and should begiven non-monetary incentives as appreciation.

y Officers should be promoted only on the basis of performance.

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HAL is one of the largest PSU under the department of

defense.

Expertise in design, development and manufacture of

aircrafts, helicopters, engines, accessories and avionics. Cost of inventory as well as labor is controlled very well

by implementing ABC analysis.

Scope for cost reduction by reducing number of casuals to

reduce labor cost and by implementing EOQ (EconomicOrder Quantity) technique to control material cost.

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TO ANALYSE DIFFERENT FUNCTIONS OF FINANCE DEPARTMENT

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