07-06-2013, 02:47 PM
AN ORGANIZATION STUDY ON PRADEEP ENTERPRISE, HARIHARA
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INTRODUCTION
India’s steel Industry is more than a century old. Before the economic reforms of the early 1990’s the Indian steel industry was a predominantly regulated one with the public sector dominating the industry.
In 1992, the liberalization of the India economy led to the opening up of various industries including the steel industry. This led to the increase in the number of producers, increased investments in the steel industry and increased production capacity.
Since 1990 more than Rs 19,000 crores (US$ 4470.58 million) has been invested in the steel industry of India.
Steel industry in India is on an upswing because of the strong global and domestic demand. India’s rapid economic growth and soaring demand by sectors like infrastructure, real estate and automobiles, at home and abroad, has put Indian steel industry on the global map.
According to the latest report by International Iron and Steel Institute (IISI), India is the seventh largest steel producer in the world.
Special Introduction
Cylinder Liner is one of the critical components of Diesel Engine. The cylinder block is fitted over the crankcase & liner is fitted in it. The cylinder liner is made of cast iron. This part plays an important role in the working of the Diesel Engine and efficiency of the engine.
Melling Cylinder Sleeves, Manufactures centrifugal cast iron cylinder liners to tolerances as small as one half of one thousandth of an inch, on modern CNC equipment. Our centerless OD grinding process guarantees a part that is perfectly round and to exact size specifications. The material used in Melling cylinder liners offers a Brinell hardness of 241-293, and machines easily with strength and durability similar to that of ductile iron.
INDUSTRY PROFILE
Introduction
The Indian foundry industry occupies a special in the country’s economy. India is currently among the 10 largest producers of ferrous and non-ferrous castings and regularly exports to the US, the UK, Canada and Germany among others. The industry has over 6500 foundries in the small, medium and large-scale sectors with 90 percent being small scale. The uses of castings are manifold. Some of the important uses of castings are as follows:
From the above applications it is evident that without casting it is unlikely to bring into existence most of the products today.
Origin of casting
A casting is the essential foundation of civilization. With it, man unlocked his future, placing him on the path toward conquering his environment. History tells us this happened Mesopotamia, today’s modern Iraq.
The oldest casting in existence today is believed to be a frog, cast in copper. The frog’s complexity indicates that in was preceded by other simpler casting efforts. Things went slow back then. Tin, came around in the 16th century, but man used earth’s ores4500 years prior to this.
The Chinese got the nod for iron castings in around 1000B.C. India made steel in about 500 B.C. Civilization in general was casting brass by then, (brass=copper+ zinc), which was many centuries before the Christian era. All along this path all the techniques for “CASTING AND MOULDING PROCESSEES” were being discovered and recorded in to history.
Meaning of Casting
Casting is the process of giving shape to or reproducing an object by pouring its material in liquid form into a mould. Casting is the process of the melting metal and pouring it into a cavity that has been moulded on a pattern into a desired shape. The metal is allowed to cool and solidified. The solidified metal is called the “Casting”. Usually castings are manufactured in a commercial set up called “Foundry”. Thus, foundry is defined as a commercial set up for manufacturing casting.
Vision of the company
“To emerge as a Global leader in the supply of finished Cast components, employing a wide range of materials, with highly committed and socially responsible employees”
Mission statement of the company:
Serve the immediate community through welfare schemes.
Adopt environment friendly technology and Create awareness on energy conservation
Provide stable employment and develop highly skilled technical labor an wide vendor base.
To meet the castings requirements of the country using latest state of the art technology in wide range of materials at competitive cost.
MCKINSEY’S 7S MODEL
INTRODUCTION TO MCKINSEY’S 7s MODEL
The 7s Model for management analysis was developed by McKinsey’s and company in the late 1970s to help managers address the difficulties of change. The model shows that organizational immune systems and the many interconnected variables involved make change complex, and that an effective change effort must address many of these issues simultaneously. This is often a daunting managerial challenge.
The 7s frame work provides an effective way of analyzing an organization, in terms of dynamic relationship among 7 key elements namely – Structure, System, Strategy, Style, Staff, Shared values (subordinate goals), Skill.
According to Richard Pascal, these factors are called “The art of Japanese Management”. The Richard defines that it was because of these factors the Japanese companies excelled over American firms. A very important feature of this Model is that McKinsey consultants in their studies of several firms have extensively tested it.
The McKinsey’s model is only a tool available to the managers, to study the organizations. A major premise of the model is that many performances related issues are rooted among the 7 factors outlines. This study is important from a strategic, marketing; Organizational performances related issues are rooted among the 7 factors outlines. These 7s are interconnected, aligned and working together in high performing organizations.
Bank book
Since the company has availed cash credit and bill discounting facility from bank, two separate bank books for cash credit and bill discounting are maintained.
The receipt of payment through cheque/demand draft and payment through cheque/demand draft is maintained in the register. The balance of the book should tally with the balance in the books of accounts maintained in a computer.
In the bill discounting register. The bills lodged with bankers for discounting are entered and the over draw amount against the discounted bills, necessary credit entries are made in the register to arrive at the actual balance against the sanctioned working capital.
General ledger
This ledger gives the details of transactions effected by the company at any point of time. The receipt and payment of cash, as well as the receipt and payment of bank are posted to respective accounts in the general ledger. This ledger should be updated on day to day basis to know the actual balance of each account. The trail balance and receipt and payment are made at each month end, which should necessarily tally. The profit and loss account is also arrived on the basis of the trail balance which can be arrived month, wise, quarterly, half yearly or yearly.
Inventory management
Inventories constitute the most significant part of current assets of a majority of companies in India. Inventories are stock of the product a company is manufacturing for sale and components that make up the product. The various forms in which inventories exist in a manufacturing company are raw materials, work in progress, and finished goods.
A manufacturing firm will have substantially high level of all the three kinds of inventories. While retail or wholesale firm will have a very high level o finished goods, inventories and no raw material and work in progress inventory.
PRADEEP ENTERPRISES has implemented only the “first-in first-out” method of inventory control technique, which is popularly known as FIFO method. In this method, raw material, which bought first, will be sent to the production department first.