1.

1 INTRODUCTION TO ORGANISATION STUDY

Organizational studies, sometimes known as organizational science,

encompass the systematic study and careful application of knowledge about
how people act within organizations. Organizational study is the
examination of how people develop hierarchical structures, techniques, and
rehearses and how these, thus, shape social relations and make foundations
that eventually impact individuals, organizational studies contain
distinctive regions that manage the diverse parts of the organization, a
significant number of the methodologies are functionalist yet discriminating
research likewise give option edges to seeing in the field.

Whenever people interact in organizational, many factors come into play.

Modern organizational studies attempt to understand and model these
factors. Like all modernist social sciences, organizational studies seek to
control, predict, and explain. There is some controversy over the ethics of
controlling workers behavior, as well as the manner in which workers are
treated. As such, organizational behavior or OB has at times been accused
of being the scientific tool of the powerful. Those accusations
notwithstanding, OB plays a major role in organizational development,
enhancing organizational performance, as well as individual and group
performance/satisfaction/commitment. The organization study is the
systematic learning process about an organization to understand the
different roles of each member in the organization. In organization study,
the different roles, namely, interpersonal roles, decisional roles and
informational roles of various members are evaluated and how it affects the

1
functioning of the organization is analyzed. In this work M/s HMT Machine
Tool Limited at Kalamassery was selected for the organization study.

It draws on interdisciplinary theories and methods from psychology,

sociology, political science, history, anthropology, and related fields.
Although we are diverse in our training and interests, there is a particular
focus on understanding real-world phenomena in detail, that is,
organizational processes and practices in action.

Organizational study helps to understand the working and policy making

activities of the company as a whole. It provides the practical knowledge
about the functioning and co-ordination of the activities of the various
departments. An organization study at HMT Machine Tools Limited is an
attempt to understand functions of the organization. The study also tries to
know the various functional departments in a birds eye view. The
managerial functions of various departments have been studied in detail.
The study in also intended to understand the technical processes of HMT as
much as possible.

It is highly necessary to have a pragmatic approach to functional problems

of an organization. Organization study enables one to know the functions of
major departments and know the differences between theory and practice.

HMT Ltd. was conceived by the government of Indian in 1949, and was
incorporated in 1953, with the objective of producing a limited range of
machine tools, required for building an industrial edifice for the country.
With the success achieved in the initial years in absorbing the technology

2
and in attaining production competence far ahead of the original plans, the
company launched a bold plan of diversification and expansion which
resulted in the duplication of the Bangalore unit and the setting up of new
units at pinjore, Kalamassery and Hyderabad, HMT MTL, at kalamassery
was established in 1963 for producing the Lathe. In the process of
expansion, HMT Machine Tool Limited Kalamassery (HMT MTLK)
started producing printing machines in 1972.

They are engaged in the manufacture of engineering goods in diverse areas

such as Machine Tools, Watches, Tractors, Printing Machinery, Die casting
and Plastic Processing machines. It commenced its activities in a small way
in 1953 to meet a big commitment: to build mother machines for a modern
industrial India. From a single product, single unit company in the post-
independence era it emerged as a conglomerate by the turn of the twentieth
century with several manufacturing bases spread over different states of
India.

An industry, which has undergone a radical shift in its paradigm thinking,

the Indian machine tool industry is later recognized as a provider of cost-
effective high quality lean manufacturing solutions. The industry resiliently
supports all its users to enhance productivity as well as improve
competitiveness, for the betterment of the final customer. Being an integral
sector, growth of the machine tool industry has an immense bearing on the
economy, especially Indias manufacturing industry. And it is even more
crucial for development of the countrys strategic segments such as defense,
railway, space, and atomic energy. World over too, industrialized advanced

3
countries have created market niches on the back of a well-developed and
supportive machine tool sector.

Had the indigenous machine tool industry not been able to meet the major
user industries demand, then these machine tools would have to be
imported, at much higher prices, irrespective of rising cost of foreign
exchange or not.

4
1.2 OBJECTIVES OF THE STUDY

The objective of the study is to understand the functioning of an

organization in close quarters. The main idea is to understand the
functioning of each department and the inter dependence of these
departments. They can be grouped as primary objective and secondary
objectives.

Primary objective

To familiarize with the different functional departments and their working

at HMT Machine Tools Ltd.

Secondary objectives

To know and understand how the management tools, concepts,

theories and principles are applied in an organization.
To understand the organizational structure and to study the
hierarchical organization.
To understand the product profile.
To get an idea about the different development process in the
organization and to know about its future plans.
To understand how the key processes are carried out in organizations.

5
1.3 SCOPE OF THE STUDY

The organizational study is intended to provide industrial exposure to the

trainee and bridge the gap between theory and practice. This study covered
the different departments of HMT MACHINE TOOLS LIMITED and was
conducted for a period of one month from 02 May 2016 to 31 May 2016.
The study was mainly conducted to understand the functions, process and
procedures of different departments of the company.

6
1.4 METHODOLOGY OF THE STUDY

The methodology followed in the study are the researchers personal

observations and done through primary and secondary sources.

The data can be classified as:

Primary Data
Secondary Data
The methods of collecting primary and secondary data differ since
primary data are to be originally collected while in case of secondary
data the nature of data collection work is nearly that of compilation.

Primary data

The primary data are those, which are, collected a fresh for the first time
and thus happen to be original in character.

Primary data required for this study are collected from observations,
interactions with executives and managers of the company.

Secondary Data

The secondary data are those which have already been collected by
someone. Secondary data required for the studies were collected through
company files, journals, training report, company brochures etc.

7
1.5 LIMITATIONS OF THE STUDY

The findings need not be conclusive but only indicative.

Area of focus of this study was mainly at HMT MACHINE TOOLS
LIMITED KALAMASSERY, ERNAKULUM.
The study is based on the current performance and data of the current
period of the company and hence previous records of the company
are referred only for validating the current observations made.

8
2.1 INRODUCTION TO THE INDUSTRY

Machine tools are the basic building blocks of manufacturing. They are
used in durable-goods industries to make items ranging from aircraft to
appliances as well as other, more specialized, production machinery. During
the year 2010, turnover by the 28 principal machine tool manufacturing
countries, totaled 66.3 billion US Dollars, and represented a gain of 21%
over the previous year. During 2011, machine tool production across the
globe increased further by about 35% over 2010, amidst indications that
growth rate was starting to level off. Japan and Germany saw very
substantial percentage gains in their production, completely shaking off the
effects of the deep recession that swept the worldwide industry in 2009.
China, already established as both the worlds largest consumer and its
biggest producer, also reported double-digit expansion in dollar-volume
output and continues to be far ahead in the listings, obviously with complete
support for the industry from the government on all fronts. All the three
other major Asian Machine Tools manufacturing countries-Korea, Taiwan
and India- grew at over 65% and secured leading positions of fifth, sixth
and thirteen, respectively in the overall productions ranking in 2010. During
2011, in most of the countries, national industries registered revival from
their 2009 hit. Japanese builders whose shipments of machine tools had
fallen by more than half during the collapse four years ago, increased
production substantially in 2011, following an excellent rebound in 2010.
Third-place producer Germany too reported output gains during 2011.
Year-to-year increases in several countries looked even better when
converted to U.S. dollars. American machine tool builders saw a solid 25%

9
gain in shipments during 2011; among other top-ten producers, South
Korea, Switzerland, Spain and Italy experienced similar improved activity.

The machine tool industry constitutes the backbone of the industrial sector
and is vital for the growth of the Indian machine tool industry. Even though
the Indian machine tool industry is a small segment of the engineering
industry, it plays a very important role in the development and technology
up gradation of the engineering industry. The quality and cost of
engineering products depends on the quality of mother machine tools and
their automation level. The development of the machine tool industry is
therefore of paramount importance for a competitive and self- reliant
industrial structure. The growth of Indian machine tool industry and major
user industries clearly shows the close inter dependencies of indigenous
machine tools and the major user industries. This level of performance of
the major user industries has been made possible only because of the
support from indigenous manufacturers large and small, to meet almost all
the requirement of machine tools, conventional, CNC special purpose, and
flexible manufacturing lines required by them. Had the indigenous machine
tool industry not been able to meet the major user industries demand, then
these machine tools would have to be imported, at much higher prices,
irrespective of rising cost of foreign exchange or not. This would have
severely affected not only the country GNP and the overall economy of the
country but also severely impaired the countrys space and defense sector.

10
2.2 GLOBAL SCENARIO

Machine Tools have got a great demand in foreign market. HMT has
different units in different countries in different names they are as follows:

1. NMT, Nigeria Joint Venture for manufacture of machine tools in

Nigeria.
2. Maintenance cum Machine Tool Reconditioning Shop, SNVI/CVT,
Algeria
3. Sonelgaz, Algeria Turkey project for manufacture of Gas
Meters/Water Meters and Regulators.
4. Engineering Design & Fabrication Centre, Federal Institute of
Industrial Research, Nigeria
5. Tool Rooms
6. Training and Development Centers
7. Project Consultancy
8. Alloy Steel Foundry for Alloy Steel Castings, Kenya
9. GLS Lamp Manufacturing Unit, CEILMAC, Tanzania
10.Welding Electrode Manufacturing unit, Kenya

11
2.3 INDIAN SCENARIO

The Indian machine tool industry manufactures almost the complete range
of metal-cutting and metal-forming machine tools. Customized in nature,
the products from the Indian basket comprise conventional machine tools as
well as computer numerically controlled (CNC) machines. There are other
variants offered by Indian manufactures too, including special purpose
machine, robotics, handling systems, and TPM-friendly machines. Efforts
within the industry are now underway to improve the features of CNC
machines, and provide further value additions at lower cost, to meet specific
requirements of users. In keeping with the current trends, and emerging
demands, the CNC segment could be the growth for the machine tools in
India. The slowdown in the Indian economy since mid- 1999 had its impact
on the prospectus of Indian machine tools manufactures. Output by
domestic metal working machine tool manufacturers in 2001 calendar year
declined to the lowest of just RS.5, 175 millions making the fourth year of
decline since 1997 for the Indian machine tools industry. Much of this fall
was due to subdued investment in 2002 by all the major user segments of
machine tools, except the defense industry, primarily because of the higher
capital expenditure outlay. However in the last two calendar years, output
of the industry registered significant growth and the industry had achieved a
higher growth in the past two years. While the decrease in the domestic
production was lower in the case of conventional metal working machine
tools, computer numerically controlled (CNC) machine tools manufacturers
too suffered, although marginally. Lathes, machining centers, special
purpose machines, and grinding machines were categories of machine tools

12
that sustained much of the order inflow even during 2001 although these
segments registered a decline, in comparison with the previous year.
An industry, which has undergone a radical paradigm shift in its thinking,
the Indian machine tools industry is now recognized as a provider of low
cost, high quality lean manufacturing solutions. The industry resiliently
supports its entire user to enhance productivity as well as improve
competitiveness for the betterment of the final customer. It is a well-known
and often repeated fact that the machine tool industry forms the pillars for
the competitiveness of the entire manufacturing sector since machine tools
produce capital goods which in turn produce the manufactured goods.
Hence being an integral sector, growth of the machine tools has an immense
bearing on the entire manufacturing industry which is crucial for the
countries strategic requirements such as defense, railways, space, atomic
energy etc. world over too, industrially developed countries have created
market on the back of a well-developed and supportive machine tool sector.
In India, indigenous machine tools have the highest impact on the capital
output ratios. Machine tools consumption of Rs.2500Cr. truly supports the
advancement of countries engineering sector output which is estimated to
be worth over Rs.1, 50,000 crore. In India there are about 450manufacturers
manufacturing complete machines or their components. There are 150 units
in the organized sector. Almost 73% of the total machine tool production in
India is contributed by 10 major companies in this industry. The industry
has an installed capacity of Rs. 10 billion and employs a workforce directly
or indirectly totally 65,000 skilled and unskilled persons.

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The hub of manufacturing activities is concentrated in Mumbai and Pune in
Maharashtra, Jalandhar and Ludhiana in Punjab, Ahmadabad, Baroda,
Jamnagar, and Rajkot in Gujarat, Coimbatore and Chennai in Tamil Nadu,
Bangalore and Mysore in Karnataka, and some parts of east India. All the
global leaders namely Makino, DMG, Yamazaki, Haas, Trumpf, Daewoo,
Agia Charmilles, Schuler etc. are present in
India either through their marketing agents, technical centers, service
centers or assembly centers. There are a number of issues of critical
importance to the industry.
These are:
The competitiveness and quality of machines tools manufacturer
depend on the competitiveness and quality of its subcontractors.

Attracting and retaining talented manpower is an issue since the

industry can grow only with knowledge accumulation.
High fragmentation is leading to low economies of scale.

Indian educational curriculum in the ITIs or engineering colleges is

not geared to impart the all round technical knowledge required by
the engineers and operators in this sector.
For example, a service engineer in the sector needs knowledge in
hydraulic, mechanical, electronics and electrical. The market share
and the total market size of the product range covered by the study as
per CMIE data is given below. These include companies who
manufacture components as well as complete equipment.

14
Table 2.1

MAJOR COMPANIES MARKET

PRODUCTS SHARE (%)

Machine Tools Total No. of companies: 210

Kennametal Widia India 6.00

HMT Machine Tools 2.11

Motor industries 1.41

PMT Machine tools 1.22

Automatics

Kabra Extrusion technik 1.22

Lakshmi Machine Works 1.20

TOTAL MARKET SIZE RS. 5211.5 Cr.

15
Sources: CMIE, Industry Market size and Shares, February 2005
Total Market Size of all the sectors comprises of Rs. 5212 crores.
Machine Tools are used in Railways, Indian Defense, and Automobile
Industries, etc. The products of HMT are used in the following areas:
1. Wheel & Axle plant project for Indian Railways
2. Flexible Machining cell with 8 CNC Turning Centers, each with 2-axes
gantry loader & Automatic guided Vehicle (AGV) for pallet transfer,
Indian Defense (1988).
3. Machining Line for Cylinder Blocks, Tata Cummins Ltd., Jamshedpur,
India(1996)
4. Automatic shell Forging Line (Indian Defense)(1988)
5. Flexible Machine System (FMS) with large size Machining Centers
linked by Rail Guided Vehicle (RGV), area tool gantry and host
computer for manufacture of IC Engine components, (Indian
Defense)(JWA with RinoBerardi, Italy)(1997)
6. Mechanical 10- station Transfer line for manufacture of engine case,
Bajaj Auto Limited , Pune, India(1998)
7. Flexible Turning Cell SBCNC 60 with Gantry Automation (Indian
Defense)(1999).

16
3.1 HINDUSTAN MACHINE TOOLS LIMITED: OVERVIEW

OWNERSHIP PATTERN

The company is owned and managed by Central Government, 96% of

shares are with the government and remaining 4% are with the public. The
decisions are taken by the company, which will be sanctioned by the
government.

HISTORY

By the end of Second World War, the government of India was confronted
by a big problem of disposing the colossal war waste. Ultimately, a
committee was constituted to inquire into the possibilities. The committee
report of 1948 proposed the establishment of a government owned machine
tool industry. This was expected to fulfill two aspects. The first was
utilization of the Rs.4000 million worth of metallic waste. The second was
the incorporation of a state owned infrastructure-manufacturing facility.
The result was the birth of THE HINDUSTAN MACHINE TOOLS
LIMITED, which diversified in due course of time to the present stature of
a multi core, multi-location, multi-unit, and multi-product industrial giant,
HMT Ltd.

HMT Ltd was started as a single factory to produce Tool Room Lathe at
Bangalore in collaboration with M/s Oerlikon of Switzerland in 1953, with
a capacity to manufacture around 400 machines per year. Since then
different collaborations continued in house R&D and tremendous marketing
efforts brought HMT, to present status.

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CORPORATE VISION:

To be a leading Global Engineering Conglomerate Focused on Customers

Delight in our field of Endeavour

CORPORATE MISSION:

To establish ourselves as one of the worlds premier companies in the

engineering field having strong international competitiveness.
To achieve market leadership in India through ensuring customer
satisfaction by supplying internationally competitive products and
services.
To achieve sustained growth in the earnings of the group on behalf of
shareholders.
CORPORATE OBJECTIVES:
To encourage the modernization of Indian Industry through the
supply of engineering goods and services of world class excellence.
To maintain technological leadership through continuous efforts to
update product technology and manufacturing method.
To globalize operations by developing a mix of international markets
and businesses.
To ensure a satisfactory return on capital employed, to meet the
growth needs and the aspirations of stakeholders.
To present an active, pleasant and productive working environment.

18
GROWTH AND DEVELOPMENT

The growth of HMT Ltd. Was characterized by the forward and

back ward integration of technology and product diversification. Thus the
company that started with manufacturing and selling lathes expanded its
machine tools products range to evolve as the ultimate solution in metal
cutting. The products diversification efforts took the company to the
business of watches in 1962, tractor in 1971, die-casting on plastic
machinery in 1971, printing machinery in 1972, presses in 1972,lamps &
lamp making machinery in 1976, food processing machinery in 1980,CNC
systems in 1986, ball screws in 1986 and reconditioning on 1990.

The multi-product activities made HMT Ltd. Change its identity

as Hindustan Machine tools Limited. Today HMT Ltd has 16
manufacturing units with 22 products divisions spread through the length
and breadth of India. A subsidiary viz., HMT (International) Ltd undertakes
the exports of the company.

FUTURE EXPANSION

1. Infrastructure development like online facility, increasing computer

usage.
2. Technological acquisition for latest printing machine technology and
collaboration to launch vertical lathe machines.
3. Reconditioning and up gradation of the existing plant.

19
LEGAL FRAMEWORK OF THE COMPANY

Legal frame work of the company means the rules and regulations which
governs the company. To be more precise it means the rules and regulations
that each and every individual employees of an organization perform. HMT
Ltd has a well- structured legal frame work that can be considered to be the
most important factor for the success of the organization.

A standing order has been issued to each and every member of the
organization.

This standing order prescribes the manner in which every member should
perform their respective tasks. It also contains a detailed report on the rights
of each individual in the organization. An employer cannot dismiss a
particular employer cannot dismiss a particular employee in the
organization without following certain procedures and they must act within
the legal frame work of the organization.

In compliance with the Guidelines on Corporate Governance for Central

Public Sector Enterprises framed by the Department of public Enterprises,
applicable to Government Companies and as per the applicable provisions
of the Companies act, 1956, the Company is committed to maintain the
highest standards of Corporate Governance and initiate appropriate action
for compliance of the Guide lines on Corporate Governance.

20
THE KALAMASSERY COMPLEX OF HMT MACHINE TOOLS
LIMITED, KALAMASSERY

The kalamassery unit is the 4th machine tools unit established in 1963 and it
started production in 1964. The unit originally manufactured only two types
of centre lathes viz., H&LB, but later added special purpose lathes like
copying and turret lathes model LT-20. It was the first product to be
indigenously developed and this product was a landmark in the history of
the unit.

The production of Machine was later licensed to M/s. QETCOS Ltd.

Quilon, Kerala, MATOOLS, Philippines Ceylon Steel Corporation. The
original Centre Lathes H&LB were then replaced by a new family of
Unified Series of Lathes, which designed and developed by the unit,
incorporating the concepts of computer optimized design, manufacturing
and unification.

HMT had developed conventional machines of different sizes of NH and

NC machines. Later the following products were added through
collaboration with world renowned machine manufacturers.

1. S-pilot and T-pilot copying lathes. In collaboration with M/S Eruaut

Souma of France.
2. RTV 50 Drum turret in collaboration with M/S Glidermeister of
Germany.
3. HMT had developed a completely hydraulic machine heavy-duty
front chucker (FC-25). During the early 1980s HMT Ltd

21
 kalamassery designed, developed and introduced the manufacturing
of CNC Lathe. At present they have a wide range of CNC lathes
which cater to the turning requirements of light and medium
industries.

BIRTH OF PRINTING MACHINERY DIVISIONS

During the period 1972-73 kalamassery unit diversified its product range to
include printing machines. Thus was born the printing machinery division
9PMK). The commercial entry of PMT was with two types of letter presses,
which were, RTE and RTAE under collaboration with M/S Nelbiolo of
Italy. Auto platen, an indigenous development came up subsequently.
During the ensuing years the printing machinery division came up with
offset presses via, OMIR in collaboration with M/S Nebiolo. Later
indigenous offset presses viz., SOM 136 was introduced to the market.
The first two color machines from HMT were KPO in collaboration with
M/S Koening & Bauer in Germany. The latest development of PMK is the
paper cutting Guilletine PG 92, in collaboration with M/S Pivano Binders
of Italy.

THE MARKETING NETWORK OF HMT LTD

The machine tools marketing divisions with its headquarters at Bangalore
and having wide network of regional and divisional offices spread
throughout India caters to the marketing needs of this unit at the primary
level. To co-ordinate the marketing activities at unit level and co offer

22
technical support to machine tool marketing, a strong sales and services
team is constituted at unit level.

ISO 9000-INTERNATIONAL STANDARDS FOR QUALITY

MANAGEMENT:
ISO 9000 stands for Quality in management and quality assurance
standards. Good quality system consists of sound technical and
administrative procedures for assuring quality. QA offer more scope for
reducing costs through prerequisites and characteristics of good quality
assurance and quality management. The challenges to a developing nation
are to motivate processors and manufactures to adopt and implement these
standards and to establish a credible nation quality registration scheme that
will be recognized by trading partners.
In an increasing number of markets and industries, third party quality
assessment and registration is becoming a prerequisite for doing business.
ISO 9000 registration is considered as a minimum acceptable level for a
supplier and those who cannot demonstrate the minimum level may not
only have difficulty in selling in certain markets they may also be banned
from those markets. Not only must the defendant be able to demonstrate
that his product is well designed, and conforms to all standards and
regulations, but he must also be able to demonstrate that the product is
manufactured constantly within a system that conforms to internationally
accepted standards.

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IN ADDITION, ISO 9000 SERIES STANDARD ALSO
Motivates Exporters and Sets a base line

Establishes reasonable standards for government procurement.

Focus Training and Professional Development.

Sets general market- procedure for regulating health and safety.

Reduces time- consuming audits by customers and regulators.

Raises levels of motivation, co-operation, workmanship and quality

awareness.

Improves efficiency reduces scrap and rework.

The following topics are dealt with in the ISO 9000 series of standards
ISO 9000- Quality management and quality assurance standards
section and use.

ISO 9001- Model for quality assurance in design/ development,

production installation and servicing.

ISO 9002- Model for quality assurance in production and

installation.

ISO 9003- Model for quality assurance in final inspection.

24
INFRASTRUCTURAL FACILITIES
1. Internet:
The company has well-furnished computer labs which provide internet
facilities for the employees to get updated themselves on the recent
happenings.

2. Library:
Books, magazines, newspapers, records, journals which are useful for
employees to develop their knowledge are available by the company and
issued in accordance with demand. The library has calm and quiet reading
room adjacent to library.

3. Canteen:
Neat and hygienic canteen is available for the employees where food is
available at subsidiary rates. The canteen has a seating facility of about 250
people. The canteen provides only vegetarian food for the employees.

4. Parking:
Parking lots for employees vehicle and customers vehicle are provided by
the company security for the vehicles are also provided by the company.

5. Waiting room:
Waiting room for the visitors which is well furnished can accommodate up
to 30 persons.

25
6. Training center:
Training which has projectors, screens, scale models, records etc. The
Senior Engineer is in charge for the training center.

ACHIEVEMENTS AND AWARDS

The kalamassery unit of HMT is well known for development activities.

Their products have always fetched awards and prizes at different trade
fairs and competitions. The machines tool products of the unit have been
certified by RW-TUV, and Refinish west Falischer Technischer Uber
Wachungs Verein, an international certification Agency of high repute as
confirming to Total Quality Management System, Presently, both the
divisions have been awarded ISO 9001 certification by IRQS.

26
ACHIEVEMENTS AND AWARDS

1979 Design IMTEX 1979 (SBC 35) FIE Foundation

1979 Design (SBCNC 35) CMTI-PMT

1988 (STC 25) Vasvik Award

1990 (SOM 125) PRINTEK 90

1990-91 Best productivity National Productivity
Council
1990-91 Tech. Development for Machine Directorate General of
Tools, Bangalore Technical Department
1991-92 Best Productivity National Productivity
Council
1992 National Safety National Safety Council
1994 Best Performance in Company Sir Jahangir Ghandy
Standardization Trophy
1995 Best Products at IMTEX-95 CMTI-PMT Trust
Award
1995 Best Products at IMTEX-95 FIE Foundation
1998-99 Regional Trophy for highest Engineering Export
Exporters in the Group- services Promotion Council,
Exporter Southern Regional,
Chennai
Table 3.1

27
COMPETITORS

Main inland competitors for the units products are:

1. Mysore Kirlosker Ltd.
2. ACE Designers
3. NC Machines Private Ltd.
4. Lakshmi Machine Works
Main Foreign competitors for the units products are:
1. Okuma, Japan
2. Nari Saiki Co. Ltd., Japan
3. Tukisama, Japan
4. Ikegai, Japan
5. GDM, Germany
6. Churchill, England
7. Ernault Tayoda, Japan
8. Victor, Taiwan
9. Tuma, Korea
10.EMAS, Germany
CORPORATE SOCIAL RESPONSIBILTY
HMT Group has set up Hospitals, Schools, and Playgrounds at various
Manufacturing Units for the benefit of employees and the local community.

ENVIRONMENTAL CONTRIBUTION
The company is continuously engaged in the process of energy conservation
through improved operational and maintenance practices. The energy
utilization in our manufacturing units is being monitored constantly in order

28
 to achieve effective conservation of energy. The energy conservation
measures taken during the year 2012-2013 include:
Use of Energy Efficient Lighting system like mercury vapor lamps and CFL
lamps
Centralized Control of coolers and shop lighting
Use of transparent roof sheets wherever possible and cleaning of glass in
sheds periodically to make effective use of natural lighting.
Use of power capacitors to improve the power factor
Creating awareness among employees about the necessity of energy
conservation by observing energy conservation week.
Power savings by using energy efficient AC Motor in place of Normal AC
Motor in High Power Machine.
Utilization of Foundry Furnace during night and holidays to save power
tariff.
Water is heated for cooking purpose through solar water heating panels.

29
Additional investment and proposals, if any being implemented for
reduction of energy consumption:

Providing energy saving lighting equipments in place of fluorescent

lights and bulbs.
Usage of Sodium vapor lamps for yard lighting
Installation of timer switches for yard light control
Providing of graphite layer on salt bath furnace to reduce heat
dissipation
Replacement of existing electric geysers with solar
Replacement of motor generator sets with new AC drives in
conventional machines
Replacement of old system and drives with new energy efficient
systems in CNC machines.

Impacts on cost of production of goods:

The above mentioned measure have resulted/will result in

reduction in energy consumption, increase in productivity and
reduction in energy cost.

HMT LTD COMPRISES OF THE FOLLOWING SUBSIDIARIES

HMT MACHINE TOOLS LIMITED

HMT WATCHES LIMITED
HMT CHINAR WATCHES LIMITED
HMT BEARINGS LIMITED
HMT INTERNATIONAL LIMITED

30
 PRAGA TOOLS LIMITED
HMT MACHINES TOOLS LIMITED: HMT machine tools
limited is engaged in the manufacture and marketing of general
purpose machine tools, special purpose machine tools, computer
machines, metal forming presses, die casting and plastic injection
moulding machine, ferrous and non-ferrous casting.
HMT MACHINE TOOLS UNITS ARE:
1. HMT MACHINE TOOLS LTD BANGALORE
2. HMT MACHINE TOOLS LTD HYDERABAD
3. HMT MACHINE TOOLS LTD KALAMASSERY
4. HMT MACHINE TOOLS LTD PINJORE
5. HMT MACHINE TOOLS LTD AJMER
6. PRAGA MACHINE TOOLS LTD HYDERABAD
HMT WATCHES LIMITED:HMT Watches limited manufactures and
markets watches including Hand Wound Watches (HWW), Automatic
Day- Date Watches (ADD), Quartz, and Analog Watches (QAW)
HMT CHINAR WATCHES:HMT Chinar watches limited is also one
of the subsidiaries engaged in the manufacture of Chinar model watches
and is located in Srinagar, Kashmir
HMT BEARINGS LIMITED:HMT bearing limited is one of the
subsidiaries engaged in the manufacture of different types of industrial
bearings, situated in Hyderabad
HMT INTERNATIONAL LIMITED: HMT international limited is
engaged in the export of HMTs range of product worldwide. HMT (I) is
backed up by a good sales and services network

31
 PRAGA TOOLS LIMITED: Praga tools limited is also a subsidiary of
HMT limited engaged in the manufacture of machine tools and is
located in Hyderabad
THE PRODUCT RANGE OF MACHINE TOOLS BUSINESS
GROUP:
BANGALORE:
Heavy Duty Lathes
Single and Multi Spindle Automates
Radial Drilling Machines
Multi Spindle Drills
Cylindrical and Surface Grinders
Gear Cutting Machines
Laser Cutting Habbers
CNC Turn Mill Centers
CNS Wire Cut EDM
Fine Boring Machines/SPM
PINJORE:
FMS and FMC
Horizontal Machining Centers
Vertical Machining Centers
Milling Machines
Broaching Machines
KALAMASSERY:
CNC Turning Centers
Turn Mill Centers

32
 Flexible Turning Cells
Centre Lathes
Copying Lathes
Offset Printing Presses
Paper Cutting Machines
HYDERABAD:
Special Purpose Machines
Horizontal Machining Centers
FMS
CNC Horizontal Boring Machines
Bed type and Floor Boring Machines
AJMER:
Grinding Machines
SPM Grinders
CNC Grinders

Major Machine/ Inspection facilities Available in different MTBS unit:

CNC Ram Type Plano Millers.
Horizontal Machining Centers.
Vertical Machining Centers.
Horizontal Jog Boring Machines.
Vertical Jog Boring Machines.
CNC Turing Centers.
Turn Mill Centers.
Slide Way Grinders.

33
 Cylindrical Grinders.

Internal Grinders.

Precision Gear Shaper.

Precision Gear Hobbes.

Gear Grinders.

Induction Harding machines.

3D co-ordinate Measuring machines.

THE KALAMASSERY COMPLEX OF HMT MACHINE TOOLS

LTD.
The Kalamassery unit, the 4th Machine Tools unit was established in 1963
and started production in 1964. The unit original manufactured only two
type of centre Lathes viz. H& LB, but later add special purpose Lathes like
copying and Turret Lathes. Model LT-20 was the first product to be
indigenously development of this product was landmark in the history of
the unit. The production of this machine was later linked to M/S QETCOS
Ltd: Quilon, Kerala, MATOOLS, Philippines and Ceylon Steel
Corporation, Sri Lanka. The Original Centre Lathes H& LB were the
replaced by a new family of unified series of Lathes, which was designed
and developed by the unit, incorporating the concept of computer optimized
design, manufacturing standardization and unification. HMT has developed
conventional machines of different sizes of NH and NL Machines. Later the

34
following products were added through collaboration with World-renewed
Machine manufactures.
1. S-pilot and T-pilot coping Lathes in collaboration with M/S ERUNALT
SOUMA of FRANCE.

2. RTV 50 Dum Turret in collaboration with M/S GILDERMESTER of

GERMANY and HMT Kalamassery unit has developed a completely
hydraulic Machine heavy-duty durnt chucker (FE-25). During the early
1980s HMT Ltd Kalamassery designed, developed and introduced the
manufacturing CNC Lathes Which cater to the rig requirement of light and
medium industries.

35
PRODUCT DEVELOPMENT
YEAR PRODUCT
1969-70 Manual Lathe LT20
1976-77 Unified series of lathes NH/NL
1976-77 Front Chucking Lathes FC-25
1980-81 Manual Lathe TL-20
1980-81 Copying Lathe SBC
1981-82 Slant Bed Turning Centre SBCNC35
1981-82 Horizontal Bed CNC Lathe NHCNC
1982-83 Slant Bed Turning Centre SBCNC55
1986-87 Slant Bed Turning CNC Centre STC25
1990-91 Slant Bed Turning CNC Centre STC 15
1991-92 Low Cost CNC Lathe ECONOCNC
1992-93 Slant Bed CNC Lathe SBCNC30
1992-93 Slant Bed CNC Lathe STC20
1993-94 Slant Bed CNC Lathe STC10
1994-95 Manual Lathe NL180
1996-97 Twin Spindle CNC Chucking Lathe
TS20
1997-98 Auto Component Machining Lathe
AutoCompCNC55
1997-98 Composite Bed CNC Lathe Stallion
200
Table 3.2

36
THE MARKETING NETWORK OF HMT
The Machine Tools marketing division with its head quotes at spared
throughout India caters to the marketing needs of this unit at the primary
level. To coordinate the marketing activities at unit level co offer technical
support to HMT, a strong sales and service team is constituted at unit level.
HMTs major customers include, Defense, Railways, Automobile and other
Engineering industries in various sectors.
Main Inland Competitors for the units produce
1. Mysore Kirloskar Ltd.

2. ACE Designers.

3. NC Machines Private Ltd.

4. Lakshmi Machines Works.

5. PSG.

6. Jyoti.

7. TAL.

8. Gedee Weiler.

9. LML.

10. Proteck.

Main foreign competitors for the units produce

1. Okuma Japan.

2. Nori Saiki, co, Ltd, Japan.

37
3. Takisawa, Japan.

4. Mazak, Japan.

5. Iregai, Japan

6. GDM, Germany
7. Churchill, England
8. Ernault Tayoda, Japan

9. Victor, Taiwan

10. Tuma, Korea

11. EMAS, Germany

12. Hass.

13. Tongtal.

14. DMG.

15. Daewoo.

16. Nori Saiki, co. Ltd. Japan.

17. Takisawa, Japan.

18. Mazak, Japan.

19. Iregai, Japan

20. GDM, Germany

21. Churchill, England

38
22. Ernault Tayoda, Japan

23. Victor, Taiwan

24. Tuma, Korea

25. EMAS, Germany

26. Hass.

27. Tongtal.

28. DMG.

29. Daewoo.

39
THE CURRENT PRODUCT RANGE OF HMTS PRINTING
MACHINERY DIVISION:

PRODUCT MODEL
SOM 436

SOM 425(Four color)

SOM 236

SOM 231

SOM 136
Sheet fed Offset Printing
Machines(SOM) SOM 131

SOM 125(Single color)

SOM 225(Double color)

MOM 1015

MOM 1520

Paper Cutting Machine PG-92 D3

PG-115

Table 3.3

40
FIG 2.1 HMT ORGANISATION CHART

PRESIDENT OF INDIA

MINISTRY OF HEAVY INDUSTRIES

BORAD OF DIRECTORS

CHAIRMAN AND MANAGING DIRECTOR(C&MD)

MANAGING DIRECTORS (SUBSIDIES)

DEPARTMENTS

FINANCE/HRM/MARKETING/R&D/TECHNOLOGY DEVELOPMENT

41
FIG 2.2 EMPLOYEES

WORKER SUPERVISOR

WORKER GRADE WG-VI

WORKER GRADE WG-V

WORKER GRADE WG-IV

WORKER GRADE WG-III

WORKER GRADE WG-II

Worker Grade WG-I

42
FIG 2.3 OFFICERS

GENERAL MANAGER

JOINT GENERAL MANAGER

DEPUTY ASSISTANT GENERAL MANAGER

SENIOR ENGINEER

DEPUTY MANAGER /ENGINEER

OFFICER /DEPUTY ENGINEER

JUNIOR OFFICER

ASSISTANT ENGINEER

43
44
3.3 FUNCTIONAL AREAS

The various departments of HMT are as follows:

1. Human Resource Department

2. Finance Department
3. Public Relations Department
4. Purchase Department
5. Manufacturing Department
6. Sales Department
7. PMK Manufacturing
8. Safety Department
9. Foundry Department
10.Stores Department
11.Quality Department
12.Plant Service Department
13.Planning Department
14.Corporate Planning Department
15.MTK Assembly Department

45
FIG 3.2 HUMAN RESOURCE DEPARTMENT STRUCTURE

DEPUTY GENERAL MANAGER

ASST.GM (HR) SNR.MEDICAL SNR.ENGR SNR.ENGR

OFFICER TRAINING ESTATE

GM GM GM GM
GM GM
(F) (F) (F) (F)
(F) (F)

*GM: GENERAL MANAGER

*SNR: SENIOR

*ASST: ASSISTANT

46
3.3.1 HUMAN RESOURCE DEPARTMENT

HRM Department of HMT is headed by GM (HRM).These are 7 employees

working in this department. Human Resource Management strives to ensure
continuous organizational growth by nurturing the strengths of employees
and providing the environment and opportunity for every individual to rise
to his/ her highest potential.

FUNCTIONS

1. Industrial Relations
2. Training
3. Personal activities
4. Welfare activities
1. Industrial Relations: The Company has been enjoying peaceful
industrial atmosphere for a long time. The company has the
cooperation of employees in almost all its activities. Whenever
conflict occurs it is the duty of this department to look into matters
and take corrective actions. The IR Officer acts as a liaison with legal
advisors. In the early days there was only one recognized union in
HMT and it was CITU. Currently, there exist three major trade
unions. They are:
HMT Employees Union- This is affiliated to CITU. It is the 1st
and the largest union in the company
HMT Workers Union
HMT Employee Federation

47
 The General Manager of the unit meets the trade union leaders once
every month to listen to their suggestions and complaints and to
appraise the overall situation of the company. It is natural that the
interest of the management and trade union differs on certain issues.
In an industry the maximum production can be achieved only by
securing the confidence and cooperation of the trade union leaders
and utilizing them in a positive way.
2. Training: HMT gives a very high priority to Human Resource
development through training and organizational activities. The
company looks after training needs of employees throughout their life
in the organization. They also conduct customer training
programmers. The programmes are combined with lecture sessions
followed by interactive sessions guided by various expert faculties.
The medium of instruction is English. There are mainly four types of
training programmers:
a) Employee Training
b) Customer Training
c) Statutory Training
a) Employee Training:
Induction: It is given to the people selected through recruitment.
If the person successfully completes induction, he will be posted
in suitable area. Otherwise, the management will give further
training. Duration for conducting induction is one year.

48
 In plant Training: It is the training given inside the plant or
hands on training. It may be given to the employees who are
transferred from different plants in different places.
Multi-skill Training: This is provided as and when the
employees are recruited. This is given only for direct workers on
the basis of recommendation from department heads. The duration
is for three months. But it can be extended beyond three months if
required. During training program workers are considered as
indirect workers.
Periodical awareness Training: This training is given to
supervisors and worker category employees depending on their
needs and nature of work. Employees for training may be selected
by head of department.
b) Customer Training: It is given to the customers for the optimum
utilization of their products. The main products of the company are
machine tools. There are two types of machine tools- Conventional
Lathes and CNC Lathes.
CNC operation Training: It is the maintenance and operation
training programme. Its duration period is for one week. Free training
programmes are given to a person per machine. It is given in four
areas such as computer programming, CNC programming, Metallic
and Hydraulic Programming, electric and Electrolytic maintaining. In
case, if more than one candidate appears for training an amount of
Rs.1000/- is charged from them. Training calendar is prepared before
March every year calendar is sent to customers through marketing

49
 offices and sales offices. Feedback is collected at the end of the
programmes. Certificate is provided for training programmes.
Printing Machine Training: The training includes usage and safety
measures to be adopted. The duration period is for one week.
Product Orientation Training: It is given to the marketing
executives, sales executives and service engineers; it is intended to
give awareness about new properties added to the product.
c) Statutory Training (Apprenticeship Training): It is given as per
the guidelines of Ministry of Labor and Ministry of Industry.
Graduate Training: It is provided to B.Tech, graduates in
mechanical and Production. It extends to a period of one year
during which a stipend amounting to Rs.1000/- is give.
Technician Apprenticeship: It is given to Diploma holders with
mechanical, civil, electrical, and electronics background. Stipend
amounts to Rs.1400/-
Vocational Training: Office apprenticeship, medical lab
technician etc. comes under this category. Stipend amounts to
Rs.1090/-. The duration period of this training is one year.
Trade Apprenticeship: It is given to those who have SSLC,
securing 1st class. For this training there is an entrance
examination and interview. After that trades are fixed.
Apprenticeship training for ITA holders is also conducted by
HMT. The company also gives training for the operation of CNC
lathes. The duration is for 6 months. It is provided to six persons

50
 at a time and a negligible amount is charged for the same. Also,
there is a student guidance programme.

FACILITIES FOR TRAINING PROGRAM:

There are 14 internal faculties for periodical awareness training and 10 for
apprenticeship training. There are three staff members in the training centre.
There are also facilities for practical training in milling, grinding etc.
Training centre is under HRM Department. They report to the HRM Chief
and get prepared by the training department itself.

3. Personnel Activities: This includes all the personnel administration

activities in the company, the personnel function is carried out
according to the policy framed in the manual. Some of the personnel
functions in the company are:
a) HRM Grievance Procedure: The objective of grievances
procedure is to provide a settlement of grievances of officers and
to adopt measures so as to ensure expeditions. Settlement of
grievance leads to increased satisfaction on the job and results in
improved productivity and efficiency in the organization.
b) Recruitment: Recruitment of management trainees in
engineering and other professional areas are made by the
Corporate Personnel Directorate. For such centralized recruitment,
the two methods adopted are HMT Site ADS, Recruitment
through open all India advertisement.
The campus recruitment for the post of executives in PSIII for
graduate engineers and post graduates diploma holders on

51
 management will be made from recognized institutions only. The
recruitment by Open All India advertisement will be made for
selecting engineering graduates in technical areas and for
professionally qualified candidate.
Recruitment of senior executive at the level of corporate Cadre
i.e., PSVII and above will be taken by the corporate personnel
directorate once in 4 months in April, August and December in a
calendar year . The proposals from the units for such recruitments
for the vacancies as per the sanctioned manpower operational
plans should be sent to directorate in January, May, and
September every year, who will take further action for Centralized
Recruitment of Corporate Cadre Senior Executives. Recruitment
at level of PSV and below (with the exception of management
trainees) will be undertaken by the units.
c) Induction policy: The induction program is for a period of one
year. Out of twelve months, three months, at H.Q. and the
remaining nine months are spent in the respective units. But the
functional relationship between corporate HRD divisions with
management trainees during the induction program continues for
the whole year. The purpose of this induction program is to
facilitate the transition of the trainees from the campus to the
industry.
d) Promotion Policy: There are two systems of promotion within
the executive positions of HMT which are promotion within the
group and promotion between the groups. All promotions are

52
 made in accordance with this promotion policy which will be
from scale of pay to the next without skipping any scale of pay.
Promotion norms consist of two parts, which are eligibility factors
that includes a qualifying period, and qualification norms
attendance, conduct, prescribed standards in Performance
Appraisal. The other factor is suitability factors, which includes an
interview and assessment of the potential of the executives in their
own channel or for a post other than their own channel of
promotion.
e) Performance Appraisal System: Appraisal is done on the basis
of
Job performance factor: Job knowledge, quality of work,
target fulfillment, cost/ time control, and safety consciousness.
Managerial ability factors: Planning and organizing, problem
analysis and decision, inter personal skills, communication
skills, self- motivation, commitment, responsiveness to change,
developing subordinates, management of human resource,
positive discipline.

Appraisal stages are as follows:

General comments and overall assessment of developmental

needs of the appraise leading to final assessment.
Review discussion with appraise
Follow up action to be taken

53
 Review discussion before appraisal and after the completion
of appraising the employee is reported to the review officers.
f) Voluntary Retirement Scheme: The scheme is introduced to cut
down the manpower strength and reach an optimum level and also
provide monetary benefit to employees. The scheme is not
applicable for professionally qualified employees like graduate
employees and professionals in Finance, HRM, and Marketing.

g) Welfare Activities:
Washing Facilities: Separate washing facilities for men and
women, it is easily accessible to the world place.
Storing and drying clothes
Sitting facilities
Canteen
First aid and ambulance: dispensary with all medical
facilities and ambulance
Rest room and lunch room: There is a home meal section
attached to the canteen, Rooms are provide for the purpose
Welfare Officer: As per factories Act, there is a welfare
officer
Non-statutory Welfare Measures:
Uniform: Two sets of uniforms are supplied to eligible work
men excluding foundry. For the foundry workers 4 sets of
uniforms are provided. For administrative 2 sets of uniforms
are provided.

54
 Free supply of Milk: For those who are engaged in hazardous
area
Vitamin Tablets: Issued at free cost to the employees working
in foundry and heat treatment
House Building advance scheme: 10% of the profits are kept
apart for this purpose every year. Loans are granted on
seniority basis. The scheme was introduced from the year
1982-1983
Transport Facilities: Company buses run on contract basis
and are plying through various routes for the benefit of all
employees. A certain amount based on the salary is deducted
every month from the salary wages of the bus pass holders.
Recreational Facilities:
Central Welfare Association
It is governed by a council of 14 members, 7 are elected,
7 nominated. Out of the seven elected members 4 are
secretaries of the following subsidiary clubs such as
Social club, Arts and dramatic club , Sports club
,Educational society.

DUTIES & RESPONSIBILITIES

1. To maintain and develop HR policies, ensure compliances and

contribute to the development of corporate HR policies.
2. To develop the HR team, to ensure the provision of a professional
HR service to the organization. Manage a team of staff responsible

55
 for mentoring, guiding and developing them as a second line to the
current position.
3. To ensure timely recruitment of required level/ quality of
Management staff, other business lines staff, including non-billable
staff with appropriate global approvals, in order to meet business
needs, focusing on Employee Retention and key Employee
Identification initiatives.
4. Develop, refine and fine-tune effective methods or tools for selection
/ or provide external consultants to ensure the right people with the
desired level of competence are brought into the organization or are
promoted.
5. Prepare information and input for the salary budgets
6. To develop the HR business plan
7. Ensure appropriate communication at all staff levels
8. To facilitate development of staff with special focus on Line
Management
9. To recommend and ensure implementation of Strategic directions for
people development within the organization.
10.To facilitate/ support the development of the Team members
11.Ensure a motivational climate in the organization, adequate
opportunities for career growth and development.

56
FIG 3.3 FINANCE DEPARTMENT STRUCTURE

GENERAL MANAGER
(FINANCE)

CONCURRENCE CASH PF PA

DMF

MAIN A/Cs OBS

IBS WAGES

1 A/OFFICER

1 STAFF
1 A/Cs

OFFICER

4 STAFF 1 A/Cs
1 DMF
OFFICER
1 A/Cs 1 DMF
OFFICER
1 A/Cs OFFICER

2 STAFF

2 STAFF

57
*DMF: Deputy Manager Finance *OBS: Outward Bill Section

*PF: Provident Fund *IBS: Inward Bill Section

*PA: Personal Allowance

58
3.3.2 FINANCE DEPARTMENT

INTRODUCTION

Every organization irrespective of its size relies on its financial health for its
survival. The public sector organization HMT has a full-fledged finance
department in each of its units located at various places. The analysis of
financial data is carried out by the finance department. The process of
financial analysis is employed to evaluate past, present and likely future
performance of the organization. The financial strength and weakness of the
organization is established based on the balance sheet and P&L account
prepared by the finance department.

FUNCTIONS

The following are the major functions of finance department in HMT

Machine Tools, Kalamassery
1. To provide strategic financial support regarding operational and general
business planning.

2. To meet internal and external needs and financial reporting requirements

of the company at large.

3. Providing financial information, guidance and advice to other

departments.

4. Vetting and appraisal of capital expenditure/ investment proposal to

ensure their financial viability.

5. Budgetary Control.

59
6. Management of Taxes.

7. Ensuring timely payment of employees salary and other welfare

expenses.

8. Working Capital Management

60
SECTIONS OF FINANCE DEPARTMENT
OUTWARD BILL SECTION (OBS)
OBS maintains the records of sundry Debtors, accounts of sale of machines,
special accessories, spares and job order. OBS monitors and follow up with
debtors for realization of outstanding dues. OBS also prepares the provision
entries relating to debtors. OBS also generate sales and servicing invoices.
All the work related to sales, tax, excise duty, and service tax comes under
the ambit of OBS.
INWARD BILLS SECTION (IBS)
IBS is concerned with purchase accounting and authorising payments to
creditors, contractors, and also various expenses like water, electricity, hire
charges, welfare expenses, legal charges etc. Thus, this section also handles,
import procedure like LC opening, authorising direct transfer to foreign
customer (TT) monitoring exchange rate variation arranging for forward
cover from bank etc. IBS also create provision for outstanding with respect
materials which have not been accounted as purchase.
WAGES & TIME OFFICE SECTION
Wages prepares payrolls of officers, workers, trainees, on the basis of
muster roll given by the time office. Payroll preparation is computerized
and the salary or wages are made through bank. Time office /wages also
engage with the work of attendance monitoring, entering the leave of
employees, conveyance reimbursement, medical reimbursement, TA and
DA settlement, calculation and disbursement of retirement benefits.

61
PF SECTION
PF section arranges for the recovery of provident fund from the employee
salary. Present statutory minimum recovery is 12%.The employees are
allowed to contribute higher amount voluntarily. Out of 12% contribution
made by employer an amount equal to 8.33% is transferred to employees
pension fund.PF section also provides the loan facility to employees as per
stipulated terms and conditions.

62
MAIN ACCOUNTS AND COST ACCOUNTS
All cost data required by financial accounts such as SIT, WIP are prepared
by cost accounts section. Main accounts prepare all the statements related to
material accounts. Weighted Average rate is following for inventory
valuation. Half yearly / periodical physical verification of stock is
conducted by main accounts and whenever discrepancies occurred they are
analysed and rectified. This section prepares monthly and annual financial
statements (Balance sheet, P& L A/C, Cash Flow Statement etc.) and
coordinates with internal / statutory auditors and also with comptroller and
Auditor General of India.(C & AG).This section also prepares Budget and
monitoring variance, maintains fixed asset register, prepares various MIS,
fixing selling price of machines, accessories, spares etc. It also monitors
transactions accounted by other sections of finance department and
coordinates with Head office towards settlement of various financial
matters of Kalamassery unit of HMT MACHINE TOOLS LTD.
CASH SECTION
Cash section keeps the cash day work and the bank day book. The payment
vouchers prepared by the Inward Bill Section are sent to the cash section for
payments. Generally payments are made through NEFT or RTGS. This
section also prepares bank reconciliation statement and daily cash flow
statement and also monitor that cash credit does not exceed the permitted
limit.

63
CONCURRENCE
All purchase proposals are sent to concurrence section for financial vetting.
They make it sure that all purchases are made according to the purchase
manual. In short, all purchases (whatever it may be) can be made only with
the approval of finance department.

64
 FIG 3.4 PUBLIC RELATIONS DEPARTMENT STRUCTURE

GENERAL MANAGER (GMK)

DEPUTY GENERAL MANAGER (HUMAN RESOURCE)

PUBLIC RELATION OFFICER

OFFICE SUPERINTENDENT

OFFICE STAFF RECEPTION PHOTOCOPIER

OPERATOR

65
3.3.3 PUBLIC RELATIONS DEPARTMENT

INTRODUCTION
Public relations are the lifeblood of any company. Whether a company is
public or private, profit or non-profit, its reputation will determine its
ultimate success. Instant worldwide communications make it more
important than ever to manage a company's image and control how a
company interfaces with its customers. Public relations failures can
seriously undermine the effectiveness of management and compromise
company credibility. To keep things running smoothly, the public relations
manager must wear many different hats: that of a journalist, marketer and
sociologist.

FUNCTION
If the public relations functions are considered important in the company by
the top management. It may create a publicity section. Advertising section,
grievance section etc. Mostly the publicity section looks after preparation of
publicity material its implementation and review time to time of its
publicity strategy to crate the desired impact on the public. The work of the
advertising section is to desire the adversity startles and budget in
consultation with marketing department design advertising companies,
study the response of various advertising agencies in print electronic media
message and their conduct.
The publics relations department is directly made in charge of enquiries
and grievance redressal and members of concerned public do not have to
interact with any other department. Some other functions are,

66
 Scanning newspapers every day for information regarding the
company or even the competitors and it provide a backup service
to the concerned department.
The department also has the responsibility of receiving VIP s and
arranging other visits including factory visits of students from
technical institutions.
Manage the letters and couriers to the respective departments.
And Receptions are the frontend of this department.

Conference hall is managed by the PR department. And Conducts

some community development activities.
Overall responsibility for all work is publicity including receptions,
arranging seminars and conference of general nature, protocol,
photocopying and duplication work liaison with media and service like
telex, fax, telephone exchange etc.
Have the functions of editing, printing and publishing journals in
English and Malayalam, releasing advertisements, holding press
conference and press release.
DUTIES & RESPONSIBILITIES OF THE DEPARTMENTAL
HEAD
1. Advocate
The public relations manager is the chief advocate for the company.
He must focus all energy on building an organization that will be
deemed a good corporate citizen. He is the mouthpiece for
management and in political circles known as the press secretary.

67
2. Communicator
The public relations manager crafts communications policies and
oversees the development of all statements and news releases for the
company. Sociology, psychology and good journalism are requisite
talents for the manager and staff. Communications must be clear,
concise and relevant to the audience.
3. Problem Solver
The public relations manager is the ultimate spin doctor. It is her job
to put the best face on news and information that could embarrass or
malign the company's reputation. Often, she will be called upon to
polish mundane information into platinum data that gives the
company more credit than would ordinarily be due for routine
accomplishments.
4. Opinion Maestro
The public relations manager directs all outreach efforts. He is
responsible for media placements and coordinating organizational
functions and the efforts of executives. It is his responsibility to
determine the executive appropriate for each situation and ensure that
person has approved information and statements in hand.

68
FIG 3.5 PURCHASE DEPARTMENT STRUCTURE

JGM

DGM

AGM
AGM
AGM

MANAGER
MATERIAL
PLANNING
MANAGER
MANAGER

OFFICER

STORE DEPUTY MANAGER

OFFICER

STAFF

STAFF STAFF

69
3.3.4 PURCHASE DEPARTMENT

INTRODUCTION
In the present scenario of increased competition, reduced time to market
and globalised outsourcing, material management has evolved as one of the
major factors for the success of an organization. The Purchase function, a
key component of material management is now functioning with more
agility and is shouldered with more responsibility than before.

In HMT Ltd., and its subsidiary companies, the purchase function is carried
out by the purchase department of the respective unit or divisions and is
responsible for procurement of the unit or divisions requirement. The
heads of the material department and purchase department are accountable
for effective discharge of purchase functions within the framework of
purchase policy of the company.

SCOPE
This document lay down the directions and guide lines to be followed by
HMT Limited and Subsidiaries, on matters relating to procurement of
materials, capital items and subcontract and hiring service.

OBJECTIVES
1) Timely procurement and supply of required materials with prescribed
specifications and quality at the most competitive price and terms.

2) Fair, consistent and transparent purchase practices.

3) Continuous search for alternate source of supply and to develop reliable

source of supply.

70
RESPONSIBILITIES OF PURCHASE DEPARTMENT
1. Adherence to guidelines contained in the purchase manual.

2. To issue enquires/ tenders, analyze the quotation received and prepare

comparative statement with a view to obtain competitive price to HMT.

3. To conduct negotiation with L1 tender.

4. To keep tender box with lock for receiving offers in the sealed tender.
Tender box should be opened in the presence of vender and representatives
of finance department in the case of Open tender, limited tender, single
tender etc.

5. To ensure fair opportunity to tenders/ supplier and competitive price and

terms and assured quality to HMT.

6. To issue purchase order in terms after obtaining competent authoritys

sanction and follow up further supplies and periodical review of pending
purchase order.

7. To follow up with supplies for timely supply and replacement/ settlement

of claim and other dives firm supplies and closure of purchase order is
ensured.

8. To coordinate and assist financed and inspection department in

settlement of bills and recovery of dues if any.

9. To submit applications for import clearance and obtain technical

Clarence and import license whenever applicable.

71
10. To enter into annual rate contracts with committed delivery schedule for
standard items, whenever applicable.

11. To enter into service contract for transportation, customers claims and
maintance of equipment etc..

12. To ensure after-sales-service is fulfilled by the suppler during warranty

and post warranty periods.
MODES OF PURCHASE SYSTEM
The tender system is adopted to procure materials at competitive rate and
different types of tenders are in vogue via, Open Tender, limited Tender,
Single tender and local purchase through spot offers. The procurement
process can also be through electronic mode (E-procurement).

1. Open Tender
Open tender refers to calling of quotation by advertising tender enquiry in
website of the company and at least in one reputed local/ national
newspaper. Open tender have to be resorted to for an item where the
estimated tenders value of purchase exceeding Rs. 25 lakh.
2. Limited Tender
Limited tender are those addressed to all parties in the approved list of
venders for the required item, as per the database maintained by the
purchase department / a hard copy signed by the purchase as per ISO
system.

72
 3. Single Tender
Single tender are those addressed to a single party and reason for the same
are to be clearly recorded in the proposal. Prior approval of purchase
coordination committee and sanction from the unit chief.
4. Local purchases through spot offer

5. Purchase of Raw material from Foreign Suppliers

All import should have prior approval of competent authority as follows.
Import value up to 10 lakh need approval from unit chief and import more
than 10 lakh needed approval of subsidiary chief / function Director of
Holding Company.

73
FIG 3.6 SALES DEPARTMENT STRUCTURE

JGM (SD)

JGM (S) JGM

(SS)

DGM (S) DGM (SG)

SALES TRIALS
DEPUTY ENGINEER
ENGINEER

SERVICING JOB ORDER

ASSISTANT
ENGINEER DEPUTY
ENGINEER

74
3.3.5 SALES DEPARTMENT

INTRODUCTION
Sales and servicing activity is a most important function in fulfilling the
objectives of the organization and needs of the customers. It has the
activities of selling the machines as per customer satisfaction through its
after sales activities.

SCOPE
The scopes of the process mapped are in sales, servicing and dispatch of
HMT Kalamassery products.

OBJECTIVES
To create and sustain customers in the line with the quality policy of the
company and provide after sales services to achieve total Customer
Satisfaction.

PROCESS
The customer contacts the Regional office and specifies all his
requirements, delivery date and other details. These details are then
conveyed to the Sales department and Finance department for
appropriateness of design time, design, financial concurrence etc. After the
feasibility of the design is confirmed by both the department, it gets into
production process. The finished product, after inspection and formalities, is
dispatched to the customer at the required rate. The payment is made to the
Sales department. After sending the required commission to the regional

75
office, sales department sends the rest of the cash to the financial
department.

FUNCTIONS SALES OFFICE, MTD AND PMD

All commercial activities in connection with the sales of machine produced
at MTK.

RESPONSIBILITIES
1. Submission of the offer for conventional MIC enquires received at MTK.

2. Scrutiny of order regarding technical and commercial conditions.

3. Reduce of order acceptance.

4. Issue of amendments to order acceptance in case of only changes all

required.

5. Release of performance invoice.

6. Follow up with marketing/ customer for payment dispatch clearance.

RESPONSIBILITIES AND AUTHORITIES

Chief servicing: MTD and PMD
1. Commissioning and the servicing of machine supplied by MTK in target
either by coordinating with the corresponding regional office, servicing of
out of warranty machine on chargeable basis.

2. Arranging replacement spare for rectifying complaints reported during

warranty period of all machine.

76
3. Monitoring of the customer complaints and to provide technical advice/
suggestion/ classifications where ever required.

4. Furnishing data for quality assurance department for continual

improvement.

77
FIG 3.7 STORES DEPARTMENT STRUCTURE

JGM (ME)

DGM PURCHASE

SENIOR PLANNING MANAGER

DEPUTY ENGINEER

STAFF

78
3.3.6 STORES DEPARTMENT

INTRODUCTION
The material cost constitute a major portion of the manufacturing cost of a
product, moreover almost all of the working capital in industries lies local
up in inventories. Hence small changes in materials cost can result in large
sum of money saved or lost.
Store keeping is the function of receiving, storing and issuing of materials.
It involves supervision of the clearance of incoming supplies to ensure that
they are maintained in good condition, safety and readiness for use where
required while they are in store and issuing them against authoritys
requisition. In short, it is concerned with the physical handling and well-
being of the stock.

FUNCTIONS
1. The store keeping activities start with the clearing and forwarding
operations which involves making necessary arrangements to take
deliveries of consignment or incoming goods, on receipt of either document
or information from the supplier or from the purchase department and to
carry out all the necessary formalities in clearing the goods and claim for
missing or damaged goods.

2. The receiving department unload, identifies, prepare, receiving reports,

arrange for early inspection of materials and handle the accepted goods
moving them to the area in the plant where it is to be stored or used. It takes
actions on the rejection goods and on any discrepancies in supplies.

79
3. The store function covers, receiving stores and issue of all type of
inventories in to store. The store department classifies, identifies and locates
all materials in a manner which permits really accessibility. It protected the
materials in its custody against pilferage damage, detritions and
unauthorized withdrawal.
TYPES OF STORE
In HMT Kalamassery there are two main system of store
1. Closed store system.

2. Open store system.

1) Closed Store System:

In a closed system all materials are physically stored in a closed controlled
area and no one other store personnel is permitted into the area. Material
enters or leaves only when accompanied by documents of authorization,
this system affords maximum physical and ensure tight accounting.
2) Open Store System:
In open system, no store room such exist and materials are stored room such
point of physical use as possible. The system is designed to expedite
production activities and reduction in handling and place little important in
security. This system is justifiable in case of fast moving production and
assembly line are when the material is too bulky to handle e.g.: heavy
casting may be left near the machine just the point of operation and where
chance of deterioration are negligible.
There are different types of store depending on the nature of goods stored in
them, proximity to point of use, special conditions required for storage and

80
the convencieal of suppression. Functionally, a minimum of three types of
store are common they are.
Good Inwards Store.(Receiving Store)

Main Store

Finished Product Store (Warehouse)

In large manufacturing industries where the product is made up of
assemblies of manufactured components, the main stores will be sub
divided into.
Raw material Store.

Finished Parts Store.

Further split up may be convenient to share similar product or material of
indirect materials such as;
Foundry Store

Tools Cribs

Plant Store (spears)

Stationary store
Special type of stores may be formed where creation problems in
conditions of storage are faced with.

81
STORE RECORDS AND PROCEDURE
Clerical procedure in goods inwards section placed by the company for the
supply of specified goods would have been received by the receiving
section. This service as an advance information to the store keeper about
goods accepted.
When a consignment is received, the package or cases should be thoroughly
inspected for any indication change external or internal. The delivery note
or Chelan or should be carefully checked against the purchase order copy
and with any written advice received from the supplier. As far as possible,
immediate arrangement should be made for breaking open the case and for
inspection of the content.
Checking is done by the receiving department or the inspection from the
quality control department. The nature of discrepancy that might found in
incoming consignment can be.
1. Loss of Package.

2. Damage to Package.

3. Shortage in Content.

4. Damage to material.

5. Wrong item.

6. Excess Supply.

7. Reject.

82
The number of copies of the goods inward note made and its distribution is
as follows.
1. Accounts Department.

2. Purchasing Department.

3. Store Department.

4. Supplier.

5. Inventory control section.

6. Receiving section.

83
FIG 3.8 MTK MANUFACTURING DEPARTMENT STRUCTURE

GM (P)

DG (MM)

SMV SMH

DCE (SP)

ASST
ENGR

ENGR
SMN SGR ENGR DY ENGR

ENGR DY ENGR

ASST
ENGR
ASST
ENGR ENGR

84
3.3.7 MANUFACTURING DEPARTMENT

INTRODUCTION

The machine tool manufacturing department at Kalamassery manufactures

various components of conventional lathe and CNC lathes. For
convenience, the various parts of the machine are divided into two, namely,
small parts and heavy parts.

MTK - MANUFACTURING

SMALL PARTS HEAVY PARTS

SMALL PARTS
The various small parts are gears, apxon, flanges, lead screw, spline shafts,
racks, levers, rests, compound rests, tool posts, turrets, tool heads, swivel
head etc.
According to the shapes and uses there parts are classified in two
sections Rounds

Non rounds

85
The various sections in small parts are:-
1. Non rounds

2. Rounds

3. Gears

4. Spindles

5. Turrets

6. Accessories

7. Lead screw

HEAVY PARTS
The heavy parts departments manufacturing the large sizes parts. Special
cranes are used for spacing the parts of various operations.
The various heavy parts manufactured in the heavy parts departments are:
1. Lathe bed

2. Legs

3. Carriage

4. Headstock

86
5. Tailstock

6. Tool head etc.

Most of the heavy parts are casted at the foundry and has to be milled.
The various machining operations are in the heavy parts department
are:
Milling
Facing
Drilling
Grinding
Housing
CNC turning etc.
RESPONSIBILITIES OF SECTION HEAD IN MANUFACTURING
DEPARTMENT
DISCIPLINE
1. Maintain order and discipline in the section.

2. Do necessary co-ordination with other production as well as service

section for the harmonious functioning of the section.

3. Generate team sprit among employees and supervisory staff and service
for the achievement of the company objectives.

4. Initiate disciplinary actions where required

87
UTILISATION OF OUTPUT
1. Study the monthly production or dispatch programme and preplan the
work.

2. Ensure that the components are loaded on the machines for operations in
the order of priority as per production schedules.

3. Study the operation layout for components along with drawings well in
advance, clarify and settle all doubts with production pre planning before
loading the job.

4. Study the requirements of standard and special toolings and check the
availability of the same of avoid any delays.

5. If special tooling as per the operation layout are not available, co-ordinate
with PPT and plan alternate process for the completion.
GENERAL
1. Maintain machine and equipment.

2. Ensure adherence to ISO-9001 system of standards and promote Pip

activities.

3. Conduct analysis of non-conforming reports and take corrective actions

to prevent recurrence.

4. Co-ordinate with service department RPM, tool engineering etc. for the
efficient maintenance and utilization of resource.

88
RESPONSIBILITIES OF SHIFT-IN-CHARGE/ GROUP-IN-
CHARGE IN PRODUCTION
DISCIPLINE
1. Record the attendance in the shift.

2. Ensure starting of work in the shift on time.

3. Maintain the orderly behavior of employees of the section

89
 FIG 3.9 MTK ASSEMBLY DEPARTMENT STRUCTURE

JGM (D)

JGM (MP) JGM

(EA)

SR
SR SR ENGR
ENGR ENGR
ENGR

ENGR

ASST ENGR ENGR SR ENGR DY

ENGR

WG-23
WG-4 WG-7 WG-10
ASST
ENGR

M271 GPM ASSY M272 GROUP M273 PRE FINAL M274 FINAL
ASSY ASSY ASSY WG-8

M277 ELE ASSY

90
3.3.8 MTK ASSEMBLY DEPARTMENT

INTRODUCTION
Among the subsidiaries of HMT Limited Machine Tools division
Kalamassery, is engaged in producing various types of turning centre,
printing machines and cutting machines. Assembly activity is the key
function of any organization. The machine tool assembly department at
Kalamassery assembles various components of conventional lathe and CNC
lathes. For convenience, the assembly department is subdivided into NH
assembly and CNC assembly. NH assembly section assembles conventional
lathe and CNC assembly section assembles computer numerically
controlled lathes. The most of the electrical components are brought out
items and is assembled by electrical assembly section.
SCOPE

The main function of the department is to assemble the machine based on

the rolling plan supplied by the sale department and conform to the
performance and quality specified in the design document. Assembly
department will offer the assemble machines for in-house inspection, will
also monitor at different stages of assembly to ensure that the quality
product is delivered to the customer.

PURPOSE
1. To assemble the machines as per rolling plan supplied by sales
department.

2. To assemble the machines to meet the design specification.

91
3. To complete the assembly of machines as per the dispatch plan.

4. To evolve systems to make the system flexible to adapt the changes in

the sales plan.

5. To improve methods any systems to changing needs for market.

6. To assemble the pre- assembles, group assembles and final assemblies to
match with assembly drawings and specification of the machine.

7. To record the non-conformities and take corrective actions to prevent

recurrence of the problem.

8. To interact with departments like production, design tool design,

purchase, sub contract and sales for continual improvements of the
machine.

9. To complete the assembly of machines with the act of any short coming
and problems for the final assembly.

OBJECTIVE
1. To improve performance index.

2. To improve efficiency of operation.

3. To reduce number of non-conformist in assembly detected during in

process and during final test.

4. Reduce number customer companies owing to assembly sings.

92
DUTIES &RESPONSIBILITIES OF DEPARTMENTAL HEAD
1. Co-ordinate the activities in the respective assembly areas effectively and
efficiently in line with the units, dispatch and production programme.

2. Maintain discipline and good industrial relation irrespective assembly

groups.

3. Co-ordinate the activities in assembly with other sections like design,

planning, etc.

4. To ensure proper upkeep of assemblies facilities.

5. Effective leadership in implementation of productivity improvement

programme.

6. Implement and sustain procedure relating to ISO 9001.

93
FIG 3.10 PMK MANUFACTURING DEPARTMENT STRUCTURE

GENERAL MANAGER

GENERAL MANAGER
(PRODUCTION)

DGM

ROUNDS NON HIGH- TECH HEAVY

ROUNDS PARTS

94
3.3.9 PMK MANUFACTURING DEPARTMENT

INTRODUCTION
HMT Ltd Kalamassery is mainly divided into two department 1) Machine
tools department 2) Printing machine department. The printing machine
division commenced its operations during the period of 1972 to 1973.
Among these both departments, printing machinery division mainly
concentrated on producing printing machines. And these department consist
of 120 employees including trainees, contract based worker etc. The
printing machine department of HMT Kalamassery is a leading
manufacturer of offset printing machines in India. PMK department is
functioning very similar to that of MTK manufacturing. The major
components are cast with the help of foundry department. The cast
components are manufactured into printing machine components at PMK
manufacturing department.
SCOPE AND OBJECTIVE
The main scope and objective of this department is producing quality
machine with minimum resources and increase the productivity by efficient
utilization of resources in limited quantity. So the ultimate goal to attain
maximum output/ production with minimum input.
The entire process/ function of the organization as well as department are
done by process or in a sequential order. So all these function are designed
in an order and all activities in the department are done by pre-planned
order for avoiding delays in the functions or activity are arranged in the
sequential order and separate division for the smooth flow of activity in the
department.

95
The production process of the department is done through permanent
employees and outsourcing process. In the outsourcing process accuracy of
the material checked by inspection department and the payment system in
this department is done through monthly final salary basis. For permanent
employees and using price rate system for contract based worker.
The accuracy and quality of the produced output will be check through
using computerized checking or through inspection department. By using
CNC can check the accuracy of the product in its each production process.

96
FIG 3.11 PMK ASSEMBLY

97
PMK ASSEMBLY
INTRODUCTION
The printing machine department of HMT Kalamassery is functionally
divided into two section, namely, PMK manufacturing and PMK assembly.
The components manufactured by PMK manufacture section and brought
out components are assembled in the PMK assembly section.
SECTIONS IN THE PMK ASSEMBLY
The printing machine assembly is primarily categorized in to three sections,
namely, pre-assembly, group assembly and final assembly
1) PRE-ASSEMBLY
Pre-assembly is the stage in which various parts are prepared for
assembly. This includes inspection, alignment and assembly of some
delicate parts which needs high accuracy. Pre-assembly is again
divided into two sections.
a) Mechanical Pre-assembly
The main parts assembled in this section are side lays and front lays,
sheet pickup unit and wing gripper. About three hundred components
are assembled in the mechanical pre-assembly section. The
components that are assembled in the pre-assembly section are
transferred to group assembly section and final assembly section.
b) Electrical Pre-assembly
All the electrical parts and circuits are assembled here. Power supply
units and control units are assembled in this section. The major works
carried out in this section are electrical panel preparation and cable
preparation. The drawings and tools are given to the worker. The

98
 electrical control elements, MCB, wires are assembled in this section.
The remuneration to the workers is paid based on the output
measured in terms of standard time for each work carried out in the
plant.
2. GROUP ASSEMBLY
In group assembly the compound parts which correctively perform
certain functions are assemble. The main parts assembled in
this section are cylinder drums (PC, BC, and IC), inking units and
feeder units.
3. FINAL ASSEMBLY
It is the final stage of assembly. Final assembly consists of
mechanical and electrical assembly works. It is the assembly of and
on the machine frame. The parts from pre-assembly and group
assembly are assembled in the final assembly to form the printing
machine. The general flow of assembly in this stage is as follows:
Base preparation
Side frame mounting
Bush suiting
Lubrication system assembly
Cylinder mounting
Delivery unit assembly
Swing gripper fitting
Front lay and side lays
Inking unit mounting

99
 Feeder mounting
Electrical interfacing
Paper feeding
Checking time chart
Testing

100
FIG 3.12 FOUNDRY DEPARTMENT STRUCTURE

JGM

DGM

AGM

SENIOR ENGINEER

ENGINEER

Dy. ENGINEER

WORKER/CONTRACT
LABOUR

101
3.3.10 FOUNDRY DEPARTMENT
INTRODUCTION
Foundry industry is the mother industry for all types of industrial,
agricultural and consumer products. The development in this industry
therefore is bound to have a far reaching effect on the production in all
other sectors. Though the casting process are based on techniques that are
age old and amazing the simple in principle, considering the effectiveness
of the results achieved the metal casting industry have become the key
industry in the world today. Foundry industry is based on casting principles.
Casting is a process of producing metal parts of desired shape by pouring
molten metal in to a prepared mould and then allowing the metal to cool
and solidify. This solidified metal is known as casting.
A pattern may be defined as a model of anything, so constructed that it may
be used for forming an impression called mould in sand or other suitable
materials. This mould then filled with molten metal that solidity, forms a
reproduction of the pattern. The process of making a pattern is known as
pattern making and the person who is makes the pattern is known as pattern
maker.
The foundry attach machine tool division of HMT Kalamassery to
meaningful cast iron and spheroidal graphite iron required for machine tools
and printing machine division and can also undertake job order , it is
established in 1968 with Polish design. It is a semi mechanized foundry
producing heavy duty iron and solid iron casting for machine tools and
printing machine using main and medium frequency inducer furnace for
moulding and resken bounded scrd. For moulding and core moulding

102
capacity 2500 ton per annum. Foundry areas 12000 meter square,
production range GI-up to 9000kg, SGI iron-up to 2000kg.
DIFFERENT ACTIVITIES OF FOUNDRY
1. Pattern making

2. Sand preparation

3. Moulding or core making

4. Metal preparation

5. Pouring

6. Knock-out

7. Finishing
8. Inspection

STEPS IN CASTING
1. Make the pattern out of wood, metal or thermocol.

2. In case of sound casting sheet testing and repair the necessary sand
manufacture for mould and core making.

3. With the help of patterns prepare the mould and necessary cores.

4. Melt the metal to the cast.

5. Pour the melted metal in the mould.

6. Remove the casting from the mould after if the metal solidifies.

7. Clean and finish the casting/ processing.

103
8. Test and inspect the casting.

9. Remove the defects if any/ salvage.

10. The casting is ready for shipping.

104
FIG 3.13 CORPORATE PLANNING DEPARTMENT STRUCTURE

GM

JGM

DCE

PMD PLANNING MTK

PLANNING

SENIOR ENGINEER
SENIOR
ENGINEER

ASST. ENGINEER OFFICER

ASST. ENGINEER OFFICER

105
3.3.11 CORPORATE PLANNING DEPARTMENT

INTRODUCTION
Corporate planning is a systematic approach to checking corporate
objectives, strategic decision making and checking progress toward
objectives a corporate plan is a set of instructions to manage of on
organization describing what role each department is expected to fulfill in
the achievement of organizations objectives. Corporate planning was
decides as a frame work for farm housing capital investment decision and
long term development of the firm.
It is the process of drawing up detailed actions plans to achieve on
organizational goals and objectives. Taking into account the resources of
the organization and the environment with in which it operates. Corporate
planning represents a formal structured approach achieving objectives and
to implementing the cooperate strategy of an organization.

DUTIES & RESPONSIBILITIES OF DEPARTMENTAL HEAD

CORPORATE PLANNING
1. Compilation of Business plans

2. Compilation of Operational plans

3. Preparation do short term plans and Rolling plans

4. Maintaining and Furnishing Information to the Management

5. Secretarial function for the Unit Board

6. Arrange for Review meetings

106
a) Weekly production and sales Review (Saturday)

b) Monthly production and sales Review

c) Weekly target meetings (Monday)

d) Monthly production and sales Finalization meetings (26th of every

month)
PROJECT PLANNING
1. Long term capital Budgeting

2. Short term capital Budgeting

3. Capital procurement

4. Maintaining and furnishing Information regarding capital Procurement to

Management

5. Sending monthly performance Report

6. Arrange for Monitoring Meetings:

a) Inventory Control - Monthly

b) Sundry debtors - Weekly

c) Emery conservation - Monthly

d) Developing / Updating Systems and procedures

107
FIG 3.14QUALITY CONTROL & INSPECTION DEPARTMENT
STRUCTURE

JGM-Q

DCE-EQ DCE-IQ SPN SFQ DCE-IN Q.C

ASSOCIA
1. Q.C TE
1. 1. M.F.G 1. MFG 1.
INSPE ASSEMBL
INCOMIN INSPECTI FOUN 1. M.F.G.
CTION Y
G ON DRY INSPECTI
HEAV 2. TEST
INSPECTI SMALL Q.C ON
Y FLOOR
ON PARTS 2. SMALL&
PARTS 3. Q.C
2. SUB 2. Q.C IN PATT HEAVY
2. Q.C, PAIMTIN
CONTRA CHARGE ERN PARTS
G
CT MEASURI HTC HTC
SHOP 4.
NG ROOM 2.
INSPECTI Q.C DESPATC
3. INCOMIN
ON H
CALIBRAT G
INSPECTI
ION INSPECTI
ON
4. PPT ON
5.
CALIBUR 3.
CUSTOME
ATION ASSEMBL
R
5. Y
SUPPORT
MEASURI 4. TEST
6.
NG FLOOR
MACHINE
MACHINE
CAIBRATI
6. FMR
ON
7. PWCC
ANALYSI
S CELL
8.
QUALITY
ASSURAN
CE

108
3.3.12 QUALITY CONTROL & INSPECTION DEPARTMENT

INTRODUCTION
Quality Control is in its simplest term refers to control of quality during
manufacturing. Both Quality Control & Inspection are envisaged to assure
the quality in entire area of any production process. Inspection is deter
mining function when the control become effective, the need of inspection
decreases hence, quality control determines the causes of variations in the
characteristics of products and gives solution by which these variations can
be controlled objective in its procedures, dynamic in its operation and
helpful in its treatment
In an organization maintain total quality culture is the aim of TQM.
Developing and maintaining total quality system, quality procedure,
document, continuous improvement, maintaining appraisal sanders etc. thus
maintain quality level of the product as declared earlier. Keep total
customer satisfaction throughout the product of the company. Our first
Prime Minister Pundit Jawaharlal Nehru says during opening ceremony of
HMT that a full satisfied customer is the prime capital of an industry
TQM departments are subdivided into three according to their function.
1. Inspection

2. Quality control

3. Quality assurance

4. Material inspection

5. Assembly inspection.

109
DUTIES & RESPONSIBILITIES
Register the service report and hand over to the conveners of
PWCCA meeting for analysis.
All assembly NCRs are to be collected and given to the concerned
dept. for corrective action.
Collect UQC inputs; prepare the UQC agenda before the 16th of the
succeeding month.
Prepare the mgmt. review meeting agenda as required but not
exceeding once in 4 months frequency.
Prepare and distribute the minutes of meeting of UQC and MRM.
Maintain all relevant records necessary for the ISO-9001 QMS.
Any other works related to ISO-9001 QMS, Assigned from time to
time.
Responsible for incoming inspection, in process inspection, and final
testing of printing machines and paper cutting guillotines.
Conduct the TQM activities like incoming inspection, in process
inspection, assy. Inspection and product testing of all printing
division products.
Plan and maintain process required for the effective functioning of
TQM dept. measure monitor and control the process and the
necessary action to achieve the planned results.
Any other related work assigned from time to time.
Plan and schedule the rollers required for different printing machines
and ensure the availability in time.

110
 FIG 3.15 PLANT SERVICE DEPARTMENT STRUCTURE

JGM

DCE DCE

SR.ENG (MM)

SR.ENG (EM) SR.ENG (EM)

DY.ENG (MM)
DY.ENG
(EM)

WG WG
WG/WS

WG WG/W
S

111
3.3.13 PLANT SERVICE DEPARTMENT

INTRODUCTION
The Plant Service Department is responsible for maintaining the machines
and equipment of the unit in optimum conditions of performance so as to
make them available for production. It has got the responsibility of erection
and commissioning of the machines in the plant. The department is also
responsible for the electrical power distribution of the entire factory
complex. It also looks after the internal transport functions and
housekeeping activities inside the factory.

FUNCTION

1. Erection, commissioning, repair, maintenance, reconditioning,

retrofitting and preventive maintenance of all the machines and
equipment used for production in the MTD and PMD plants and Training
center.

2. Maintenance of the EOT cranes, Jib cranes, Air compressors and a/c
units in the MTD and PMD plants.

3. Upkeep of R&M stores and spare parts planning.

4. Housekeeping activities in the shop floors.

5. Materials movement in the shop floors and maintenance of Internal

Transport vehicles and equipment.

112
6. Maintenance of power supply to the entire factory complex.

7. Maintenance of 66 kV sub-station, switchgear, power transformers, and

the entire distribution system.

8. Maintenance of supply distribution in Colony, Pump house.

9. Maintenance of Internal telephone exchange and the communication

system.

10. To arrange and co-ordinate contract works in connection with any of the
above activities.
DUTIES & RESPONSIBILITIES OF DEPARTMENTAL HEAD
Head of Plant Services Department has to ensure
a. Administration

b. Electrical Maintenance for MTD

c. Mechanical Maintenance

d. Internal Transport

e. PMD Maintenance
Also ensure safety aspects as per Factories Act, Factory Rules and
Electricity Rules in respect of Plant and Machinery.
MECHANICAL SECTION
a. Erection, commissioning and maintenance of all machines and
equipment, cranes, air compressors and A/c Plant in the factory of MTK
and PMD.

113
b. Preventive maintenance of all critical machines and equipment under his
control.

c. Reconditioning of all critical machines and equipment.

d. Testing of EOT cranes and compressors as per factory regulations.

e. Maintenance planning.

f. Identifying training needs of employees under his control.

g. Lubrication services.

h. Housekeeping functions in the factory.

i. Ensuring compliance with ISO 9001 requirements of the department.

ELECTRICAL SECTION
a. Maintenance of Power supply system in 66KV Substation. MTK and
PMD Plants and HMT Colony.

b. Erection, commissioning and maintenance of electrical portion in

machines and equipment and operations of all electrical equipment.

c. Preventive maintenance (Electrical) of all critical machines and

equipment in MTK and PMD.

d. Reconditioning (Electrical) of all critical machines and equipment.

e. Safety of all electrical equipment as per factory rules and electricity rules.

f. Internal communication systems.

g. Energy conservation.

h. Internal Transport activities.

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i. Identifying training needs of employees under his control.

j. Ensuring compliance to ISO 9001 standards of all the activities in his

section.

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FIG 3.16 SAFETY & SECURITY DEPARTMENT STRUCTURE

GM

CSO

SR.SYI

SHIFT I/C A SHIFT I/C B SHIFT I/C C

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3.3.14SAFETY & SECURITY DEPARTMENT

INTRODUCTION
The company adopts statutory measures for ensuring safety. Sixty fire
extinguishers are placed at different places inside the organization. The
company conducts periodical medical check-up for employees in certain
areas like electroplating which affect the health of the employees. A welfare
check-up is giving to employees in foundry periodically.
In this department activities are carried out according to safety standards.
These standards are exhibited at different places inside the organization.
The employees are given several safety equipment like leather gloves, PVC
gloves, helmets, fire shield, dust mask, welder shield, safety shoes etc. If
any accident occurs in the company, the matter will be informed to the
safety department within 24 hours by the supervisors through an accident
intimation form. This form is prepared in triplicate- one copy to medical
department, one copy to the safety department and the third to the
concerned department. The supervisor should inform to the ESI department
if the injured employee have ESI. All the accidents in the factory should be
communicated to the factory inspector, if the employees are disabled for
more than 48 hours.
There is a safety committee for discussing the problems relating to the
safety of workers. The company maintains a pollution free environment
inside and outside its premises. However certain areas such as foundry,
chimney, electroplating department etc. are under the pollution control
board. They undertake the sample periodically from the areas and check
whether it is restricted to permissible level.

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HMT Machine Tools Limited is a company where health and safety,
assurance is properly maintained. The department which helps in
maintaining safety has introduced many technical and methodical ways to
reduce the accidents and hazards. For the safety of employees some
statutory tests are made for certain areas such as crane, lift, pressure vessels
etc. There are 60 fire extinguishers placed in several areas for the safety of
the workers.
given several safety equipment like leather gloves, PVC gloves, helmets,
fire shield, dust mask, welder shield, safety shoes etc. If any accident occurs
in the company, the matter will be informed to the safety department within
24 hours by the supervisors through an accident intimation form. This form
is prepared in triplicate- one copy to medical department, one copy to the
safety department and the third to the concerned department. The supervisor
should inform to the ESI department if the injured employee have ESI. All
the accidents in the factory should be communicated to the factory
inspector, if the employees are disabled for more than 48 hours.

FUNCTIONS
1. Safety of the organization

2. Safety promotion

3. Prevention and precaution of the fire

4. Checking of the safety instruments.

5. Fire and safety training to the employees.

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SAFETY MEASURES
1. Fire hydrant network

2. Sprinkler system for spaying water in case of fire.

3. Insulated sphere and bullets to reduce heat.

4. Deluge system provided for loading and unloading areas of chemical.

5. Fired form process.

6. Safety shower and eye wash system are provided.

7. Fire proofing is done.

8. Two generators

9. First and systems are provided.

10. Fire alarm

11. Smoke detectors

12. Work permit system is practiced.

13. Personal protective system.

DUTIES &RESPONSIBILITIES OF SAFETY & SECURITY

DEPARTMENT
The chief of safety department shall be responsible for the maintenance of
the system related to safety management. He should ensure that safety
standards issued by the standards department are available with all sections
and are clearly understood and followed. He should arrange for setting up

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safety committees to promote employees participation in safety measures
and act as adviser and catalyst in such committee meetings. In coordination
with human resource department arrange for in plant training of all
employees in safety, health and fire prevention. Organize any other
activities to motivate and make employees aware. Maintenance of records
related to accident. He should arrange for procurement and distribution of
high quality personal protective equipment. Arrange for the periodical
testing and certification of all cranes, lifting tackles, lifts and pressure
vessels used in factory by outside competent agency. He is to conduct
accident investigation following receipt of accident intimation. He should
conduct safety inspection of plant and machinery and arrange for corrective
action in liaison with concerned sections if any unsafe conditions or actions
are found.

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FIG 3.17 PLANNING DEPARTMENT STRUCTURE

GMK

JGM (E)

PMD (PL) DGM (E)

JGM (E) MTD (PL)

ENGR SR. ENGR

T/R

DY.ENGR T/R ASST.ENGR

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3.3.15PLANNING DEPARTMENT

INTRODUCTION
The planning department is the most vital link between product design and
the production department. The production planning department provides
the necessary facilities and technical know-how for the manufacture of the
product. Production requires the organized utilization of natural resources,
men, money, material and machine. But before starting the work of actual
production, production planning has to be done in order to anticipate
possible difficulties and decide in advance, as to how the production should
be carried out in the best and most economical way. The Principles of
production planning lies in the statement, First plan your work, and then
work your plan. The role of production planning department is as follows.
Production planning department at HMT Machine Tools Ltd Kalamassery
companies the following sections.
1. Production, pre planning & planning estimate-PPP&PPT

2. Production planning orders & FPS-PPO& FPS

OBJECTIVES OF PRODUCTION PLANNING

In any business organization production activities must be related to market
demand as indicated by the continuous stream of customer order. Aggregate
planning is carried out in an economic manner for maximization of
production. From the annual operating plan, rolling production plan for 3
month is made. Objective of the production planning department is to
ensure that annual production is achieved in an economic manner.

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FUNCTIONS AND RESPONSIBILITIES OF PLANNING
PERSONNEL
FUNCTIONS AND RESPONSIBILITIES OF PRE PLANNING
PERSONNEL.
1. Processing of design documents received for corresponding products.

2. Identification of in house manufacturing item, outside manufacturing

item and bought out parts.

3. Preparation of operation layout for all house manufacturing items.

4. Identifying and indicating actions for all special tooling.

5. Implementation of design alterations.

6. Maintaining special tool data.

7. Coordinating activities related to alteration request, received from other

department.

8. Attending shop problems.

9. Preparation of documents related to assembly of the product viz. list of

assembly-production wise.

10. All data entry in computer related to PPP area of concerned products.

11. Verification and approval of materials warrant being released by PPO.

12. Maintaining all data/ documents/ records and files related to their
products.

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FUNCTIONS AND RESPONSIBILITIES OF PPE PERSONNEL
1. Estimation of standard time for all manufacturing/ assembly operations
identified in layout and assembly list of operations.

2. Preparation, implementation of alterations and maintains of operation

matters and other documents related to PPE function

3. Data entry and co-ordination of all activities related to computerization of

PPE function.

4. Attending shop complains regarding standard time.

5. Authorization for special time in job card.

6. Arranging for time study/ activity sampling.

7. Any other work assigned by superior officer/ chief of production

planning.

FUNCTION AND RESPONSIBILITIES OF PERFORMANCE

MONITORING WING
1. Analyze the organization requirement for information.

2. Design the structure of statement/ report.

3. Create an appropriate data base for the information.

4. Develop methodology/ software for the statement/ report.

5. Prepare the statement/ report periodically.

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6. Prepare a mailing list and ensure the dispatch of statement/ report
according to the list and the appropriate time.

7. Maintain the data base and copy of statement systematically.

8. The information regarding manpower, plant performance, capacity, load

production and sales, stock in trade etc. shall be processed and circulated
through weekly, monthly and yearly statement/ report.

FUNCTIONS OF COSTING SECTION

1. Arranging and furnishing data to accounts department through computer
centre about the standard labor, material and assembly cost of components
and assembly groups.

2. Arranging standard labor and material cost for spears, reconditioning

machines etc.

3. Assessment of rectification/ rework expenses tec.

4. Co-ordination of all activities in connection with annual product costing.

5. Any other work assigned by the superior officer/ chief of production

planning.

FUNCTION AND RESPONSIBILITIES OF TIME RECORDS

1. Monitoring and ensuring the smooth and regular flow of job cards.

2. Entering ticket number and actual hours on each job cards and identifies
card.

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3. Calculating and entering total standard hours on concerned job cards after
inspection of each and every operation.

4. Obtaining signature of section head on all completed job cards.

5. Handling overall job cads and idle cards to PPE after getting the
signature of concerned section head.

6. Obtaining signature of concerned section heads on all closed idle cards.

7. Maintain attendance of direct workmen of concerned section.

8. Acting as a link between production planning department and shop floor.

9. Any other work assigned by the superior officer/ chief of production

planning.

FUNCTION AND RESPONSIBILITIES OF OFFICE

SUPERINTENDENT
1. Typing of operations layout, statement, letters etc.

2. Maintaining all office flies including leave records.

3. Distribution of all correspondence, circulation of notice etc.

4. Any other work assigned by the superior officer/ chief of production

planning.

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SWOT ANALYSIS
SWOT stands for strengths, weaknesses, opportunities, and threats. SWOT
analysis is a tool for auditing an organization and its environment. SWOT
analysis is the first stage of planning and helps marketers to focus on key
issues. Once key issues have been identified, the details are fed into
marketing objectives. SWOT analysis can be used in conjunction with other
tools for audit and analysis, such as PEST analysis and Porter's Five-Force
analysis. SWOT analysis is a very popular tool, quick and easy to learn.

4.1 STRENGTHS
1. Strong brand image

As HMT Machine Tools Company is a pioneer in the field of

producing machine tools, they have a well renowned brand image.

2. Good strength in application of engineering and tooling

Each and every machine tool is made according to the requirements

and needs of the customers so that each unit has qualified design
team to design the products as per the requirements of the
customers.

3. Good marketing and servicing network

Throughout the years, the company has been following efficient

marketing and servicing networks to attain stability in the market.
Though it has some financial difficulties it tries to promote the
products and services effectively.

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 4. Accumulated knowledge-base in design, application engineering &
tooling

The company is equipped with the latest technologies which would

help them to excel and compete with other companies.

5. Wide range of products

The company produces like lathes and printing machines that are
produced in a wide range according to the quality and price. For each
item produced the costs ranges from one lakh to two crores.

6. Good manufacturing facility in foundry

The manufacturing premises are favorable for the company such that
there is an ample and vast facility for continuous and quick
production.

7. Products of HMT are comparatively better in quality than other

Indian manufacturers.

The company maintains a policy for producing good quality products

with quality raw materials and other input factors.

4.2 WEAKNESS
1. Old plant & machinery

The plant was installed in 1964 and not only few machines were
replaced and updated.

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2. High average age of employees (50 years)

The workers are aged and are illiterate to the advanced technologies.
Hence it is difficult to teach these new aspects, which would be more
time consuming and would leads to loss for the company.

3. Low rate of salary

The company fails to satisfy the needs of employees in terms of

payment of salary. It is consider as one of the disadvantage of the
company in providing lower pay.

4. Difficulties in attracting and retaining talented man-power due to

very poor remunerations compared to other sectors / other
organizations
5. Limited resources in information technology, & limited use of
information technology in sourcing and monitoring the large variety
of components in production, and in the activities of marketing, sales
and human resources management.
6. Political interference
Involvement of trade unions in the company had been a major
drawback as the management was forced to increase the labour rates
even at a bad financial position.

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 7. Difficulty in fund mobilization
There are difficulties in raising fund for the internal and external
needs of the company.

4.3 OPPORTUNITIES
1. Demand from defense sector

As the company is producing machine tools, they are very widely

used by the defense sector to make their vehicles and their products
are widely purchased by the defense sector.

2. Growth in automobile sector

Automobile industries are growing at a fast phase in India, which

needs machine tools for manufacturing their parts.

3. Growth in engineering and infrastructure sectors

The company is capable for improving from the existing operational

structure to newly engineering and infrastructural facility.

4. Growing trend of multinationals establishing manufacturing hub in

India and / or outsourcing manufactured components from India
5. Diversification of products in the future
The company can diversify its product so as to maximize their profit
and helps in improving the goodwill of the company.
6. Expectation of increase in Export
Increased entry of the products and services to the foreign markets
will enhance companys grow and prosperity.

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4.4 THREATS
1. Competition from other companies

There are many foreign and domestic players who are in the field of
machine tool manufacturing.

2. Emergence of new firms

Emergence of new firms with advanced technology is the main threat

to the HMT Company. This will reduce the cost of the products.

3. Increase the cost of production through material cost

Raw materials cost has increased due to the increase in fuel, labour,
and transportation cost.

4. Looming onslaught from Chinese industry / imports from china

As there are large number of imports comparatively at a cheaper rate,
inspite decreasing the demand for the products of the company.
5. Increasing price of steel which is a major raw material
There are several developed countries with high advancement that
may focus on refurnishing obsolete machines and are being imported.
This gradually decreases the sale for newly manufactured machines.

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5.1 FINDINGS

Most companies talk about social responsibility, but, do not practice

it in their environment. But, HMT LIMITED is one of those few
companies that practices social responsibility.
Temporary employees are given regular training programme.
Presently company is not able to take bulk orders.
The salary of the workers is not sufficient.
Salary pay scale is not improved after 1990s
Fresh recruitments are not going well; majority of workers on shop
floor is working for daily wages and on sub- contract basis.
Punching card system is used for attendance.
Resources are not fully utilized.
There is a lack of career growth opportunity in the company.

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5.2 SUGGESTIONS
Replacement of the existing outdated machinery with latest.
Employees must be motivated by giving promotion and cash
incentives.
Adopt JIT technology for the effective utilization of resources.
Avoid use of costly machines by trainees and casual laborers, this
will help to reduce scrap and increase the life span of machines.
Recruit new technically skilled employees. It may be skilled trainees
within the organization or the engineers with experience from other
reputed organization.
Proper and regular maintenance of plant and machines should be
done.
Maximum utilization of available resources.
If kalamassey unit is made an independent unit, it will be more
effective.

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CONCLUSION
HMT is the leading machine tool manufacturing company in India. The
company is an ISO certified so the products have demand in Indian and
foreign market. The company has to face tough competition from various
companies. Even in the midst of tough competition from giants it still has a
unique reputation of being the producer of a quality product. Even though
the product has goodwill and good demand, the record shows that the
company is running on loss. There are many factors, which contributes to
the loss of the company. They are, high fixed overhead, lack of young blood
in the executive level, potentials are not fully utilizing, wastage of raw
materials, conventional Machines are used in large number in the plant.
The machine tool industry is experiencing both evolutionary and
revolutionary change. The one month organizational study at HMT
Machine Tools Ltd, Kalamassery that is the only machine tool and printing
machine manufacturing company in Kerala, was a great experience for me.
The transparency in the working procedure and the strict discipline enabled
me to learn a lot from the organization. My experience at the company was
really useful and informative as a management student. The old, prestigious
organization and its administration can teach us lot of dos and do nots. It
gave me a great insight of a company and how effectively they can work to
achieve their goal. Also the department heads experiences taught us a lot.
The organization study at HMT MACHINE TOOLS LIMITED
KALAMASSERY has given me the opportunity to gain valuable industry
related exposure that would allow me in selecting which specialization I
should opt for. The guidance, support, feedback and useful suggestions

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provided by my Project Guide helped me to successfully complete this
Organization Study. The organization study definitely broadened my mind.
This study also helped me to know more about the industry with the new
scope and trend. It also helps me to familiarize with various policies
adopted by company HMT Ltd for their success.

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BIBLIOGRAPHY
Websites
http://www.hmtindia.com

http://www.hmtindia.com/html/frame.asp?page=manufacturingunits.
htm

http://www.hmtmachinetools.com/

http://en.wikipedia.org/wiki/HMT_Limited

http://www.CMIE.com /Industry Market Size and Shares/Machine

tools

Others
Manual of Finance Department in HMT

Manual of Sales Department in HM

Manual of Human resource Department in HMT

Manual of Planning Department in HMT

Manual of Foundry Department in HMT

Manual of Safety & Security Department in HMT

Manual of Inspection and Quality Control Department in HMT

Manual of Purchase Department in HMT

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