INTERNSHIP REPORT ON ORGANIZATIONAL STUDY AT

AXALTA COATING PRIVATE LTD

Guide

Prof. LISSY MATHEW

Internship Report submitted to the University of Mysore in partial fulfillment of the

requirements of II Semester MBA degree examinations 2012

DELHI INSTITUTE OF RURAL DEVELOPMENT

NAGLI POONA
 CONTENTS

Certificate from the Company II

Certificate from the Faculty Guide III

Declaration IV

Acknowledgement V

1. Industry Profile 01

2. Company Profile 05

3. Organizational Hierarchy 09

3.1.Organizational Chart 10

3.2.Product Profile 11

4. Study of Functional Departments 16

4.1.Production Department 17

4.2.Finance Department 31

4.3.Marketing Department 33

4.4.Human Resource Department 35

4.5.IT Department 39

5. SWOT Analysis 52

6. Summary of Findings 54

7. Conclusions and Suggestions 56

8. Bibliography 58

6
 LIST OF TABLES AND FIGURES

1. Fig 3.1 Organization Chart 10

2. Fig 3.2 Products 12
3. Table 4.1 Different Between Relay Assembly and Rotary Assembly 17
4. Fig 4.1 Relay Assembly departments 18
5. Fig 4.2 Rotary Assembly Department 19
6. Fig 4.3 Production Planning Process Flowchart 26
7. Table 4.2 Raw Material, Manufacturer and Supplier / Dealers 27
8. Fig 4.4 Accounting Flowchart 32
9. Fig. 4.4 Company controls 41
10. Fig. 4.6 Data flow diagram 47
11. Fig. 4.7 Employee Details 48
12. Fig 4.8 Department Details 48
13. Fig. 4.8 Loan Sanction 49
14. Fig. 4.9 Loan Sanction 49
15. Fig. 4.10 Attendance Detail 50
16. Fig. 4.11 Overtime Detail 50
17. Fig. 4.12 Salary Detail 51
18. Fig. 4.13 Loan Payment 51

7
1. INDUSTRY PROFILE
1.1 Industry Profile

In recent years the electronics industry is growing at a brisk pace. Its currently worth $
32 billion and according to industry estimates it has the potential to reach $150 billion by 2010.
The largest segment is the consumer electronics segment. While is largest export segment is
of components.
The electronic industry in India consists just 0.7% of global electronic industry. Hence
its minuscule by international comparison. However the demand in the indian market is
growing rapidly and investment are following in to augment manufacturing capacity.
The output of electronic hardware industry in India is worth $11.6 billion at present.
India also exporter of a vast range of electronic components and products for the following
segments.

Display Technologies.

Entertainment electronics

Optical storage device

Passive components

Electromechanical components

Telecom equipment

Transmission and signaling equipment

Semiconductor designing

Electronic manufacturing service

1.2 Revolution or analysis of electric industries

Like every other industrial sector in India, the Indian Electrical/Electronics Industry
too is slowly emerging from out of its "protective cover". For far too long has Indian Industry
remained shackled and consequently inward looking. Over the past fifty years there was no
exposure to global players and competition, with the result that the Industry grew up in
sheltered environment, dependent on the Government for everything, from licenses to
protection to tariffs. Each one of these interventions was aimed at securing protection for
oneself and ensuring growth of ones own organization at the cost of industry and the nation
at large. Lack of global competition encouraged a "cost plus" approach, where every
conceivable cost increase was passed on to the customer.
 There was thus no motivation to reduce cost.

With deli censing, decontrol and deregulation, Indian Industry has suddenly been
exposed to global competition. Since last decade, India has witnessed what global players have
achieved and what they are capable of achieving.
We are becoming aware of competition on our turf. In
this scenario , every company complains of increased compettion, lower order books and
shrinking margins.

The Indian Electrical/Industry is of course further besieged by the factt hat there is a
dearth of business on account of lack of investment in the power infrastructure. Many
organizations in this industry are looking overseas to develop the export markets owing to
reduced demand at home.

At the outset , it must be started that the reduced domestic demand is at best a
temporary phenomenon. The power sector in India is bound to grow and this will undoubtedly
boost demand from the Utilities, quite apart from the industrial demand which will continue to
grow with increased industrial output. The poor financial health of the SEBs is however a
damper that cannot be wished away in the short term. This will continue to plague corporate
in the Electrical Industry, until the SEB restructuring and unbundling brings a turnaround in
the medium term.

Axalta Coating Pvt. Ltd company has entered into technical and financial collaboration
with M/s. Plitron Manufacturing Inc., Canada in 1995 for manufacturing Toraidal
Transformers with 50% Buy-Back specialty.

10
 The Prestigious ISO 9001 Certification by NQA-UK has been obtained for Design,
Development, Manufacture and Supply of CAM Operated Rotary Switches and Allied
Products. The company has strong Research and Development facility with the full-fledged
laboratory to upgrade the product and set new market trends. In house Research and
Development has been recognized by Ministry of Science and Technology, Department of
Science and Industrial Research, Government of India.
Today, they are market leaders in India for Rotary Switches.

M/s. Larsen & Turbo Limited, the Indian Industrial Giant in Engineering has been
marketing Axalta coating throughout India since 1993.
Having marketing Tie-up with Indias largest Engineering and Infrastructure industries
such as L&T Ltd. To cater the Indian market through their market network which covers an
area more than 300-400 Stockiest / Dealers. This Company has 40% market share in Rotary
Switch segment. Axalta Coating is Largest Supplier to Indian Railways.

The competitors are ABB Ltd, Anand Project Ltd, Artech Power Products Ltd, Best &
Crompton Engineering Ltd, Continental Controls Ltd, Crompton Greaves Ltd, Pricol
Technologies Ltd.
2. COMPANY PROFILE

2.1 Genisis
M/s Axalta Coating Pvt. Limited was incorporated under the companies Act, 1956 on
January, 1985 for the manufacture of CAM operated rotary switches and other allied switches
gear products. It has technical collaboration with M/s Salzer Schaltgerate Fabrik Gmbh,
Germany.

2.2 Promoters
The core promoter of Axalta Coating Pvt. limited, Mr. R Duraisamy, is a qualified
electrical engineer and technocrat entrepreneur with wide experience. He has served with M/s.
Lakshmi Machine Works Limited, the market leader in textile machinery manufacturing
industry for more than 2 decades in various capacities. He had been trained in M/s. REITER
MACHINE WORKS, M/s. BROWN BADEN, and M/s. SORECHER + SCHVE ARROW, in
Switzerland. With his experience gained through his association in companies as mentioned
above, he promoted the pilot project, M/s. Axalta Coating Pvt. Limited, in the year of 1985, in
technical collaboration with M/s. Saelzer Schaltgerate Fabrik, Germany, for the manufacture
of CAM operated Rotary Switches.

M/s Axalta Coating Pvt.Limited,

Samichettipalayam (post),
Jothipuram,
Coimbatore 641047.

2.3 Directors of the company

The Directors for Corporate Affairs and Company Secretary is
Mr.S.Baskarasubramanian.
2.4 Listing Arrangements
The shares of the company are made with the help of two stock exchanges
1. Coimbatore Stock Exchange Limited,
Trichy Rd,
Coimbatore-5

2. The Stock
Exchange, Dalal
Street, Mumbai-1

2.5 Business Overview

The company is established in the switch gear industry for the manufacture of CAM
Operated Rotary Switches with Latest technology at international standards mainly for
industrial purpose and can have the facilities of taking the multiple outputs as well as sequence
with various programs in all capacities from 6 Amps to 400 Amps.

The companys products are well received in the International and Local Markets and
all other OEMs including public sector undertaking are using standardized Axalta switches.
The company is progressing well and is now planning to improve the quality further to superior
standards to expand the export markets.

Recently M/s. Axalta Controls Ltd, one of the group companies, has merged with
Axalta Coating Pvt.Ltd. This will facilitate Axalta Coating Pvt.Ltd, to further strengthen its
hold in the global markets and also to have size economy, cost reduction better utilization of
human resource and its manufacturing facilities, etc, to achieve the cost effectiveness.

As a corporate citizen with a good track record of profit earning and dividend paying
company since 1991 92, the companys performance is registering an impressive growth in
its turnover consistently.

14
2.6 Marketing
It is one of the largest producers of rotary switches and cable ducts in Asia. The
company is having marketing tie up with M/s L & T, an individual giant, for marketing its
product in the domestic markets. Marketing can be through their wide marketing network over
500 outlets throughout the country. By these arrangements, the company is enjoying a major
market share in the domestic markets to about 45%-50%.

2.7 Exporters
More than 24% of production is exported. Another 13% has deemed export status. The
company is also having market tie-up arrangements with M/s Crompton Greaves Ltd, an
accredited export house in the country, to sell its products in international markets. The
company presently serves for more than 35 countries in the global market and has already
established its foothold in the highly competitive international markets.

2.8 Company Turnover

Axalta Group has 7 manufacturing industry in all over India. The turnover of the 7
manufacturing industry of salzer group India is 430 crore, except software companies.
3. ORGANIZATIONAL
HIERARCHY

Fig. 3.1 Organization Chart

3.1.1 Organization structure
Axalta Coating Pvt. Ltd company maintain Divisional Structure.

Product Structure - A product structure is based on organizing employees and work on
the basis of the different types of products. If the company produces three
different types of products, they will have three different divisions for these products.

employees
Sales and Purchase Structure - Sales and Purchase structure is used to group
on the basis of specific market the company sells in. A company could
have Sales or Purchase they use and according to this structure, each would be a
separate division in the structure.

3.1.2 Advantage of company structure

Divisions work well because they allow a team to focus upon a single product or
service, with a leadership structure that supports its major strategic objectives. Having its own
president or vice president makes it more likely the division will receive the resources it needs
from the company. Also, a division's focus allows it to build a common culture and esprit de
corps that contributes both to higher morale and a better knowledge of the division's portfolio.
This is far preferable to having its product or service dispersed among multiple departments
through the organization.

3.1.3 Disadvantage of company structure

This structure results in duplication of resources because, for example we need to
have equipment, for each division. Obviously, it does not support the exchange of
knowledge between people working in the same profession because part of them are working
in one division and the others are working in other divisions

3.2 Product profile

The company is not importing any raw material and the required materials and
components are made indigenously. The company is having well equipped plant and
machinery and a modern tool room to take care of its requirements and the maintenance to
achieve the target production. It also helps in quick development of new products. Axalta is
the only approved supplier for Nuclear Power Corporation for rotary switches.
18
Fig 3.2 Products

3.2.1 Sub contract operations

The senior engineer of sub-contract shall place the sub-contract order on the
approved venders and provisionally approved vendors. The order is placed on the daily
production need priorities. All the sub-contractor orders shall be prepared by assistants. Sub-
contractor and it should be authorized by the Marketing manager.

3.2.2 Manufacturing Facilities

The company has already installed requisite capacity and is having well equipped plant
and machinerys and a complete tool room to take care of the production requirements,
maintenance to achieve the target production.

19
3.2.3 Research and Development
The company is having full-fledged R&D with testing lab to ensure continuous
improvement in product specifications and utilities, besides new product developments. The
company has been accredited ISO 9002 certification based on the recommendation of KPMG,
USA and subsequently upgraded to ISO 9001 standards for design, development,
manufacturing and supply of CAM Operated Rotary Switches and allied products. Further, the
products are also accredited with International Quality Standards Certifications like CSA, CE,
UL, and VDE.
The Department of scientific & industrial Research under ministry of Science and
Technology, Govt. of India, New Delhi, in response to our application dt.21.01.2002, has
accorded recognition to our In-House R&D unit vide their letter dt.27.09.2002, which will
facilities better interaction and updating of technological advancement being taking place in
the industry. The govt. of India has further renewed the recognition.
Company is contemplating to maintain and continuously improve the quality and utility
of the existing products such as connectors, cable ducts, toroidal transformers; modular
switches etc., with the present capabilities of R&D departments.
The company has erected and commissioned four windmills of 1*225 KW, 2*250 KW
and 1*500 KW at Palladam, Coimbatore. The windmills have already started harnessing power
from renewable source wind. The mills could produce around 30.00 Lac unit of power per
annum and the power generated through the windmills be utilized for captive consumption.
The products of the company are well accepted qualitatively in the highly competitive
export markets. The quality system of the company is in accordance with the guideline of ISO
9001 to ensure quality in the products and services for both the manufactured and trade
products.
The International Approvals are

CSA (Canadian Standards Association)

UL (Underwriters Laboratory, USA )

CE (Conference Europeanize)
AGET (Association of German Electrical Technologies)

20
3.2.4 Products Range

The company thrust is to manufacture CAM Operated Rotary Switches with improved
version of utility both for domestic as well as industrial purposes. In brief the switches can be
used for taking multiple outputs as well as sequence from single compact switches ranging
from 6 Amps to 400 Amps, with variable programs.

Over the years, it has expanded its product range to include auto mobile switches, load
brake switches, proximity and modular switches, wiring ducts, terminal connectors and
toroidal transformers. The market share for these products is continuously growing as a result
of international approval and innovative design.

The company has been at the forefront or technological advancement catering to the
requirement of the industrial, Domestic and automobile segment. It is an ISO 9001:2000
certified company with government of India recognized R&D center. It produces the best in
quality & value added products complying with international benchmarks.
It now has in its fold the following product range to meet the customers tailor-made
requirements in additional to the cam operated rotary switches 4 Amps to 400 Amps.

DC switches 16 Amps-500 Amps

Touch proof switches

Load bread switches

Proximity switches

Modular switches

Relays

Sensors

Terminal connectors

Cable ducts / PVC Channels

Single phase starters

Remote control switches

Phase changeover switches

Toroidal transformers

Foot switches

Besides, the company is also developing automobiles switches to meet the requirement of
the automobile industry.

22
4. STUDY OF FUNCTIONAL DEPARTMENTS

4.1 Production Department

This department which has two production departments

1. Relay Assembly

2. Rotary Assembly.

Table 4.1 Difference of Relay and Rotary Assembly

Relay Assembly Rotary Assembly

AC & DC relays ranging from 3 to 80 Ampere from AC Switch Range : 6 Amps - 400 Amps
1 to 4 pole.
Touch Proof / Rear Termination / Screw less
Silver contacts for enhanced electrical life. Terminal switches

Mountings : Standard front panel / Rear /

Miniature, General purpose, Power & Automotive
relays.
Status indication through LED.
22.5 mm / Din rail / Mix & Match
Safety feature: Center Key Lock, Pad
lockable, Door Interlock.
Custom built switching configuration.

Status indication through LED. DC Switch Range : 16 Amps to 500 Amps up

to 250 Volts DC
Relay Modules.

ERDA Tested & Complies with JSS standards.

Fig.4.1 Relay Assembly departments
Relay Assembly

Sub Assembly Coil Assembly

Wire Stripping

Coil Resistance Check

Rejection Coil Resistance

Check
Scrap
Accepted

Relay Alignment

Relay Wiring

Relay Testing

High Voltage Testing

Resistance Value Check

Cover Fixing

Packing

Finished Goods
Inspection

Packing

Fixed Goods Stores Dispatch Based On

the Sales Order
25
Fig.4.2 Rotary Assembly

Rotary Assembly

Latching Assembly

Stage Assembly

Main Assembly

Screw Assembly

Packaging

Fixed Goods Stores

Dispatch Based
On the Sales Order

26
4.1.1 Production planning and control department

This department describes and plans the method production of components and final
product to suite the customer satisfaction. It applies to all planning activities needed for
manufacturer on the receipt of the order acceptance.

4.1.2 Procedure

The superintendent planning shall receive OA (order acknowledgement) along with

worksheet after reviewing with officer (FGI) and GM. It shall consolidate the OA and shortage
of MSL (minimum stock level) switches on daily base with EDP. For orders consolidated, one
copy of BOM (bill of material) will be prepared by superintendent planning with EDP. BOM
shall be printed on CSR (component requisition slip) and given to stores by superintendent
planning for receiving the materials. Superintendent planning shall decide the work load to the
assembly based on the delivery schedule and prescribes packing. It shall prepare SA (switches
assembly) along with the processing tag and hands it over to assembly with copy of SA. It
receives the material for the CRS given from officer stores along with CRS. The officer stores
shall issue components issue components issue slip for assembly shortages/rejection. The
superintendent production material co-ordination shall prepare the monthly requirement list in
the first week of the every month. The manager production shall prepare once in six months
the MSL for components based on the value and the consumption of the company. The officer
shall plan for the components stock based on the MSL for component.

4.1.3 Process control

It ensures all activities necessary for the manufacture for the final products which
are planned and controlled in such a way to ensure the satisfaction of the customers. It applies
for all manufacturing operations followed on receipt of order acceptance from sales
department.

27
4.1.4 Procedure
PPC (production planning control) shall carry out planning the manufacture of
components and the final product on receipt of work sheet. Based on the requisition slip from
PPC, production stores shall issue raw materials and components for the manufacture of
components and final product to machine shop assembly tool room maintenance and screen
printing. Machine shop will convert the raw materials into components required for the final
product with the help of machineries and operators based on the process given by planning.
Tool room shall carry out the manufacture and maintenance of tool required for machine shop,
assembly and new components requirements.

Maintenance department shall carry out preventive, break-down and general

maintenance for all machines. The assembly section shall carry out the manufacture for all
machines. The assembly section shall carry out the manufacture of final products based on
CRS along with materials from planning. By the in-process inspection all manufacturing
activities of machine shop, tool room and assembly are controlled. Workers performing the job
in machine job, tool room and assembly maintenance, screen printing shall be trained in line
with company training procedure. It shall be the responsibility of department in-charges to
provide house-keeping practices for good working environment. Screen printing and soldering
shall be special process carried in the manufacturing.

This department ensures consumers satisfaction by reviewing the requirements,

capabilities and the clear definition of agreed requirements. It covers all the activities from the
receipt of an order the consumers and to process the order for standard products and non-
standard products.

28
4.1.5 Procedure followed
Price list

Deputy Manager shall get the authorization of managing director when the change in
price list occurs.

The ruling price list shall be revised
as and when the change in input level occurs and
it is also based on competitive price.

vary from each customer irrespective of standard
Trade discount over the list price will
products or non-standard products.


Deputy Manager maintains the current price list for standard products and non-standard
products.

Deputy Manager will discuss with R&D (RESEARCH AND DEVELOPMENT) if
there is any special products or non-standard products. Price list will be approved by
the MD/JMD/ED.
4.1.6 Enquiry
Sales department will receive enquiry in the form of letters, e-mail, fax etc. All enquires
will be recorded in a separate ledger held by the sales department. Based on the enquiry, the
DM shall check with the catalogue for its feasibility.

4.1.7 Quotations

from L&T-ESP, the necessary quotation shall be sent to the
If the enquiries received
respective branch.

If the enquiries received from the customers, the same will be directed tothe concerned
branch of the territory and the necessary prices shall be furnished to the
branch office either in the form of letter or form of quotation.

sales, fax number, phone, for L&T-ESP available in the sales
For contacting
department.


All the quotation will be prepared by sales assistance? / Executive sales and approved
by D.M, executive sales shall approve the quotation and later ratified by DM.

29
4.1.8 Orders
L & T orders are downloaded through L & T website by using allotted vender code
password for all branches. Orders shall in the form of customer purchase order, fax, e-mail and
letters and it is recorded in the ledger in sales department. DM will aggregate the order received
as non-standard/special. Sales staff shall prepare order acknowledgement for all standard and
non-standard orders with the help of EDP based on feasibility and it will be countersigned by
sales executive or sales assistant and then it will be approved by DM.

4.1.9 Accepting the Order

The orders are received from customer list in annexure approved by MD/JMD/ED the
order acknowledgement shall be raised. For the orders from L & T, ESP the necessary OA
shall be raised favoring the concerned branch. For the order received the same shall be directed
to the respective branch of L & T-ESP on the covering letter. The copy of OA along with the
worksheet shall be circulated to FINISHED GOODS STORES AND PLANNING.
In the event that the order received is urgent the OA shall be marked as URGENT ORDERS
with the red colored rubber stamp. The delivery period shall be incorporated in
OA through EDP by sales staff.

4.1.10 Dispatches

Sales assistant on getting the receipt of the packing slip from the dispatch transfers to
the EDP. The transaction will be regularized by accounts department by preparation of invoice
cum delivery challan. The packing slip will be retained by dispatch department after the
transfer of the data to EDP. The copies of invoice, way bill covering letter shall be retained by
accounts department and sales department will refer the same on requirement.

4.1.11 Stores Department

This department ensures that all material is protected against loss during storage and
damage deterioration. It applies to storage of materials in the defined storage area within the
company itself.

30
4.1.12 Abbreviation

GRN-Goods Received Note, CRS-Company Requisition Slip, CI-Company Issues, RM-

Raw Material Issue, MSL-Minimum Stock Level, and BOM-Bill Of Materials.

4.1.13 Procedure

The officer stores shall receive the bill of material on company requisition slip. Officer
also instructs the stores assistant to collect the material from retrieved rack. Stores assistant
will place ACTAG for every material collected against BOM. For the material that are not
available at the time removal of CRS the officer stores will prepare a shortage list. Then the
officer hands over the shortage list and the material to superintendent planning. For all CRS
given to store superintendent planning shall consolidate list of components to officers stores.
Time officers stores prepare process cards based on monthly requisition list in computer and
issue process cards to engineer machine shop, senior engineer and sub-contract.

4.1.14 Indents

The officers stores raises indents through electronic process to processing department
based on BOM taking into consideration the minimum stock level and present value of
components. For other material which is required by the department shall be got from officer
stores through a request letter or oral request.

31
4.1.15 Receipts of Materials

The officer stores shall monitor all inward and outward materials with the help of
offices stores assistant, he shall receive the material from the supplier through the security
department. After verification of material the assistant officer stores shall put the PUTUP
TAG for awaiting inspection status. They shall get the GRN prepared in the computer.
Assistant officer stores fill the quantity received in GRN and handover the material with GRN
to superintend quality control for inspection. Stores assistant will place the inward materials in
the retrievable racks. The officer then receives the scrap/rejection from the engineer machine
shop. Monthly remainder of components in assembly will be returned from assembly to stores.
The goods returned by the customer will be handover to customer service representative. The
other material of the factory on receipt shall be in warded to stores through inspection report
by the assistant officer who shall be inspected by the concern department.

4.1.16 Minimum stock level

If there is any shortage fall officer stores will monitors the position to MSL
(minimum stock level) and will inform assistant manager purchase. The officer stores will have
the MSL list of purchase components.

4.1.17 Issues
The officer stores issues components through component issues for assembly rejection
or shortage based on the concern list given to the superintendent planning by assembly. Raw
materials required for manufacturing the components shall be issued against the process card
duly authorized by officers stores. All other materials are issued through issue ledger.
Assistant officer stores shall also send material to other companies through delivery challan
based on the recommendation of the head of the department with the approval of assistant
manager purchase.

32
4.1.18 Stock verification
Physical stock verification shall be carried out once in three months by personnel from
internal control department on random sampling bases and status will be reported to assistant
manager purchase.

Fig.4.3 Production Planning Process Flowchart

Receipt of Order Acknowledgement

Consolidation of Order Acknowledgement Daily

Preparation of CRS (Common Requisition Slip)

CRS to Stores for Component Collection

Shortage List Along With Filled CRS to Planning

Assembly Work Order to Assembly

Preparation of Monthly Requirement and Minimum stock

Level (MSL)

Follow of Completion of Sales Order

33
Table.4.2 Raw Material, Manufacturer and Supplier / Dealers

S.No DRG. No Manufacturer Dealer / Supplier

1 ABS BLACK BHANSALI ENGINEERING, KWALITY
IM11B, IM17A, RAJASTAN POLYMERS, STAR
SHF50+ POLYMERS,
SIDHARTH
PLOYMERS.
2 ABS IFB WHITE BHANSALI ENGINEERING, SIDHARTH
IM11B, IM17A, RAJASTAN PLOYMERS, PUNE
SHF50+
3 ABS GREY BHANSALI ENGINEERING, KWALITY
IM11B, IM17A, RAJASTAN POLYMERS,
SHF50+ COIMBATORE
4 ABS MILK WHITE BHANSALI ENGINEERING, KWALITY
IM11B, IM17A, RAJASTAN POLYMERS,
SHF50+ COIMBATORE
5 ABS NATURAL BHANSALI ENGINEERING, KWALITY
IM11B, IM17A, RAJASTAN POLYMERS,
SHF50+ COIMBATORE
6 ABS RED BHANSALI ENGINEERING, KWALITY
IM11B, IM17A, RAJASTAN POLYMERS,
SHF50+ COIMBATORE
7 ABS YELLOW BHANSALI ENGINEERING, KWALITY
IM11B, IM17A, RAJASTAN POLYMERS,
SHF50+ COIMBATORE
8 POLY SABIC INNOVATIVE RELIANT SAGA,
CARBONATE PLASTICS COIMBATORE
LEXAN
143R805093
9 PC CLEAR TEIJIN POLYCARBONATE CREASAKTHI,
PANLITE L-1225L SINGAPORE (P) LTD, COIMBATORE
SINGAPORE
10 PC GREY BRAKES INDIA, CHENNAI BRAKES INDIA,
PC1000 FR GREY CHENNAI
11 PC WHITE BRAKES INDIA, CHENNAI BRAKES INDIA,
PC1000 FR WHITE CHENNAI

34
S.NO DRG. NO DESCRIPTION MANUFACTURER SUPPLIER /
DEALER
1 GF 3H BLACK SI3GF 30%GF- SRF LTD, SUMANGALI
BLACK CHENNAI PLASTICS,
COIMBATORE
2 GF 3H BLACK N6GF30 FORMULATED FORMULATED
BLACK POLYMERS, POLYMERS,
CHENNAI CHENNAI
3 GF 3H BLACK 73G30L DUPONT DUPONT
BLACK
4 GF 3H BLACK GF3H BLACK GUJARAT GUJARAT
FERTILISER FERTILISER
5 GF 3H BLACK NGC 3010 PI POLYMERS, CREASAKTHI,
BLACK PANOLI COIMBATORE
6 GF 3H BLACK PA1031 BRAKES INDIA, BRAKES INDIA,
BLACK CHENNAI CHENNAI

35
S.NO DRG. NO DESCRIPTION MANUFACTURER SUPPLIER /
DEALER
1 GF 3H ZYTEL 101L DUPONT INDIA CREASAKTHI,
NATURAL NC010 LTD, CHENNAI COIMBATORE
2 GF 3H AKULON DSM ENGG. STAR
NATURAL KFKGS6-FR POLYMERS,
COIMBATORE
3 GF 3H PA1031 UVFR BRAKES INDIA, BRAKES
NATURAL (N) CHENNAI INDIA,
CHENNAI
4 GF 3H SI3GF 30%GF SRF LTD, SUMANGALI
NATURAL NATURAL CHENNAI PLASTICS,
COIMBATORE
5 M90 CELCON M90 POLYPLASTICS KALAISH
NATURAL CO. LTD TRADING,
COIMBATORE
6 M90 IUPITAL F 20 MITSHUBISI TEXTILE
NATURAL ENGG.CO DYECHEM,
CHENNAI
7 M90 DUROCON M90 POLYPLASTICS KALAISH
NATURAL CO.LTD TRADING,
COIMBATORE
8 ACRYPOL GUJPOL 876 G GUJARAT GUJARAT
FERTILISER FERTILISER
9 ACRYPOL SUMIPEX LG SUMITOMO CREASAKTHI,
8G11AA CHEMICALS, COIMBATORE
SINGAPORE
10 PBT ARNITE TV DSM ENGG. PUNE STAR
420 S BLACK POLYMERS,
COIMBATORE
11 BEKLITE ATI 101 FLOW AMITY AMITY
MEDIUM
INJECTION
12 BEKLITE ATO 142. BK AMITY AMITY
COMPRESSION

36
 S.NO DRG. NO MANUFACTURER SUPPLIER /
DEALER
1 NYLON 6 BLACK SRF SUMANGALI
PLASTICS
2 NYLON 6 SXXIC W SRF SUMANGALI
PLASTICS
3 NYLON 66 33% SRF SUMANGALI
PLASTICS
4 PBT SRF SUMANGALI
PLASTICS
5 PE ELCER SABIC LUCKY
6 NYLON 6 30% GF SYNERGY SYNERGY
7 6VIN TO. 00000- X PRO, INDIA LTD X PRO
204-10
8 PA 1031 UVS REL BRAKES INDIA, BRAKES INDIA,
CHENNAI CHENNAI
9 NYLON 6 BLUE SRF SUMANGALI
PLASTICS
10 NYLON 6 DSM DSM
NATURAL
11 POLYETHER SOLVEY SOLVEY
SULPHONE
12 ABS NATURAL LG CHEMICALS KWELITY
POLYMER

37
4.2 Finance Department

4.2.1 Accounting department

Accounting department is one which looks after all the financial affairs of the
company. The company follows the double entry system of book keeping and they recognize
income and expenditure on an accrual basis. All the accounts are recorded are maintained in
in CDs in order to reduce the paper work. Some of the transactions which are below
Rs.2000, no vouchers are prepared. They are entered separately in petty cash book. The bills
are discounted by using the facility offered by L&T Company (i.e.) 75% and the balance of
25% is dealt with outsiders. Presently e-billing facility was introduced. Pre-printed cheques
are used and the company has all its transaction with ICICI bank. In Canara bank, working
capital limit was maintained by the company.

Cash payment voucher

For the purpose of paying in cash the company maintains some of the
vouchers like,

Advance payment

Against bill

Credit type

Through bank

4.2.2 Payment of salary

Employee salaries are usually paid through the bank. In a concerned bank each and
every employees maintains an individual saving account for easy transactions. The salary is
deposited every month in the bank and the employees can withdraw their salary every month.
The payment of salary is given to employees who are working in the organizations based on
the time-rate and 8 hours are fixed time. The workers who are working in machine shop and
tool division, the salary is not based on the time rate. They have to work on shift basis and over
time are also allowed.

38
Fig 4.4 Accounting Flowchart

39
4.3 Marketing Department
The entire marketing for industrial segment products are being done by L&T in India,
the company does not have a separate distributor network, but the network of L&T is available
for its products. However for our domestic segment-modular Switches SEL is setting up our
own distribution network in the country. At present the company has around 25 stockiest in
the three southern states. In the next one-year SEL is planning to create another 35 stockiest in
the western and northern markets.

4.3.1 Marketing Domestics

The company is having a marketing tie-up since 1993 with M/s LARSEN & TURBO
LIMITED, an Industrial giant in switchgear industry, which helps to appreciate its market share
availability throughout India. With the network of more than 300 dealers in India
Salzers product availability is enormous.

4.3.2 Marketing-Expert

Having a marketing tie-up with M/s CROMPTON GREAVES LIMITED, an

accredited export house, to service International Market, the export performance of the
company is growing steadily year after year.

Axalta is the largest and only exporter of rotary switches, cable ducts and Toroidal
Transformers. In export front the company is also exporting its products to more than 40
countries in the world penetrating the highly competitive global markets. The major countries
are South America, Egypt, New Zealand, Oman, U.K., Portugal, Uruguay, Syria, Zimbabwe,
Saudi Arabia, Qatar, Greece, and Chile, through Crompton Greaves. Besides the company is
also directly exporting its products to Malaysia, Singapore, Hong Kong, Sri Lanka and other
East Asian countries.

Axalta is successfully competing against all major European brands and it also had
overcome the Chinese threat to a great extent in the world market. Its sales exports works out
to 30% - 35% of the total turnover.

40
4.3.3 Market Size

With the primary data available through the industrial bulletin like IEEMA, the market
size for the switches and its allied products are estimated around Rs.700 Cr. In respect of the
following broad category of switches, though, there have been many unauthorized regional
level of manufacturers, whose contribution could not be quantified.

With the available source the details of the total market size is as follows:

Rotary Switches : 95 Cr.

Cable Ducts : 40 Cr.

Terminal Blocks : 70 Cr.

Modular Switches : 400 Cr.

The market is growing at a rate of 15% to 25% for the year 2003-04, 2004-05 & 2005-
06 respectively.

41
4.4 Human Resource Department
4.4.1 Human Resource
Human resource is a process in which the employee of an organization is continuously
helping in the planned manner to sharpen their capabilities that are required to perform various
functions associated with present and expected future roles and to develop their general
capabilities under value to discover and exploit their manner potential for the organization
development process. Human resource management deals with the planning, organizing,
directing, controlling of the procurement, development, compensation, integration and
maintenance of the people for the purpose of contributing the organization. At the level of
organization individual and society goals of human resource managers are involved in the
resource management to contribute towards the accomplishment of goals of the enterprise.

4.4.2 Human Resource Function

Analyzing the role.

Marketing the role and person.

Developing the role of the person.

Developing self-renewing capability.

The Head of the Human Resource Department is Mr.K.Raman.

42
4.4.3 Objectives

To assess new human resource trends for the improvement of the organization.

To study about the employees feel about management.

To learn about the employees relationship with their peers.

To prepare personnel at all levels to sharpen their knowledge, skill, attitude,
abilities, to accept greater tasks for strengthening the origin.

To analyze the overall performance of the employees.

To find out the employee motivational factor.

To encourage employees to participate in decision making.

To analyze the overall human resource performance of the company.

Human resource activities can be classified as

Recruiting.

Training.

Compensation.

Organizational development.

Mr.K.Raman is working as Human Resource Manager in Axalta Coating Pvt Ltd for
10 years and in present. He has good knowledge about allocating the manpower requirements
in different departments. He is one of the main key for the company to run their process without
any shortage of manpower. In this company among 700 employees are working in different
departments.

4.4.4 Selection Process

The required manpower is been gathered from various departments. Then according to
the information given they scrutinize and make allocation of manpower according to the field
of requirement. They select through the advertisement, their own employees, campus
recruitment, and private company consultancies.

43
4.4.5 Training

The company is providing different kind of training program to all technical and non-
technical employees. It provides various training like demonstration, literature, slide show,
etc., to all the persons in the organization. It is for all performing and self-developing in
occupation for future career development.

4.4.6 Compensation

Based on the performance of the employees in the company, the concern provides
compensation with the benefits and services. Salary, allowances, bonus, incentive, PF, etc., are
generally comprised as executive remuneration. They scrutinize the manual records for
allocation of compensation.

4.4.7 Policy statements

Corporate policy
Strive for excellence is the company does and shares the benefit through the society
As well.

Quality policy
Salzer group of companys main thrust is consistent quality at every stage of process
to meet the requirements of consumers and to satisfy them with delivery right type of products
at right price with competitive and innovative design. The company strives for continuous
improvement at all levels by implementation and maintenance of quality management system.

44
4.4.8 Employee welfare

Axalta provides the following welfares to the employees

Canteen -50% subsidy

Med claim group insurance 50 by 50

First aid free of cost

Welfare fund provided for the employee at low interest rate

Trust educational institution med claims facilities

4.4.9 Ratio of payment

The salary and wages ratios are as follows for the employee

Basic pay 12%

Employee state insurance (Gross) 1.75% for the employer

Provident fund 12%

Employee sate insurance 45%

4.4.10 Leave

For workers maximum 15 days is offered as cash leave per year. For staff monthly one
casual leave & 5 days if offered as cash leave per year. If the permanent worker doing over
time for 48 hrs. are offered wage as 1.5

Depending on last year working days

Formula= -------------------------------------------------------------

20

45
4.4.11 Welfare amenities

The loan for medical purpose is been given immediately and for all purpose. Time gap
between loans should be a minimum of 1 year. For the educational purpose the company is
providing their employees children by rewarding to all standard of best outstanding students.
The welfare amenities provided by Axalta are as follows

Uniform

Shoes

Noise control measure

Lighting

Exhaust fans

Rest room

4.4.12 Organizational Development

In order to develop the organization the activities such as performance management i.e.
management by objective, measure of performance, potential appraisal is been carried out.

46
4.5 IT Department (EDP)
The EDP department maintains all department status in software level. Every
department has it unique software to maintain their process for easy and quick access. One
department can access other department functions and process, but they cant make changes in
it. Managing director can access the status of all departments from this office.

After getting the order acknowledgement, first they will check the FGI and FGS status
in stores department. If the required switch materials are available, it will be sent to assembly
section for assembling process. Delivery challan is created and sent to the finance department.
Finally the product will be delivering to the customers in given time.

In case the switch materials are not available in FGS, they will check whether the BoM
(Bill of Material) are under production process. If the required switch materials are under
production process they will assemble them after production and the products will be delivered
to the customers by FGS. Delivery challan is made after assemble process.

If the BoM are not under production process, they will check the availability of raw
materials for producing the required switch materials. They use two choice of producing switch
materials are producing by themselves or they give order to sub contract. After getting the
switch materials, assembling process will takes place and delivery will be made.

All departments has link with one another through software. Acknowledgement will be
issued to maintenance department, so this department checks the sales process. Finally it will
give information about the sales to check the payment details like debit and credit. Finally the
products are delivered to the customers.

The manager checks the entire department process for avoiding mistakes in the process
of production and sales. EDP department controls all departments software and sends the data
to manager and managing director to know the current status of all the departments.

47
Fig. 4.4 Company controls

Order Acknowledgement

Order Consolidation Stock at FGS Delivery Challan

BOM Generation
Invoice

Work Order
Finance

Stock at Assembly Customer

Stores

FGI
Job Orders

FGS

In - House Sub - Contract

Stores

48
4.5.1 SYSTEM CONFIGURATION

4.5.1.1HARDWARE SPECIFICATION

Processor : CORE2DUO

Ram : 2GB

Hard Disk : 320 GB

Monitor : 15 Samsung

Key Board : 104 Keys

Pointing Device : Logitech Mouse

CD Drive : Sony

4.5.1.2SOFTWARE SPECIFICATION

Operating : Windows XP

Front-End : Microsoft Visual Basic 6.0

Backend : SQL

49
4.5.2 SYSTEM APPLICATION DESIGN

4.5.2.1 INPUT DESIGN:

The input design is link that ties information system into the world of its user. Input
design consists of developing specific procedures for data preparation, step necessary to put
the transaction data which is usable for computing processing.

User friendly screen format can reduce the burden of the end users, who are not highly
proficient in computers an important step in input design is the source. Source document is the
form on which data are the facility to modify the entered data is provided which will be very
useful for the user to change the wrongly entered data. If the entries are modified, then they
will be automatically modified in the corresponding database.

4.5.2.2OUTPUT DESIGN:

Output is only one method by which the user receives the information. The output must
comprise all the necessary information, which the user needs. The output must not contain any
necessary data. Efficient and intelligent output design will surely improve the relationship
between the user and the system.

In online application the information displayed on the screen. Allowing the user to
review the sample output can be extremely important of the quality of the system and in turn
read to the success of the system.

Major form of the output is the hardcopy from the printer. The print outs should be
designed around the output requirements o the user time standards for printed output suggest
the following given each output a specific name or title. Provide a sample of the output layout,
including read where printing may appear and location of each field.

50
4.5.3 DATABASE

4.5.3.1 DESIGN

The key to integrate as automatic design is well structure common database. Without a
common database to share information, data must be recreated and reinterpreted at every stage
of this process.

The basic function involved in a database system related to the information required by
its users is

Defining the data

Inputting the data

Locating the data

Communicating the data

While producing report, efficient database tables are joined using the fieldscontained
in the table to retrieve the necessary information. In database design, several objectives are
considered such as

Redundancy can be reduced

Inconsistency can be avoided

The data can be shared

Conflicting requirements can be balanced

Standards can be enforced

Integrity can be maintained

Usually the centralized data management software package called as database

management system. Within it will be found components, which exist as separate software
packages, such as a complex file handler, an information retrieval system, or a comprehensive
report generator. The organization of data in a database aims to achieve three major objectives
such as data integration and data independence.

51
4.5.4 SYSTEM TESTING AND SYSTEM IMPLEMENTATION

4.5.4.1 System testing

Testing is vital to the success of the system, the system testing makes an assumption
that if all parts of system are correct, then the goal will be successfully achieved, this is mainly
done to eliminate errors.

The various tests is,

Unit testing

Acceptance testing

Integration testing

4.5.4.2 UNIT TESTING

In unit testing, each program is tested individually. So, errors in the unit are debugged.
Sample date is given for unit testing. The unit testing results are recorded for further reference.
During unit testing the functionality of the program unit, validation and limitation are tested.

4.5.4.3 ACCEPTANCE TESTING

The acceptance testing is the final stage of testing phase. The user does this. The
development is given to the user and tests the system with live data. The various possibilities
of the data are entered response or the system is test. The client signs off acceptance testing
and then we can successfully implement the system.

4.5.4.4 INTEGRATION TESTING

Data can be lost across an interface one module can have an adverse effect on another,
sub functions combined, may not produce the designed major functions, individually accepted
impression, may not produce the designed major functions, individually accepted impression
may be magnified to unexpectable levels, global data structure can present problems.

52
 Integration testing is systematic technique for constructing the program structure while
conducting tests to uncover errors associated with interface. The objective is to take unit testing
to uncover errors associated with interface. The objective is to take modules and to build
program structured that has been dictated by design.

53
Fig. 4.6 Data flow diagram

USER LOGIN

EMPLOYEE

EMPLOYEE EMPLOYEE
DETAILS EMPLOYEE REPORT
LOAN

LOAN

DEPARTMENT DEPARTMENT
LOAN PROCESS

DEPARTMENT

EMPLOYEE ALTERNATIVE ATTENDANCE

PROCESS

OVERTIME OVERTIME
OVERTIME
PROCESS

SALARY SALARY
EMPLOYEE
PROCESS

54
4.3.4 Screen Shot

Fig. 4.7 Employee Details

Fig 4.8 Department Details

55
Fig. 4.9 Loan Sanction

56
Fig. 4.10 Attendance Detail

Fig. 4.11 Overtime Detail

57
Fig. 4.12 Salary Detail

Fig. 4.13 Loan Payment

58
5. SWOT ANALYSIS

5.1 Strength

Axalta Coating Pvt.Ltd is one of
the rare unit in India to produce the
good quality switches, rotary
switches, ducts, cables.

Management is very stable, that forms
strong foundation.

This company got ISO certifications to producing
quality product.

It has well equipped quality
control department to inspecting
the incoming raw materials and
final products.

Highly
skilled and committed
employees.

5.2 Weakness

Underutilization of resources.

Less co-ordination between different departments.

5.3 Opportunity

It has opportunity to expand production
units because of the demand for their
quality products.

Set more branches across nation.

There is growing demand in developing

countries for electronics goods like
switches, cables etc.

5.4Threats

Increasing raw material cost due to
inflation rates.

Rising number of switches manufacturers in India.
6. SUMMARY OF FINDINGS

6.1Findings

Strength of AXALTA is its Brand Name.

AXALTA is willing to take up any challenges customize project and willing to
successfully implement it.


Advertisement costs are too less because they manufacture the products based on the
orders.

AXALTA COATING PVT. LTD has ISO, KEMA, CE, UL and VDE certifications.

Quality assurance department is maintainingthe quality of the product & it has become
basis of competition with other companies.

Company is ecofriendly; they recycle the waste water and reuse the same water for
their daily use like washing and gardening.


They have well integrated SAP and use data base such as ORACLE or that co-ordinate
and connects various information of different departments, hence it provides
ready information to the top level management to take immediate decisions.
7. CONCLUSIONS AND SUGGESTIONS

7.1 Conclusion
AXALTA COATING PVT. Limited is situated in good location, with an excellent
infrastructure. In this competitive world, it is very important for every student to gain a
practical knowledge about the organization. This internship training has given a view about
the technical, theoretical and practical working of an organization.
We had great time with this company, because we learned number of things about the
management. We learned how they are maintaining the productions, how they are controlling
all departments, order maintenance, sales, functions of human resource management, workers
and staffs relationships. That was very useful to improve my management knowledge.

I conclude by thanking M/s AXALTA COATIMG PVT. Limited permitting me to

carry out this training successfully in their organization. I am also very thankful to my guide
and staffs who gave me a great support to complete the training successfully.

7.2 Suggestion

Manufacturing cost to be lowered by improving productivity.

An extensive & effective marketing strategy needs to be carried out by the company.

Employee satisfaction & retention of manpower should be checked & ensured.

Company can encourage more women employees.

the company premises to facilitate easy
Provide sign boards within & outside
identification of the department.


Can improve the infrastructure of training & development center in order to provide
better environment for the learners & trainees.