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Although the development of India's ball and roller bearing industry is not quite enviable, it can be said without contradiction that India has relatively strong base for the manufacture of bearings. There are about 12 large and medium units which together turn out over 100 million bearings every year. Almost all the units have foreign collaboration. The Indian Bearing industry makes around 500 types of bearings as against over 30,000 types of bearings being used by the Indian industry. Bulk of these are only of standard types and are used mostly in low-technology areas like fans, electric motors, water pumps, and by the automotive sector The current Indian bearings industry is worth Rs.3500 crore. In this, automotive segment accounts for 45 percent of the revenues, which amount to Rs 1,350 crores and the remaining 55 percent of revenues are being contributed by industrial demand. In the automotive bearings market, the organized segment manufactures cater to 50 percent of the demand. About 15 percent of the production is by the unorganized segment in India, and the remaining 35 percent of demand is fulfilled through imports. The rolling bearing manufacturers in India mostly manufacture bearings based on the original design and specifications obtained from their collaborators. Generally there is a limited facility available with the bearing manufacturers for research or development of new bearings of indigenous designs. Generally, bearings have been standardised internationally i.e. the boundary dimensions of the product have been laid down. However, with moderate modifications in the standardised designs, bearings have been manufactured and used for various applications the world over. The manufacturing activity in the country started in the late 40's, with the production of small and standard bearings. The Indian industry today manufactures small and medium bearings mainly in five categories, i.e. ball bearings, cylindrical roller bearings, taper roller bearings, spherical roller bearings and needle roller bearings. The popular size range is generally restricted to 140 mm OD, though larger sizes are also manufactured by some units.
However, commendable efforts have been made by some units to design and develop bearings, particularly larger diameter ball and roller bearings, to suit specific customer requirements. There are also small scale units producing bearings in small quantities from imported components by assembling them. The following are the major manufacturers of bearings in India: Asian Bearings Company Ltd. FAG Precision Bearings Ltd. Union Bearings Manufacturing Co. Austin Engg Company Limited. SKF India Limited. Timken India Limited. Antifriction Bearing Company Ltd. Tata Iron and Steel Company Ltd. Shriram Bearings Ltd. National Engineering Industries Ltd.
Company overview
In India, there are many industries which are producing bearings. One of them in which I have done my work during my summer project in Austin engineering company limited. It is on the top of all the bearing producing company in India. It is most successful unit in Gujarat as well as India. The Austin engineering company limited is a large scale company as it is a public limited company. The company produced various types of bearing. The various types of bearing which are directly used by another Industry like defense industry etc. The company Austin engineering is located at patla.it is registered by name AEC and its main product is bearings. The company was started as partnership firm in 1973 and in the year 1985, it was converted into public limited company. The company was awarded by ISO 9001 certification in 1999. And in 2006, AEC is awarded ISO/TS 16949:2002. So progress of AEC is very good. Moreover, the company gives employment to so many people. It is a continuously rising unit because of its sound financial position and efficient management. The award of ISO 9001:2000 is given by international organization to those companies whose production material and quality of product are standardization. So these awards are the proof to shoe the work and standard of the company.
Development:1973: when co. has started manufacturing needle roller edge assembles with 10 peoples. and capital investment of 3500 U.S Dollar. 1978: partnership firm converted in to private limited company. 1985: it is converted into public limited company & share/stock offered to public. 1987: its established second unit at patla. 1999: awarded ISO 9001 certification from TUB RHINELAND. 2004: established a subsidiary company in U.S.A. 2006: awarded ISO/IS 16949:2002 by TUB RHINELAND.
GENERAL INFORMATION
NAME: YEAR OF ESTABLISHMENT: REGISTERD OFFICE: FACTORY : VILLAGE : PATLA TALUKA : BHESAN DIST:JUNAGADH-362030 PHONE NO: 02873-252223 / 252267 /252268 FAX: 0285-2661505 / 02873-252267 E-MAIL: info@aecbearing.com WEBSITE: http://www.aec-bearings.com AUSTIN ENGINEERING COMPANY LTD. 1973 101-G.I.D.C. ESTATE VADAL ROAD, JUNAGADH-362001
Cost Auditors
Bankers
PRODUCTION PROCESS
THERE ARE EIGHT STAGES OF MANUFACTURING PROCESS: 1. Material stage:
Raw material is steel bars, steel wire, steel tubes; rollers Etc.This Company has improved sophisticated plant and machinery especially from Germany.As the company has to reach big orders of export market defence on big
original equipment manufacturers. So, company kept six months inventory for raw material and has make contact with their supplier of raw materials to supply regularly.
They store this raw material in store room and when required they inspect and test then in terms fitness for further production process which are according to purchase order. 2. Turning of Races and Roller:
This is the second stage of step for manufacturing the proper bearing from the raw material to the finished product. In this stage the races and roller are turned in required sizes by trained workers and then it is transferred to main unit. 3. Heat Treatment: This is the third stage in this stage all the races and roller are given heat through electric rollers are given heat through electric furnace at 845 to 855 temperatures through which defective pieces are removed. It means the testing of races and roller is done to measure the capacity of the products. 4. Grinding of Races and Rollers:
This is the fourth stage, after heat treatment, the part of races and rollers and refined. Inner and outer part of racer and rollers are given through the grinding machine.
5. Tapping, Happing and Super Finishing: In this stage there are checking of rollers and races because it has single mistake of defect in outer and inner side of races and rollers. If any aces and roller is defective that pieces is tapped and happed. Than offer, super finishing will be done on that part. There are done through their respective machine. 6. Inspection and Grinding: After the procedure for making a bearing all the races and rollers are inspired by the inspection department and then after grades fixed by the company, the precious sample is gone mass production. 7. Assembling, Cleaning, Oiling and Packing: There are separate department of bearing all kind of bearing are managed and its size, quality and shapes is measured and its size, quality and shapes is measured bearing are assembled. After the assembling of the bearing, the cleaning and oiling of bearing is done and then the bearing finally goes at packing department where this bearing has given AEC trade mark.
8. Storage and Dispatch:
After passing through all the above stage the finished product are stored in go down. From where they are dispatched as per the order. The transportation capacity is mainly done by Transport Company.
ORGANIZATION STRUCTURE
Organizational structure refers to the way that an organization arranges people and jobs so that its work can be performed and its goals can be met. When a work group is very small and face-to-face communication is frequent, formal structure may be unnecessary, but in a larger organization decisions have to be made about the delegation of various tasks. Thus, procedures are established that assign responsibilities for various functions. It is these decisions that determine the organizational structure. In this business management there are many types of organization structure. 1) 2) 3) 4) 5) Line organization Line & staff organization Functional organization Staff organization Committee organization
In Austin Engineering Co. Ltd. There is a line and staff organization so, authority and responsibility moves up ward to down ward. Staff person guides time manager in taking decision.
ORGANIZATION CHART
is a modest attempt to measure and analysis the trends of working capital investment and needs of small manufacturing firms. This study therefore attempts to assess the impacts of working capital management on profitability of a sample of manufacturing company. The study objective are to examine the working capital management of the sample firms: To examine the impacts of accounts receivable days, inventory days, accounts payable days and cash conversion cycle on return of assets. To analysis the trend in working capital needs of firms and to examine the causes for any significant difference between industries.
INVENTORY MANAGEMENT:
The assessment of the working capital in the Company is done by the CFD with the consultation with the management staff of the Co. and on the basis of the Co. previous year experience. This helps to maintain efficiently fund for operation of the organization. Inventory refers to the stockpile of the product a firm is offering for sale and the components that make up the product. The Company is the manufacturing organization, so being manufacturing organization it needs a large among of the inventories for the smoothing of business operation. The Company invests nearly 48 to 50 percent of total current assets in the inventories. In the Company the inventory is maintain by finding the actual requirement and the analyzing material, which is scared or not easily meet at the proper time. In Company there is a special storage dept. and separate inventory management force, which perform certain function for efficient management of inventories in the company. It maintains sufficient stock of raw materials in period of short supply and anticipates price change. It helps sales dept. by maintaining sufficient finished goods inventories for smooth sales operation.
CREDIT STANDERD:
As per the industrial standard for Austin , the organization runs well on the track of average collection period. But because of the core competition in the chemical market the average collection period increased and reach near to the 50 to 55 days, so it can conclude that organization investment in receivable is not high. The customers are paying their obligation to the organization in a time. The default rate is nearly zero is the organization.
A Study of Working Capital Management at Austin Engineering Company Limited at Junagadh. OBJECTIVE OF STUDY:
The concept of Working Capital management is as older as the human understand to do Business. How organizations can works without having Working Capital through them Had spent on the fixed capital? This gives importance of the finance manager needs to Take the decision in this routine work life pertaining to manage Working Capital. The objective of the study is to focus on the very much important function of the finance Department. Under the head of Working Capital management, the decision related to Receivables, cash, debtors and inventory management are taken for the effective Production and finance management. The main objective of the study of Working Capital Management bifurcated in to sub objective like: Receivable Management Debtors Management Cash Management Inventory Management The various ratios given at the end of the report and their analysis helps the reader in Understanding the importance of the Working Capital and effect of the change in it.
As it is mentioned earlier that the management of the Working Capital requires a greatsense of understanding because the excess Working Capital leads to less profitability and ineffective use of the capital, while the inadequate Working Capital drags the company under the danger of liquidity. Thus in other words, the Working Capital management means to optimize between the profitability and liquidity. Many company works with excess Working Capital. But in case of Austin company. Capital just above the required. This can be predicted from the current ratio of the company, which should be near to 2:1 is general. But for the company current ratio was 3.26:1 in the FY 2005-2006 which further reduced To 2.21:1 in FY 2009-2010. This shows that the company has aggressive approach toward the management of Working Capital, which further creates the scope for the study.
As we know every study has some limitation. The main limitation of this study is Classified in three categories.
Knowledge Limitation: The study conductor is not aware about the particular
approach and organizational politics and practices.
Analysis Limitation: Some data which is presented in one way and it is analyzed
In the other way and come to certain other conclusion or interpreted in wrong Manner might lead to wrong concept. The emphases are put to overcome these Limitations.
Limitation of the Respondent: Time Limitation: The respondent (staff of finance and accounting department)
are busy in their schedule of the work load. Sometime they are not free to answer the questions.
Knowledge Limitation: During the study, some staff members are came across
which are not aware about the working capital management system, some are found to be not aware fully about the usage of the computer except what they need in daily application.
Limitation of Environment: Improper time of the study. Lack of understanding between the communicators.