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Industry is a massive employment agent providing opportunities, board basing entrepreneurship and securing distribution of economic wealth. Industry occupies a place of importance in the economy as potential caretakers of economic resources in particular, the labor resources as they provide employment for substantial work force. They have strategic role to play in the economic development of counties and remain important in the economics of the more highly industrialized countries. Sponge Iron is a recognized alternative to steel scrap as a raw material for the manufacture of various steel products.
The twin issues of rapid depletion of Coking Coal reserves and the scarcity of indigenous scrap, made the Government of India support production of sponge iron in the country.
To boost the growth of the industry a major thrust was given by the Government of India by providing the manufacturers the following benefits: De-licensing, Firm linkages, Allocation of natural gas Financial support.
This lead to an immense growth of the sponge iron industry in India, from a meagre capacity of 30,000 tons per annum in the year 1980-81 it grew to millions of tones.
Today, India ranks No.1 globally in the production of Sponge Iron. The complete inbuilt facility for production of sponge iron, which is further, utilized in the manufacture of various iron/steel products such as TMT Bars, D.I. Pipes, etc.
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However since the last survey, the domestic sponge iron industry has undergone dramatic changes such as India has emerged as the worlds largest producer of sponge iron. The coal based sponge iron segment has witnessed rapid growth in numbers. This has led to increase in both capacity and production (coal based). Significant expansion programs launched by existing units (both coal and gas). Upstream integration of existing steel producing units. Emergence of sponge iron units with planned foray into steel making.
The story of the industry and its growth begins with the iron and steel. Steel industry is booming in the whole world. The increasing demand for it was mainly generated by the development of projects that has been going on along the world, especially the infrastructural works and real estate projects that has been on the boom around the developing companies.
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Steel is an alloy of iron usually containing less than 1% carbon. It is used most frequently in the automotive and construction industries. Steel can be cast into bars, strips, sheets, nails, spikes, wire, rods or pipes as needed by the intended user. The process of steel making has undergone many changes in the 20th century based on the political, social & technological atmosphere. In the 1950s and 1960s demand for high quality steel encouraged the steel making industry to produce large quantities. The energy crisis of the 1970s made thermal efficiency in steel mills a priority. The furnaces used in integrated plants were very efficient, however, the common production practices needed to be improved. The large integrated plants of the 1950s and 1960s tended to produce steel in batches where iron ore was taken from start finish. This causes some equipment was in use. To help reduce energy use, continuous casting methods were developed by keeping blast furnaces continuously feed with iron ore, heat is used more efficiently. HISTORY OF STEELMAKING Ancient steel: Steel was known in antiquity, and may have been produced by managing bloomeries iron-smelting facilities so that the bloom contained carbon. The earliest known production of steel is a piece of ironware excavated from an archaeological site in Anatolia (Kaman-Kalehoyuk) and is about 4,000 years old. Other ancient steel comes from East Africa, dating back to 1400 BC. In the 4th century BC steel weapons like the Falcata were produced in the Iberian Peninsula, while Noric steel was used by the Roman military. The Chinese of the Warring States (403 221 BC) had quench-hardened steel, while Chinese of the Han Dynasty (202 BC 220 AD) created steel by melting together wrought iron with cast iron, gaining an ultimate product of carbon-intermediate steel by the 1st century AD.
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SPONGE IRON
Sponge iron is a metallic product produced by direct reduction of iron ore or pellets in the solid state (i.e., without the material going into the liquid phase as is the case in the blast furnace, which is the conventional route for converting iron ore into iron). It is also known as Direct Reduced Iron (DRI). The final product after such direct reduction contains a large percentage of metallic iron with levels of metallization unto 90% and the balance being some amount of reduced iron oxide and the gangue in the ore. The Sponge Iron has a highly porous structure when viewed under the microscope and hence this product is called Sponge Iron.
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It could not fulfill industry expectations at that time in being used as a supplementary material for feed / alternative to blast furnaces. The main reasons were The gas based sponge iron plants could operate only where cheap (subsidized) natural gas was made available. Sponge iron furnaces could not be developed into a single entity to produce liquid metal. Increased scrap availability that was being traded world wide as a furnace raw material. Blast furnace capacities increased from 0.7 million tons per annum in 1960s to over 4 million tons per annum. Today the largest gas based sponge iron module available is approx. 2.7 million tons per annum.
GROWTH OF INDUSTRY
Since the commissioning of the first sponge Iron unit in 1980, it has been a period of notable accomplishments for Sponge Iron India Limited which has played vital role in developing and establishing coal based DR Technology. Establishment and up gradation of coal based Sponge Iron technology in the Country, innovations in the usage of Sponge Iron and its conversion into Steel, conversion of waste material into value added products, visualization of new concepts for updating technology and the unique expertise in total consultancy for establishing new Sponge Iron plants have all contributed to the evolution of Sponge Iron India into a 'Technology Corporation'.
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The growth of economy has a direct relation with the, Demand of steel. With the present steel intensity index, Considering the GDP projection by the Govt. of India, growth of steel demand will be around 11% annually.
PRODUCTION OF STEEL
It is universally accepted that Indian economy is growing at a very high rate presently and the demand for steel is also showing an upward trend. No. of units in operation - India 283 Now DRI units have spread over the states of Orissa, Jharkhand, Chhattisgarh, West Bengal, Karnataka, Tamil Nadu, Andhra Pradesh, Gujarat and Goa. India is the largest producer of Sponge Iron in the world In the year 2006
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Graph No - 01
16 14 12 10 8 6 4 2 0 India Venezuela Iran Mexico
13.9millionton 6.2 million ton 4.3 million ton 4.5 million ton
As per the National Steel Policy issued by the Ministry of Steel India will produce 110 million tons of steel by 2020. The requirement of Sponge Iron as metallic will be 30Million tons.
Projection for metallic requirement: Year 2010-11 Route Electric Furnace Route Melting Scrap 14 million DRI 18 million
But availability of scrap is not likely to reach 11 million. Today India produces 13.9 million tons of sponge iron, out of which 4.2 million ton is gas based and remaining 9.7million ton is coal based.
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India has a proven reserve of 410 million ton of high grade iron ore, another 440 million ton of high grade iron ore which will be established. India has total 9992 million ton of iron ore reserves (as per IBM report of 1995).
India has sufficient non-coking coal through of high ash low fixed carbon grade. Coal is used as a reducent for sponge iron making in the furnace.
The availability of scrap of required quantum is unlikely and therefore scraps needs to be replaced more and more by DRI.Local supply of scrap is diminishing as generation of scrap in India due to improvement of technology is getting continuously minimized. As per World Steel Dynamics (WSD) the Global shortage of scrap will reach 68 million tons in the year 2010.That means the scrap price will go up and availability will be a problem. Today the international price for scrap is around US$ 390.00.
Due to soaring price of iron ore and coke, blast furnance is being set up in the countries where iron ore or coking coal is available.With resources available in India Sponge Iron Electric Furnace Route is the most viable option for steel making.
We must produce steel at a cheaper cost to remain competitive and control over domestic market. DRI based steel making is therefore the only answer.
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Scrap availability is getting difficult and the coking coal reserves are limited. So steel industry has to depend heavily on sponge iron .India has an installed capacity of 170 lakh tonne at present. And there are at least 160 more plants in various stages, from planning to implementation. So we expect that the installed capacity will go to 3 million tonne in the next five years. Existing sponge iron manufacturers are going in for expansion in addition to large number of Greenfield projects which are in the pipeline.
MAJOR
PROBLEMS
CONFRONTING
SPONGE
IRON
MANUFACTURERS
Our biggest problem is the availability of critical raw materials, iron ore and coal. Gas availability is very difficult. There has been an unprecedented rise in iron ore prices in the
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last three years. We want export of all high-grade iron ore banned and mining leases be made available to private sector so that prices can come down to a realistic level. We hope the government will accept the recommendations of the R.K. Dang committee on iron ore policy.
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processes, while those employing educing gasses are known as gas-based processes. Sponge iron produced by gas-based process is normally hot briquette and hence it is also known as Hot Briquette Iron (HBI). The choice of coal-based process depends largely on the
availability of the reducing agent and iron ore/pellets as the case may be. Gas based Sponge Iron Plants are not only capital intensive but are also of large capacity in the range of 1.0 to 2.0 million TPA, where as coal based Sponge Iron Plants are less capital intensive and can be smaller in size to suit the investment requirement.
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COMPANY PROFILE
Within the short span of time it has achieved an annual turnover of 30 Crores.
The name Rayen is derived from a roman language meaning flower, it was incorporated at the time when there was a raising demand for steel in the global market, it produces Sponge iron an intermediate form of Iron Ore and Steel, though it doesnt cater to the internation al market, definitely the growth of Indian economy led to the development of infrastructure for which it caters to. Rayen Steels has been established on 25th Feb 2006 and it has started its commercial production on 20th May 2006. Starting with the initial investment of 14crores, the steel plant was producing 100 tonnes of sponge iron per day, which has increased to 250 tonnes in 2008.
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VISION
To set up an integrated steel plant of international standards and offer best steel to the global market and stand ahead among the steel manufacturers.
MISSION
To cultivate high standards of business ethics and Total Quality Management (TQM) for a strong corporate identity and brand equity.
OBJECTIVES
The following are the objectives of the Rayen Steels (P) Ltd. The aims at the fulfilment of the required industrial development in India. Committed to delivery products and services to satisfy the need of the customer. To actively involve people to contribute towards high productivity through team work and innovation. It aims at the training and production of skilled personal. It aims to contribute towards the economy of the country. It aims to provide employment to people directly by the company and indirectly through onside contracts. Aims to quality maintain and to compute at the global markets. To have technology know-how. To manufacture cost effective quality Sponge Iron. To establish supremacy in Indian Automotive Iron Companies. To achieve highest rate of satisfaction among employees. To produce zero defect quality Iron. To maintain good relation with suppliers, dealers and customers. To incorporate special plans and schemes to gain employees satisfaction.
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QUALITY POLICY
Rayen steels Limited is committed to comply with the requirements of the Quality Management System and to achieve continual improvement in its operations through it for the production and marketing of sponge iron. In order to attain this, the company shall strive to achieve its quality objectives through annual business plans and review the quality policy periodically to ensure its continuing suitability to company operations.
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PRODUCT PROFILE
The sponge iron plant at Bellary produces the following product: Main product: Sponge Iron Byproduct:Slag,Blastfurnacegas
The quality of the Sponge Iron is determined by its Silica content. The more the silica content more the quality, the silica ranges from 1 percent to 3.5 percent. The company manufactures three grade of Sponge Iron, they are as follows: Fines (Injection coal) A- Grade B- Grade A-grade and B- Grade is used in the manufacture of steel. It is produced by the Integrated Steel Plants (ISP) for captive consumption in the manufacture of steel and exports. Part of production is also divers tic market. Used for making casting and is produced in the mini Blast Furnace Units. .
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Requirement of raw materials and their possible source of supply are indicated in the table given below Sl.No. Raw materials Sources of Supply
1.
Sandur
2.
Coal
Singareni
collieries/south
Africa
/Australia/Indonesia
3.
Dolamite
Dronachalam
Table 2.1 showing the raw materials and their sources of supply
AREA OF OPERATION
As Rayen steels is a small scale industry it function only in the national market sells production capacity then they go for export in the best price.
COMPETITORS INFORMATION
The major competition they face is from the local manufacturers. And a small range of competition from other national firms. The local competitors are:a) HOTHUR STEELS b) PRAGATHI c) SARJELLI STEELS d) BINACA STEELS e) BELLARY STEELS & ALLOY LTD f) GAYATHRI METELS
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INFRASTRUCTURE FACILITIES
38 Acres of land Building in square feet:- 40000 Sq.feet Machinery worth Rs:-2crore. Furniture Worth Rs: - 1lakhs. Computer aided Machinery worth Rs:-3lakhs. L&T JCB Rs:-18 lakhs. New technology adoption. Killen & Coolers. Stock House 10,000 Tonnes. Storage Shed 180 Tonnes. Heavy machinery like Hitachi, Jeb, Roller.
WATER FACILITIES
There is a hot well and cold well of supply and return water storage from cooler where sponge iron is cooled separately. Pumps are provided for circulation, cold water to cooler and hot water through cooling tower. The other requirements like for cooling compressor etc. is met from the ground water reservoir directly. An overhead tank is provided in the plant to meet the water requirement for about half an hour during emergency, like power failures, fire etc. This overhead tank has one separate compartment to store and supply drinking water to the plant& personnel.
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B) Dust emissions and control From the transfer points at crushing, screening, cooler discharge and product separation, some quantity of dust is eliminated. To avoid the pollution of the
environment, the de-dusting points are provided at these three places. In this system, the suction ducts are provided at various points and connected to a bag filter house. One ID fan is used to create suction and the dust particles collected in the hopper are drawn out with the help of a rotary valve, for humidifying the dust to avoid flying of the same.
One set of 500 KVA rating at 415 V, 50 Hz is provided to cater to the emergency power requirement of vital units of the plant requiring uninterrupted power supply. The DG set will be complete with auxiliaries like AMF panel, day oil storage with transfer pumps etc, and necessary instrumentation.
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Raw material
Screening
Crushing
Klin
Store house
Cooling house
Production house
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STOCK HOUSE (RAW MATERIALS) FEEDBELT KILN MAIN DRIVE PROCESS COOLING SPONGE IRON LAB TESTING CD BELT PRODUCT HOUSE
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The main component in this production process is Kiln. The following are main components are included in the kiln. Kiln main drive: It is used for rotating kiln. Cooler main drive: It is used for cooling after all process the products should be cool. Sheller fan: it is used for controlling temperature that is increasing or decreasing the temperature. Lube compressors: it is used for coal feed into Kiln by pressure. Iron weighing feed: it is used for transfer raw materials into kiln. ESP ID fan: it is used for maintaining a pressure. Feed coal range: it should be range +14-1 CB Fan: it is used for output increasing to temperature RACF: Rotary Air Lock of System.
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ORGANIZATION STRUCTURE
BORAD OF DIRECTORS
MANAGING DIRECTOR
FINANCE HOD
MARKETING HOD
PRODUCTION HOD
QUALITY DEPARTMENT
LABORATORY DEPARTMENT
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Mr.Prakash. S
Director
63
B. (Metallurgy)
Mr.Manohar. A Director
68
B.com, MBA
Over 35 years in commercial Bankig, Human Resources and financial Management with state Bank of India.
Mr.Ramu .G
Director
67
15yrs
in
Sales
and
Table 3.1
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FUNCTIONAL DEPARTMENTS
The following are the various departments playing a vital role in the success of the Rayen Steels Pvt Ltd. They are as follows:
Finance Department Marketing Department Human Resource Department Production Department Stores & Raw Materials Department Quality Department Laboratory Department
Finance Department
Laboratory Department
Marketing Department
Quality Department
Production Department
FINANCE DEPARTMENT
Finance department is that managerial activity which is concerned with planning and controlling of the firms financial resources. The manager of this department is Mr. S.R.Kolkar Account and cash section In this department, the accounts section maintains all the transactions related to the factory dealings. The sale accounts, purchase accounts, etc are maintained and this department prepares P&L account, Balance sheet, etc.
The accounting system followed by RSPL in such a way that there will be separate ledger has kept for each customer. As the concern will deal with many customers, there will be a separate ledger maintained in the name of each client and sometimes if the client deals with many varieties of products for that will be a separate file has been maintained
Capital cost: The esteemed capital cost of plant is Rs. 1473.33 lakhs (inclusive of taxes and duties). This includes land, civil/structural work; the cost has been arrived based on prevailing rates for estimated quantities. As for plant and machinery it is based quotations/offers received for similar plant of our other clients/s. Apart from all directors investments, this project was financially supported by Andhra Bank, at the ratio of 25:75 respectively. From the bank finance 80% is allocated to project cost and 20% towards working capital. The monthly average turnover is 5 crore
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Finance HOD
Manager
Supervisor
Staff
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7000
6000
5000
4000
Series1
3000
2000
1000
0 LUMPS FINES
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9000
8000
7000
6000
5000
LUMPS FINES
4000
3000
2000
1000
0 LUMPS FINES
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12000
10000
8000
6000
LUMPS
FINES
4000
2000
0 LUMPS FINES
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MARKETING DEPARTMENT
Introduction Marketing is a social process by which individuals and groups obtained what they need and want through creating, offering and freely exchanging products and services of value with others. Aim of marketing To know and understand the customer so well that the product or service first him and sells itself. Ideally marketing should result in customer who is ready to buy. All that should be needed then in to make the product or service available.
Features of marketing
It is consumer oriented. It starts and ends with consumer. It is goal oriented. It is a continue process. It is a guiding element of business.
Distribution channels
It is a channel of distribution group of individuals and organization that direct the flow of products from producers to customers. The main function of this demand is to find out the appropriate ways through which goods are made available to the market. There are so many marketing channels. Vertical marketing system. Horizontal marketing system. Multi-channel marketing system.
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In the last type of channel there are other distribution channels like DIRECT MARKETING CHANNEL
Manufacturer 1 level marketing channel Manufacturer 2 level marketing channel Manufacturer 3 level marketing channel Manufacturer Objective The main objective of this department is to take care of the sales and dispatching them properly and also to look after the central excise matters pertaining to the sales of the department. Policies 1. Keep a watch on the market conditions. 2. Branch officials and agents should always be in touch with customer. 3. RAYEN always prefer to have direct contact with the plot owners for timely supply of raw materials. 4. Orders are always taken on first cum first basis and credit sales are negotiated only after knowing buyers credibility and prior approved of management. 5. The transporter approaches marketing section for billing and other various document required as per government rule. Whole Seller Jobber Retailer Consumer Whole seller Retailer Consumer Retailer Consumer Consumer
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Practices/Procedure
1. Only those employees who know the local language are sent to the customers. 2. Marketer makes the customer to know the quality checks done at RAYEN. 3. The customers financial strength and weakness and requirements are known to the branch officers and agents.
MANAGER
SUPERVISORS
STAFF
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Marketing Mix of Rayen Steels 1. Product : Sponge iron Quality : High quality Branding: RAYEN STEELS PVT LTD Packing Colour : Not required : ash
2. Price Cash transaction: As Price is fixed by the sponge iron association it cant be changed. It is useful to maintain good and healthy relation with competitors. Cash discount: It is left to the company weather to discount or not if it is paid from cash. Credit period: 30 to 45 days
3. Promotion Public relation: Good relationship Advertising & publicity: Not needed
4. Place Channels of distribution: Direct selling and commission agents. Mode of transport : By truck only
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In short Human resources management, this is of immeasurable value for an organization. The HRM department is entrusted with the vital function of keeping employees happy and thus assisting in enhance the productivity of the company.
Any organization with manpower as its chief capital is a treasure of talent. It is the HR department which acts as the key to unlock, identify, develop and utilize employee skills and talents to further individual as well as organizational goals.
The chief functions of the HR department Training and Development change the management, salary and benefits, industrial and employee relations and performance appraisal.
The HRM department here at Rayen steels Pvt Ltd., considers the employee as the foremost and the major resources of the company. Upliftment of employees growth are at the center of organization philosophy of growth, which aims at providing a career in which the individual can make at the same time better standard. Company has taken care of employees welfare by Providing accommodation medically and medicalreimbursement to self and family subsidized canteen facility to all employees, free transportation to their residence to the work. Place.
Company is having officers, club members of their facilities meet and participating in various activities of recreations.
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MANAGER
SUPERVISORS
STAFF
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PRODUCTION DEPARTMENT
The raw materials and the technology are to be sourced from other areas; this is a specialized field where in the production of steel, a definite layout of the process has to be established. These are charged into a rotary kiln in requisite proportion along with some dolomite.
Coal plays a dual role in the process by acting as a reductant as well as a fuel for providing heat to maintain the requisite temperature inside the kiln at 950-1050C. The reduction process occurs in solid state. The crucial factor in this reduction process is the controlled combustion of coal and its conversion to carbon monoxide to remove oxygen from the iron ore
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PRODUCTION PROCESS
Sponge Iron is iron ore reduced directly in solid state using coal gas, natural gas or coal as reductants and is also known as Directly Reduced Iron (DRI). The basic raw materials used in the production of Sponge Iron are Non-coking coal, Iron ore, and dolomite, with the availability of new technology they are able achieve greater efficiency with following advantages. Uniform known composition and Low levels of residuals/tramp elements Capability to maintain phosphorous level in steel within 0.002% and sulphur in sponge manufacturing Low content of dissolved gases, Uniform size and higher bulk density as compared to scrap Capability of forming protective cover of foamy slag in the bath
Chemical Composition
Constituent Total Iron Sio2+al2o3 Cao+mgo Sulphur Phosphorous Percentage % 65-67% 2-3% 0.5-1% 0.02%max 0.04%max Table 4.1 Showing the chemical composition of iron ore
Physical Composition
Constituent Size Shatter Index Tumbler Index Abrasion Index Reducibility Index Thermal degradation Index Percentage % 5-20mm +95% +88% +5%max +94% 5%
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Coal-Based Process
This is the process that the company uses to produce sponge iron. This process utilizes noncoking coal as reducing agent along with lumpy rich grade iron ore. The reduction is carried out in an inclined horizontal rotary kiln, which rotates at a predetermined speed.
A temperature profile ranging from 800-1050 degree centigrade is maintained along the length of the kiln at different zones and as the material flows down due to gravity the ore is reduced.
The hot reduced sponge iron along with semi-burnt coal, discharged from kiln is cooled in water-cooled cylindrical rotary cooler to a temperature of 100200 degree centigrade.
The discharge from cooler consisting of sponge iron, char other contaminations are passed on through magnetic separators so that sponge iron can be separated from other impurities. Later the sponge iron is screened into two size fractions i.e. 3 mm & +3 mm. +3 mm fraction directly goes for usage, -3 mm fraction can be either used directly where ever it is possible or is to be briquetted by using molasses and hydrated lime as binders.
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Basic Reactions
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PROCESS CHART
The overall process requires duration of approximately ten to twelve hours inside the kiln, during which iron ore is optimally reduced and discharged to a rotary cooler for cooling below 120C., before coming out into the finished product circuit. Operations managers play the most important role on the production line, they are responsible for the proper and optimum utilization of the given resources and in case of any break up or a fatality they are the immediate bosses that take action.
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QUANTITY USED IN MANUFACTURE FOR THE PERIOD APRIL 2009 TO JULY 2009
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QUANTITY USED IN MANUFACTURING FOR THE PERIOD AUGUST 2009 TO NOVEMBER 2009
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QUANTITY USED IN MANUFACTURING FOR THE PERIOD DECEMBER 2009 TO MARCH 2010
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The iron ore shall have resistance for physical & thermal decrepitating and good reducibility and the coal should be of reactive nature along with the characteristics of high fusion temperature and less amount of ash.
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Sized iron ore, sized coal and sized limestone will be received from the mines/suppliers directly by road unloaded and stocked in the raw material yard. The material will be withdrawn by means of pay loader and tippers and unloaded into the ground hoppers. From the ground hoppers, the materials would be conveyed to respective vibrating screens by means of belt conveyors and ultimately the sized material would be stored in the earmarked day bins. One road weight bridge would be provided for weighing all the incoming materials to the storage yard and outgoing materials from the storage yard.
As the company imports the raw materials from far places such as South Africa and china apart from the neighbouring states, it becomes imperative that there should be a well designed inventory control system.
The company in order to supply to its customers on the national basis needs a system of logistics where the consignments are delivered at right time to the customers; it can be either on road, rail or even sea.
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PURCHASE OF RAW MATERIALS FOR THE MONTHS APRIL 2009 TO JULY 2009
16000 14000 12000 10000 8000 6000 4000 2000 0 IRON ORE COAL DOLAMITE
IRON ORE COAL DOLAMITE
Graph 4.4 Showing the purchase of raw materials for the months April to July
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PURCHASE OF RAW MATERIALS FOR THE MONTHS AUGUST 2009 TO NOVEMBER 2009
Graph 4.5Showing the purchase of raw materials for the months August to November
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8000
6000 4000 2000 0 IRON ORE COAL DOLAMITE
COAL DOLAMITE
Graph 4.6Showing the purchase of raw materials for the months December to March
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STORES DEPARTMENT
To meet operation requirement of the plant one central store is provided to store various materials consumables and spares they are as follows: Equipment Conveyor belts Grease Lubricants and Refractors
Nearly 70 lakhs of materials are stored. There 3 Shifts manager, data entry operator and 2 helpers. The main functions of this department are as follows: Inspecting the raw materials Entering the details in to the system Arranging the materials in the racks.
QUALITY DEPARTMENT
Sponge iron manufacture is highly sensitive to raw material characteristics. The basic raw materials for the production of sponge iron are iron ore, non-coking coal and dolomite.
Several tests are conducted in the company laboratory to ascertain their suitability in a rotary kiln. After conducting tests according to their chemical and physical composition they are graded.
The company now is in the process of implementing the ISO-9002 standards and is awaiting the certification from the auditing authorities.
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LABORATORY DEPARTMENT
It is like the heart in a human body for the organization. It is essential to examine the chemical and physical characteristics of raw materials, both individually and in combination. The quality of incoming raw material and finished products are tested here. If this department discharge duties properly the efforts/ operations fails. Laboratory equipments required are as follows: Jaw crusher/roll crusher, Discpulveriser, Muffle furnace, Drying cabinet, Rotary sieve shaker, C and S apparatus, Satmagan, Electronic balance and glassware.
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Its all very well devising a strategy, but you have to be able to implement it if its to do any good. The Seven S Framework first appeared in The Art of Japanese Management by Richard Pascale and Antony Athos in1981. They had been looking at how Japanese industry had been so successful, at around the same time that Tom Peters and Robert Waterman were exploring what made a company excellent. The Seven S model was born at a meeting of the four authors in 1978. It went on to appear in In Search of Excellence by Peter and Waterman, and was taken up as a basic tool by the global management consultancy McKinsey: its sometime known as the McKinsey 7S model. Managers, they said, need to take account of all seven of the factors to be sure of successful implementation of a strategy large or small. Theyre all interdependent, so if you fail to pay proper attention to one of them, it can bring the others crashing down around you. Like a lot of these models, theres a good dose of common sense in here, but the 7S Framework is useful way of checking that youve covered all the bases. To better represent the challenges of service marketing McKinsey developed a new framework for analyzing and improving organizational effectiveness, the 7s model:
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SOFTS
The 4Ss across the bottom of the model are less tangible, more cultural in nature, and were termed Soft Ss by McKinsey: Skills: The capabilities and competencies that exist within the company. A skill is an individual ability to translate knowledge into action. The aim of organization is to provide quality to their customer satisfaction, consistent quality to all. Shared value: The values and beliefs of the company. Ultimately they guide employees towards valued behavior. The company produces good quality products for which it has also received many award. Staff: The Companys people resources and how they are developed, trained and motivated. Staffing is the process of acquiring human resource for the organization and assuring that they potential to contribute to the achievement of the organization goals. Staffing includes the selection, placement, training and development of appropriate qualified employees. Style: The leadership approach of top management and the companys overall operating approach.
HARDS
The 3S across the top of the model are described as Hard Ss: Strategy: It refers to the set of decisions and actions at gaining a sustainable competitive advantage the direction and scope of the company over the long term. Structure: The basic organization of the company, its departments, reporting lines, areas of expertise and responsibilities (and how they inter relate). System: Formal and informal procedures that govern everyday activity, covering everything from management information systems, through to the system at the point of contact with the customer (retail systems, call center systems, online system etc)
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Structure
Strategy
System
Shared Value
Skills
Style
Staff
STRUCTURE Definition of Structure: Structure describes the hierarchy of authority and accountability in an organization these relationships are frequently diagrammed in organizational charts. Most organizations use some mix of structures- pyramidal, matrix or structured ones to accomplish their goals. A structure is the formalizing of relationships, roles and responsibilities in order to recognize and perform work. In simple terms, structure is a pattern in which various parts or components are inter-related and inter-connected. So, organization structure is a pattern of relationships among various activities and positions. Because various people hold these positions, the structure defines the relationships among people in the organization
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Organizational structure performs in the following major functions: The overall responsibility for the safe and efficient operations at the location shall rest with the location in charge. However all the officers working at the location shall have the following functions as entrusted by the location in charge from time to time. Implement all the statutory requirements related to receipts storage and dispatch of product. Impart adequate training to all subordinates enabling them to perform their duties satisfactorily. Develop and maintain good relationship with all customers and other connected agency. It undertakes a wide variety of activities through devices such as departmentalization, specialization, division of labor of delegation of authority. The manager of the company is in a position to control the activities of different department on the organization. For taking the entire problem he meets the knowledge of about both technical and managerial knowledge. The employees of each department is responsible for the activities done in their respective departments and answerable and reporting to the department manager. In the organization the department manager comes under the top level management. Under these position technical officer, sales officer, accounts officer and administrative officer are present they comes under the middle level management and other workman, security guards and clerks comes under the lower level management of the organization. In RAYEN, each department is interlinked with other departments has to maintain a good control with other departments
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STRATERGY It refers to the set of decisions and actions at gaining a sustainable competitive advantage. OBLIGATIONS Towards customers and suppliers: To provide prompt, courteous and efficient service and quality products at fair and reasonable prices. Towards suppliers: To ensure prompt dealings with integrity, impartiality and courtesy and promote ancillary industries. Towards employees: Develop their capability and advancement through appropriate training and career planning. Towards community: To develop techno-economically viable and environment-friendly products for the benefit of the people. Encourage progressive indigenous manufacture of products and materials so as to substitute imports. To ensure safety in operations and highest standards of environment protection in its manufacturing plants and townships by taking suitable and effective measures. Financial objectives: To ensure adequate return on the capital employed and maintain reasonable annual dividend on its equity capital. To ensure maximum economy in expenditure. To manage and operate the facilities in an efficient manner so as to generate adequate internal resources to meet revenue cost and requirements for project investment, without budgetary support. To develop long-term corporate plans to provide for adequate growth of the activities of the corporation. To endeavor to reduce the cost of production of sponge iron by means of systematic cost control measures.
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SYSTEM System refers to all the rules, regulation and formal procedure and informal that complement organizational structure. It includes buying and selling, planning and control system, capital budgeting system, recruitment, training and development schemes. In RAYEN there is a separate department to plan and control the buying activities in this department the organization has to account for how much raw materials the trucks have to bring. The buying is planned according to demand of the sponge iron in the market. Recruitment is the process of searching prospective employee and the recruitment of employees are carried out at the head office, Bellary in the human resources department. In case of vacancies or in case of appointing from outside, the RAYEN recruit people through consultancies, employment exchange and sometimes it will be published in news papers. They conduct interview. The qualified suitable candidates selected to the right job. TRAINING AND DEVELOPMENT RAYEN takes up training and development activities in an integrated way, which includes all level of employees. Training needs of various levels of employees are assessed on the basis of manpower planning discussions are also held between manager and employees for assessing training needs. All the personal selected for operation department shall be thoroughly trained before getting independent assignments especially for the automated terminals. The location in charge will ensure that all other personal working. In the working location receive adequate training in all functions of operation. They conduct lecture and meetings. The minimum period of training varies from a week to a month (according to the nature and complexity of the job).
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STYLE Style of the organization is the evident through the patterns of actions taken by the member of the top management team over a period of time. Reporting relationships may also convey the style of the organization. Leadership style of managers of RAYEN STEELS PVT LTD Maintain discipline in the organization. Gives instructions and orders to the subordinates. Listened to subordinates and responds to their needs. Takes important decisions for the group. Maintain unity in the organization. Inspires and motivates the various members of his group. Achieve or formulate objectives for his groups. Maintain communication in the organization.
The manager plays a vital role (top management). The manager of the department takes all the plans, policies, procedure, etc. The department heads like marketing, security, finance, R&D, HR, and buying has the authority to take decisions regarding their department. responsibility is given some authority should be given. Like manager takes decisions regarding sales, dealers of different marketing strategies. Like this finance manager takes the decisions regarding preparing profit and loss A/C and Annual Report of the corporation. It has very good quality circle program through which the employees and workers are allowed to discuss any existing problem or can healthy suggestion regarding any problems to the department manager. subordinates and workers. This will build healthy relationship between manager and It is said, Whenever some
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STAFF Staffing is the process of acquiring human resource for the organization and assuring that they potential to contribute to the achievement of the organization goals. Staffing includes the selection, placement, training and development of appropriate qualified employees. A standard selection process has the following steps screening application forms, selection test interview, checking of references and placement. PLACEMENT After a candidate is selected for employment, he is placed on the job. Initially the placement may be on probation, the period of which may extend from six months to one year. After successful completion of the probation period, the candidate may be offered permanent employment in the organization. SKILLS Skills refer to an organization dominant capabilities and competence with employee. Every organization needs to has well trained and experience people to perform the required activities. A skill is an individual ability to translate knowledge into action. The aim of organization is to provide quality to their customer satisfaction, consistent quality to all. The organizations success depends on the skills of the employees. RAYEN STEELS CAPABILITIES IN THE SECTOR OF OPERATIONS IN STEEL INCLUDES Technology service Technology feasibility Inspection Quality control Safety Quality auditing Training
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SHARED VALUES It refers to set of values and aspiration that goes beyond the conventional formal statement of corporate objectives. The organizational cultures can be viewed as system of shared values. In Rayen steels every employee has to participate in taking the decision in the organization. The finance department has to maintain proper accounts. The main aim of employee is to develop the organization, their activities and their public service with efficiently.
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SWOT ANALYSIS
SWOT ANALYSIS OF RSPL SWOT Analysis is an important tool for auditing the overall strategical position of a business and its environment. A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually classified into Strengths (S), Weaknesses (W), and those external to the firm are classified as Opportunities (O), Threats (T). Such an analysis of the strategic environment is referred to as SWOT analysis. The SWOT analysis provides information that is helpful in matching the firms resources and capabilities to the competitive environment in which it operate. As such, is instrumental in strategy formulation and selection. The following diagram shows how a SWOT analysis fits in to an environmental scan:
ENVIRONMENTAL SCAN
INTERNAL ANALYSIS
EXTERNAL ANALYSIS
STRENGTHS
WEAKNESSES
OPPOTUNITIES
THREATS
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Strengths
RAYEN STEELS PVT LTD is a reservoir of skilled and experienced personnel. The Company has got an advantage of its location, as the plant is situated where resources are easily available. RAYEN STEELS is located near the major power generating stations both hydra and thermal like Raichur, Munirabad, Shalvathe and Kalinga all these stations are connected to the grid at Munirabad about 55kms from Bellary. Commissioning the sponge iron plant as reduced the dependability on scrap. Company maintains high quality standards so that profitability is increasing yearly. The company can have the competitive advantage over its competitors. It will help in influencing and mobilizing market demand for the product. Good corporate image of RAYEN enhances the level of confidence in manager. Abundant resources of iron ore which is also closer to the plant, hence reduces transport cost. RAYEN has a customer friendly approach and improved customer orientation. Non-existence of labour unions. Customer percentage of RAYEN is fair and of reliable supplier. Market demand for sponge iron is more.
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Weakness
The absence of certain strengths may be viewed as a weakness. In some cases, a weakness may be the flip side of the strength. The weaknesses of RSPL are as follows: RAYEN is largely dependent on bank loans rather than other sources. Concentrated on south India market and neglected other parts. It has to depend on other sources for the procurement of raw materials. RAYEN is facing a lot of problems like transportation, diesel& fuel, break downs, Etc Lack of implementing the new technologies like computerization in all departments. The factory machines are old, obsolete and break downs are common and it is leading to maintenance cost the company has to fallow the preventive maintenance in the organization. The nature of the process operating cost very high, so that it requires huge investment. Water is very essential for the process of extracting sponge iron which is being pipelined in about 4Kms through plastic pipes, there are chances for the pipe to break and also maintenance is difficult.
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Opportunities
The external environmental analysis may reveal certain new opportunities Efforts are on for reducing the power cost, which is key element in the process of sponge manufacture. Since RAYEN has wide network of traders, it can supply its product directly to customers without any difficulty. This year RAYEN has given very good performance, so it will imbibe a new enthusiasm in its employee to do better. Due to economic improvement in conditions especially infrastructure building in the country. That can enhances the demand for the iron industry and company can utilize consumption from the untapped market. Company will grow due to its healthy conditions because it has all material resources near to its location that will lead easy consumption of raw materials and finally it reduces the cost of production. It can expand its business to Power Plant as the company has the by product which can be used for electricity generation. The byproduct can be utilized for the betterment of the company which will yield competitive advantage to the organization. Steel industries such as Jindal, Kalyani and Mukunda have come up in Bellary region from which demand for sponge is more.
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Threats
In this era of globalization competition has become one of the driving forces in each and every industry. RSPL has also threats from other industries Increased competition in the market with other domestic producers. Obsolescence of existing technology. High cost of input materials. The cost of raw materials is increasing due to import from the south Africa which inturn effects the cost of production. Tight money market situation. Less accumulation of funds from promoters. They cannot change the selling price of the product as it is fixed by Sponge Iron Association. The steel pricing policy of the government is also big threat to the company usually the levy prices fixed by the government are very low and fall below the cost of production.
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LEARNING EXPERIENCE
The training has created a sense of practical exposure and enlightenment in my mind as to what actually an organization is and how theoretical concepts are practiced in with only theatrical knowledge, several management concepts were slightly difficult to analyze. However, after implant training, I have felt empowered with confidence to understand different management concepts in a pragmatic manner. The training helped me a lot in recalling the theoretical concepts, which I learnt in my 1st year MBA. I also came across real problems faced by organization in technology, human resources etc and the way in which the management tackled those problems. During this implant training, I realized that management is a backbone of every organization and without which every activity of organization will go haywire. I came to know the importance of Management Information System [MIS] in the organization and how it assists the management in every aspect of its business and how it helps the management in the process of decision-making. I came to know how communication acts as an important tool for the smooth functioning of the organization and how we should communicate on different channels and with different grades of peoples. As we all know that finance is lifeblood of every organization, I personally had a look at the finance department, I came to know the importance of finance department, and I came to know the different tools they use to have a control over the liquidity position of the company. I came to know the importance of Managerial Knowledge such as planning, organizing, staffing, directing, controlling, and decision-making. I came to know about the rules, regulation, policies, and procedures of the company, and to what extent employees are following the rules and regulation laid down by the management. I came to know about the punitive actions taken by the management against the individuals who breaks the rules and regulation of the company. Apart from these I also came to know about the Leader ship traits such as ability to motivate, counsel and train sub-ordinate in a humane approach to their problem, develop personnel support and team spirit.
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In training also helped me in knowing the importance of group effort when compared to individual effort in organization. In addition, importance of human relations was known, which helps the management getting the things done through its employees. Personally, I gained many valuable insights in Rayen Steels (P) Ltd., which help in my career. It is about the working environment, about dealing with the employees, about the attitude required to sustain in an organization and so on. In total, I am very much benefited with this implant training. Once again, I thank the authority of Rayen Steels (P) Ltd. of giving me this opportunity to carry out the implant training and expose myself to the corpor ate field and I thank all employers of Rayen Steels (P) Ltd. and as well as who are helping and for giving me continuous guidance to make this project work successful.
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SUGGESTIONS
Improve the technology for the sake of growth in production. The pooling in of money to the capital investment should be basically done by the investors rather than depending on banks. The operating costs can be reduced to certain extent by introducing new methods of production and upgrading the employee skills in the process of production and effective control of all valuable assets of the organization. The machines used in the Rayen Steels Pvt Ltd are became obsolete, hence they have to be replaced with new machinery for improved production this ultimately bring value addition to the company. There is lack of infrastructure limits and material handling facilities, hence expanding infrastructure could be a viable opinion. Training program is necessary for all the workers to improve quality of production. RAYEN should try to enter all the regions of India as its new market place. They should provide the safety equipments for the workers to ensure better safety. They have to implement the Management Information System (MIS) for the benefit of organization. (Such as intranet and website). Introduce innovative methods for improving production. Improve product quality than the competitors.
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CONCLUSION
The training is one of the most important programmes of a professional course. The trainee feels very proud of this opportunity, which was provided to him. This opportunity gives him the practical knowledge for the application of theory. The internship project in the RAYEN STEELS gave me an opportunity to experience and evaluates my learning, which I had learnt in the classroom. It gave me a chance to know about the different departments within it. It was a wonderful experience to interact with the people from various departments, which are definitely going to help me a lot in my upcoming future.
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BIBILIOGRAPHY
A. Books
a. Dr. K. Ashwathappa, Production Operation Management, Himalaya Publishing House, First Edition: 2008 b. P. Subba Rao, Human Resource Management, Himalaya Publishing House, First Edition: 2008
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