Report 302o3s

Report on OS at KAMCO

1.1 INTRODUCTION This report is based on an Organisatioanl Study conducted at “Kerala Agro Machinery Corporation Limited (KAMCO), Athani”. (KAMCO) was established in the year 1973 as a wholly owned subsidiary of Kerala Agro Industries Corporation Limited (KAIC), Trivandrum for manufacture of agricultural machinery, specifically Power Tillers and Diesel Engines. KAMCO had technical collaboration with KUBOTA, Osaka, Japan. Subsequently KAMCO became a separate Government of Kerala undertaking in 1986. KAMCO has four production plants that are situated in Mala, Palakkad, Kalamassery and Athani. Agriculture is the backbone of our country. Agriculture is no longer what is used to be. Intensive, mechanized operations are fast changing the tempo of agriculture. Agriculture is the base of Indian economy. A large number of populations depend upon the agriculture sector for their lively hood. India needs a very big quantity of food grains to feed her population. So it is high time that we need improved and modern agriculture equipments and their implementation to increase the productivity in agriculture sector. The western countries are now able to produce excess food grains using improved techniques. Now the time has come or had exceeded to step in to the mechanized agriculture Agriculture is considered to be the major activity of most of the people in India. Moreover, 200 million farmers and farm workers have been the backbone of Indian‟s agriculture. In the beginning, the farmers adopted ancient methods for their farming practices. The whole process that is from sowing the seed till harvesting, were all done by the farmers themselves. It was really a time consuming one, which required lot of labour. The cost of production was high and the benefits are not promising. After independence, Indian agriculture has made rapid strides in production of food grains, thus contributed significantly in achieving self-sufficiency in food and thereby avoiding food shortages in our country. Rapid growth of agriculture is essential not only to achieve self-reliance at national level but also for household food security. Kerala Agro Machinery Corporation Ltd (KAMCO) has become the light of the fast changing agriculture operations in our country.

1.2 OBJECTIVE OF THE STUDY The main objective of the study in Summer Training lies in understanding the behavior and the culture in the Organization. The study mainly involves the scrutinizing of various departments that constitute an Organization. Each department has to be studied with its respective level of hierarchy, responsibility and authority of each position in that hierarchy functioning of that department and most important, the contribution of that particular department to the Organization. [1]

M.E.S.SOCSAMS


Thus the study mainly includes identification of key results areas of various managerial levels and the background behind the functioning to achieve the objectives laid down at each level that are consistent with the Organizational Objectives. The training helps to study various aspects of an Organization with respect to each departments functioning, the level of people concerned in the department function and thus contributing overall to the progress of the Organization , the training help to get acquainted with the environment surrounding the business, the working culture of the Organization and the practical functioning of each department. The training gets you to know about the various policies of the Organization and its past performance, its present & its future strategies. The main objectives are as follows:-

1. To study the overall functions of a manufacturing organization. 2. To get the practical knowledge about the different departments of an organization. 3. To relate theories with practical. 4. To understand the relationship between the management and the employees. 5. To understand the relationship between the management and the employees.

1.3 SIGNIFICANCE OF THE STUDY The organizational study done at KAMCO was very significant in my career path. It was significant as it helped me to understand the practical side of the business. It was an opportunity for me to understand the working of an organization and to get familiarize with the various departments of the firm. It also facilitated to share the job experience with the officials.

1.4 RESEARCH METHODOLOGY OF THE STUDY The data were collected from primary and secondary sources. Primary data were collected directly through interviews with the managers of different departments and the staffs of the firm. Secondary data were collected from publications such as company magazines, annual reports etc. The important methods of data collection are as follows: [2]

M.E.S.SOCSAMS


1.

Observation:One of the earliest methods of investigation was observation which had the meaning of „something known to all observation‟. This is classified into two ways: 

Participant Observation – When the observer participate observation, which make him a part of the group under study.



Non participant Observation -- When the observer does not actually participate in the activities of the group but simply observer from a distance is known as non-participant observation.

2.

Face to face Interview:Conducted face to face interview with different managers and head of different departments.

METHODS USED IN THIS PROJECT: The main technique used to collect data was personal interview with the manager and staffs of the firm. The secondary data was collected from the company‟s brouchers, websites, company profiles and magazines.

1.5 PERIOD OF THE STUDY The duration of organization study was one month. The study was held from 02.05.2011 to 31.05.2011.

1.6 LIMITATIONS OF THE STUDY  The findings may not be conclusive but only indicative.  The area of concentration was only on one unit of KAMCO (Athani), as it has three more units.  The time span of this project was very limited to collect all the information.

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2.1 INTRODUCTION TO INDUSTRY PROFILE Agriculture is way of life, a tradition that has been shaped the thought, the outlook, the culture and economic life of the people of India, for centuries. Agriculture is considered to be the major activity of most of the people. The performance of agriculture sector influences the Indian economy. Agriculture (including allied activities) ed for 17.1% of the Gross Domestic Product(GDP at constant prices) in 2008-09 as compared to 21.7% in2003-04. Now withstanding the fact that the share of this sector in GDP has declining over the years, its role remains critical as it s for about 52% of the employment in the country. The prosperity of rural economy is closely linked with agriculture and allied activities agriculture sector contributed 12.2% of national export in 2007-08. The country witnessed unprecedented growth in agriculture, which has helped India to graduate from hunger to self sufficiency in food grains by increasing the food grain production from 51 million tones to 208 million tones, with surplus for export. The technology backup by agricultural scientists in the form of „Green Revolution‟ combined with industrial growth, positive policy , and liberal public funding for agricultural research and fishing production. Application of engineering in agriculture was equally appreciated by the farmers and today they feel proud to have improved machinery from Banhars to motivators.

The growth in adoption of agricultural machinery in the country has been possible due to their local manufactures, villages artisans, tiny units, small scale industries organized medium and large scale sector under take the manufacture of agricultural machinery in India. Traditional hand tools and bullock drawn implements are largely fabricated by village craftsman and power operated machinery by small scale industries.

India is basically an agrarian nation. There are numerous farmers in India who are cultivating in large scale or in small scale. There was not much mechanization in India in the field of agriculture till recently. Economic development without agriculture development creates bottlenecks and generates inflationary pressure. This is what happened in India. Low rate agricultural development results in shortage of food and essential raw materials leading to inflation. Therefore agricultural development is essential to avoid inflation and to ensure with stability. [4]

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State of Kerala has peculiar state of affairs in its agricultural economy. Being a consumer state, it depends largely on agricultural products from the neighbouring states. It has tiny and small farm lands owned by private land owners. Even those available lands are not fully utilized for cultivation, owing to economic reasons. Low productivity coupled with prohibitive cost of cultivation has virtually driven the traditional farmers out of their vocation. Under this scenario, the mechanization of farming is a non-starter proposition in the state. Barring traditional tools and tackles employed by the farmers in the cultivation, there were no motorized or mechanized equipment available in the state. KAMCO was adventurous enough to venture into this bleak scenario, and introduced its power tillers and other medium and small sized mechanical aid of cultivation. The Kerala farmers grabbed this opportunity, and made use of benefits of automation in their fields, which in turn made the entire operations of the KAMCO successful. As of now, KAMCO is the one and only industrial unit in the state which provides machineries to the farming segment as an aid to their cultivation.

2.2 GLOBAL SCENARIO World demand for agricultural machinery and equipment is forecast to increase 3.7% annually through 2012 to $111 billion. Gains will paced by the accelerating mechanization of the agriculture sectors in currently large agricultural equipment markets such as China and India whose farm sectors are nevertheless still significantly unmechanised and inefficient in comparison to those found in more developed markets. Moreover, rapidly rising global staple food crop prices and shortages in 2007 and early 2008 indicate a growing necessity to increase farm productivity and efficiency in developing countries .To some extent, gains could be hindered if energy prices remain at their current high levels through the forecast period and negativity impact global economic growth. China and India holds best growth prospects in developing areas. Strongest growth in agricultural equipment demand will be ed in developing countries, with China and India holding by far the best prospects. Other large developing nations with sizable agricultural sectors, such as Brazil and Russia, will also post healthy gains as a result of increasing mechanization of their agricultural sectors. Besides benefiting from rising income, farmers in these regions will continue to strive to increase productivity through further automation and replacement of older equipment. Increasingly, draft animals such as horses and oxen used during various stages of the farming process will be agricultural equipment. In addition, rising wages in many of these countries as well as large scale migration to urban areas will necessitate the replacement of human capital with fixed capital such as farm machinery.

[5]

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The US will experience gains that will lag the world average due to decelerating growth in economic and agricultural sector output in the country though 2012. Western Europe will post particularly anemic growth through 2012. Farmers in both the US and Western Europe will adversely impacted by continuing trends in favour of free trade and against protagonist measures such as subsidies for domestic farmers and tariffs on agricultural imports.

2.3 INDIAN SCENARIO Farm mechanization helps in effective utilization of inputs to increase productivity of land and labour. Besides, it helps in reducing the drudgery in farm operations. The early agricultural mechanization in India was greatly influenced by technological development in England. Irrigation pumps, tillage equipments, chaff cutters, tractors and threshers were gradually introduced for farm mechanization. The high yielding varieties with assured irrigation and higher rate of application of fertilizers gave higher returns that enabled farmers to adopt mechanization inputs, especially after green revolution in 1960‟s.The development of power thresher in 1960‟s, with integrated Bhusa making attachment and aspiration blower and mechanical sieves for grain and strew separation, was the major achievement of Indian engineers. These threshers were widely adopted by farmers. Gradually demand for other farm machinery such as reapers and combine harvesters also increased. Equipment for tillage, sowing, irrigation, plant protection and threshing has been widely accepted by the farmers. Even farmers with small holdings utilize many improved farm equipment through custom hiring to ensure timeliness of farming operations. The present trend in agricultural mechanization is for high capacity machines through custom hiring and for contractual field operations. However, mechanization of horticulture, plantation crops and commercial agriculture is yet to be introduced in the country accelerated with the manufacture of agricultural equipment by the local industries. With the modest beginning of manufacture of tractors in 1960‟s with foreign collaboration, today the Indian farm machinery industries meet the bulk of the requirement of mechanization imports and also exports. The manufacture of agricultural machinery in India is quiet complex comprising of village artisans, tiny units, small scale industries, state agro-industrial development corporations and organized tractor, engine and processing equipment industries. Traditional hand tools and bullock drawn implements are largely fabricated by village craftsmen (blacksmith and carpenters) and small scale industries. The small scale industries depend upon public institutions for technological . These industries however upgrade these designs and production processes with experience.

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Organized sectors confine to manufacture of machines like tractors, engines, milling and dairing equipment. These industries have adopted sophisticated production technologies, and some of them match international standards. The enhanced scope of import of technology (product designs and manufacturing process) by organized sector and entry of foreign investors is likely to accelerate exports. Since cost of production of farm machinery in India is more competitive due to lower labour wages, the importers from various countries will find Indian farm equipment more attractive. Indian products however shall need improvements in quality for gaining major export growth.

2.4 STATE SCENARIO Kerala, the State with network of azure backwaters, rivers and streams, boasts of an agrarian economy. The abundance of water due to the 34 lakes and other small streamlets, innumerable backwaters and water bodies and 44 rain-fed rivers flowing over the terrain of the state and also the adequate annual rainfall of 3000mm received by this state probably facilitates agriculture to a great extent and hence the economy of the state is dominated by agriculture. The most essential or the staple crop is the rice or paddy. Next to rice is Tapioca and is cultivated mainly in the drier regions. Tapioca is a major food of the Keralites. Besides production of the main crop, Kerala is also a major producer of spices that form the cash crops of the state. Kerala produces 96% of the country's national output of pepper. The important spices are cardamom, cinnamon, clove, turmeric, nutmeg and vanilla. Agricultural machines increases productivity of land and labour by meeting timeliness of farm operations and increases work out-put per unit time. To provide broad-base technological services to the farmers by efficient supply of inputs including agricultural tools, implements and machinery and for extending custom hiring facilities, the government of India, through a centrally sponsored scheme promoted the establishment of 17 State Agro Industries Corporations (SAICs), one each in the major States of the country as t ventures during 1965–70. Noteable change in Kerala agriculture is that the emergence of cash crops. Whatever may be the changes KAMCO machineries helps farmers of Kerala in easy and suitable farming. But in comparison between other states, Kerala is in back of queue. [7]

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2.5 MAJOR PLAYERS Producers in the same industry in the world market are:1. KUBOTA POWER LTD, JAPAN 2. SUNTEC LTD, SHENZHEN Producers in the same industry in the domestic market are:1. VST TILLERS LTD, BANGLORE 2. BULL AGRO IMPLEM ENTS, COIMBATHORE 3. ASB GROUP, NEW DELHI 4. SOVZA SIFANG AGRO ENG.PVT.LTD, MAHARASHTRA 5. BANWAIT TRADE SERVICES, PUNJAB

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3.1 INTRODUCTION TO COMPANY PROFILE KERALA AGRO MACHINERY CORPORATION LTD was established in the year 1973 as a wholly owned subsidiary of Kerala Agro Industries Corporation Ltd (KAIC), Trivandrum, for the manufacturing of agricultural machinery specifically power tillers, diesel engines. Subsequently KAMCO become a Kerala government undertaking firm in 1986, paid up capital is Rs. 161 lakh, present net worth of the company is Rs. 6014.14 lakh. Total work force at present is 567 certified for ISO 9001-2000 version from Sep.2002. At present KAMCO has four units located at Athani, Kalamassery in Ernakulam district, Kanjikode in Palakkad district and Mala in Trissur district. Within the present work force KAMCO can produce 8400 power tiller and 1200 power reaper per annum.

3.1.1. Origin of the Organization The Kerala Agro Industries Corporation Limited (KAIC Ltd) Trivandrum, (Government of Kerala Company) promoted the establishment of Kerala Agro Machinery Corporation Limited (KAMCO). It all began in 1958, when Dr. Rajendra Prasad, the President of India was presented with a „Kubota Power Tiller‟ by the Japanese. (M/S. Kubota Limited, Japan, the world‟s leading manufacturer of Power Tiller and other agricultural machinery). The machine helped to open up new avenues in farm mechanization for a country predominantly agrarian. It was realized that mechanization of farming operations would be one of the keys to engineering a successful Green Revolution and reliable indigenously manufactured farming equipment became the need of the day. The KAIC ltd entered into technical collaboration agreement with M/S. KUBOTA Limited, Japan in February 1972. On 15.11.1972, the Kerala Industrial and Technical Consultancy Organization Limited (KITCO) were entrusted with the work of M/S KAIC Ltd, which held the entire paid up capital shares in KAMCO. Even though the company was formed as a subsidiary of KAIC Ltd, subsequently the company has made a fully owned Government company by transferring the shares held by KAIC Ltd.

3.1.2. Growth & Development of the organisation A major growth and development of the Organization is that KAMCO has gone to the International Quality Excellence Certificate under ISO 9002 in October 1996. KAMCO is the second public sector under taking in Kerala getting this coveted certificate , and the only public sector undertaking who got ISO 9002 certification justifying the high standards of the products for their three units. From 15.03.2002 onwards

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KAMCO becomes an ISO 9001-2000 ed company by KPMG Quality Registration accredited by the Dutch council for certification.

3.1.3. Present Status and future plans of the Organization Present status of the KAMCO is synonymous with service to the small and marginal farmers of the country. KAMCO through their precision and quality is revolutionizing the small and marginal holdings out the country. Today KAMCO power tiller is the most sought after tiller in India, enjoying over 60% of the market share at national level. The company with its four plants is confidently meeting the demands for KAMCO products in India and abroad. The main markets for the power tiller are at West Bengal, Assam, Tripura, Meghalaya and Manipur. Future plans of the Organization have a number of diversification plans in the anvil. Its proposed to set up Research & Development activities which will hope fully help it to develop new products in the future and live up to its promise, that its products will be “A boon for the farmer and gain for the nation”. The Quality policy of KAMCO is “Total customer satisfaction through quality products and services with improved technology and employee participation. The main products of the company are „KAMCO Power Tiller, KAMCO Power Reaper and KAMCO Diesel Engine‟. KAMCO Power Tiller is a versatile machine used for primary farming operations like tilling, ploughing, weeding, pudding, leveling, hulling, ridging and transporting. KAMCO Power Reaper is a compact small harvesting machine, suitable for harvesting paddy, wheat, barley etc. KAMCO Diesel Engine is used for pumping water at high force. For the last three decades, KAMCO has been meeting the needs and demands of Indian farmers. The logo of KAMCO is “Engineering Green Revolution”. KAMCO has been successfully engineering the green revolution in India through the manufacture of indigenous and quality agricultural machineries. KAMCO is also importing agricultural equipments like “Kubota Combine Harvester” and “KAMCO Kukge Rice Transplanter”. The company is making profit for the last 22 years continuously increasing its production, turnover and profit year after year. KAMCO has established three more units from its internally generated resources. The units are located at Kalamassery in Ernakulam District, Kanjikode in Palakkad District and Mala in Trissur District. The products that are being manufactured at different units of KAMCO are: 

Athani unit manufacturing Power Tiller and Agria Garden Tiller.

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

KAMCO‟s Kalamassery unit was purchased outright from SIDCO during 1990 and converted as a viable Diesel Engine unit.



Palakkad unit produce Power Tiller during the beginning from 1995. The project cost was Rs.4.3 crores.



As a Part of diversification activity, the company developed a compact small harvesting machine „KAMCO Power Reaper‟ and its production is carried out at Mala unit in Thrissur district. The project cost of the unit was 4.28 crores.

The Company enjoys the position of premier manufacture in the field. The products manufactured are indigenized and there is no imported content in any of the items. The machines have acquired a reputation for quality and reliability. KAMCO is an ISO 9001 organization with the aim of providing quality products at reasonable price to the satisfaction of customer. The Company enjoys all India market through a network of about 45 dedicated dealers. Products are sold on at several places. They have acquired a brand preference because of the high quality and reliability associated with each machinery.

Power Tiller is equipment suitable for small farm holdings for basic tilling operations. Instead of conventional ploughing, the tiller breaks the soil into fine parts, which is highly suited for paddy and wheat cultivation. Originally of Japanese design, the machine has been modified later to perfectly suit to Indian conditions.

The company plans to diversify its activities further in acquiring technical knowhow and going into regular manufacture under license, of machines suitable for other agriculture purposes with the small and marginal farmers in mind. KAMCO is an ISO 9001:2000 ed company. The motto of the company is “A boon for the farmers and a gain for the nation”. The present workforce of the company in Athani unit is 567.

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3.1.4 Unit wise Business Operation The business areas operating in KAMCO are indicated in the matrix given below; Sl. No. Division /

Corporate Set Location up

Department

Athani

Palakkad

Kalamassery

Mala

*

*

*

*

1.0

Corporate Office

*

*

1.1

Marketing

*

*

1.2

Materials

*

*

2.0

Purchase

3.0

Production

3.1

Assembly

*

*

*

*

3.2

Pretreatment & Ptg.

*

*

*

*

3.3

Machine Shop

*

4.0

Maintenance

*

*

*

*

5.0

Quality Assurance

*

*

*

*

6.0

Engineering

*

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7.0

Store

*

*

*

*

8.0

Human Resource Management

*

*

*

*

*

8.1

Human Resource Development

*

*

9.0

Finance

*

*

*

*

*

10.0

Internal Audit

*

*

11.0

Systems

*

*

*

Applicable in the unit location

Table 1 : Unit wise business operarions

3.2 OBJECTIVES OF THE COMPANY

Objectives of KAMCO are to manufacture in India either in collaboration with or otherwise import and trade agriculture machinery like Tractors, Power Reapers, Combine Harvester, Transplanted, Diesel engines, Pump sets, implements accessories and spares thereto. The objectives also include establishment of engineering work shops, repair shops to undertake repairs and serving of agricultural machinery or other machinery equipments implements and tools.

3.3 VISION AND MISSION

VISION KAMCO, with over three decades of engineering excellence, stands as the no.1 power tiller manufactures in India. Not surprising with four states of the act of production plants, an innovative R&D and stronger quality control system rates one of the best in the country. The technically competent, dedicated management and work force will go on to ensure that KAMCO shall be the leader for several years to come.

MISSION  To be innovative, resourceful, and profitable company.  To meet customer requirements of quality service and price consistency.  To make doing business with us easy, and delightful to our customers. [13]

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 To provide an entrepreneurial environment in which employees can respond to the needs of business and service, earn fair rewards and can be satisfied.

3.5 QUALITY POLICY 

Total customer satisfaction through quality product and services with improved technology and employee participation.



Comply with the requirement of customer and the applicable statutory regulatory requirements. The effectiveness of the established quality management system is continually improved to enable achievement of the policy.

3.6. PRODUCT AND SERVICE PROFILE

 To ensure that quality requirements of the product and service offered are maintained at all stages.  To create a culture amongst all employees towards total quality concepts productivity through total involvement and commitment of the employees.  To create healthy working environment for attainment of quality goals with excellence and make quality a way of life.  To detect and prevent non conformance and defects as early as possible and to eliminate them through appropriate changes to the quality management system.  To achieve and maintain quality leadership through continuous technology up gradation, improvement in techniques, systems and procedures to meet customer‟s changing needs.

The objectives of the company are to manufacture in India, either in collaboration with or otherwise import and trade agriculture machinery like Tractors, Power Tillers, Power Reapers, combine harvester, Transplanted, Diesel Engines, pump sets, implements, accessories and spares there to. The objectives also include establishments of engineering workshops repair shops to undertake repairs and servicing of agricultural machinery or other machinery, equipments implements and tools. [14]

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Assembly unit was established in 1970 at Athani by M/s Kerala Agro Industries Corporation for the assembly of Kubota power Tillers in technical collaboration with of Kubota Ltd, Japan. The words dealing manufacturer of power Tillers and other agriculture machinery on expiry of the collaboration, KAMCO manufacturers Power Tillers with their own facilities.

3.7. AREA OF OPERATION KAMCO manufacturing facilities include special purpose Machines, specially built General machines and imported machines. The inspection facilities include modern inspection and existing equipment. KAMCO have their own Metrology, calibration and engine test lab, the following are the main activities of the company. a)

Manufacturing and marketing of agriculture machines like power tillers, Tractors, power reaper, Diesel

engines etc. b)

Power Tiller product at Athani and Palakkad units. Major components bought out from dedicated

vendors in India. There are around 250 vendors now. c)

Kalamassery unit produce Engine for Power Tiller.

d)

Power Reaper product at Mala.

e)

Trading and manufacturing of other farm machines.

3.8 MILESTONES OF KAMCO 

1973 -KAMCO has established as a wholly owned subsidiary of KAIC (Kerala Agro Industries Corporation Ltd). [15]

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

1986 –KAMCO has become a „government of Kerala undertaking‟ firm.



1992 –KAMCO established second unit at Kalamassery in Ernakulam district for manufacturing „Diesel Engines‟.



1995 – Witnessed the setting up of third unit of KAMCO at Kanjikode, Palakkad for manufacturing power tillers.



1996 – KAMCO won international quality excellence certification of ISO 9002. KAMCO is the second public undertaking getting this covered certificate. And the only one public sector undertaking which has got ISO 9002 certification justifying high standards of products for their three units.



2000 – Latest and technically advanced unit was started at Mala, Trissur for producing power reapers.



2002 – KAMCO has become a 9001-2000 ed company.



2011 – KAMCO started tractor manufacturing.

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3.9. PRODUCT PROFILE

1. KAMCO POWER TILLER KMB200 2. KAMCO POWER REAPER 120 3. KAMCO AGRIA 602 DE (06) POWER TILLER 4. KAMCO DIESEL ENGINE MODEL ER 90 5. KAMCO BARBIERI B/30 GARDEN TILLER

1. KAMCO POWER TILLER KMB200

Item Code: 1100002 Details:

Use 

KAMCO Power Tiller is a versatile machine primarily used for preparation of land for farming operations. With suitably designed accessories the machine can be used for large number of specific operations like tilling, ploughing, weeding, pumping, puddling, leveling, hulling, ridging etc.

Specifications Model

Engine

:

ER 90

:

9

Tiller KMB 200 Type Water-cooled,

Rotary, diesel-powered, with

radiator HP

Continuous

Max

12

RPM

2000

Fuel consumption

1.5 liters per hour [17]

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Fuel tank capacity

0.70 liters

No. of speeds

Forwards

Reverse

2

Tilling

4

Wheel track

Maximum: 930 mm

Minimum

690 mm

Tire size

6.00 x 12

Ground clearance

203 mm

Traveling speed

15 kmph (Max.)

Tilling width

600 mm

Tilling depth

190 mm

No. of blades

20

Tilling capacity

1 hectare/8hrs.

Overall dimensions

L2250 x W: 820 x H: 1030 mm

Weight

485 Kg

Light Unit

12 volts, 40 Watts

:

6

Table 2 : KAMCO POWER TILLER KMB200 specifications

Design and specification are subject to change.

2.KAMCO POWER REAPER 120


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Use 

KAMCO Power Reaper is ideally suited for harvesting of paddy, wheat and similar crops. It harvests and makes windrows at the rate of 3-4 hours per ha. Since the fuel used is kerosene, cost of operation is the lowest and it helps the farmer to harvest his field at the lowest ever cost.

Specifications

Model

KR 120

Dimensions Overall length

2320 mm

Overall width

1490 mm

Height (Up to Handle)

1090 mm

Weight

136 KG

Working Capacity

3 -4 hr/hectare (1.2-1.8 hrs/acre)

Applicable Plant Height

60-120 cm

Crop release

Right side of machine (viewed from rear)

Engine Type

Single Cylinder, 4 stroke, side valve, Air cooled

Engine Fuel

Petrol Start, Kerosene run

Rated HP

3.5

Max. HP

3.85

R.P.M

3600

Specific Fuel Consumption

339 gm/H.P hr

Fuel Tank Capacity

Kerosene 4 Ltr, Petrol 0.4 liters

Air cleaner

Oil Bath Type

Starting

Recoil starting

Travel Forward speed

59.0 m/min

Reverse

50 m/min

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Applicability

Dry field & Wet field

Operation & Control Main Clutch

Dog Clutch

Harvesting Clutch

Dog Clutch

Cutting Cutting Device

Reciprocating Knife Bar

Cutting Height

Adjustable 10-30 Cm grounded level

Cutting width

120 cm

Table 3 : KAMCO POWER REAPER 120 Spcifications

3.KAMCO AGRIA 602 DE (06) POWER TILLER


Use 

Ideal for paddy /wheat cultivation



Inter cultivation Applications



Various land preparations at horticultural farms



Landscaping



Gardening [20]

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

Potato harvester

Specifications

330 mm to 1200 mm tilling width Low maintenance Highly fuel efficient Easy

controls

and

operations 2 speed pulley belt drive Engine

Petrol

Displacement

149 Cc 2 Stroke Electronic

Clutch

Belt Stress

Speeds

2 Forward

Starter

Reversible

Air Filter

Oil Bath

Handle Bar

Robust And Easily Adjustable Rotary

Tiller: Adjustable -33 Cms To 120 Cms Engine Stop

By A Security System Acting Automatically

Transmission

By Gear and Chain in Oil Bath

Weight: 67 Kgs Including Rotary Unit

Table4 : KAMCO AGRIA 602 DE (06) POWER TILLER Specifications

4 .KAMCO DIESEL ENGINE MODEL ER 90


Use [21]

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

KAMCO ER90 Engine is equipped with Radiator and specially designed die cast multi-blade axial fan. The engine can operate continuously for several hours. It can be used as a prime mover either

for

stationery

or

for

moving

applications.

Specifications

Type

Horizontal Water Cooled, 4 strokes

Number of Cylinder

One

Bore x Stroke (mm)

95 x105

Displacement (cc)

744

Compression Ratio Continuous Rated

20

Output (HP/rpm)

9/2000

Maximum output (HP/rpm)

12/2000

Specific fuel consumption (G/HP - hr)

195 (At continuous rated output)

Maximum torque (kgm/rpm)

4.5/2000

Cooling System

Pressure Radiator type (0.8 Kg/cm2 natural

convection) Fuel

High Speed Diesel Oil

Lubricating Oil

SAE 30

Lubricating System

Forced

Starting System

By hand cranking assisted by decompression

Lubrication

with

Trochoid

Pump

system Cooling

Water

Capacity 3.8

(Ltr) Fuel Tank Capacity (Ltr)

12

Crank Case Oil Capacity 3 (Ltr) Overall dimension (mm)

820 x 512 x 640 (L x W x H)

Weight

145 Kg.

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Table 5:

4

KAMCO DIESEL ENGINE MODEL ER 90 Specifications

KAMCO BARBIERI B/30 GARDEN TILLER KAMCO produces KAMCO BARBIERI B30 an easy-to-handle garden tiller with Italian technology and design. The powerful HONDA petrol engine ensures efficiency, reduced vibration and noise ,low emission levels and low maintenance. Overall, it is an economy model that offers a safe and comfortable operation. The tiller can be easily dismantled. Also it facilitates easy transport across every kind of ground with the rear wheels which can be easily lowered.

4.2. TECHNICAL SPECIFICATIONS Engine

Honda petrol

Power

Kw4.0(HP5.5)

Starter

Recoil starter

Clutch

Engagement and Disengagement

Gear box

1 forward and 1 reverse

Transmission

chain and belt

Little transport wheel

standard

Working width

93 cm

Table6: Kamco Barbieri b/30 specificaitons

4.2. MAJOR APPLICATIONS 

Tilling



Riding/Furrowing [23]

M.E.S.SOCSAMS




Soil separation for vegetable cultivation and in orchards and sugarcane fields



Spade work in coconut groves

4.1. ORGANISATIONAL STRUCTURE

A Board of Directors governs the company. Board of Directors includes Chairman, Managing Director and other directors. The Government of Kerala nominates the Chairman of the Board. The Chief Executive Officer of the company is the Managing Director who shall exercise his powers subject to the overall control and supervision of the board. The Managing Director is the topmost official and the Government has delegated authority to the Managing Director as may be entrusted and delegated to him from time to time by the board. The Managing Director is the operational head of the company ed by General Manager and Deputy General Managers discharging different functions. Managers and Deputy Managers will assist the General Managers and Deputy General Managers. The various departments functioning at KAMCO are Production, Maintenance, Materials and Purchases, Quality Assurance, Engineering (R&D), Finance, Marketing, Systems and Human Resource Management departments.

[24]

M.E.S.SOCSAMS


4.2.

DEPARTMENTS AND FUNCTIONS [25]

M.E.S.SOCSAMS


Key Departments of the organization:KAMCO has the following departments.

I.

Human Resource Management Department

II.

Finance Department

III.

Marketing Department

IV.

Materials, Stores and Purchases Department

V. VI. VII. VIII.

Production Department Quality Assurance Department Systems Department Research & Development Department

4.1.1. HUMAN RESOURCE MANAGEMENT DEPARTMENT Human Resource is one of the greatest assets of every company. It is a corporate function performed at the Athani Unit. This department aims at attaining maximum individual development, desirable work atmosphere, inter personal relations and effective moldings of human resources.. HRM is the backbone of the [26]

M.E.S.SOCSAMS


organization. The total employee strength is 567 persons KAMCO has determined and provided adequate resources needed to implement and maintain the quality management system and continually improve its effectiveness in order to enhance customer satisfaction by meeting customer and other requirements.

HR DEPARTMENT FUNCTIONAL HIERARCHY MANAGING DIRECTOR

DEPUTYPTY GENERAL MANAGER

MANAGER [HR] (Establishment)

PERSONAL ASSISTANT

DEPUTY MANAGER [HR] (Welfare, Social Security, PF, Gratuity, WC etc)

SUPERINTENDENT [HR] PF/Gratuity etc

ASSISTANT MANAGER [HR]

ASSISTANT MANAGER [SECURITY]

ASSISTANT MANAGER [HR] (Establishment matters)

ASSISTANT MANAGER [Medical/ESI etc)

Figure2 : HR Department hierarchy FUNCTIONS OF HRD 

Recruitment and selection



Induction



Training and development



Performance appraisal



Promotion



Seperation



Welfare Measures [27]

M.E.S.SOCSAMS




Grievance handling



Discipline



Industrial Relations



Incentives

Recruitment & Selection In KAMCO there is a specific recruitment and selection procedure. Recruitment focuses on identifying the right people for the right job. In KAMCO, there are two types of recruitments. They are as follows: 

Recruitment through PSC.



Recruitment through Employment Exchange.

Vacancies are notified as and when they arise and need to be filled. All the technical and non technical vacancies are notified to PSC. If the PSC are not available in time the same is filled up through employment exchange on temporary basis for a period of maximum one year. For the post like Assistant, ant, Office staffs, Typists, Stenographer etc., the people are hired through PSC recruitment. Employment exchange forwards a list of candidates for the required posts in the unit on their notification to the concerned District Employment Offices. The higher posts of officers are d in major news papers and simultaneously

notified to the employment exchange in accordance with the Government

rules. There is no discrimination based on religion, colour, race etc. Appointments are purely based on merit. Age limit for recruitment of workers is 35 years whereas in the case of officers it is 45 years. Once probable candidates are short listed, the interview dates are communicated. A general check of the credentials of the appearing candidates is carried out. The candidates are then put through a written test and interview. This is followed by a detailed verification of the credentials of selected candidates. The final step in recruitment involves the issue of the appointment letter.

Steps in selection process

PSC RECRUITMENT

MENT

[28]

EMPLOYMENT EXCHANGE

M.E.S.SOCSAMS


INTERVIEW

SELECTION

TRAINING

APPOINMENT

Figure3 : Steps in selection process

Induction Once selected candidate are appointed on probation, their paper work is completed including collection of photos, certificates etc. and the issue of identity cards, punching cards etc. The probationary employees are then put through an orientation program where they are familiarized with all aspects of their jobs. They are made aware of the job requirements and given their employee numbers.

Training & Development In an organization, employee training is one of the major factors. Through better training they can develop the skills of the workers and thus the productivity of the organization can be improved. The training need is identified only for those whose work directly affects the productivity of the company. In KAMCO, two types of training are offered. They are internal training and external training. Internal training is generally carried out in-house for a maximum period of two days. Mostly the training is given by reputed agencies like Kerala State Productivity Council, Central Board for workers Education, Kuttukaran Institute for HRD, etc. This type of training is provided with the purpose of increasing productivity and efficiency. External training involves sending selected workers and officers to attend seminars and training [29]

M.E.S.SOCSAMS


workshops held outside the premises in response to invitations by reputed agencies. On the completion of training, the employees are required to submit a training report. Evaluation reports of the employees who have undergone training are collected from the respective heads of departments after a period of six months. After an assessment of the effectiveness of the training, the report is placed before the HRD Committee. For new recruiters, awareness training or orientation training is given for a period of one week or one month. After this training, orientation report will be collected from each department. After analyzing this orientation report they will give placement to the employees as a trainee under probation. Probation period is for one year. After satisfactory completion of probationary period the employees will be placed in the regular pay scale. In KAMCO there is a personal record sheet containing all the personal information of the newly ing employee.

Performance Appraisal In the case of officers, performance appraisals are carried out once in a year. Appraisals are made by the 31st of December and are collected by the 15th of January in the following year. In the case of workers, performance appraisal is carried out when they become eligible for a grade change. During the probation and training periods, appraisals are carried out every quarter. The appraisal reports are then placed before the promotion and recruitment committee. In the case of officers, a three stage appraisal is performed. In the first stage, a self appraisal is carried out by them. This is then followed by an appraisal by the departmental head which in turn is followed by an appraisal by the divisional head.

Promotion Seniority, performance, educational qualifications and general disposition will form the basis for granting promotion. These will be judged with reference to the personal records and periodical performance appraisals of the employees. As per the promotion policy of KAMCO, an employee will be eligible for promotion if he has served in a particular post for at least 3 years, or he will be given promotion when the vacancy occurs. Another aspect is Grade promotion ie, promotions are based on grades of employees. In worker category there will be a grade change after a period of 5 years.

[30]

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Seperation. KAMCO employees retire at the age of 60 years or on attaining superannuation. There is also a Voluntary Retirement Scheme in place. Employees opting for VRS receive a lump sum payment equivalent to one and a half months‟ salary for every year of service or for the remaining service period, whichever is shorter and additional notice pay for three months. Other benefits received on retirement include Provident Fund, Gratuity, Welfare fund etc. Earned leave up to a maximum of 300 days can be encashed. In the case of separation due to disciplinary problems, the employee is dismissed after the conduct of a domestic enquiry, which has to prove him guilty. The Managing Director appoints the enquiry officer and the final separation occurs within six months of the initiation of disciplinary proceedings.

Welfare Measures The statutory welfare and safety measures provided in The factories Act 1948 are as follows: 

Drinking water



Toilets



Washing facilities



Canteen



Health and Medical facilities



Shift Allowance



Uniforms and protective clothing



Maternity benefits



Occupational safety

The non-statutory measures provided by the company are as follows: 

Educational loans



Workers cooperatives



Recreation facilities



Vocational training



Incentives



Medical facilities



Housing facilities



Social insurance such as Gratuity, Provident fund etc.



Benevolent fund [31]

M.E.S.SOCSAMS




Leave travel facility

 Transportation subsidy

Grievance handling KAMCO does not have specific grievance handling machinery. Grievances if any may be brought to the notice of the immediate superior. Depending on the seriousness of the grievance, it may or may not be forwarded to the Managing Director, who is the final authority. Managing Director will forward the same to the HRM department for examination as per the rules and precedent. Accordingly the grievance is settled. If it is not settled due to various reason they will take over by the concerned unions and finally the matter will be considered as industrial dispute and referred to the district labour officer for conciliation.

Discipline As per the standing orders applicable to the workers, no order of punishment shall be made unless the workman concerned is informed in writing of the alleged misconduct and is given a reasonable opportunity to explain the circumstances alleged against him. If the explanation submitted by the concerned workman is found satisfactory by the management, further proceedings against him shall be dropped. If the explanation is found unsatisfactory, he may be charge-sheeted by the management as per the provisions of these standing orders and an impartial domestic enquiry shall be instituted. The most common cases of indiscipline are absenteeism and overstaying of leave.

Industrial Relations KAMCO has recognized trade unions in all the four units of the company. The management has cordial industrial relations with all of them. The following are the recognized trade unions in the company. o KAMCO Employees Union, Athani. o KAMCO Employees Union d to CITU, Athani. o KAMCO Employees Association d to INTUC, Athani. o KAMCO Employees Federation d to AITUC, Athani. [32]

M.E.S.SOCSAMS


o KAMCO Employees Centre d to UTUC, Athani.

Incentives A production incentive scheme is followed in KAMCO for the benefit of employees, which constitute quarter of the pay packet. Any system of remuneration in which the amount earned is dependent on the result oriented, there by offering the employee an incentive to achieve better results. It aims at increased output, productivity and utilization of resources. This scheme covers all the permanent employees. In KAMCO, incentives are mainly three types: 1) Direct incentives 2) Semi direct incentives 3) Indirect incentives

1. Direct Incentives It is only for workers who work in Machine shop, Assembly and Painting Booth. After conducting work study, monthly incentive scheme has been implemented.

2. Semi- Direct Incentives This incentive is paid for the employees in the Maintenance, Quality Assurance, Engineering Stores, Charge hands and Chief Mechanics. Semi direct incentive is 80% of direct incentives. It is also paid in monthly.

3. Indirect Incentives Indirect incentive is paid who are not included in direct and semi direct incentive. Employees in the managerial category also come under this. Indirect incentive is 60% of direct incentives.

Objectives 1. To increase production, productivity and utilization of resources. 2. To increase in earnings of employees. 3. To reduce absenteeism and reward for punctuality. 4. Employee Welfare [33]

M.E.S.SOCSAMS


By giving a better working atmosphere, KAMCO is able to keeping a good relation with the employees and thus it helps to increase their productivity. KAMCO providing these facilities to the employees, they are: 

ESI - Employee State insurance - The employers who have below 7500 salary will get ESI allowance. The employers who do not get the ESI allowance will get Medical Reimbursement facility.



Medical

Reimbursement

facility-

The

employer

who

got

treatment

in

approved

hospitals. This treatment is also getting to their family . 

Uniforms- Two pairs of uniform will provide to the technical workers, sweepers and security staffs.



Stitching and washing allowance- In KAMCO employees who are provided with uniforms must give washing allowance as Rs.32 for security staff and Rs. 37 for all other eligible employees.



Safety Equipments- As part of the occupational safety concerned employees are provided with safety equipments such Mask, Helmet , Safety Shoes, Glouses, Safety Googles. According to eye sight, ear plug, aprons etc and for reviewing the overall safety of the company, KAMCO has set up a good committee also.



Milk Allowance – In KAMCO, ¼ liters of milk will be given to welder and workmen engaged in painting / phosphate plant.



Medical Checkup – For selected employer in the technical department they provide medical checkup in a year. It depends upon the nature of work.



First aid- During the work, if any accident occurs first aid will provide to the workers.



Canteen – According to Factories Act, 1948 a canteen shall be provided if there are more than 250 workers employed in factory A full fledged canteen is functioning at KAMCO that can cater to all employers on day providing breakfast, lunch, dinner, tea, coffee, snacks etc. It provides food at subsidized rates to the workers and employees working at various shifts.



Society- In KAMCO, there exist a cooperative and housing society. There is a provisional store under this society which provides service to the employees and also to the outsiders. Each employee can get the essential commodities from the cooperative store on installments. The can purchase commodities upto a limit of Rs 2000. The cooperative society also gives scholarship to the students who have secured high marks in S.S.L.C. Examination. The Housing Society gives financial help (loans) to the employees.



Recreation club – KAMCO have a recreation club. Different journals and news papers are subscribing here for the employees. The employees conducting tour programs from here.

[34]

M.E.S.SOCSAMS




Housing Subsidy – KAMCO is giving an interest subsidy at the rate of 3.75% for a maximum amount of Rs.50000 for housing loan from any financial institutions.



Transport Subsidy – An amount of Rs. 70 will be given to all employees as Transport subsidy by KAMCO. KAMCO is not having for transportation. The second shift employees are provided with vehicle on contract basis and subsidized coupons will be given from istration department.



Bonus – In KAMCO about 85% employees are outside the purview of the Payment of Bonus Act 1965 and those employees who are coming under purview of Bonus Act 1965 are given a maximum bonus of 20%. Those people who are not eligible for bonus are given a production incentive, which is based on total production. These employees are also eligible for the festival advance announced by the Government.

Time Office Time Office plays an important role in the functions of shifts. The worker category is provided with electronic punching card (G1-G7) and for the officers category they uses attendance instead of punching cards (G8 -G14). Time office performs the job to prepare the attendance and leave of the employees.

The shift time in KAMCO are as follows:

For Workers

7am - 3pm 11am - 7pm

General shift

9am - 5pm

For Office Staff

9.30am – 5pm

(On Saturdays)

9.30am – 1pm

For Security Staff

8am – 4pm 4pm – 12am 12am – 8am

Table 7: Time shifts

[35]

M.E.S.SOCSAMS


PROCEDURES FOR HRM DEPARTMENT 1. Purpose 

To ensure right candidate are recruited as per requirement



To ensure that employee‟s safety is managed effectively



To ensure that employee‟s welfare is managed effectively

2. Scope 

Covers all personnel

3. Responsibilities Department head of hrm will be responsible to see that the procedure is followed by all officers and staffing department. 4. Procedure 4.1

The recruitment, promotion and pay fixation will be carried out as per the recruitment and promotion rules notified by the company from time to time

4.2

A safety committee is constitutd by the management from time to time.equal number of nominees of management and unions constitute the committee . the committee meets every three months to assess safety requirements as per the factory‟s act 1948 and recommendations if any to the management for consideration.

4.3

Following welfare schemes are in operation as per special Bye- law prepared for each scheme: 4.3.1 Conveyance advance 4.3.2 Group personal accident insurance scheme through Kerala State Department. 4.3.3 Kamco employees group gratuity-cum-life assurance scheme in association with Life Insurance Corporation of India 4.3.4 Kamco welfare centre

Safety measures 1. Protection of eyes Workmen, who are working in grinding machines, milling machines, lathes and doing welding and fettling are provided with googles for protection of eyes. [36]

M.E.S.SOCSAMS


2. Precautions in case of fire Fire extinguishersare provided in all departments. Selected employees based on their age and attitude are given training to use fire extinguishers. A list of trained employees in fire fighting is displayed in the factory premises. 3.

Uniforms All eligible workmen are provided with uniform as a safety precaution

4. Shoes and socks All workmen in the factory and plant area are provided with shoes and socks as a safety measure. 5. Excessive weight lifting No person is allowed to lift heavy components. Cranes are provided for lifting the heavy components and these cranes are tested and certified by the competent authority as per factories act 1948. 6. Protection against dust All workmen, working in places where dust is present, are provided with a face mask 7. First aid First aid boxes are provided in production department and employees handling first aid are trained. List of personnel trained in first aid is displayed in the factory premises. 8. Accidents All the accidents are recored and reviewed quarterly by HOD {HRM} and submits a brief report to management, for a corrective and preventive actions. This is also discussed in the management review meeting

4.1.2. FINANCE DEPARTMENT

The Finance Department deals with the procurement and management of funds. This department controls the over all financial transaction of the company. It controls the receipts and payments of each and every activity for all the divisions. In KAMCO, finance department plays a major role because in public sector only very few companies are earning profit. KAMCO is a multicrore multiunit organization. It means KAMCO have more than one unit on their own fund without any external fund. Surprising thing is that KAMCO is giving dividend and carrying profit for 20 years. The surplus money is invested in the treasury and gets an interest of 67 % from the treasury. [37]

M.E.S.SOCSAMS


The Finance Department keeps a record of everything concerning any expense or income. They have no interest on working capital and also no secured or unsecured loans. The advance amount they get for the tillers are sufficient for meeting working capital. In most of the private sectors achievement is always less than budget, but in the case of KAMCO achievement is always greater than the budget. Annual profit of the company is between 8-10 crores. There is no increase or decrease in the share capital. This shows the company have adequate fund for business and also the company don‟t have secured and unsecured loan. So there is no need of increase or decrease in the share capital. The areas under the purview of the finance department include salary istration, bill processing, statutory payments like taxes, central excise etc, financial istration, costing, internal audits and balance sheet preparation, budgeting, payments and receipts, bank negotiations etc.KAMCO is third among the state owned corporations in of both volumes of sales as well as profits

FINANCE DEPARTMENT HIERARCHY

MANAGING DIRECTOR

DEPUTY GENERAL MANAGER (Finance & CS)

SENIOR MANAGER (Cost & Finance)

ASSISTANT MANAGER

MANAGER (IA)

ASSISTANT MANAGER [38]

M.E.S.SOCSAMS


SUPERINTENDENT (IA)

SUPERINTENDENT (IA)

ANT

ANT

Figure 4 : Finance Department Hierarchy

FUNCTIONS OF FINANCE DEPARTMENT 1.Management of receipts Payment from dealers are received only through marketing department. They issue proper receipts customer wise/dealer wise ing is adopted. There will be a debit outstanding and it must be informed to marketing development once in a month. Insurance, freightoutward,banknegotiation etc are ed and maintained to arrive at the cost of sales. 2. Management of payments Due to the availability of funds, payment commitment are honored on the due dates. All the payments are ed by approved vouchers. Payments are ed mainly on the basis of IGRR. Advance payments are settled within a time of 45 days. Non – receipts/delayed receipts etc is brought to the notice of stores for remedial actions. Payments are usually done by cheque/dd 3.Budget and budgetary control The annual budgets of the company are prepared both for the capital and revenue based on the requirements furnished by various units and departments. The requests of the department are analyzed only after consulting with various departmental heads and corporate divisional management group and finalized only on the basis of disposition of funds. These budgets are presented before the management for approval. The budget [39]

M.E.S.SOCSAMS


is reviewed half yearly. If some changes are occurred they are submitted to management/board through a revised budget for approval. 4. Auditing Internal audit is mainly based on corporate functioning. The main function of this department is to ensure that policy decisions of the management is strictly followed by the functional departments and is verified by the internal audit.

5.Costing Costing records are maintained as per the cost ing rules. They are mainly subjected to cost audit ordered by company law board. Costing department also advices management and departments, which are the potential areas of cost reduction. Mainly costing departments analyses cost of productions on a yearly basis .costing department advices s departments the cost of rejection as per warranty claims 6.Statutory transactions Sales tax/income tax/tds certificates/c-form/form-18 etcare issued. They are properly ed and properly ed and proper time settlements are made. Salaries and other payments, remittances and recovery etc in the case of employees are done in a time.

BALANCE SHEET FOR THE LAST FOUR YEARS

Sd no

2010

2009

2008

2007

(a) Capital

1

16146000

16146000

(b) Reserves & Surplus

2

893643379

811293794 740509066 683621559

SOURCE OF FUND

16146000 16146000

Loan Fund [40]

M.E.S.SOCSAMS


0

0

0

0

Deferred Tax Liability (Net)

4042045

4203128

4149867

3733896

TOTAL

913831424

831642922 760804933 703501455

a) Gross Block

203099030

191577943 186025196 182199221

b) Less Depreciation

138735242

132433912 126484213 120050947

c) Net Block

63793105

58710694

59237609

61881399

d)Work In Progress

634260

853178

302064

53060

e)project expense

9554370

2055472

1042887

0

total

73981735

61619344

60582560

61934459

20500000

20500000

20500000

20500000

1) Loose tools

480912

436175

385719

535983

2) Inventories

274284449

225204092 204090777 194886492

3) Sundry Debtors

310320968

261675468 198942050 122042366

4) Cash & Bank balances

409340433

358566769 352563054 392246980

5) Other Current Assets

23347323

19852164

17939544

13462907

23921118

16774184

17581080

31659485

APPLICATION OF FUND (1) Fixed Asset

(2)Investment In Shares

3

4

(3) Current Asset Loan &Prov a) Current Asset

b) Loans & advances

5

6

[41]

M.E.S.SOCSAMS


total

1041695203

882508852 791502224 754834213

215257313

125703262 101963205 126622874

Less Current Liability & provision

a) Current Liability

b) Provision

7088201

222345514

Net Current Asset

7282012

10317844

8146737

132985274 112281049 134769611

819349689913 749523578 679221175 620064602

(4) Miscellaneous Expenditure

NIL

TOTAL

913831424

NIL

501198

1002394

831642922 760804933 703501455

Table 8: BALANCE SHEET FOR THE LAST FOUR YEARS

CAPITAL STRUCTURE

Authorized share capital

Rs. 200 lakhs

Paid up capital

Rs.15,00,900

Equity share @ 100 each (161460 Rs 161.46 lakhs in numbers) Fully paid up

Entirely held by govt. of Kerala.

Table 9: Capital structure

4.1.3. MARKETING DEPARTMENT

It is a corporate function carried out by a separate marketing division. The main functions of the [42]

M.E.S.SOCSAMS


marketing department include product marketing, invoicing, customer relations, after sales service, warranty claims, product demonstrations, appointing dealers, ment and publicity etc..

KAMCO does not make direct sales to customers. All sales are made through dealers. Dealers are qualified on the basis of sales objectives and their marketing reach. In every state, one of the assigned dealers is the State Agro Industries Corporation. In addition, private dealers are also used. All transportation facilities required by the dealer in ordering their products are arranged by KAMCO. Sales incentives are the main tools used for motivating dealers. Dealers who sell over and above the set sales target for a period qualify for the incentives. KAMCO also bears a part of the ment cost incurred by the dealers.

Almost all sales are made against cash advances. In very few cases sales are made against bank guarantees, which again do not exceed 30 days. A company‟s survival depends upon a better marketing strategies adopted by the companies. If the company is a public sector it is very difficult to survive. Due to political Pressures and other practical difficulties, it will not allow the company for a better free work.

Surviving all these difficulties KAMCO became No: 1 brand in the agricultural machinery market. Due to globalization KAMCO products have to compete with the international products. The product from China is a major threat for the company because of its lower price. But KAMCO is not ready to compromise with the quality of its products for reducing their price. This marketing strategy wins the target. Considering the Indian market now there is only one competitor that is VST, Bangalore. Even facing all these competitions company‟s marketing department plays a better role for getting good result.

Considering the Indian market 60% of the market share is in the hands of KAMCO. By keeping the quality KAMCO maintains their position. Due to the effect of globalization foreign countries like China and Korea introduce their products in the Indian market. Economically their products are very cheap. But when we consider the quality, KAMCO comes in the first place.

MARKETING DEPARTMENT HIERARCHY

DEPUTY GENERAL MANAGER (MARKETING)

REGIOANAL MANAGER (MARKETING) [43]

M.E.S.SOCSAMS


PERSONAL ASSISTANT AREA MANAGER

SUPERINTENDENT

ASSISTANT ENGINEER

TECHNICAL ASSISTANT

CHIEF MECHANIC MECHANIC

OFFICE ASSISTNAT

STENO

WORK ASSISTANT

PEON Figure 5 : Marketing Department Hierarchy

DRIVER

Purpose The major purposes of the marketing department of KAMCO are the following: 

To ensure customer requirements are thoroughly understood and differences are resolved before acceptance of the order.



Products / implements / accessories / spare parts are delivered to the customers as per the requirements to gain the satisfaction of the customers.



Establish and develop dealership network to facilitate proper sales and services for the products marketed by the company.



Establish adequate communication with the customers to effectively gauge their and incorporate it to enhance customer satisfaction.

Competitors During early periods KAMCO ruled the market. In India VST, Bangalore is the major competitor of [44]

M.E.S.SOCSAMS


KAMCO.

International market KAMCO Power Reaper has been exported to Iran and Srilanka recently. And Kamco tillers have been exported to Haiti. The export quantity is not a huge one but still they getting order from these countries. These machines have been well accepted by the customers.

Dealers The company has 60 dealers all over India. New dealers appointed to cover selected districts in Tamil Nadu, Karnataka, Maharashtra, Orissa and Andhra Pradesh. And in the other states the company has dealerships. The dealers will get Rs.6500 per tiller and want to provide three free services to the customers. The dealer‟s target depends upon the area. If a dealer exceed their target he will get incentives depends upon the excess quantity.

Major dealers in India 1. West Bengal Govt. – West Bengal Agro Industries Corporation Pvt. – Friends Machinery and spares ltd.

2. Assam Govt. – Assam Agro Industries Development Group Pvt. – Chem Trade India Pvt Ltd.

3. Tripura Govt. – Tripura Horticulture group Pvt. – KrishishilpaUdyog

4. Meghalaya Pvt. – Stanley Roy Constructions

5.

Kerala Kerala Agro Industries Corporation.

[45]

M.E.S.SOCSAMS


Sales Promotion In International market the sales promotion of the company is only through web sites. In India, all the state Govts have their own dealerships to sell the products. The company gives dealerships to the private groups also.

Major sales promotional activities 1. Customer training 2. Demonstration 3. after sales services

Advertising Advertising is also a part of sales promotion. In every budget company allocated nearly rupees 50 lakhs for advertising. Sign boards and news papers are the major channels of advertising. Company also gives some financial helps to the dealers for ments.

Price Fixation Retail price = Dealer price + Margin (inside Kerala) = Dealer price + Margin + Freight (outside Kerala)

Pricing Strategy The pricing strategy is cost based, ie, by summing the variable cost, material cost and istrative cost.

Market Segmentation The company targets its products mainly for the middle class section.

Environmental Analysis As it is a public limited company KAMCO have certain limitations. They can‟t do more to the environmental protection. The all new DI engine will reduce pollution and it also reduces the fuel consumption than the ordinary engine.

[46]

M.E.S.SOCSAMS


4.1.4. MATERIALS, STORES AND PURCHASE DEPARTMENT The functions of Purchase and Materials are coming under one roof. The material department has the charges of all the inflow and outflow of materials used for production purposes. Purchasing department purchases the products from their vendors as the required quantity that gets from the material department. The company has around 300 qualified vendors and from these vendors company purchasing the materials.

Company gives best vendor awards for best vendors. It will help the company to get quality products at the right time. The best vendor of 2010 was BOSH industries. Company has regular suppliers and they are ready to give materials as per the requirements of the company. So at present company is not conducting any vendor development programs.

Out of the 300 regular suppliers they are classified into three categories A, B and C. Company gives these grades to the vendors depends upon some factors. They are best quality, giving the materials at the right time and keeping good relations with the company etc. Company has 189 A class vendors i.e. 63% of the suppliers are in this category and 87 B class vendors and the rest of 24 are coming under „C‟ class category. If a supplier gets „A‟ grade, that means company trusts the vendor. After that company take the same product from the vendor without initial inspection. So the vendor who gets „A‟ grade has certain commitment with the company. They want to keep the relationship without any interruption. So they want to give quality goods at right time. By receiving the materials from the vendors, purchase department keeps that materials in the stores and it is handed over to the Quality Assurance department. A corporate purchasing system is

[47]

M.E.S.SOCSAMS


following in KAMCO. All the other units give their material requirements to the head office (Athani unit) and the head office‟s purchase department purchases the materials for all the other three units. All item required for the production are classified based on the ABC Analysis. „A‟ category components constituting about 70% of total cost of the components. „B‟ category components constitute about 20% of total cost of the components. „C‟ category components constitute about 10% of total cost of the components Maximum permitted inventory is controlled according to the guidelines given below, based on ABC Analysis. „A‟ category Components - Stock for 1 month production „B‟ category Components - Stock for 2 month production „C‟ category Components - Stock for 3 month production

Purchase procedure

A well defined purchase system exists in the organization. A proposal is placed by the vendors to the company. The proposal will be evaluated the internal audit department and will look in to the entire details of the proposal. If the commission is satisfied, they will place the proposal to the purchase commission which may include Managing Director, purchase manager, finance manager, and marketing manager. If the purchase commission satisfied with the commission it will be placed before the MD for the approval. If the MD approves the proposal, purchase order can be placed to the vendors to supply the materials. The order costing Rs 25000 can be sanctioned by the purchase committee and the matter costing above Rs.1lakh should go through the hands of MD.

The entire payment is paid through the finance department and through the bank. No cash transactions are allowed in the organization. Only some petty cash transactions are made by cash. The purchase department also takes care of the general purchase.

Purchase costing up to Rs 500 can be paid by cash. Above 500 should invite quotations (at least 3 in numbers). And the lowest quotation will be selected and the order may be placed. The suppliers will be awarded for the prompt supply and it is done for the purpose assuring the right materials at right time to the stores so as to ensure an uninterrupted production.

Purchase Order approvals

[48]

M.E.S.SOCSAMS


Purchase proposals are prepared in standard format based on the master purchase plan for all units of KAMCO put together. Purchase orders are released, separately, for each unit of KAMCO after obtaining approvals from concerned authorities. In respective formats & copy of the order is forwarded to the concerned unit.

Follow up with Vendors Order follow up is an important process in the purchasing function. Periodic follow up with the vendor is made to ensure timely delivery. In KAMCO order follow up is done by the concerned staff to which the work is entrusted.

Order Amendment Purchase order amendments in respect of and Conditions, Quantity, price and specification are issued by the materials department when required. The purchase order amendment is signed by the head of materials department.

Performance rating Performance rating is a mix of quality rating and delivery rating and is carried out annually. Quality of the suppliers and delivery are the main factors of performance rating and equal i.e. 50% weight age is given to each.

Deletion of vendors In the case of performance rating of the vendor is found unsatisfactory, Purchase department advices the vendors to take necessary corrective action and is allowed 3 months time for improvement. Their performance is again reviewed after 3 months, and if found unsatisfactory, a report is submitted to the next Management Review Meeting. MRM will decide on delete/continue of the vendor, considering his performance in Kalamassery, Mala & Palakkad Units

Storage Procedure All materials including raw material, components, & production consumables which are received from vendors /such contractors, directly through transports along with dispatch notes are received.

Packaging

[49]

M.E.S.SOCSAMS


The finished engines dispatched to customer /dealers are packed in separate wooden box for avoiding damage during transit. Spare parts are packed in polythin covers/corrugated card board and are put in a wooden box for dispatch. Farmer‟s Kit: - The item coming in farmer‟s kit is packed in separate card board carton. Tool Kit: - The items coming in tool kit are packed in separate plastic bags.

[50]

M.E.S.SOCSAMS


MATERIAL DEPARTMENT HIERARCHY

MANAGING DIRECTOR

SENIOR MANAGER (Materials)

DEPUTY MANAGER (Purchase)

DEPUTY MANAGER (Materials)

(Stores)

ASSISTANT ENGINEER (Purchase)

TECHNICAL ASSISTANT

DEPUTY MANAGER

ASSISTANT MANAGER (Stores)

TECHNICAL ASSISTANT

TECHNICAL ASSISTANT

WORK ASSISRANT

GENERAL WORKERS

Figure 6 : Materials Department Hierarchy

4.1.5. PRODUCTION DEPARTMENT

[51]

M.E.S.SOCSAMS


The production is the largest department of the company. Under the production department there are mainly two sections: 1) Assembly shop 2) Machine shop

MACHINE SHOP Company has got a modern machine shop with Special Purpose Machines (SPM), which ensures conformity with prescribed quality standards. Inspection at various stages of manufacturing is carried out, which help in reducing the process rejection to the minimum. The workforce is qualified and fully experienced which makes the right contribution to the process. In machine shop, there is a process chart or written document. The material purchased by the purchase department moves to the store. From there, the material sends to the QA. After that it sends to the machine shop and there, the processes like milling, drilling, turning & boring, grinding etc are doing on the materials. For getting the products, materials are used in the assembly shop. From the machine shop, the finished components are not directly sending to the assembly shop. It will send to the QA department for inspection and will send to the stores thereafter. ASSEMBLY SHOP Assembly is one of the major sections in production department. The finished components are taken from the store and are sent to the assembly as required. The engine assembling is one of the major works in the assembly. After testing the assembled engines, they are sent to the painting section. Through different transmission in the assembly, we get the finished product. In case of the power tiller, here using two types of engines. They are Diesel Engine and DI engine. The assembly consist of two divisions: a) Assembling b) Painting booth. Assembling: The assembly line consists of an engine line, a transmission line and a tiller Transmission

and

engine

assemblies

converged

to

the

assembly line.

tiller

line, where finished power tiller is produced. The following process takes place in the transmission line: a. T1 : Main Gear Case, Axle Gear Case(Wheel), Axle Shaft, Fourth Shaft etc. b. T2 : Gears are set, Axillaries Gear Case Setting, Brake Setting etc

[52]

M.E.S.SOCSAMS

assembly


c. T3 : Upper cover, Central Gear Case for blade, Clutch Assembly, Brake Lever, Low speed and high speed Lever. After testing, the engines are sent to the painting section.

b)

Painting booth:

In Kamco, there is a modern painting system for the components and

assemblies, where Uniblake liquid paints are used. Seven tank system of Pretreatment is employed. Paints and chemicals needed for this system are produced only from wellknown manufacturers. After cleaning the components, it will go for painting through a conveyer belt,

and after painting, it will go to the oven through the belt.

PRODUCTION DEPARTMENT HIERARCHY

[53]

M.E.S.SOCSAMS


MANAGING DIRECTOR

MANAGER (PRODUCTION)

DEPUTY MANAGER

SHIFT OFFICER

SHIFT OFFICER

(ASSEMBLY)

(MACHINESHOP)

ASSISTANT MANAGER (MAINTENANCE)

CHIEF MECHANICIS

CHARGE HEAD

CHARGE HEADS

ASSIST ENGINEER (MAINTENANCE)

MECHANICS

PAINTERS

OPERATORS

CHARGE HEADS

WORK ASSISTANTS

WORK ASSISTANTS

WORK ASSISTANT

MECHANICS & ELECTRICIANS

Figure7: Production Department Hierarchy TANK PRE-TREATMENT PROCESS

Process 1: Degreasing

[54]

M.E.S.SOCSAMS


In this process the item or product which is to be cleaned is dipped in the tank with chemical at 60 degree temperature for about 20-25 minutes. Process 2: Water rinsing Here the item is simply rinsed with water for about 2 minutes. Process 3: Acid treatment Again the item is dipped in a solution containing 35% HCL for about 20 minutes. This is mainly done to remove rust. Process 4: The component is again ed through two cold water tanks and rinsed. Process 5: Phosphating Again the item is dipped in a solution containing phosphate content for about 45 minutes. After this process the surface of the component will be completely cleaned. Process 6: Water rinsing The component is washed with water. Process 7: ivation Here the component is dipped in a solution containing chromic acid for about 20 minutes. After cleaning the components it will go for painting through a conveyer belt and after painting it will go to the oven through the belt. Mainly they are using two colors for painting, one is Ash and the other one is Post office Red. The population of tiller is about two and a half lakhs and the weight of tiller is 430 kgs consisting of 740 components. The final product, tiller is finally checked to see whether there is leak or produces abnormal sound. The maintenance measure followed here is Total Preventive Maintenance (TPM) which is a Japanese concept. Under maintenance department there are two types of maintenance rooms. They are civil maintenance and electrical maintenance. Once in 90 days maintenance is done. Another major aspect of KAMCO is zero down time which leads to continuous production. In this company 67% is considered as minimum productivity for an employee. An employee is considered eligible for getting production incentive only if he crosses this minimum productivity line. During early periods 3000 tillers were produced, but now it has been raised to 5000. [55]

M.E.S.SOCSAMS


Production planning is carried out when the production budget is made. Production figures are decided upon at the beginning of the year. Production quotas for each month are to be met. The daily requirement of production is communicated by the Manager (Production) to the shift supervisors. Daily production figures may be flexible as long as the monthly quotas are met.

PRODUCTION CYCLE T1 E1 T2 E2

K1

T3

PAINTING

E3 TESTING K2 ENGINEERING TESTING K3

PAINTING

[56]

K4

M.E.S.SOCSAMS


ENGINE MOULDING (Tiller Finishing)

Figure 8: Production Cycle E1, E2, E3- Engine T1, T2, T3- Transmission K1, K2, K3, K4- KMP Process.

4.1.6. QUALITY ASSURANCE DEPARTMENT Company keeps a good quality in all the products with the help of quality assurance department. The company follows the ISO 9001-2000 standards. It is mainly for the quality. The hierarchical structure of QA department is as follows.

QUALITY ASSURANCE DEPARTMENT HIERARCHY

MANAGING DIRECTOR

DEPUTY GENERAL MANAGER (MKT)

ASSISTANT ENGINEER

CHIEF MECHANIC

[57]

M.E.S.SOCSAMS


MECHANIC

Figure9: Quality Department Hierarchy

The QA Dept. is responsible for carrying out the Inspection and Testing for all components received against the Quality Plans/ Work Instructions/ Drawings / Flow Process Charts /Check list as appropriate. Consideration has been given to products which need not be inspected if they have been inspected at the Vendor‟s premises by KAMCO‟s personnel. It is the policy of the company to fix vendors for critical items, where material testing is required such facilities are verified. No

on established vendors only. For this purpose, during vendor evaluation material is released to production without inspection and hence no recall

procedure exists in KAMCO. To further assure no bad quality parts get in to the product due to oversight, KAMCO established a Parts call back system when a defect is noticed in the production line. Materials and components from the vendors receive the store department. At that receiving time there occur only the quantities checking as per the order. There is an inward receipt in the hands of the store (IGRR). This IGRR contains the IGRR No:, Delivery Chelan No:, Date , name of the vendor , Quantity, Grade of the vendors etc. With this receipt the store department handed over the components to the quality assurance department. From here start the functions of Q.A department. The major functions of the quality department are testing, acceptance and rejection. In the Q.A department there are specifications of all the components. Q.A thoroughly checks the components, to know these components have all the specifications that are needed for production. Q.A classifies the components into two, critical components and non-critical components. Critical components are crank shaft, all engine parts, gears etc. Non-critical components are nuts, bolts and screws etc. The classification is mainly for ignoring the practical difficulty in checking. Complete inspection occurs in critical components and only sample inspection occurs in the non-critical components. Practical difficulty of checking all the non-critical components is the problem here. From here all the accepted components are gone towards the stocks department. From there the components are taken by the production department as per their [58]

M.E.S.SOCSAMS


requirements. Q.A department is equipped with all modern facilities. The company has a calibration cell to check and correct the measurements of all the measuring instruments.

There are mainly two sections in the Quality Assurance department. They are: a. Inplant section b. Bought out section The inplant section deals with the inspection of products from machine shop ,where as the bought out section deals with the testing of finished products which are bought from outside. Assembly Dept. is responsible for line inspection & Testing. No product is allowed to through to the next stage until it has been inspected and cleared.

The Flow Process Charts / Quality Plan identifies the

Inspection stages & the parameters to be tested. QA Dept. is responsible for final Inspection and Testing carried out on each and every product based on the Quality Plan.

The Final Inspection / Testing will take into all the Inspection and Testing

requirements at receiving and in Process. No Product is dispatched without satisfactorily meeting all the specified requirements and approved by QA for dispatch. Records are maintained by QA Department on the performance of the products, on the Inspection and Testing done at the above stages indicating whether they have ed or failed the tests .Records are also available to show the list of authorized Inspectors / Personnel responsible for the release of the product. Tillers are kept for one day running which is considered as the final inspection. By doing so they can test whether there is leak or whether it generates sound more than permissible.

Calibration Cell Q.A department is equipped with all modern facilities. The company has a calibration cell to check and correct

the measurements of all the measuring instruments

QUALITY STANDARDS TREM - (Tractor Emission) ARAI - (Automotive Research Association of India, Pune) diesel engine certification [59]

M.E.S.SOCSAMS


CMVR – (Central Motor Vehicles Rules) certification for moving vehicle. The company follows trail and error method for improvement.

QUALITY SYSTEMS  Well defined quality system procedures adopted covering all activities to ensure quality of products & customer satisfaction.  Improvements are made on regular basis based on the feed back from the customers & dealers  Regular interactions with all Venders including site visits to maintain and improve the acceptance level of components  KAMCO Power Tiller certified for compliance with Minimum Performance Standards of Govt. of India  KAMCO Power Reaper has been tested by SRFMT&TI, Ananthapur of Govt. of India

QUALITY POLICY  Total customer satisfaction through quality products and services with improved technology and employee participation.  Comply with the requirements of customers and the applicable statutory / regulatory requirements. The effectiveness of the established quality management system is continually improved to enable achievement of the policy.

QUALITY OBJECTIVES The major objectives of the quality assurance department are the following:  To ensure that quality requirements of the products and services offered are maintained at all stages.  To create a culture amongst all employees towards total quality concepts and productivity through total involvement and commitment of all employees.  To create a healthy working environment for attaining the quality goals with excellence and to make quality a way of life.  To detect and prevent non-conformance and defects as early as possible and to eliminate them through appropriate changes to the Quality Management System. [60]

M.E.S.SOCSAMS


 To achieve and maintain quality leadership through continuous technology up gradation, improvements in techniques, systems and procedures and to meet customers changing needs.

ISO 9001-2000 STANDARD International Organization for Standardization, ISO was formed in 1947 with its headquarters at Geneva, Switzerland, at the initiative of United Nations Standards co-ordination committee “to facilitate the International Co-ordination and Unification of industrial standards”. The term „ISO‟ is derived from the Greek word „isos‟, which means equality. From “equal” to “standard”, is the line of thinking that lead to the choice of “ISO” as the name of the organization. ISO is a worldwide federation of standard bodies from more than 100 countries. Its mission is to promote the development of standardization and related activities in the world with a view to facilitate the exchange of goods and services worldwide and to develop co-operation in the spheres of intellectual, scientific, technological and economic activity. ISO has so far developed more than 10000 standards covering industrial, economic, scientific and technological activities.

ISO 9001 - 2000 Version  Improvement in the systems and improved Customer/Dealer satisfaction  Comply with the requirement of Customers and applicable statutory/regulatory requirements  Improvement in the effectiveness of the established quality systems  Addresses Customer, Dealer, Vendor, Society, Employees & Share holders – for their requirement & satisfaction

ADVANTAGES OF HAVING ISO 9001-2000 CERTIFICATION

a. Increased customer satisfaction. b. Acts as a set of discipline. c. Companies own management has greater confidence in its own internal systems. [61]

M.E.S.SOCSAMS


d. Brings clarity in roles and responsibilities. e. Helps to revisit the system. f. Brings about quality culture. g. Sets a bench mark. h. More stream lined process, which ensures that dead lines are met. i. Satisfaction for each individual to know that once work is professional and meets a high personal standard. j. Measurable improvements in the over all functioning and quality system of the organization.

Mainly visual and manual methods are adopted for the testing purposes. Some of the gauges and machines used for the testing purposes are venire calipers, venire height gauge, inspection gauge, dial gauge, bevel protractor, plug gauge, micro meter, hardness testing machine, spring testing machine etc. One day test is done for the finished products as per the standard testing conditions specified in the IS 25000 standards

4.1.7 RESEARCH AND DAVELOPEMENT DEPARTMENT Research and development is one of the important departments in KAMCO. R & D is working with a very intelligent team. R& D has a role to design or drawing the product. Their latest innovation was the DI engine and they also produce a garden tiller, which is a new product in the market. The company gets order from KCL for producing 6 KVA generator engine, which will cost nearly Rs.60,000/- engine. One of the functions of R & D is to check the materials and draw the products.

RESEARCH AND DAVELOPEMENT DEPARTMENT HIERARCHY

MANAGING DIRECTOR

DEPUTY GENERAL MANAGER (R&D) [62]

M.E.S.SOCSAMS


ASSISTANT MANAGET 1

ASSISTANT MANAGET 2

ASSISTANT MANAGET 3

CHIEF DRAFTS MEN

DRAFTS MEN

Figure 10 : Research & Development Department Hierarchy

The product upgradation is done as per the results of the researches conducted by the department. At present researches are going on to develop a product for the harvesting of “pokkali”, an agro product which is cultivated in water.

The engineering department also comes under the R&D department which deals with the research processes regarding the design and various other aspects of the products. The company is in the process of setting up a separate and more advanced R&D facility as part of its plans to diversify its product line. Plans are on the anvil to diversify into the food processing machinery industry. KAMCO is also looking at producing water pumps and generator engines, the latter in collaboration with KEL who will be the primary customers. The company conducts its R&D activities in association with the Automotive Research Association of India (ARAI), Pune.

At present the whole body of the tiller is made up of aluminum and cast iron. With newer engineering materials evolving world wide, these materials are likely to be replaced by stronger and more flexible materials in the coming decade. Sometimes the department uses the re-engineering where it tries to design a model on a previously existing working model. Company has a plan for diversification. The company plans to produce tractors at the price less than 3 lacs.So it is very useful to small scale farmers in India.

[63]

M.E.S.SOCSAMS


4.1.8. SYSTEMS DEPARTMENT

At present the whole body of the tiller is made up of aluminum and cast iron. With newer engineering materials evolving worldwide, these materials are likely to be replaced by stronger and more flexible materials in the coming decade. Sometimes the department uses the re-engineering where it tries to design a model on a previously existing working model. Company has a plan for diversification. The company plans to produce tractors at the price less than 3 lacs.So it is very useful to small scale farmers in India. The systems department in KAMCO was established during 80`s.Formerly it was known as EDP but now changed to systems. All the four units of the company are connected through internet and all the four units have their servers. In this corporate unit each department is connected through a LAN. The system department uses a customer ERP (Enterprise Resource Planning) package, back-ended with Oracle. Company‟s system department is not as much developed, so it is not used in any part of production. There is an inbuilt MIS function in this. ERP package is divided into different modules in which, each module is for each department. By the help of these modules, departments can transact the datas and it makes the work easy. The system department uses CD as a backup file to store data. There is LAN in every unit and these are connected each other through BSNL network. As part of the security, each department provides separate name and . The maintenance of the system is done by the experts in the system department. The training programmes are: 1. Implementation training is mainly for the experts in system department by the developer. 2. Training to the s by the experts from the system department. 3. Refreshers training to make s aware of all the functions of slow. The future priorities are given to Business Process Reengineering and Internet connectivity to all departments

[64]

M.E.S.SOCSAMS


SYSTEMS DEPARTMENT HIERARCHY

MANAGING DIRECTOR

DEPUTY GENERAL MANAGER (Finance & Company Security)

SENIOR MANAGER (SYSTEMS)

MANAGER (Information & Security)

DATA ENTRY OPERATORS

DATA ENTRY OPERATORS

Figure 11: Systems Department Hierarchy

Now systems department is doing the work of preparing a cost ing module and a product cost analysis software for the company. An online integration to make all the four servers into a single server through net is another future plan of this department.

5.

SWOT ANALYSIS

[65]

M.E.S.SOCSAMS


SWOT analysis has been defined as 'a conceptual framework for a systematic analysis that facilitates matching the external threats and opportunities with the internal weaknesses and strengths of the organization'. SWOT analysis is a well defined study about the strength, weakness, opportunities and threats of the organisation. SWOT analysis is very much helpful in analyzing the strength, weakness, opportunities and threats of the organizations. SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. Once key issues have been identified, they feed into marketing objectives. These data helps the managements to plan, design and develop its future actions.

SWOT Analysis based on organizational study 5.1. STRENGTHS 1. Environmental Friendly : Wastes like Aluminium and Iron chips can be recycled to new products. 2. Brand Image: KAMCO has a good brand image. The products of KAMCO seldom fails or require maintenance. 3. Financially sound: KAMCO has a fixed deposit of more than 35 crores and has been running in profit for the last 30 years. 4. Good marketing network: KAMCO has 60 trusted dealers in 23 states. 5. Effective power utilization in production department: KAMCO has been following an overlapped-shifting system for the last 3 years, thereby 4hrs of mixed time-shift per day. This result in the usage of only 70% of the earlier, saves 1.5 lakhs. 6. Good management and punctual workers: KAMCO follows electronic punching system for the workers so that they are available at the right time at the right place. 7. Transparent incentive scheme: KAMCO has a special incentive scheme which divides three types as Direct, Semi-Direct and Indirect Incentive schemes. 8. High demand for the products: KAMCO products are having high demand in the market. The demand is still more than the overall production. 9. High quality products: KAMCO producing high quality products which are having ISO 9001-2000 certificaiton. 10. Incentives for the dealers: KAMCO offer incentives to the dealers if they cross the minimum target.

5.2. WEAKNESS

[66]

M.E.S.SOCSAMS


1. Focus on only two products mainly: KAMCO focus on only two products, Power tiller and Diesel Engine mainly, out of 5 products. 2. Production is not upto the demand: KAMCO still fail to meet the actual demand in the market, as they manufacture products not depends on the demand, but depends on the budget. 3. Time delay in recruitment and selection: The recruitment is mainly through PSC and thats why time day may occur. 4. Political interference: As KAMCO is a public limited company, lot of political interference can be there. 5. High transportation cost: As all the four units of KAMCO are in Kerala and potential market is in northeast, the transportation cost will be high. 6. Only agricultural based products: KAMCO manufacture only agricultural based products.

5.3. OPPORTUNITIES 1. Only small part of the market is exploiting as huge reservoir of expertise can be used to set up technological collaborations. 2. Accumulated funds can be used in future expansion activities. 3. Government in financial matters. 4. KAMCO has good exporting opportunities. 5. The trustable brand image makes an opportunity to grow more and to get mote customers. 6. Boom in the farm mechanization.

5.4. THREATS 1. The changing government policies. 2. Earning of agriculture is very less 3. Lack of recognition for farmers 4. High competition from Chinese and Korean product low cost 5. LPG

–

Liberalization,

Privatization,

Globalization:

Liberalization,

Privatization,

Globalization opened the Indian market to the global players.These players are coming with highly developed low cost products which may attracts its potential customers. [67]

M.E.S.SOCSAMS


6. Growth of private enterprises in the sector

6.

FINDINGS, SUGGESTIONS AND CONCLUSION

6.1. FINDINGS 1. The company environment friendly. 2. Good production facility. 3. 8th profit making company in the undertaking of Kerala govt 4. High demanded product 5. Good industrial relationship. 6. Qualified and skilled workers. 7. Good brand name. 8. Good incentive system. 9. Unique company running with profit for the last 30 years. 10. Political interference.

6.2. SUGGESTIONS [68]

M.E.S.SOCSAMS


1. The company should expand export opportunities, so a bit more promotional activities should be included. 2. The company has to engage in production of variety products 3. Introduce new major strategies to the empowering dealers. 4. The company resources should be utilized to the maximum, so that there will be efficiency in its operation. 5. Training facilities should be given to the unskilled workers. 6. Timely promotion must be given to the employees for motivation. 7. Counseling facility should be provided to the employees. 8. Reaching better horizons by fostering new partnerships. 9. The organization should provide better in the recreation facilities to the employees.

6.3. CONCLUSION

The organisational study done at “Kerala Agro Machinery Corporation Limited, Athani” was undertaken with the objective to get an idea about the istration, management of business firms. It enabled to understand the various functions of each departments of a manufacturing firm and also the problems faced by the public sector undertakings due to the changes in government policy. KAMCO an ISO 9001:2000 company was established in the year 1973 at Athani. KAMCO has different units situated at Kalamassery, Palakkad and Mala. The main products of the company are KAMCO Power Tiller, KAMCO Power Reaper and KAMCO Diesel Engine. In spite of threat from imported and indigenous makes of power tiller, KAMCO Power Tiller continuous to be the preferred choice of farmers attaining the moderate market share for the year. Power Reaper also had been able to catch the imagination of the small farmers. The response for the newly launched KDI Super Power Tiller is very encouraging. Diversification of products and services is an essential prerequisite for success. KAMCO is the 8th profit making company in the government undertaking.

[69]

M.E.S.SOCSAMS


ABBREVIATIONS DGM

Deputy General Manager

GOVT

Government

MGR

Manager

PVT

Private

Sr.MGR

Senior Manager

LTD

Limited

Reg.MGR

Regional Manager

SPM

Special Purpose Machines

DM

Deputy Manager

ERP

Enterprise Resource Planning

AM

Assistant Manager

MPS

Monthly Production Schedule

Area MGR

Area Manager

LTS

Long Term Settlement

AE

Assistant Engineer

DI

Direct Injection

TA

Technical Assistant

ESI

Employee State Insurance

ACCNT

ant

CH

Charge Head

HRM

Human Resource Management

CM

Chief Mechanic

F & CS

Finance & Company Secretary

WA

Work Assistant

MKT

Marketing

SYSTM

Systems

R&D

Research & Development

IA

Internal Auditor

PURCH

Purchase

PRODN

Production

MATL

Material

PA

Personal Assistant

STOR

Stores

QA

Quality Assurance

ASMBLY

Assembly

MTNC

Maintenance

MchShop

Machine Shop

MC & ET

Mechanics & Electricians

PF

Provident Fund

SO

Shift Officer

[70]

M.E.S.SOCSAMS


BIBLIOGRAPHY

WEBSITES 

www.kamco.co.in



www.hinduonnet.com



www.agriculturalindustry.com

MAGAZINES AND BROUCHERS 

KAMCO Brochure



KAMCO Departmental manuals



KAMCO Annual reports

BOOKS 

KOTHARI C.R., RESEARCH METHODOLOGY-METHODS & TECHNIQUES, 2ND EDITION NEW DELHI, WISHWA PRAKASHAN PVT. LTD.

 EDWIN.B.FLIPPO, PERSONAL MANAGEMENT, MC.GRAW HILL- INTERNATIONAL EDITION 6TH EDITION

[71]

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[72]

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