Summer Training Project Report On
“PERFORMANCE MEASUREMENT OF R.K. MARBLE PVT. LTD. “
Madanganj-Kishangarh (Ajmer), Rajasthan
For the partial fulfillment of the degree of
MASTER OF BUSINESS ADMINISTRATION (MBA)
(2010-2012)
FACULTY OF MANAGEMENT STUDIES
M.L. Sukhadia University, Udaipur (Raj.)
SUBMITTED TO: MR. SUBHASH AGARWAL
SUBMITTED BY: ANKITA PATNI MBA RMAT-III SEM.
ACKNOWLEDGEMENT
“ The completion of any project depends upon the co-operation, coordination and combined efforts of several resources, of knowledge, inspiration and energy.” Words fall short acknowledging immense support lent to me yet I will try to give full credit to the deservers’. My sincere thanks go to Mr. P.K. Jain (Director, FMS), giving me an opportunity to discover more knowledge. I am thankful to Mr. Subhash Agarwal (Vice President, Finance and Tax) for his support, guidance and cooperation throughout to accomplish this project. I am also expressing my deep sense of gratitude to my project guide Dr. Hanuman Prasad for his valuable guidance, continuous encouragement and tremendous patience in discussing my problems, which have been of greatest help for bringing my task in present shape. I am equally thankful for to all my teachers for their complete support. It would be unfair on my part if I do not thank my colleagues for their continuous help without which this work would have never been accomplished. They made me realize the importance of team work. I am thankful to all of them for supporting me in this project.
Preface
This project report has been prepared in the partial fulfillment of the requirement for the Subject-CP-304 Summer Training Project of the program M.B.A. in the academic year 2011-2012. The two-year full time program of management course helped in lots of learning. Such has been the presentations and projects which enhanced our learning by adding on to our world of knowledge. And summer training is one of the part to enhance our business skills. For preparing the project report I have visited the company R.K. Marbles Pvt. Ltd. for the suggested duration of the period of 45 days, to avail the necessary information. The blend of learning and knowledge acquired during the practical studies at the company is presented in this project report. ? The project report starts with the basic introduction to the Marble industry and to the company. Then the main topic of study has been discussed.
INTRODUCTION TO MARBLE INDUSTRY
The marble industry of Rajasthan has a very old history, dating back to the time of Mogul Empire when the architectural marvel of the country - Taj Mahal - was built. Temples of Delwara in Mount Abu and Ranakpur are also testimonials of ancient marble industry of princely state of Rajasthan. In past, marble was sparingly used in temples, palaces and monuments. But now, it is widely used in hotels, high-rise buildings, shopping malls, residential flats, etc. The Rajasthan State is considered to be the largest producer of marble in India.Rajasthan is the hub of stone activity in India, accounting for approximately 65% of India’s stone production.Rajasthan is the main depository of marble, reserves currently stand at 1144 million tonne, out of India’s total marble reserves of 2216 million tonne (90% of total marble production of the country)Today the demand for marble is immense. It is used as one of the most sought after building stone in the construction industry and thus generates a lot of industrial and mining activity in the state. Rajasthan is the largest producer of all kinds of marble stone in the country. Makrana (Nagaur District) is known for a very fine quality of white marble deposit. The other area where marble is found are Udaipur, Sirohi, Pali, Jaipur, Banswara, Dungarpur, Jaisalmer, Bundi, etc. The Indian marble industry is not only confined at production or supply of the marbles but export of highly acclaimed stones such as blocks, flooring, calibrated (ready to fix tiles), monuments, slabs, structural slabs, tomb stones, cobbles, cubes, sculptures, artifacts, pebbles, kerbs, and landscape garden stones has also been its important part. The constant growth of Indian marble industry is because of the reason that they are highly acclaimed and possess characters like low cost, beautiful looks and longevity. The industry is also equipped with state of the art resource of machinery and tool manufacturers who cater very well to the rising demands of this sector.
PROCESS
Marble is a metamorphosed limestone capable of taking a polish, which exhibits a re-crystallised interlocking texture composed principally of the carbonate minerals calcite and/or dolomite.Marble is a tactile and versatile material and it is an exciting experience to watch finished stone emerge in multifarious forms from a piece of rock. The processing of natural marble stone starts at the quarry where a section of solid rock is found and blocks are separated from it with as little damage to the stone as possible. Heavy equipment are used to transport the blocks of stone from the quarry to the processing yard where they are sawed into tiles and slabs. Secondary sawing reduces the slabs into dimensional masonry. More intricate work can be carried out on profiling saws and planing and polishing machines and of course by hand. Hand working of stone, however, retains an essential place in the last stages of processing, when highly skilled masons work the more detailed stones to their finished form.
Introduction to the Company
R.K. Marble Pvt. Ltd. is acknowledged as the biggest marble company in the world and they hold certificate from Guiness world recods to buttress their claim. R. K. Marble Pvt. Ltd. came into existence when Mr. Ashok Patni, chairman of Patni Group, laid the foundation of the company on 25th May 1989, to help serve increasing national and international demand for Indian marble. The company started its operations at Madangaj-Kishangarh with installed capacity of 100000 cubic feet per annum of marble slabs. Since then they have enjoyed exponential growth and export to many markets worldwide. RK Marble Group’s primary operation & competence is mining and processing marble and it carries its operations through mines at Rajasthan and Madhya Pradesh and has its processing plant at Kishangarh, Rajasthan, which happens to be the largest marble market in India. The Company owns two mining facilities at Rajasthan and Madhya Pradesh respectively, and one processing plant at Kishangarh, Rajasthan. The Morwad mine at Rajasamand , near Udaipur was established in 1993 and the Majoli mine, near JabalpurMadhya Pradesh came up in the year 2001. The Company is dedicated to bringing the finest marble to the world. For over twenty years, the name is synonymous with grandeur, fineness and quality that can only be expected from the most superior class of marble. An ISO 9001:2000 certified company, R.K. Marble has set benchmarks in the mining, processing and finishing of marble. An annual production of over
1.5 Million Tons (equivalent to more than 60,000 sq. meters per day) has earned the company a place in the Guinness Book of World Records as the largest producer of marble in the world, the group is now geared up to scale newer heights and achieve the impossible. It is also the first marble mining company which has very high level of mechanization and computerization with investments worth Rs. 36.54 crore in equipments for mining purpose. The company also strives to provide quality by imbibing the latest international mining technologies. This can be gauged from the fact that the entire mining operations are controlled by sophisticated internally developed software on Oracle which tracks and evaluates all possible functions, cost areas and productivity of all mines. The company is continuously committed to providing better infrastructure facilities within and near its area of operation. The objective of the company remains to produce excellent quality products and adopt leadership stance.
The endeavor of the company is to provide quality products by imbibing the latest international mining technology. This can be gauged from the fact that the entire mining operations are carried out with the help of latest equipment for marble extraction. Sophisticated software developed internally on RDBMS platform tracks and evaluates all possible functions, cost areas and productivity of the mining operations. It is also the first marble mining company, which has very high level of mechanization with highly skilled and trained workmen. The company has made an extensive use of wireless communication to synergies all activities from drilling to loading of the end product. The optimum utilization of the country's natural resources can be seen here. Due to the latest technologies used, the recovery ratio of marble blocks is amongst the highest. Why R.K. Marbles? R. K. Marble Group has always stood for quality without compromise. It believes in long-term business relations and works hand in hand with the customers to ensure that they get the best value for money. Stringent in-house quality control measures are in place and yet the group is always willing for third party quality checks. The Company has adopted quality policies to standardize its systems, procedures and processes with adequate documentation. R. K. Marble Group has an ISO 9001 : 2000 certification for it's various activities at mines and factory (processing center at Kishangarh) and ISO 14001 certification for Environment Management System.
People
A successful company is one led by world-class leaders. The board is dedicated to serving the interests of not only the shareholders, but also every other body associated with the company. A highly motivated team of professionals, a team with a spirit to give in their best every time. Needless to say, the growth of R. K. Marble Group has been spurred by the spirit of the individuals who work at various levels to keep ahead of the rest and constantly rise to the challenges that beckon them at the frontiers of technology. The three Patni brothers have been instrumental in shaping up the destiny of the mining industry/processing technology used in India. They are backed up by a Board of Directors which includes seasoned finance, investment and marketing professionals-all groomed for global competition from the family and industry.
Awards
AWARD NAME Guinness World Records Samman Patra AWARDED BY Guinness World Records Income Tax Department, Udaipur All India Digamber Jain Samaj, Sikar Limca Books of World Records Shree Digamber Jain Atishaya Kshetra, Padampura, Jaipur Income Tax Department, Ajmer Education Department, Bikaner ICAI, Jaipur National Publication, New Delhi Lions Club. Udaipur BVQI, USA Directorate General of Mines Safety Society for Environment Education & Research Centre for Development of Stones (CDOS) Rajasthan Chamber of Commerce & Industry YEAR 1998, 2000, 2001
1998 1998 1998,1999
Jain Gaurav Entry in Limca Books of World Records Padm Divakar
1999 2000 2001 2001 2001 2001 2003 2003 2004 2003 2004
Highest Income tax payer Award State Level Bhamashah Award Best Annual Report Award for Rajasthan Based Companies Indira Priyadarshini Award Social Welfare & Development ISO 9001 : 2000, ISO 14001 LAFP Award SEERI Environment Award The Best Stall for Stone & Stone Products (Outdoor Corporate Governance Award
PERFORMANCE MEASUREMENT OF R.K. MARBLES PVT. LTD
Performance measurement is the process whereby an organization establishes the parameters within which programs, investments, and acquisitions are reaching the desired results.[ This process of measuring performance often requires the use of statistical evidence to determine progress toward specific defined organizational objectives.
The reason for measuring performance:
Fundamental purpose behind measures is to improve performance. Measures that are not directly connected to improving performance (like measures that are directed at communicating better with the public to build trust) are measures that are means to achieving that ultimate purpose (Behn 2003). There are various reasons for adopting performance measurements:
1. To Evaluate how well a public agency is performing.
Evaluation processes consist of two variables: organizational performance data and a benchmark that creates a framework for analyzing that data. For organizational information, focus on the outcomes of the agency’s performance, but also including input/ environment/ process/ output- to have a comparative framework for analysis. As in order for organization to evaluate performance its requires standards (benchmark) to compare its actual performance against past performance/ from performance of similar agencies/ industry standard/political expectations.
2. To Control How can managers ensure their subordinates are doing the right thing.
Officials need to measure behavior of individuals then compare this performance with requirements to check who has and has not complied. Efficiency is determined by observing performance- output and outcome achieved considering number of people involved in the process (productivity per person) and cost-data (capturing direct cost as well as indirect)
3. To Motivate Giving people significant goals to achieve and then use performance measures- to focus people’s thinking and work, and to provide periodic
sense of accomplishment. Performance targets may also encourage creativity in developing better ways to achieve the goal.
4. To Celebrate Organisations need to commemorate their accomplishmentssuch ritual tie their people together, give them a sense of their individual and collective
relevance. More over, by achieving specific goals, people gain sense of personal accomplishment and selfworth (Locke & Latham 1984).
5. To Promote How can public managers convince political superiors, legislators, stakeholders, journalists, and citizens that their agency is doing a good job.Performance measures can be used to: validate success; justifing additional
resources; earn customers, stakeholder, and staff loyalty by showing results; and win recognition inside and outside the organisation.
6. To Learn Learning is involved with some process, of analysis information provided from evaluating corporate performance (identifying what works and
what does not). By analysing that information, corporation able to learn resons behind its poor or good performance.Benchmarking is a traditional form of performance measurement which facilitates learning by providing assessment of organisational performance and identifying possible solutions for improvements.
7. To Improve What exactly should who- do differently to improve performance? In order for corporation to measure what it wants to improve it first need
to identify what it will improve and develop processes to accomplish that.
Various frameworks of measuring performance: Different frameworks and reference models for measuring business performance have evolved from a variety of origins. Frameworks are approaches to measurement that businesses frequently adopted, often with significant diversity in their design and use. Reference models are more rigorous standards, typically around specific performance metrics and associated business processes, adopted by an industry or by a common functional unit. The various frameworks are: ? Balanced Scorecard ? Economic Value Added ? Activity-based costing ? Quality Management ? Customer Value Analysis ? Action-Profit Linkage Model Here, the framework that has been chosen for measuring performance of the company is BALANCE SCORECARD approach, which is the most widely used model.
The Balanced Scorecard:
A Strategic Chart of Accounts
The Balanced Scorecard is the “strategic chart of accounts” for organizations that focus on strategy. It captures both the financial and the non-financial elements of an organization’s strategy, and discusses the cause and effect relationships that drive results. The Balanced Scorecard allows, for the first time, an organization to look ahead, using leading indicators, instead of only looking back using lagging indicators. The Balanced Scorecard puts strategy – the key driver of results today – at the center of the management process.
The major components of the Balanced Scorecard provide both a holistic view of an organization’s strategy and the path toward executing its strategy. The major components of the Balanced Scorecard provide both a holistic view of an organization’s strategy and the path toward executing its strategy. The major components are: Perspectives: A central idea of the Balanced Scorecard is the idea of cause-and-effect relationships between elements of the strategy. The Balanced Scorecard: Four Perspectives Financial – the strategy for growth, profitability, and risk viewed from the perspective of the shareholder. Customer – the strategy for creating value and differentiation from the perspective of the customer. Internal Business Processes – the strategic priorities for various business processes, which create customer and shareholder satisfaction. Learning and Growth – the priorities to create a climate that supports organization change, innovation, and growth.
Objectives: Within each perspective, there are a set of key objectives that seek to answer the questions outlined above. They are high-level statements of elements of strategy. Measures: “What gets measured gets managed.” Progress in achieving objectives is determined through measurement. By creating a set of measures, linked to the organization’s strategy, onecan ensure measuring and managing the organization based on strategy. Targets: Targets describe the level at which a measure must be achieved in order to execute the strategy. Targets also help determine the level of investment in particular areas of the strategy. Initiatives: Initiatives are the projects that are put in place to help close the performance gap between the actual and the target on a measure. Initiatives are not the “day-to-day” business operations but rather are special projects that generally have a budget, timeline, person accountable, and other resources.
In other words the four perspectives can be summarized as:
Financial: encourages the identification of a few relevant high-level financial measures. In
particular, designers were encouraged to choose measures that helped inform the answer to the question "How do we look to shareholders?"
Customer: encourages the identification of measures that answer the question "How do customers
see us?"
Internal Business Processes: encourages the identification of measures that answer the question
"What must we excel at?"
Learning and Growth: encourages the identification of measures that answer the question "Can
we continue to improve and create value?".
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. For this project, stepwise strategies have been adopted to analyse the situation prevailing in the company and collecting of information. The sequential steps followed were:
- First of all, the information brochures, company manuals and the financial statements of
the company had been analyzed thoroughly, so as to understand the working of the company, the processes it follows and the management of the company. - After getting an idea about the company’s organization and management, the study proceeded by analyzing the working conditions and the processes followed in the mining and manufacturing processes. - The work proceeded by the interviews of the key personnels of the company, their working strategies, the procedures followed and their way of managing the system. Necessary information about the company, were being collected from them. - The next step was to enquire the customers about their opinions about the company, their grievances and other information with the help of a questionnaire. - The employees and workmen enquired about the issues such as: The facilities they get, the working conditions, measures for their safety, their participation in the decisions etc.
2.CUSTOMER PERSPECTIVE: Recent management philosophy has shown an increasing realization of the importance of customer focus and customer satisfaction in any business. These are leading indicators: if customers are not satisfied, they will eventually find other suppliers that will meet their needs. Poor performance from this perspective is thus a leading indicator of future decline, even though the current financial picture may look good. Customers are the backbone of every organization. The long term survival and profits of the company depends upon its relations with its customers, and up to what extent it is able to come up to the expectations of its customers. R.K. Marbles have always tried to maintain the quality of its products and lays emphasis on prompt supply of orders placed, along with timely receiving of credits. Customer satisfaction is being emphasized in delivering services to the customers.
OBJECTIVES
MEASURES
TARGETS
INITIATIVES
Total quality Management is applied to ensure that the customers receive the best quality.
Customer satisfaction
4
4
Customer service
4
4.5
Efforts are made to provide timely services to the customers and handle their grievances if any , promptly.
Customer Loyalty
3.5
4.5
The customers may tend to other competitors, for this customer satisfaction is being laid emphasis upon and through quality inspections are done, to minimise grievances.
Reliability
4
4
The desired quality at reasonable price is delivered to the customers on a prompt basis. Extensive transportation network is being laid for timely delivery of orders. The orders received from the customers are tried to b executed on timely basis.
On time deliveries
4
4.5
OBJECTIVES
MEASURES
TARGETS
INITIATIVES The company seeks to provide the desired quality to the customers at optimum prices.
Perceived value for money
4
4.5
Reliability
4
4
Delivering promised quality and resolving grievances promptly has been the major emphasis of the company.
Responsiveness
3.5
4.5
Efforts are made to promptly resolve the grievances of the customers, if any, and healthy relations are tried to be maintained with the customers.
3. INTERNAL PERSPECTIVE:
Internal business process objectives address the question of which processes are most critical for satisfying customers and shareholders. These are the processes in which the firm must concentrate its efforts to excel. The strategic focus of the IBP perspective is to determine the business processes an organization must excel at to satisfy both its shareholders and customers. The strategic objectives are not merely to identify existing internal business processes, but also to identify new ones that may have the greatest impact on customer satisfaction and deliver greater financial returns to shareholders. Internal business processes are defined widely to include "long-term value creation wave" or innovation processes, and "short-term value creation wave" or production and other operations, and post sale services. Because these processes have different needs, they require separate treatment.
OBJECTIVES
MEASURES
TARGETS
INITIATIVES Sophisticated software developed internally on RDBMS platform.
Manufacturing excellence
The entire mining operations are carried out with the help of latest equipment for marble extraction.
An ISO 9001:2000 certified company.
To provide quality products by imbibing the latest international mining technology.
Sophisticated software developed internally on RDBMS platform. Standardised systems and processes.
Reduction in unit cost.
Due to latest technology and innovative ways the cost per unit has been reduced.
To minimise the unit cost of production without sacrificing the quality
Some of the instruments and techniques which have contributed to cost reduction are: i) Blind Cut Technique ii) Dot Laser alignment device. iii) Hole finder etc.
Reduced waste and Environmental Concerns
ISO 14001 Certification for Environment Manangement System
To the extent economically and technically feasible, minimize the generation of hazardous wastes.
Completely automatic water treatment plant to recycle water for marble cutting.
.
Innnovative techniques such as Blind Cut Technique are used to minimise the waste produced during the production process.
OBJECTIVES
MEASURES
TARGETS
INITIATIVES
Proper safety measures are provided to the workers. The employees are selected on the basis of experience rather than on the basis of qualifications. Provisions for training and educating employees, are not adequate.
Regular Pit Safety Committee meetings The personal protective equipment and safety gadgets are provided to employees and all out efforts are made to inculcate the habit of their regular use. A four-bed dispensary with Para medical staff and Doctor along with an ambulance is available at mines.
Motivated Workforce
A highly motivated team of professionals, a team with a spirit to give in their best every time.
Standardised processes and systems. Latest technologies such as: Hydraulic Pushing Arm Hole Finder Blind Cut Technique etc. Are used which are cost effective and time saving, thus resulting in increased yield.
Increase in capacity utilisation.
Recovery ratio of marble blocks has become the highest in the world.
Maximum capacity utilization
4. LEARNING AND GROWTH PERSPECTIVE: Much of this perspective is employee-centered. The Learning & Growth Perspective focuses on the intangible assets of an organization, mainly on the internal skills and capabilities of the employees that are required to support the value-creating internal processes. The Learning & Growth Perspective focuses on: - Human Capital-Jobs and people issues. - Information Capital- Systems and technology issues -Organization capital- Organizational climate and quality of work-life. The Learning and Growth objectives describe how the people, technology, and organizational climate combine to support strategy. Measures in this perspective are lead indicators for improvements in the internal processes, customer and financial perspectives.
OBJECTIVES
MEASURES
TARGETS
INITITATIVES
Launched ‘Wonder Marble’ as the first branded natural colored marble in the country.
New Product Development
Various innovations have been done, to differentiate its products.
To excel out in providing differentiated products to the customers.
Provides various varities of marbles in various colours and textures.
Technological Leadership
The processing plant, which spans over 70,000 sq meters has 14 Gang Saw machines, two Resin Treatment Plants and One Eighteen Head State-of-the-art Polishing Plant, Over 4.5 lac sq feet of marble production every day.
Competence in Mining processes
The company endeavours consistently on adopting latest technological process so as to achieve the maximum output in the most efficient way.
No qualification criteria at managerial levels. Human Resource Development No specific promotional criteria. Training facilities need to be focused upon. To provide a pool of highly trained and efficient workmen.
A well-equipped Group Vocational Training Center is established at site to provide initial training to new entrants, refreshers and special training to existing employees
OBJECTIVES
MEASURES
TARGETS
INITIATIVES
Extent of Employee Empowerment.
Employees not allowed much participation in making decisions.
Base mobile and To keep the morale walky-talky sets are of the employees well maintained for high, and to smooth inculcate in them communication the feeling of amongst the belongingness to the staff/workers/officers. organization. To provide an healthy and safe working environment to the employees. Suggestion boxes have been kept at the working places which are duly considered on regular basis.
Consideration of employees suggestions.
The suggestions and opinions of the employees are given due importance, and are considered.
SWOT ANALYSIS OF R.K. MARBLES PRIVATE LTD.
A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. “SWOT ANALYSIS Helps to “ Exploit New Opportunities and Develop Strategies to Counter Threats”
HELPFUL STRENGHTS
HARMFUL WEAKNESSES
INTERNAL
-
Technological Skills Wide Market Production Quality Management Customer Loyalty Scale
-Training facilities not adequate -Less employee participation -Dependence on single product line.
OPPORTUNITIES
THREATS
EXTERNAL
-The use of ceramic tiles is increasing very much, thus substituting marble. -Increasing Demand of Marble -Hotels and Hospitals etc. Using products like Marble -Enough scope of exporting the marble. -Import of marble has been porting threat for marble industry in India -The manufacturing process of marble consume huge quantity of water, which is another problem.
CONCLUSION:
After discussing all these attributes, now the different processes and policies of R.K. Marbles Ltd. Have been familiarized with. It is acknowledged as the largest marble producing company of the world. Today R.K. Marble’s success can be gauged from the fact, that they have no bigger competitor in front of them. Even the second most competitor produces only 1/11 of its total production. Based on the measured performance of the company, the following conclusion can be drawn out: - The company does not have any bad debts, as they deal mostly in cash. - Net profit of the company has been continuously increasing throughout the years. - There has been no specific qualification criteria for the entrance of the employees. - Not adequate training facilities are available for the training of the employees. - Promotions are done on the basis of performance only. - Employee participation is not much in the decisions of the company. - Adoption of latest innovations and techniques such as Blind Cut Technique, Dot Laser Alignment device,Hydraulic Washing arm etc. have been the backbone for the company’s success. -The satisfaction level of the employees can be gauged from the fact that the employee tunover ratio of the company is less than 1%. - The customers are loyal, and are mostly satisfied by the services of the company. - The Safety Management is given utmost importance. Pit Safety Committee meetings are organized regularly for taking stock of safety preparation, accident analysis, and suggestions for remedial measures for achieving ZERO accident status. The personal protective equipment and safety gadgets are provided to employees and all out efforts are made to inculcate the habit of their regular use. A four-bed dispensary with Para medical staff and Doctor along with an ambulance is available at mines.
-The R. K. Marble Group Processing Center/Factory is powered by 14 Gang-saw machines with a capacity to produce more than a million cubic feet of marble slabs per annum. It has the most modern layout with completely automatic water treatment plant to recycle water for marble cutting. -Latest gadgets like wireless, hotlines, modems, computerized MIS and costing systems are being used in order to accelerate quality control and production, hence contributing to cost effectiveness. - R. K. Marble continue to seek, evaluate and use, when appropriate, new technologies and methodologies that enhance its ability to conduct our operations in a manner that reduces environmental impacts. -The company is solely dependent on a single product line, which may be a threatening factor in future.
Bibliography
¬ www.rk.marble.com -www.linkedin.com -www.scribd.com -company manuals and brochures
doc_614555002.docx
“PERFORMANCE MEASUREMENT OF R.K. MARBLE PVT. LTD. “
Madanganj-Kishangarh (Ajmer), Rajasthan
For the partial fulfillment of the degree of
MASTER OF BUSINESS ADMINISTRATION (MBA)
(2010-2012)
FACULTY OF MANAGEMENT STUDIES
M.L. Sukhadia University, Udaipur (Raj.)
SUBMITTED TO: MR. SUBHASH AGARWAL
SUBMITTED BY: ANKITA PATNI MBA RMAT-III SEM.
ACKNOWLEDGEMENT
“ The completion of any project depends upon the co-operation, coordination and combined efforts of several resources, of knowledge, inspiration and energy.” Words fall short acknowledging immense support lent to me yet I will try to give full credit to the deservers’. My sincere thanks go to Mr. P.K. Jain (Director, FMS), giving me an opportunity to discover more knowledge. I am thankful to Mr. Subhash Agarwal (Vice President, Finance and Tax) for his support, guidance and cooperation throughout to accomplish this project. I am also expressing my deep sense of gratitude to my project guide Dr. Hanuman Prasad for his valuable guidance, continuous encouragement and tremendous patience in discussing my problems, which have been of greatest help for bringing my task in present shape. I am equally thankful for to all my teachers for their complete support. It would be unfair on my part if I do not thank my colleagues for their continuous help without which this work would have never been accomplished. They made me realize the importance of team work. I am thankful to all of them for supporting me in this project.
Preface
This project report has been prepared in the partial fulfillment of the requirement for the Subject-CP-304 Summer Training Project of the program M.B.A. in the academic year 2011-2012. The two-year full time program of management course helped in lots of learning. Such has been the presentations and projects which enhanced our learning by adding on to our world of knowledge. And summer training is one of the part to enhance our business skills. For preparing the project report I have visited the company R.K. Marbles Pvt. Ltd. for the suggested duration of the period of 45 days, to avail the necessary information. The blend of learning and knowledge acquired during the practical studies at the company is presented in this project report. ? The project report starts with the basic introduction to the Marble industry and to the company. Then the main topic of study has been discussed.
INTRODUCTION TO MARBLE INDUSTRY
The marble industry of Rajasthan has a very old history, dating back to the time of Mogul Empire when the architectural marvel of the country - Taj Mahal - was built. Temples of Delwara in Mount Abu and Ranakpur are also testimonials of ancient marble industry of princely state of Rajasthan. In past, marble was sparingly used in temples, palaces and monuments. But now, it is widely used in hotels, high-rise buildings, shopping malls, residential flats, etc. The Rajasthan State is considered to be the largest producer of marble in India.Rajasthan is the hub of stone activity in India, accounting for approximately 65% of India’s stone production.Rajasthan is the main depository of marble, reserves currently stand at 1144 million tonne, out of India’s total marble reserves of 2216 million tonne (90% of total marble production of the country)Today the demand for marble is immense. It is used as one of the most sought after building stone in the construction industry and thus generates a lot of industrial and mining activity in the state. Rajasthan is the largest producer of all kinds of marble stone in the country. Makrana (Nagaur District) is known for a very fine quality of white marble deposit. The other area where marble is found are Udaipur, Sirohi, Pali, Jaipur, Banswara, Dungarpur, Jaisalmer, Bundi, etc. The Indian marble industry is not only confined at production or supply of the marbles but export of highly acclaimed stones such as blocks, flooring, calibrated (ready to fix tiles), monuments, slabs, structural slabs, tomb stones, cobbles, cubes, sculptures, artifacts, pebbles, kerbs, and landscape garden stones has also been its important part. The constant growth of Indian marble industry is because of the reason that they are highly acclaimed and possess characters like low cost, beautiful looks and longevity. The industry is also equipped with state of the art resource of machinery and tool manufacturers who cater very well to the rising demands of this sector.
PROCESS
Marble is a metamorphosed limestone capable of taking a polish, which exhibits a re-crystallised interlocking texture composed principally of the carbonate minerals calcite and/or dolomite.Marble is a tactile and versatile material and it is an exciting experience to watch finished stone emerge in multifarious forms from a piece of rock. The processing of natural marble stone starts at the quarry where a section of solid rock is found and blocks are separated from it with as little damage to the stone as possible. Heavy equipment are used to transport the blocks of stone from the quarry to the processing yard where they are sawed into tiles and slabs. Secondary sawing reduces the slabs into dimensional masonry. More intricate work can be carried out on profiling saws and planing and polishing machines and of course by hand. Hand working of stone, however, retains an essential place in the last stages of processing, when highly skilled masons work the more detailed stones to their finished form.
Introduction to the Company
R.K. Marble Pvt. Ltd. is acknowledged as the biggest marble company in the world and they hold certificate from Guiness world recods to buttress their claim. R. K. Marble Pvt. Ltd. came into existence when Mr. Ashok Patni, chairman of Patni Group, laid the foundation of the company on 25th May 1989, to help serve increasing national and international demand for Indian marble. The company started its operations at Madangaj-Kishangarh with installed capacity of 100000 cubic feet per annum of marble slabs. Since then they have enjoyed exponential growth and export to many markets worldwide. RK Marble Group’s primary operation & competence is mining and processing marble and it carries its operations through mines at Rajasthan and Madhya Pradesh and has its processing plant at Kishangarh, Rajasthan, which happens to be the largest marble market in India. The Company owns two mining facilities at Rajasthan and Madhya Pradesh respectively, and one processing plant at Kishangarh, Rajasthan. The Morwad mine at Rajasamand , near Udaipur was established in 1993 and the Majoli mine, near JabalpurMadhya Pradesh came up in the year 2001. The Company is dedicated to bringing the finest marble to the world. For over twenty years, the name is synonymous with grandeur, fineness and quality that can only be expected from the most superior class of marble. An ISO 9001:2000 certified company, R.K. Marble has set benchmarks in the mining, processing and finishing of marble. An annual production of over
1.5 Million Tons (equivalent to more than 60,000 sq. meters per day) has earned the company a place in the Guinness Book of World Records as the largest producer of marble in the world, the group is now geared up to scale newer heights and achieve the impossible. It is also the first marble mining company which has very high level of mechanization and computerization with investments worth Rs. 36.54 crore in equipments for mining purpose. The company also strives to provide quality by imbibing the latest international mining technologies. This can be gauged from the fact that the entire mining operations are controlled by sophisticated internally developed software on Oracle which tracks and evaluates all possible functions, cost areas and productivity of all mines. The company is continuously committed to providing better infrastructure facilities within and near its area of operation. The objective of the company remains to produce excellent quality products and adopt leadership stance.
The endeavor of the company is to provide quality products by imbibing the latest international mining technology. This can be gauged from the fact that the entire mining operations are carried out with the help of latest equipment for marble extraction. Sophisticated software developed internally on RDBMS platform tracks and evaluates all possible functions, cost areas and productivity of the mining operations. It is also the first marble mining company, which has very high level of mechanization with highly skilled and trained workmen. The company has made an extensive use of wireless communication to synergies all activities from drilling to loading of the end product. The optimum utilization of the country's natural resources can be seen here. Due to the latest technologies used, the recovery ratio of marble blocks is amongst the highest. Why R.K. Marbles? R. K. Marble Group has always stood for quality without compromise. It believes in long-term business relations and works hand in hand with the customers to ensure that they get the best value for money. Stringent in-house quality control measures are in place and yet the group is always willing for third party quality checks. The Company has adopted quality policies to standardize its systems, procedures and processes with adequate documentation. R. K. Marble Group has an ISO 9001 : 2000 certification for it's various activities at mines and factory (processing center at Kishangarh) and ISO 14001 certification for Environment Management System.
People
A successful company is one led by world-class leaders. The board is dedicated to serving the interests of not only the shareholders, but also every other body associated with the company. A highly motivated team of professionals, a team with a spirit to give in their best every time. Needless to say, the growth of R. K. Marble Group has been spurred by the spirit of the individuals who work at various levels to keep ahead of the rest and constantly rise to the challenges that beckon them at the frontiers of technology. The three Patni brothers have been instrumental in shaping up the destiny of the mining industry/processing technology used in India. They are backed up by a Board of Directors which includes seasoned finance, investment and marketing professionals-all groomed for global competition from the family and industry.
Awards
AWARD NAME Guinness World Records Samman Patra AWARDED BY Guinness World Records Income Tax Department, Udaipur All India Digamber Jain Samaj, Sikar Limca Books of World Records Shree Digamber Jain Atishaya Kshetra, Padampura, Jaipur Income Tax Department, Ajmer Education Department, Bikaner ICAI, Jaipur National Publication, New Delhi Lions Club. Udaipur BVQI, USA Directorate General of Mines Safety Society for Environment Education & Research Centre for Development of Stones (CDOS) Rajasthan Chamber of Commerce & Industry YEAR 1998, 2000, 2001
1998 1998 1998,1999
Jain Gaurav Entry in Limca Books of World Records Padm Divakar
1999 2000 2001 2001 2001 2001 2003 2003 2004 2003 2004
Highest Income tax payer Award State Level Bhamashah Award Best Annual Report Award for Rajasthan Based Companies Indira Priyadarshini Award Social Welfare & Development ISO 9001 : 2000, ISO 14001 LAFP Award SEERI Environment Award The Best Stall for Stone & Stone Products (Outdoor Corporate Governance Award
PERFORMANCE MEASUREMENT OF R.K. MARBLES PVT. LTD
Performance measurement is the process whereby an organization establishes the parameters within which programs, investments, and acquisitions are reaching the desired results.[ This process of measuring performance often requires the use of statistical evidence to determine progress toward specific defined organizational objectives.
The reason for measuring performance:
Fundamental purpose behind measures is to improve performance. Measures that are not directly connected to improving performance (like measures that are directed at communicating better with the public to build trust) are measures that are means to achieving that ultimate purpose (Behn 2003). There are various reasons for adopting performance measurements:
1. To Evaluate how well a public agency is performing.
Evaluation processes consist of two variables: organizational performance data and a benchmark that creates a framework for analyzing that data. For organizational information, focus on the outcomes of the agency’s performance, but also including input/ environment/ process/ output- to have a comparative framework for analysis. As in order for organization to evaluate performance its requires standards (benchmark) to compare its actual performance against past performance/ from performance of similar agencies/ industry standard/political expectations.
2. To Control How can managers ensure their subordinates are doing the right thing.
Officials need to measure behavior of individuals then compare this performance with requirements to check who has and has not complied. Efficiency is determined by observing performance- output and outcome achieved considering number of people involved in the process (productivity per person) and cost-data (capturing direct cost as well as indirect)
3. To Motivate Giving people significant goals to achieve and then use performance measures- to focus people’s thinking and work, and to provide periodic
sense of accomplishment. Performance targets may also encourage creativity in developing better ways to achieve the goal.
4. To Celebrate Organisations need to commemorate their accomplishmentssuch ritual tie their people together, give them a sense of their individual and collective
relevance. More over, by achieving specific goals, people gain sense of personal accomplishment and selfworth (Locke & Latham 1984).
5. To Promote How can public managers convince political superiors, legislators, stakeholders, journalists, and citizens that their agency is doing a good job.Performance measures can be used to: validate success; justifing additional
resources; earn customers, stakeholder, and staff loyalty by showing results; and win recognition inside and outside the organisation.
6. To Learn Learning is involved with some process, of analysis information provided from evaluating corporate performance (identifying what works and
what does not). By analysing that information, corporation able to learn resons behind its poor or good performance.Benchmarking is a traditional form of performance measurement which facilitates learning by providing assessment of organisational performance and identifying possible solutions for improvements.
7. To Improve What exactly should who- do differently to improve performance? In order for corporation to measure what it wants to improve it first need
to identify what it will improve and develop processes to accomplish that.
Various frameworks of measuring performance: Different frameworks and reference models for measuring business performance have evolved from a variety of origins. Frameworks are approaches to measurement that businesses frequently adopted, often with significant diversity in their design and use. Reference models are more rigorous standards, typically around specific performance metrics and associated business processes, adopted by an industry or by a common functional unit. The various frameworks are: ? Balanced Scorecard ? Economic Value Added ? Activity-based costing ? Quality Management ? Customer Value Analysis ? Action-Profit Linkage Model Here, the framework that has been chosen for measuring performance of the company is BALANCE SCORECARD approach, which is the most widely used model.
The Balanced Scorecard:
A Strategic Chart of Accounts
The Balanced Scorecard is the “strategic chart of accounts” for organizations that focus on strategy. It captures both the financial and the non-financial elements of an organization’s strategy, and discusses the cause and effect relationships that drive results. The Balanced Scorecard allows, for the first time, an organization to look ahead, using leading indicators, instead of only looking back using lagging indicators. The Balanced Scorecard puts strategy – the key driver of results today – at the center of the management process.
The major components of the Balanced Scorecard provide both a holistic view of an organization’s strategy and the path toward executing its strategy. The major components of the Balanced Scorecard provide both a holistic view of an organization’s strategy and the path toward executing its strategy. The major components are: Perspectives: A central idea of the Balanced Scorecard is the idea of cause-and-effect relationships between elements of the strategy. The Balanced Scorecard: Four Perspectives Financial – the strategy for growth, profitability, and risk viewed from the perspective of the shareholder. Customer – the strategy for creating value and differentiation from the perspective of the customer. Internal Business Processes – the strategic priorities for various business processes, which create customer and shareholder satisfaction. Learning and Growth – the priorities to create a climate that supports organization change, innovation, and growth.
Objectives: Within each perspective, there are a set of key objectives that seek to answer the questions outlined above. They are high-level statements of elements of strategy. Measures: “What gets measured gets managed.” Progress in achieving objectives is determined through measurement. By creating a set of measures, linked to the organization’s strategy, onecan ensure measuring and managing the organization based on strategy. Targets: Targets describe the level at which a measure must be achieved in order to execute the strategy. Targets also help determine the level of investment in particular areas of the strategy. Initiatives: Initiatives are the projects that are put in place to help close the performance gap between the actual and the target on a measure. Initiatives are not the “day-to-day” business operations but rather are special projects that generally have a budget, timeline, person accountable, and other resources.
In other words the four perspectives can be summarized as:
Financial: encourages the identification of a few relevant high-level financial measures. In
particular, designers were encouraged to choose measures that helped inform the answer to the question "How do we look to shareholders?"
Customer: encourages the identification of measures that answer the question "How do customers
see us?"
Internal Business Processes: encourages the identification of measures that answer the question
"What must we excel at?"
Learning and Growth: encourages the identification of measures that answer the question "Can
we continue to improve and create value?".
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. For this project, stepwise strategies have been adopted to analyse the situation prevailing in the company and collecting of information. The sequential steps followed were:
- First of all, the information brochures, company manuals and the financial statements of
the company had been analyzed thoroughly, so as to understand the working of the company, the processes it follows and the management of the company. - After getting an idea about the company’s organization and management, the study proceeded by analyzing the working conditions and the processes followed in the mining and manufacturing processes. - The work proceeded by the interviews of the key personnels of the company, their working strategies, the procedures followed and their way of managing the system. Necessary information about the company, were being collected from them. - The next step was to enquire the customers about their opinions about the company, their grievances and other information with the help of a questionnaire. - The employees and workmen enquired about the issues such as: The facilities they get, the working conditions, measures for their safety, their participation in the decisions etc.
2.CUSTOMER PERSPECTIVE: Recent management philosophy has shown an increasing realization of the importance of customer focus and customer satisfaction in any business. These are leading indicators: if customers are not satisfied, they will eventually find other suppliers that will meet their needs. Poor performance from this perspective is thus a leading indicator of future decline, even though the current financial picture may look good. Customers are the backbone of every organization. The long term survival and profits of the company depends upon its relations with its customers, and up to what extent it is able to come up to the expectations of its customers. R.K. Marbles have always tried to maintain the quality of its products and lays emphasis on prompt supply of orders placed, along with timely receiving of credits. Customer satisfaction is being emphasized in delivering services to the customers.
OBJECTIVES
MEASURES
TARGETS
INITIATIVES
Total quality Management is applied to ensure that the customers receive the best quality.
Customer satisfaction
4
4
Customer service
4
4.5
Efforts are made to provide timely services to the customers and handle their grievances if any , promptly.
Customer Loyalty
3.5
4.5
The customers may tend to other competitors, for this customer satisfaction is being laid emphasis upon and through quality inspections are done, to minimise grievances.
Reliability
4
4
The desired quality at reasonable price is delivered to the customers on a prompt basis. Extensive transportation network is being laid for timely delivery of orders. The orders received from the customers are tried to b executed on timely basis.
On time deliveries
4
4.5
OBJECTIVES
MEASURES
TARGETS
INITIATIVES The company seeks to provide the desired quality to the customers at optimum prices.
Perceived value for money
4
4.5
Reliability
4
4
Delivering promised quality and resolving grievances promptly has been the major emphasis of the company.
Responsiveness
3.5
4.5
Efforts are made to promptly resolve the grievances of the customers, if any, and healthy relations are tried to be maintained with the customers.
3. INTERNAL PERSPECTIVE:
Internal business process objectives address the question of which processes are most critical for satisfying customers and shareholders. These are the processes in which the firm must concentrate its efforts to excel. The strategic focus of the IBP perspective is to determine the business processes an organization must excel at to satisfy both its shareholders and customers. The strategic objectives are not merely to identify existing internal business processes, but also to identify new ones that may have the greatest impact on customer satisfaction and deliver greater financial returns to shareholders. Internal business processes are defined widely to include "long-term value creation wave" or innovation processes, and "short-term value creation wave" or production and other operations, and post sale services. Because these processes have different needs, they require separate treatment.
OBJECTIVES
MEASURES
TARGETS
INITIATIVES Sophisticated software developed internally on RDBMS platform.
Manufacturing excellence
The entire mining operations are carried out with the help of latest equipment for marble extraction.
An ISO 9001:2000 certified company.
To provide quality products by imbibing the latest international mining technology.
Sophisticated software developed internally on RDBMS platform. Standardised systems and processes.
Reduction in unit cost.
Due to latest technology and innovative ways the cost per unit has been reduced.
To minimise the unit cost of production without sacrificing the quality
Some of the instruments and techniques which have contributed to cost reduction are: i) Blind Cut Technique ii) Dot Laser alignment device. iii) Hole finder etc.
Reduced waste and Environmental Concerns
ISO 14001 Certification for Environment Manangement System
To the extent economically and technically feasible, minimize the generation of hazardous wastes.
Completely automatic water treatment plant to recycle water for marble cutting.
.
Innnovative techniques such as Blind Cut Technique are used to minimise the waste produced during the production process.
OBJECTIVES
MEASURES
TARGETS
INITIATIVES
Proper safety measures are provided to the workers. The employees are selected on the basis of experience rather than on the basis of qualifications. Provisions for training and educating employees, are not adequate.
Regular Pit Safety Committee meetings The personal protective equipment and safety gadgets are provided to employees and all out efforts are made to inculcate the habit of their regular use. A four-bed dispensary with Para medical staff and Doctor along with an ambulance is available at mines.
Motivated Workforce
A highly motivated team of professionals, a team with a spirit to give in their best every time.
Standardised processes and systems. Latest technologies such as: Hydraulic Pushing Arm Hole Finder Blind Cut Technique etc. Are used which are cost effective and time saving, thus resulting in increased yield.
Increase in capacity utilisation.
Recovery ratio of marble blocks has become the highest in the world.
Maximum capacity utilization
4. LEARNING AND GROWTH PERSPECTIVE: Much of this perspective is employee-centered. The Learning & Growth Perspective focuses on the intangible assets of an organization, mainly on the internal skills and capabilities of the employees that are required to support the value-creating internal processes. The Learning & Growth Perspective focuses on: - Human Capital-Jobs and people issues. - Information Capital- Systems and technology issues -Organization capital- Organizational climate and quality of work-life. The Learning and Growth objectives describe how the people, technology, and organizational climate combine to support strategy. Measures in this perspective are lead indicators for improvements in the internal processes, customer and financial perspectives.
OBJECTIVES
MEASURES
TARGETS
INITITATIVES
Launched ‘Wonder Marble’ as the first branded natural colored marble in the country.
New Product Development
Various innovations have been done, to differentiate its products.
To excel out in providing differentiated products to the customers.
Provides various varities of marbles in various colours and textures.
Technological Leadership
The processing plant, which spans over 70,000 sq meters has 14 Gang Saw machines, two Resin Treatment Plants and One Eighteen Head State-of-the-art Polishing Plant, Over 4.5 lac sq feet of marble production every day.
Competence in Mining processes
The company endeavours consistently on adopting latest technological process so as to achieve the maximum output in the most efficient way.
No qualification criteria at managerial levels. Human Resource Development No specific promotional criteria. Training facilities need to be focused upon. To provide a pool of highly trained and efficient workmen.
A well-equipped Group Vocational Training Center is established at site to provide initial training to new entrants, refreshers and special training to existing employees
OBJECTIVES
MEASURES
TARGETS
INITIATIVES
Extent of Employee Empowerment.
Employees not allowed much participation in making decisions.
Base mobile and To keep the morale walky-talky sets are of the employees well maintained for high, and to smooth inculcate in them communication the feeling of amongst the belongingness to the staff/workers/officers. organization. To provide an healthy and safe working environment to the employees. Suggestion boxes have been kept at the working places which are duly considered on regular basis.
Consideration of employees suggestions.
The suggestions and opinions of the employees are given due importance, and are considered.
SWOT ANALYSIS OF R.K. MARBLES PRIVATE LTD.
A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. “SWOT ANALYSIS Helps to “ Exploit New Opportunities and Develop Strategies to Counter Threats”
HELPFUL STRENGHTS
HARMFUL WEAKNESSES
INTERNAL
-
Technological Skills Wide Market Production Quality Management Customer Loyalty Scale
-Training facilities not adequate -Less employee participation -Dependence on single product line.
OPPORTUNITIES
THREATS
EXTERNAL
-The use of ceramic tiles is increasing very much, thus substituting marble. -Increasing Demand of Marble -Hotels and Hospitals etc. Using products like Marble -Enough scope of exporting the marble. -Import of marble has been porting threat for marble industry in India -The manufacturing process of marble consume huge quantity of water, which is another problem.
CONCLUSION:
After discussing all these attributes, now the different processes and policies of R.K. Marbles Ltd. Have been familiarized with. It is acknowledged as the largest marble producing company of the world. Today R.K. Marble’s success can be gauged from the fact, that they have no bigger competitor in front of them. Even the second most competitor produces only 1/11 of its total production. Based on the measured performance of the company, the following conclusion can be drawn out: - The company does not have any bad debts, as they deal mostly in cash. - Net profit of the company has been continuously increasing throughout the years. - There has been no specific qualification criteria for the entrance of the employees. - Not adequate training facilities are available for the training of the employees. - Promotions are done on the basis of performance only. - Employee participation is not much in the decisions of the company. - Adoption of latest innovations and techniques such as Blind Cut Technique, Dot Laser Alignment device,Hydraulic Washing arm etc. have been the backbone for the company’s success. -The satisfaction level of the employees can be gauged from the fact that the employee tunover ratio of the company is less than 1%. - The customers are loyal, and are mostly satisfied by the services of the company. - The Safety Management is given utmost importance. Pit Safety Committee meetings are organized regularly for taking stock of safety preparation, accident analysis, and suggestions for remedial measures for achieving ZERO accident status. The personal protective equipment and safety gadgets are provided to employees and all out efforts are made to inculcate the habit of their regular use. A four-bed dispensary with Para medical staff and Doctor along with an ambulance is available at mines.
-The R. K. Marble Group Processing Center/Factory is powered by 14 Gang-saw machines with a capacity to produce more than a million cubic feet of marble slabs per annum. It has the most modern layout with completely automatic water treatment plant to recycle water for marble cutting. -Latest gadgets like wireless, hotlines, modems, computerized MIS and costing systems are being used in order to accelerate quality control and production, hence contributing to cost effectiveness. - R. K. Marble continue to seek, evaluate and use, when appropriate, new technologies and methodologies that enhance its ability to conduct our operations in a manner that reduces environmental impacts. -The company is solely dependent on a single product line, which may be a threatening factor in future.
Bibliography
¬ www.rk.marble.com -www.linkedin.com -www.scribd.com -company manuals and brochures
doc_614555002.docx