Description
Human resources is the set of individuals who make up the workforce of an organization, business sector or an economy. "Human capital" is sometimes used synonymously with human resources, although human capital typically refers to a more narrow view; i.e., the knowledge the individuals embody and can contribute to an organization. Likewise, other terms sometimes used include "manpower", "talent", "labor", or simply "people".
RESEARCH REPORTS ON HR TRAINING & DEVELOPMENT AT NOV SARA INDIA (PVT) LTD
CONTENTS
i. ii. iii. iv. v. vi. vii. viii. ix. x. xi. xii. xiii. xiv. xv. COMPANY PROFILE BACKGROUND OF PROMOTERS & THE COMPANY ABOUT NOV PRESENT SCENARIO OF THE COMPANY MEMBERSHIP OF VARIOUS ASSOCIATION FINANCIAL HIGHLIGHTS & INFRASTRUCTURE OF NOV SARA INDIA PVT. LTD. OBJECTIVES OF THE COMPANY POLICIES OF THE COMPANY COMPANY’S OFFICES CURRENT PRODUCTS OF NOV SARA INDIA PVT. LTD. ORGANISATION STRUCTURE OF DIV-1 HUMAN RESOURCE DEPARTMENT TRAINING AND DEVELOPMENT RECRUITMENT SELECTION IN NOV SARA INDIA PVT.LTD.
xvi. xvii. xviii. xix. xx. xxi. xxii. xxiii. xxiv. xxv. xxvi. xxvii.
GRIEVANCES & DISCIPLIANRY ACTION ACCOUNTS DEPARTMENT QUALITY CONTROL DEPARTMENT PROGRAMMABLE LOGIC UNIT MAINTENANCE DEPARTMENT MATERIALS DEPARTMENT/ PURCHASE DEPARTMENT MANUFACTURING DEPARTMENT FABRICATION & ASSEMBLY SHOP STORES DEPARTMENT MIS & IT THE KEY RESULT AREAS SWOT ANALYSIS
Company Profile
Background Of Promoters and The Company
Mr.C.Kumar after graduation in mechanical engineering joined Larson & Turbo Ltd, Bombay in1962 and worked for fourteen years as resident engineer in the oil field division of the company. Mr V.K.Dhawan B.E(Mechanical) joined ONGC as a drilling engineer in 1968 & worked for 6 years in various drill sites of the located in the eastern part of India in 1974 he relinquished the charge in ONGC and joined Larsonn & Turbo. Later he decided to entrepreneur and left it to promote the SARA SAE in May 1980.
SARA SAE the parental company of Sara Group Of Industries ,whose foundation was laid on 27th march 1980, as a business unit started its manufacturing activities in the year 1983. The company was registered under the COMPANIES ACT, 1956 on the above date and received the certificate of incorporation under the act. SARA SAE has now been merged with a MNC- NATIONAL OILWELL VARCO (NOV) ,USA which is a Fortune 500 company, and has adopted the name NOV SARA INDIA PVT. LTD.
About NOV
National Oilwell VARCO is the leading provider for the worldwide oil and gas industry and has been dedicated to providing the highest quality oilfield products and services for more than 140 years. National Oilwell Varco is the single source for all of your rig equipment, integrated systems, downhole tools, and supply chain solutions. From a spare part to a comprehensive drilling system – and from a generic valve to a fully integrated supply chain process, National Oilwell Varco delivers unlimited customer solutions. By constantly developing and acquiring new technologies and services to better serve future customer requirements, National Oilwell Varco will continue to be the premier source for diversified product and services worldwide.
National Oilwell Varco provides a comprehensive range of pumping system to meet the most demanding customer requirement. Engineers of NOV apply years of experience to deliver optimal pumping solutions based on material selection, service application, and performance criteria. National Oilwell Varco provide custom fabrication, training, commission, and field service to meet our customers’ specific pumping requirements worldwide. Innovative product engineering and quality manufacturing processes result in durable, high performance pumps that provide years of reliable service. Whether extensive customer pumping systems or expendable parts are required, National Oilwell Varco can supply the solution. The quality plan of this company meets the requirement of APN(American Pertoleum Institute) Specification and SARA’s design, manufacturing and services are certified under ISO-9001.
PRESENT SCENARIO OF THE COMPANY
Today NOV-SARA is the largest oil field equipment manufacturing company in India with more than 15items in its product line which include BOP control systems, High pressure test unit, Hydraulic Casing& Tubling tongs, Wireline winches, water Blaster, Nitrogen pump, Data Acquisition & Monitoring unit for blow out preventor control system, high pressure flexible steel hose assemblies, hammer unions, valves, high pressure flowline products, flanges, etc. Besides, the company also manufactures components for steam turbines and aircraft’s under carriages for BHEL. The company’s main customers are ONGC, OIL&CONTACTORS engaged in oil exploration. The company also exports in bulk to U.S.A & JORDAN. The company’s highly honed skills in Precision Engineering , CNC Turning , Hydraulics , Pneumatics and High Pressure System as developed for the manufacture of High Technology Oil Field Equipment provide a strong technological base for the company to diversify its activities. With a strong financial base the company , now intends to use this base to expand its infrastructure to meet the increasing demands of the automobile Industry.
MEMBERSHIP OF VARIOUS ASSOCIATION
The SARA group is a member of various associations such as: • Indo-American Chamber of commerce • Confederation of Indian Industry • Federation of Indian Export Organisation • Engineering Export Promotion Council
FINANCIAL HIGHLIGHTS & INFRASTRUCTURE OF NOV SARA INDIA PVT. LTD.
The company’s financial turnover in the financial year 2006-2007 was Rs.85 crores (approx.). The company’s plant is located on an area of 7000 sq. Meters approx. The company is equipped with modern machinery acquired domestically & imported from abroad. Testing facilities provided at NOV – SARA INDIA PVT. LTD. are as per the API standards. Besides this the company has a well organised QUALITY CONTROL department & the company has been accorded the right to use the prestigious ISO-9001 & API monogram. NOV SARA PVT LTD company limited by shares. Registered office is situated at Union territory of Delhi. Share capital 2,80,00,000/- divided into 2,80,000 equity shares of rs 100 each. S.no 1 Shareholders Minority Shareholders No.of Shares 61,235 % of Share Holdings 24
2 Total
NOV
193,912
76 100
OBJECTIVES OF THE COMPANY
The objectives of the company, outline the broad plans formulated, targets forecasted & the activities that need to be performed in order to achieve the set goals. The broad objectives as envisaged by the management of the company include the following: ? The main object of the company as per its Memorandum Of Association is to carry on the business of manufacture of oilfield equipments such as BOP Control Systems, Hydraulic Power Tongs, Hammer Unions and other related oil field equipments. ? It is the management’s resolution to achieve improved Quality by motivating all concerned to involve themselves in the challenging task of continuous innovations and improvements in design and manufacturing processes. ? Management shall undertake all efforts to provide continual training & education to facilitate innovations & improvements. ? The company aims to achieve sales worth 250 million US $ by the end of the year 2012.
POLICIES OF THE COMPANY
The policies envisaged for the company by the management, keeping in view the standards to be achieved in context of the ISO and API standards form of basis of the functioning of the company.
The policies as envisaged by the company’s management are as follows? ? It is the policy of the company to achieve rapid & continual improvement in the performance to ensure that all the products meet or exceed the design specifications & customer requirements. ? It is the company’s policy to be a provider of products of quality, comparable with international standards at prices based on Asian costs i.e. offering customer price advantage of 30-40% over the western costs. ? The company follows a policy of supplementing the product sales with, customer friendly after sale services at competitive costs using lower cost but skilled manpower available in India.
COMPANY’S OFFICES ? The registered office of the company is situated at :
G.L.-3 ASHOKA ESTATE,24 BARAKHAMBA ROAD, NEW DELHI- 110001
? The Head office is situated at :
7/1 PRITAM ROAD DALANWALA, DEHRADUN (U.K)- 248001
? Manufacturing Plant & Service at :
Subhash Nagar , Industrial Area Mohabewala, Dehradun (U.K)- 248001
?
Marketing & Branch Offices are located at Bombay, Dehradun, Delhi & Chennai.
?
NOV- SARA INDIA PVT.LTD.
also has its representative offices at Calcutta, Ahemdabad, Guwahati.
?
Overseas Representative Offices are located at Jordan, Baharin, Kuwait, Turkey, Iraq, Indonesia,
Philippines, Netherlands & China.
CURRENT PRODUCTS OF NOV SARA INDIA PVT. LTD.
1) BLOW OUT PREVENTOR (BOP) CONTROL SYSTEM:
BOP units are mandatory on all exploratory or operational wells to prevent blow outs on account of unexpected upsurges of gas at the well head. A BOP fitted on a well head closes on gas buildup either automatically or through manual activation by sealing inlet & outlet passages of the well with hydraulic rams that operate within 2 to 3 seconds of the buildup. BOP Control Systems can be operated through remote control panels interfaced with the Accumulator Unit through interface modules containing Solenoid Valves, Pressure Switches, Transducers, Transducer Power Supply & Safety Alarm System components in an explosion proof enclosure.
2) HYDRAULIC POWER TONGS: These are used to
hydraulically hold & screw on vertically held additional lengths of threaded steel pipes onto the length of pipe already sunk into an oil well. The subsystems include a robust clutch system for variable speed, explosion proof motors for efficient power, compatible hydraulics & metallurgy & hydraulic power pack with geared or vane pump. Besides, BOP Control Units & Tongs the company also manufactures various other products which include the following:
• Air remote panels
• • • • • • • •
PLC Panels with touch screen display Hydraulic Tongs Power Units Hammer Unions Swivel Joints Spools & Adapters Ring Joint Gaskets Choke Manifolds
Besides, the company also manufactures components for Steam Turbines & Aircrafts Under Carriages for BHARAT HEAVY ELECTRONICS LTD. (BHEL)
ORGANISATION STRUCTURE OF DIV-1
Human Resource Department
Human Resource Management
Human resources are the people that staff and operate an organization … as contrasted with the financial and material resources of an organization. The Human Resources Management (HRM) function includes a variety of activities, and key among them is deciding what staffing needs you have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities also include managing your approach to employee benefits and compensation, employee records and personnel policies. HRM is the art and science of optimum utilisation of human potential engaged at work in any organisation. the objective is to achieve peak motivation of the employees with a view to achieve the desired results in an organisation.
Human resource management serves these key functions:
1. Recruitment Strategy Planning 2. Hiring Processes (recruitment) 3. Selection 4. Training and Development 5. Performance Evaluation and Management 6. Promotions 7. Redundancy 8. Industrial and Employee Relations 9. Record keeping of all personal data. 10.Compensation, pensions, bonuses etc in liaison with Payroll 11.Confidential advice to internal 'customers' in relation to problems at work 12.Career development HRD activities are designed to make people effective in their present job position, which is a part of the training function. But it also helps to focus on future identifiable job and become a part of education function.
The main objectives of HRM are as follows:
• To ensure optimum use of existing human resources. • To forecast future requirement for HR • To ensure effective measures are taken so that the necessary human resource are available as and when required. • To asses the surplus and shortage of HR. • To provide a basis for management development program. • To meet the needs of expansion and diversification of programs.
FUNCTIONS OF HRESOURCE & ADMINISTRATION DEPARTMENT
1) Maintenance of attendance/ incentive against extra work.. i) Handling, updating leave records & processing of LWP applications. ii) Action on data received from FINGERTECH machine in r/o of staff. 2) Manpower- post joining actions. 3) Action against errant employees. 4) Grievance handling. 5) Welfare Activities. 6) Correspondence/ Work related to Government Departments. 7) Other actions. 8) ISO & API related work. 9) General functions. 10) Functions related to Induction & Training. 11)Other Assignments. 12)Heath, Safety, Environment, Security & control. 13)Reception control.
MAINTENANCE OF ATTENDANCE RECORDS
One of the main functions of the HR & Administration department is to ensure that the correct time of arrival & departure of the employees of the company is recorded & entered correctly in the database system in use in the company. The time for arrival is 9 in the morning & for departure is 5:30 in the evening. After the time of arrival & departure has been recorded in the data base system of the company, the system is so designed that it automatically updates the information pertaining to each employee as regards the number of leaves taken by him/her, whether the employees are reaching in time , on which dates they had taken half day leave & short leaves. In this context, it is important to take into consideration the various types of leaves that can be availed by the employees of NOV SARA INDIA PRIVATE LTD. which are as follows: • EARNED LEAVE: The employees get one earned leave for every 20 working days. It is only these leaves which if taken do not result in the reduction of the pay of the employees. • CASUAL LEAVE: As the name suggests the employees can take such leaves whenever there is any kind of emergency by submitting an application for same. An employee can take a maximum of 5 casual leaves in one year. • LEAVE WITHOUT PAY: Once the earned leaves of an employee have been fully availed off by him/her then any leaves taken by the employees without any serious or emergent reasons are known as Leave Without Pay. Such leaves can be availed for a maximum of 30 days & the employees will not be paid for any such leaves taken by them. • MEDICAL LEAVE: This leave can be availed by the employees when suffering from any serious illness. This leave can be availed for a maximum of 10 days. • ESI LEAVE: As per the Employee State Insurance (ESI) scheme, the employees of the company may take leave as per the recommendation of the concerned doctor. The maximum period for
which such leave can be taken depends on the doctor’s recommendation. • MATERNITY LEAVE: In order to ensure convenience of the female employees of the company, maternity leave is granted to them for a period of 90 days so that they can work with full spirit & give their best. • ACCIDENTAL/DISABILITY LEAVE: This leave can be availed by the employees of the company when they meet with an accident & suffer from some kind of disability or injuries. The maximum period for such a leave depends on the gravity of the injuries sustained. • SHORT LEAVE: The employees can take a short leave for a period of two hours on any working day due to some emergent requirements. Short leave calls for the deduction of the employee’s salary by one-fourth of a day’s salary. Any time spent by the employees of the company outside its premises for personal work beyond 2 hours, shall be counted as half day & accordingly salary shall be deducted for half day. In order to ensure that the correct time of arrival & departure of the employees from the company is recorded, the company has a punching system which has been installed right at the entrance of the company’s premises. The employees are expected to punch while entering the company & also while moving out of the company. This updates the database system in use in the HR & Administration department & enables them to maintain correct & accurate records pertaining to the daily attendance. The HR & Administration then sends the details of the number of working days of an employee during a month, the no. of leaves taken in that month & other required details to the Accounts department so as enable them to determine the pay of each employee.
TRAINING AND DEVELOPMENT
Training is the process of increasing the knowledge and skills for doing a particular job. It is an organised procedure by which people learn skills for some definite purpose. The basic purpose of training is to bridge the gap between job requirements and competence of an employee. Training is a short term process utilizing a systematic and organised procedure by which non-managerial personnel learn technical knowledge and skills for a definite purpose. On the other hand , development is a long term educational process utilizing a systematic and organised procedure by which managerial personnel learn conceptual and theoretical knowledge for the general purpose. It is generally designed for the managers and involves broader education and its purpose is to ensure long term development of those managers who undergo such training. I) TRAINING DIRECTIVES : 2007-2008 Due to lack of guidelines, no clear cut policy is being followed in the company for the conduct of training of either the new employees who join the company or the existing employees of the company. Training programmes are being organised in the company on adhoc basis without defining the aims to be achieved thereby, resulting in unfruitful efforts and wastage of considerable amount of time. II) AIM OF THE TRAINING DIRECTIVES: The basic aim of these directives is to lay down specific guidelines for the conduct of training at managerial, supervisory and workers level with a view to achieve qualitative improvement in their professional standards.
III) SCOPE:
The directives lay down guidelines for the following categories of personnel: A) MANAGEMENT/ SUPERVISORY LEVEL • Induction Training for new staff. • Orientation Training for the managerial level/staff • Orientation Training for the middle level managers & supervisory staff B) WORKER LEVEL • Vocational Training (selected trades) • Up-Gradation Training (on job training)
IV) INDUCTION TRAINING :
Induction training is planned twice in a year in the company. Personnel who have joined the organisation in the last 6 months are put through such training. The duration of Induction Training is generally one week (during June/July and Jan/Feb next year)
The following subjects will be covered during INDUCTION TRAINING
1. General information about the SARA GROUP and a briefing on higher appointments &organisations. 2. Rules & regulations for staff. 3. Rules & Regulations for workers. 4. Social behaviour & etiquettes 5. Office procedures (letter writing norms) 6. Labour laws 7. Material management (demand & supply) 8. Logistics (storage & dispatch procedures ) 9. Quality control (norms&procedures)
V)
10.Finances (briefing on documentation &procedures) ORIENTATION TRAINING: (Managerial staff)
The aim of this training is to expose the managerial staff to new innovations & advancements in the fields of marketing, manufacturing &material management. For such training suitable faculty are hired by the company. Besides this many other organisations like Confederation Of Indain Industry (CII)are approached to identify and hire suitable faculty. The duration of these training programmes is generally about a week, with classes being run in the afternoon sessions, since managers will be going through such training in addition to their routine job. These kind of programmes are generally conducted only once in a year. In addition, organisations like CII, FICCI etc. conduct seminars/workshops to given sufficient exposure to the managerial staff of the member companies. Nominated suitable managers of the company attend these seminars/workshops at the company’s expense and these trained managers could then be utilized as faculty to conduct IN HOUSE TRAINING which includes Induction Training & Orientation Training of the junior staff.
VI) ORIENTATION TRAINING (MIDDLE LEVEL MANAGERS & SUPERVISOR) :
The purpose of this training is to give exposure to middle level managers & supervisor so that they can take over independent assignments as managers & can run departments without supervision and guidance. Such training is conducted once in a year for a duration of about one week with classes being organised in afternoon sessions so that it does not affect the routine work of those who undergo such training.
During the training programme the following subjects have to be emphasised upon: 1. Leadership qualities 2. Team building 3. Communication skills 4. Time management 5. Conflict management 6. Inter personnel relationships Suitable faculty is sourced or identified from within the company , since the company does not have the required expertise. The company also identifies suitable management consultancy firms who could conduct a seminar/workshop for giving appropriate advices to the company as well training to the required personnel.
VII) VOCATIONAL TRAINING: (SELECTED TRADES)
Since the company faces difficulty in acquiring trained & experienced tradesmen & suitable candidates from the various technology institutes to meet their requirements , therefore the company has decided to start its own Vocational Training Institute at Mohebewala (Dehradun) Factory Premises. The Modus Operandi will be as follows: 1. Identify four critical trades & decide on the syllabi & duration of each course (say 3 months approx.) 2. Identify suitable instructors to run these courses. 3. Select candidates by newspaper advertisements or campus interviews & various technology institutes. The company prefers to select fresh candidates who are either B.Sc or 10+2 with a science background & have an inclination towards a particular trade. 4. Fix up the stipend to be paid to the selected candidates during training. 5. Periodic assessment procedure should be established so that unsuitable trainees are weeded out during the course.
6. On successful completion after the theory/practical tests conducted by the company, the trainees will be awarded certificates & absorbed within the establishment.
UPGRADATION TRAINING
Upgradation training is given to the company’s employees by means of In House Training and Training with outside agencies. 1) IN HOUSE TRAINING: In House Training is given through either, On The Job Training or Off The Job Training. A) ON THE JOB TRAINING: Trainees earn as they learn under the watchful eyes of a master mechanic or craftsmen , receive immediate feedback , practise in the actual work environment , and associate with the same people they will work with after training. IN NOV- SARA INDIA PVT.LTD. it is acquired by the employees in the following ways: • Coaching By Superiors: In the company employees are coached and instructed by skilled co-workers , by supervisors , by the special training instructors. They also learn the job by personnel observations and practise as well as by occasionally handling it. • Under Study: The employee is trained by his/her immediate superior.
B) OFF -THE JOB TRAINING: Off-the job training simply means that the training is not a part of everyday job activity to upgrade his/her knowledge in the related field. The company organises off-the job training for the existing employees as well as for the newly inducted employees. 2. TRAINING WITH OUTSIDE AGENCIES:
The company ,sometimes sends its employees to outside agencies for performing training. They are sent to BARC BOMBAY , CTR LUDHIANA , ISNT etc. , the employees are also sent to abroad for training purposes.
CAREER PLANNING & DEVELOPMENT
Career planning refers to systematic process by which one selects his/her career goals and the path to attain them. From the company’s point of view it means helping the employees to plan their career in terms of their capacities within the context of the company’s needs. It involves designing an organisational system of career movement & growth opportunities for employment stage to the retirement stage. Career development is very necessary for the employee’s satisfaction. Sufficient & proper incentives & opportunities are made available by the company for the purposes of career development & various promotional avenues are also made available to the employees as per the company’s policy. Promotions are given to the employees based on their performance, potential, hard work & several other factors that distinguish an employee from others. In the company promotions are based on either of the following: 1. RANK-IN-THE-JOB: Under this system content of job including the levels of skill, efforts & responsibilities form the basis. In this system emphasis is laid on job evaluation, organisational planning etc. These are used as the basis to determine the pay & the status of the employee in the organisation. 2. RANK-IN-THE-MAN: Under this system, emphasis is put on the proficiency of the employees of the company. It helps in determining the position of an employee in the organisational hierarchy. At the same time it is important to note that all the promotions in the company are made on trial bases i.e. generally for a period of 6 months to a year. If the employee so promoted is not found to be capable of handling
greater responsibilities then, he may be reverted to his former post & former pay scale.
RECRUITMENT
DEFINITION:
Recruitment refers to the discovery & development of the sources of required personnel so that sufficient number of candidates will always be available for employment in the organisation. It has been defined as the process of searching for prospective employees & stimulating them to apply for jobs in the organisation.
PURPOSE:
The purpose of recruitment is to seek out or explore, to evaluate, to induce & to obtain commitment from the prospective employees so as to fill up the positions required for the successful operation of an enterprise. Recruitment provides a pool of candidates to enable the management to select suitable candidates for different jobs.
SOURCES OF RECRUITMENT
The various sources of Recruitment are as follows:
1.INTERNAL SOURCES:
It refers to recruitment from within the organisation. The main internal sources of recruitment include Transfers & Promotions. Transfer refers to the shifting of an employee from one job to another without a drastic change in the responsibilities & status of the employee. On
the other hand, promotion involves shifting of an employee to a higher position carrying higher responsibilities, higher status & more pay. Business enterprises generally follow the practise of filling higher posts or jobs which involve higher responsibilities by promoting employees from lower jobs. This practise helps in enhancing the motivation & morale of the employees. Internal recruitment also simplifies the process of selection & placement. The candidates are already working in the company & therefore, they can be evaluated more accurately & economically. NOV- SARA INDIA PVT. LTD. makes use of this method for the purpose of filling up any vacancy that may emerge in the company. In order to fill up the vacancies, somebody from within the company is upgraded, transferred or promoted. At the same time the company also recruits the personnel who were once on the payroll of the company but who plan to return or whom the company would like to hire.
2.EXTERNAL SOURCES:
Every company has to tap the various external sources of recruitment for various positions because all the vacancies cannot be filled through the internal sources of recruitment. The present employees may be insufficient or they may otherwise not fulfil the specifications of the jobs to be filled in. A newly established firm has to recruit all its employees from outside & the existing firms have to recruit people from outside to meet the requirements that the existing employees of the company cannot meet. The various external sources of recruitment include recruitment by means of Advertisements, Educational institutions, Recommendations by the existing employees, Employment agencies etc.
NOV- SARA INDIA PVT. LTD. makes use of the following External sources of recruitment: New entrants to the labour force, mostly inexperienced potential employees. The retired experienced persons. The unemployed possessing the required skills who have registered themselves with some job contractors. Recently, the company has hired a portal namely NAUKRI.COM on which the company can invite Resume & thereby serve to be an external source of recruitment. Besides, this the following methods are exclusively adopted by NOVSARA INDIA PVT. LTD. for recruiting the desired manpower from outside the company: A) DIRECT METHOD: The company sends its recruiters to colleges & technical schools for the purposes of choosing the most suitable candidates as per the job requirements. B) INDIRECT METHOD: The company uses various external sources of recruitment which include the use of Advertisements, newspapers, technical magazines, brochures etc. C) THIRD PARTY METHODS: These methods include the use of commercial or private employment agencies, placement cells or offices of colleges & professional associations, recruiting firms, employment exchanges, management consulting firms & also through the recommendations given by friends & relatives.
SELECTION IN NOV SARA INDIA PVT.LTD.
The selection procedure in Nov Sara is concerned with securing relevant information about an applicant. This information is secured in a number of stages. The basic objective of the selection process in the company is to determine the capacity of an applicant and whether the concerned applicant has the required qualifications for the respective job applied for and to choose the most suitable applicant for the vacant job.
SELECTION PROCEDURE IN NOV SARA INDIA PVT.LTD.
The following steps are involved in the selection of an applicant: 1. SCRUTINY OF THE APPLICATION FORMS: Applications are first invited through advertisements in the leading newspapers or other media and after the applications have been received they are scrutinised by the manager of the human resource and administration department of the company. 2. SHORTLISTING:Applications are first screened with regard to the vacancies and further short listed if they meet the basic eligibility criteria demanded by the company. 3. Short listed candidates are subject to further selection process & the applicants who have been rejected are informed via a written letter stating the reasons due to which their applicants have been rejected. Short listing of the candidates is the first step in screening out the unnecessary applicants.
4. PRELIMINARY INTERVIEWS: The basic objective of such interviews is to screen out undesirable candidates at the very outset. Prospective applicants are given the necessary information about the company & the nature of the job to be performed by them once selected. The necessary information is then elicited from the candidates relating to their education, experience, skills, the salary demanded by them, the reasons for leaving their present job (if any), their job interests. After considering all these factors, if the candidate is found to be suitable for the post vacant in the company then he/she may be selected for further scrutiny & examination. 5. EMPLOYMENT TESTS: For particular posts in the company, tests are conducted. The Personnel department organises & helps in the selection of the most suitable candidate for a particular post. Tests are taken with a view to evaluate the intelligence, interest, & psychology of the candidates. 6. TRIALS: In case there is a requirement of skilled manpower, then trials as per the requirements of the company are conducted in company. 7. MEDICAL EXAMINATION: Personnel performing visual examinations & calibration process have to go through an eye test conducted by the company. 8. INTIMATION TO THE SELECTED
CANDIDATES ALONG WITH THE LETTER OF APPOINTMENT: After, the suitable candidates have been
selected, they are intimated about their selection & an Appointment letter is issued to them by the company giving them preliminary information about the company, the date of their joining the company, the terms & conditions at which they have been appointed & other relevant details.
GRIEVANCES & DISCIPLIANRY ACTION
Grievance basically, refers to problems of any kind faced by the employees of the company. Redressal of such grievances is essential in the interest of the company & to ensure that the employees remain motivated to perform efficiently & give their best to the company.
GRIEVANCES may be:
• Written or verbal • Expressly stated by the employees of the company • Valid or legitimate • Untrue or completely false • It may arise with regard to the job or the department in which an employee has been placed. Grievances may arise as and when the employees working in an organisation feel that some kind of injustice has been done to them. Attrition, which basically refers to the disputes or differences among the employees of either the same department or of different departments, is also a part of the Grievances.
MAIN CAUSES OF GRIEVANCES
The main reasons why the employees of a company have grievances & feel that they have been unjustly treated are as follows: • Difference of opinion among the co-workers • Difference of opinion with the superiors • General working conditions in the company • Demand for labour welfare activities • Lack of personal touch in the relationship between the superior & the subordinates. A proper & well planned Grievance procedure must be laid down or adopted by the company as it will be of great help to the company in handling any grievances that the employees may come up with & such procedures will also ensure the satisfaction of the employees & the company as well.
There are two types of Grievance Handling Procedures & these are as follows:
A)
OPEN DOOR TYPE:
Any employee of the company who feels that injustice has been done to him or who has faced any kind of problem can directly approach the highest authority of the company. In other words, there is no restriction on the employees of the company & they get an opportunity to discuss their grievances with higher authorities of the company. This type is beneficial as it enables the owners of the company to have sufficient knowledge about the problems being faced by their employees & it gives the owners a platform whereby they can have a one to one talk with their employees. A)
STEP LADDER TYPE:
However, it is very difficult to have an Open Door type of Grievance handling procedure in place as it generally consumes considerable time of the owners of the company. Therefore, an alternative to the Open Door Type is the Step Ladder Type of Grievance Handling Procedure.
Under this type, as the name suggests the aggrieved employees can not directly approach the owners of the company but they have to first approach the HR & Administration department of the company & get their Grievances registered with the Personnel department. The HR & Administration department of the company then takes the required steps to ensure that the employees Grievances are redressed. The HR & Administration department conducts an enquiry once a grievance is registered with them to find out the truth of the same & take a decision with regard to what measures can be taken up to ensure that both the employees & the company are satisfied. If the employees are not satisfied with the decisions taken by the HR & Administration department, in that case they have the right to approach the higher authorities. NOV-SARA INDIA PVT.LTD. makes use of the second method described above for the purposes of Grievance Handling. Besides, this the company takes efforts to settle down Grievances at the root level & for this purpose the company has set up a SARA SOCIAL COURT. There are certain objectives of the SARA SOCIAL COURT & these are as follows: • It ensures that every employee shall at all times take all possible steps to protect the interest of the company & discharge his duties with integrity, honesty, devotion & diligence. • It ensures that every employee shall maintain good conduct & discipline. • To develop a healthy work atmosphere & harmony & brotherhood amongst the management & employees of the company.
PENALTIES
The following are the Penalties, which may be imposed on the employees for any kind of misconduct or for any other reasons: • Imposing fine for any loss caused to the company, on account of any misconduct or fraudulent activities of the employee which has to be recovered from the pay of the respective employee. The amount so recovered will be kept in a special fund to be utilized for the welfare of the employees. • Recommendation for with holding any increment in the pay of the concerned employee. Besides, the Social Court which is in place in the company, a WORKERS WELFARE COMMITTEE has also been set up in the company for the redressal of the worker’s Grievances. It mainly comprises of the representatives of every SHOP in the company which includes the CNC SHOP, MACHINE SHOP, ASSEMBLY & FABRICATION SHOP.
ACCOUNTS DEPARTMENT
Finance Department is responsible for handling all financial matters in the life of the Organization.The smoothness of a company’s functioning & its profitability depends on the performance of the Accounts department. The main activities performed by the accounts department are as follows: • Recording of all the transactions in the appropriate Books of entry. • Posting of the entries in the Ledger • Reconciliation of the Ledger Accounts • Submission of Sales Tax Returns • Submission of Provident Fund (PF) & Employee’s State Insurance (ESI) Returns • Posting & Recording of Material Receipt Voucher (MRV) • Preparation & maintenance of the Export & Import related documents
• Maintenance of records pertaining to the expenses incurred. • To act as the custodian of cash • To ensure timely preparation & closing of Cash Book. • Disbursement of cash • Preparation of Salary & Wage Sheet(Payroll preparation)
PROCEDURE FOR SALARY & WAGE SHEET PREPARATION
Determination of the wages & salaries of the company’s employees & preparation & maintenance of the relevant records viz. wages sheet , salary sheet & other related documents is one of the main functions to be performed by the Accounts department of a company. The Accounts department of a company determines the salary or wage to be given to the employees based on the information received by the Personnel department. The Personnel department of the company intimates the Accounts department with regard to the attendance of the each employee, which forms the basis of the determination of the wages & salaries by the Accounts department. A definite procedure is followed for the maintenance of records pertaining to wages & salaries, which is as follows: 1. PREPARATION & UPDATION OF THE DEDUCTION LIST: Every month end i.e. between 25th to 28th, the person responsible for the preparation of salary & wage sheet must ensure that all necessary details relating to the Deduction list are updated viz., salary advance, tour advance, term loan, vehicle loan, tax deducted on source (TDS). This list has to be reviewed by the Head of the Accounts department for its accuracy & correctness.
2. RECEIPT OF INFORMATION FROM THE
DIFFERENT DEPARTMENTS & CROSS CHECKING OF THE SALARY & WAGE SHEET:
The “NO. OF DAYS” list prepared by the Personnel department for each employee of the company is normally received on the first day of the next month showing all the deductions with respect to the leaves taken. These must be cross checked with the Deduction List. Thereafter, the Salary & Wages Sheet must be cross checked again to ensure that everything is accurate & correct. Once, these lists are found correct, the remaining lists like payslip, Bank Letter, PF, ESI etc. are prepared for further verification.
3. APPROVAL OF THE SALARY & WAGES VOUCHERS: The necessary vouchers for Salary & Wages should have been passed by the Accounts department prior to approval from the General Manager for final disbursement. Such Vouchers should also be cross checked with the Salary or Wages sheet. 4. PREPARATION OF SALARY & WAGE ANALYSIS SHEET: The Salary & the Wages sheet shall enumerate the Summary of the details pertaining to the employees of the company viz., no. of employees currently working in the company, no. of employees- who left, joined, got increment etc. These details are worked out on the basis of the comparison made between the related figures of the current month with that of the previous month. 5. FINALISATION OF THE PF & ESI AMOUNTS: After collating the data received from the Head Office for Provident Fund (PF), the return should be finalised both for the PF & ESI (Employees State Insurance) before its due dates after properly completing all the required documents viz., challans etc.
ROLE OF PERSONAL DEPARTMENT IN ACCOUNTS SECTION
PAYROLL MANAGEMENT
The human resource department/The personal department of NOV SARA has a brief role in accounts department, Here the HR department prepares a monthly information of the number of working days and Arrear days with the employee code and then it places it to the accounts department for further calculations. the following is the format of the information statement placed by the HR deptn to the Accounts deptn:S.n o Monthly information for wages as on 31/3/2008 Employe Employe Day Arr Me Con Other V/L T/ e code e name s Day d Earnin L s g S/ A Securit I y ta x Other deducti on
After getting the above information from the HR department the Accounts department prepares the wages bill for the workers in which all the
deductions and additions are made and the final net pay amount is calculated. the following is the format of the wage bill:Wages bill for the month of March 2008 of general staff
code Name Days Basic Spl.pay D.A HRA Adhoc Med OA Gpay PF ESI VL Sal adv TL Sal adv Net pay
Basic:-xxxx DA:-xxx Adhoc:-xxx (Computer Section) (General Manager)
Special Pay:-xxxx HRA:-xx Total:-xxxx (Accounts Officer)
wages for PF/EPF:-xxx wages for ESI:- xxxx (Finance Manager)
Apart from the above net salary payments the company pays certain other allowances to the workers, they are: 1. TCI* (term commitment incentives), 2. Washing allowance, 3. Other allowances These allowances are shown in a separate sheet, the following is the format of it:Serial num Code Name Amount • TCI will have to be refunded by the employee if he quits the organization before the completion of two years, an employee may be sued if he does not do so. Employees here are divided in three categories:1. Unskilled 2. Skilled 3. Semi-skilled. DA are distributed according to the above mentioned categories.
In the staff bill unlike wage bill all allowances are shown in it. And certain toher additional allowances are given like CC allowance, Performance incentive,etc but DA are not given to the staffs. The format of the information statement provided by the HR department is as follows:S.no Code Name NOD Basic Conv Med Total T.L.Ins Sal.adv Net Payable Sign
PF of the staff is calculated on the basic pay. PF is calculated 12% on BP then the company pays 8.33% of PF amount as Pension and 3.67% After the PF calculation the accounts department prepares a CHALLAN of Employee Provident fund organization for the bank. Money has to deposited within 1 to 15 th of the respective month. (Separate CHALLAN is prepared for each month.
QUALITY CONTROL DEPARTMENT
The quality of a product or service refers to the perception of the degree to which the product or service meets the customer's expectations. Quality has no specific meaning unless related to a specific function and/or object. Quality is a perceptual, conditional and somewhat subjective attribute. Quality management is a method for ensuring that all the activities necessary to design, develop and implement a product or service are effective and efficient with respect to the system and its performance. Quality management can be considered to have three main components: quality control, quality assurance and quality improvement. Quality management is focused not only on product quality, but also the means to achieve it. Quality management therefore uses quality assurance and control of processes as well as products to achieve more consistent quality. Quality Management is all activities of the overall management function that determine the quality policy, objectives and responsibilities and implement them by means such as quality control and quality improvements within a quality system.
In engineering and manufacturing, quality control and quality engineering are involved in developing systems to ensure products or services are designed and produced to meet or exceed customer requirements. These systems are often developed in conjunction with other business and engineering disciplines using a cross-functional approach. Quality control (QC) is a procedure or set of procedures intended to ensure that a manufactured product or performed service adheres to a defined set of quality criteria or meets the requirements of the client or customer. QC is similar to, but not identical with,
Quality assurance (QA). QA is defined as a procedure or set of procedures intended to ensure that a product or service under development (before work is complete, as opposed to afterwards) meets specified requirements. QA is sometimes expressed together with QC as a single expression, quality assurance and control (QA/QC) In developing products and services, quality assurance is any systematic process of checking to see whether a product or service being developed is meeting specified requirements. Many companies have a separate department devoted to quality assurance. A quality assurance system is said to increase customer confidence and a company's credibility, to improve work processes and efficiency, and to enable a company to better compete with others. Quality assurance was initially introduced in World War II when munitions were inspected and tested for defects after they were made. Today's quality assurance systems emphasize catching defects before they get into the final product. In order to implement an effective QC program, an enterprise must first decide which specific standards the product or service must meet. Then the extent of QC actions must be determined (for example, the percentage of units to be tested from each lot). Next, real-world data must be collected (for example, the percentage of units that fail) and the results reported to management personnel. After this, corrective action must be decided upon and taken (for example, defective units must be repaired or rejected and poor service repeated at no charge until the customer is satisfied). If too many unit failures or instances of poor service occur, a plan must be devised to improve the production or service process and then that plan must be put into action. Finally, the QC process must be ongoing to ensure that remedial
efforts, if required, have produced satisfactory results and to immediately detect recurrences or new instances of trouble Quality assurance covers all activities from design, development, production, installation, servicing and documentation. This introduced the rules: "fit for purpose" and "do it right the first time". It includes the regulation of the quality of raw materials, assemblies, products and components; services related to production; and management, production, and inspection processes.
NOV SARA has its own Quality Policy which states:“Management and employees of NOV S SARA INDIA PRIVATE LIMITED are committed to achieve rapid & continual improvement in performance to ensure that all products meet or exceed design specification & customer requirements.
PROCEDURE FOR QUALITY ASSURANCE & QUALITY CONTROL (QA & QC) RECEIPT OF RAW MATERIALS, INSPECTION & TESTING:
All incoming material shall be kept in the STORES department of the company until their inspection has been done & it has been established that the raw materials received are according to the specifications of the company. No raw material shall be issued by the STORES department of the company until it has passed the inspection process conducted by the QA & QC department of the company & unless the provisions set forth in the procedures for the release of material for urgent production or emergency purposes are followed, in which case the items are properly identified & recorded in order to allow for immediate replacement in case of nonconformance to the specific requirements of the company.
All incoming material shall be inspected as per the documented procedures & quality plans.
IN PROCESS INSPECTION & TESTING:
• All stages during production where inspection, testing & identification are to be performed, are identified by means of the documented procedures & quality plans. • No material is moved on to the next stage or process until the above verification or inspection is complete. • The materials which do not confirm to the specifications of the company are identified & removed from the process.
FINAL INSPECTION & TESTING:
Final Inspection & Testing shall be carried out to ensure that all the required inspection & tests including those in process have been carried out satisfactorily. The Final Inspection results, must be recorded & authorised by the concerned authority.
The following pictorial representation of work process of QC synopses the above explanations.
In the following process a material can be accepted or rejected, rejection may be due to the following reasons:1. Wrong supply of raw materials or 2. Dimensionally wrong or 3. Operators fault or 4. Error in checking or
5. problem in machine, etc Accepted material goes to the store then to its next operation. In case of rejection , the material is send back to the party with a specified laid down procedure. In case of in process rejection a NCR* is prepared for analysis. After analysis QC persons find out if the rejected material is reworkable or is it finally scrap (NCR manager needs to sign before sending it to scrap) (*NCR? NCR tells about the reasons for which the produced component is rejected. The NCR gives a brief synopsis of the defective material and also the operator who was employed in that production. If there are chances of the products reproduction with minute modifications then it is sent for it if not then it is moved to scrap with prior permission of the senior in concern) NOV SARA posses ISO 9000, API which keeps an keen eye over whether the procedures and standards set by the organisation are followed or not. So the ultimate product from NOV SARA is a quality product.
NOV SARA posses an ISO 9001 standard.
ISO 9000 is an international standard that many companies use to ensure that their quality assurance system is in place and effective. Conformance to
ISO 9000 is said to guarantee that a company delivers quality products and services. To follow ISO 9000, a company's management team decides quality assurance policies and objectives. Next, the company or an external consultant formally writes down the company's policies and requirements and how the staff can implement the quality assurance system. Once this guideline is in place and the quality assurance procedures are implemented, an outside assessor examines the company's quality assurance system to make sure it complies with ISO 9000. A detailed report describes the parts of the standard the company missed, and the company agrees to correct any problems within a specific time. Once the problems are corrected, the company is certified as in conformance with the standard. ISO 9000 is a family of standards for quality management systems. ISO 9000 is maintained by ISO, the International Organization for Standardization and is administered by accreditation and certification bodies. Some of the requirements in ISO 9001 (which is one of the standards in the ISO 9000 family) include a set of procedures that cover all key processes in the business; monitoring processes to ensure they are effective; keeping adequate records; checking output for defects, with appropriate and corrective action where necessary; regularly reviewing individual processes and the quality system itself for effectiveness; and facilitating continual improvement A company or organization that has been independently audited and certified to be in conformance with ISO 9001 may publicly state that it is "ISO 9001 certified" or "ISO 9001 registered." Certification to an ISO 9000 standard does not guarantee the compliance (and therefore the quality) of end products and services; rather, it certifies that consistent business processes are being applied. Indeed, some companies enter the ISO 9001 certification as a marketing tool.
PROGRAMMABLE LOGIC UNIT
A programmable logic controller (PLC) or programmable controller is a digital computer used for automation of industrial processes, such as control of machinery on factory assembly lines. Unlike general-purpose computers,
the PLC is designed for multiple inputs and output arrangements, extended temperature ranges, immunity to electrical noise, and resistance to vibration and impact. Programs to control machine operation are typically stored in battery-backed or non-volatile memory. A PLC is an example of a real time system since output results must be produced in response to input conditions within a bounded time, otherwise unintended operation will result. The PLC department of the NOV SARA manufactures Smart Control Panels for BOPs. A blowout preventer (BOP) is a large valve that encases an oil well at surface. During drilling or well interventions, the valve may be closed if overpressure from an oil reservoir causes formation fluids such as oil and natural gas to back up within the wellbore and threaten the rig. By closing this valve (usually operated remotely via hydraulic actuators), the drilling crew can prevent explosive pressure release, thus regaining control of the reservoir pressure. Once this is accomplished, often the drilling mud pressure within the hole can be increased until enough fluid pressure is being placed on the reservoir, and the BOP can be opened for drilling to resume. The invention and use of BOPs resulted in the end of oil gushers, which were dangerous and costly. The basic function of these Control Panels is to collect, process, monitor & display the following data: • Rig Air Pressure • Accumulator Pressure • Annular Pressure & Manifold Pressure • Low Fluid Levels • Mains Fail • Low Accumulator Pressure • Low Manifold Pressure • Low Rig Air Pressure • Rams operation & Rams position • Function Test of Rams • Ram Operating Time • Pressure loss
MAIN COMPONENTS OF THE SMART CONTROL PANEL
The main components of the Smart Control Panel are listed below.
These components are required in all Small Control configurations & these are as follows: • Master Panel • Driller’s Control Panel • Tool Pusher’s Control Panel • MASTER PANEL: It is a data acquisition & processing device of the accumulator unit. Its main functions are as follows: 1. Receives & processes proximity sensor & pressure transducer data & transmits this data to the Driller Control Panel. 2. Receives & processes the data entered by the operator using the Display Touch Screen at the Driller Control Panel. 3. 4. 5. Powers the proximity sensors. Transmits data to the Driller Control Panel. For historical data display & hard copy printouts.
Besides the Master Panel, the Smart Control Panel has two Slave Panels namely: • DRILLER PANEL/RIG FLOOR PANEL: Driller Panel is an intrinsically safe device that displays proximity sensor data, pressure transducer data from the Master Control Panel & controls the Solenoid
Valves of the Master control panel. The master control panel powers it & this panel is mounted near the driller’s position on the Rig Floor. • MINI/ AUXILIARY REMOTE PANEL (TOOL PUSHER’s PANEL): A full or limited function panel is mounted in a remote location for use as an emergency backup. These panels are referred to as Tool Pusher’s Panel. Besides, the above master & its two slave panels the other Components of the Smart Control Unit are as follows: • PROXIMITY SENSOR: These are used to measure the position of the Control Valve of the Accumulator Unit. They are powered from the main PLC cabinet designed to be mounted through the control valve nameplate. It is metal sensitive & produces a signal pulse whenever a metal passes within 10mm of the sensor head. • ALARM (HORN): It is connected to the display panel & sounds when alarm conditions are reached. During an alarm, the horn can be silenced by pressing the “alarm acknowledge” on the display panel touch screen. • PURGE SYSTEM : It is defined as a device which is used to maintain the internal pressure of the panel with respect to the atmospheric pressure.
FUNCTIONING OF THE PROGRMMABLE LOGIC CONTROLLER (PLC) DEPARTMENT
The PLC department begins the process of preparing & assembling the control panels after a request has been made to the R&D department for the issue of designs/drawings that will form the basis of the assembling of the control panels. Once, the drawings/designs have been issued by the R&D to the PLC department, these drawings become the basis of the functioning of the PLC department. Once the drawings are available & the raw materials required have been determined, the head of the PLC department prepares a BOM i.e. Bill Of Material & a copy of which is issued by PLC to the other concerned departments. The BOM contains the following details: • Code number • Part number • Rack number • Drawing number • Description • Unit in which quantity is measured (set/ number) • The actual quantity of raw materials needed as per the requirements. Once, the BOM has been issued to the PLC department, they check whether the required number of Panels Enclosures are available with them or not. If the required number is not available then the PPC department is intimated & there after, efforts are made to acquire the same. The PLC department has to send a daily report of the work performed on the previous day to the PPC department during the meetings which are held on a daily basis in the company. In this context, it is important to note that the company imports the panels enclosures from outside & the PLC department is responsible only for the assembling of the panels. In other words, the PLC department has to perform programming & wiring on the imported panels as per the customer’s requirements. Once, the panels are ready they are finally assembled by the
Technical engineers engaged in the PLC department with the Blow Out Preventor (BOP) units.
STEPS INVOLVED IN THE PROCESSING & FINAL ASSEMBLY OF THE SMART CONTROL PANELS
The following steps are involved in the overall processing of panels & their final assembling or mounting over the BOP CONTROL SYSTEM. 1. RECEIPT OF ORDERS: Once, the company has received orders from its customers for either the BOP Control Systems or the Smart Control Panels, the PLC department determines the specific raw materials that will be needed in order to meet the specifications & the customer’s requirements. 2. REQUEST FOR DRAWINGS: Once the orders have been received, the PLC department requests the R&D department for the drawings related to the Panels made by the PLC department. The drawings made by the R&D department in relation to the control panels include both the schematic as well as wiring diagrams. Schematic drawings give a proper description of the final appearance of the control panels & how the assembling work has to be performed. Whereas, the wiring diagram describes how the wiring has to be done in order to meet the desired specifications. 3. DETERMINING THE SPECIFIC RAW MATERIAL REQUIREMENTS: Based on the orders received from the customers & the drawings issued by the R&D department, the specific raw material requirements are determined by the PLC department. 4. FINALISATION OF BOM: Based on the requirements of raw materials, the Bill Of Material (BOM) is finalised by the PLC department. The BOM forms the basis of the functioning of the department.
CHECKING THE AVAILABILITY OF THE REQUIRED RAW MATERIALS: Based on the BOM the Stores
5. department checks whether the required raw materials are available with the
company or not. If the required raw materials are not available then efforts are made to procure the same. 6. PROCUREMENT OF RAW MATERIALS: Depending on the shortages being faced & non availability of the required raw materials, the Panel enclosures of different sizes are imported & later on the doors of these panel enclosures are sent for etching or inscription of the desired descriptions. Besides, the Panel Enclosures, all the other required raw materials are either imported or procured locally or manufactured in the company itself depending on their availability with the company. 7. WIRING: Meanwhile, the work of wiring is done on a mounting plate & once the wiring as per the desired specifications has been done, the mounting plate is mounted as it is on the Panel Enclosure. 8. PROGRAMMING: After the mounting plate has been so mounted on the panel enclosure, the programmes are loaded in the PLC’s, which are used for the purpose of operating the control panel. 9. TESTING: Once the programmes have been so loaded the control panels are checked for the required functions. If the Control Panels are found to be as per the desired specifications & if their functioning is as desired, then these panels are mounted on to the BOP Control Systems. If the Control Panels have been made & assembled exclusively for the other company’s requirements, then they are made as per the customer’s specifications & supplied to them once these panels are ready. 10. FINAL ASSEMBLY: After final assembling with or mounting on to the BOP Control System, these systems are tested in order to determine their functioning & if any errors are discovered during testing, the same are rectified to meet the desired standards & specifications.
MAINTENANCE DEPARTMENT
This department provides maintenance for manufacturing facilities; safety regulations are observed & are maintained within the desired level of accuracy to enable the respective manufacturing department to produce quality producers as assigned by the management within the scope of NOV-SARA INDIA PVT.LTD. The above department is responsible for field & shop maintenance. The primary objective of the above department is to ensure maximisation of the production capabilities of the company and to ensure that there is zero breakdown if machines & equipments installed in the company through up-gradation, employing latest maintenance techniques. There are 170 machines in NOV SARA.
Besides this, the other main objectives of the Maintenance department are as follows:
• To ensure timely & quality repair. • Increase machine availability through more stress on preventive maintenance. • Root cause analysis of the failures & taking appropriate preventive measures.
• Improve machine accuracy & the life of the machines & equipments of the company through constant & timely maintenance • Modernization with a view to enhance the machine capacity. THE BASIC FUNCTION OF MAINTENANCE DEPARTMENT
Replace, Repair, Overhaul, Rebuilt, Service, Inspect, Test, Adjust, Align, Install.
The following chart throws light on the areas in which this department operates.
TYPES OF MAINTENANCE
1. BREAKDOWN OR EMERGENCY MAINTENANCE: In such a maintenance repair is done after some failure has already occurred. The equipment or machine is allowed to run undisturbed till it fails. Only when the equipment fails to perform the designated functions or comes to a grinding halt, any maintenance or repair job is taken up. 1. CORRECTIVE MAINTENACE: It means maintenance actions for correcting or restoring a failed machinery or equipment. Corrective maintenance is generally a one time task, once taken up it has to be completed fully. 2. ROUTINE MAINTENANCE: It is one of the simplest but very essential form of maintenance. Routine Maintenance is basically concerned with avoiding, eliminating or reducing the consequences of failure. The small & critical defects observed during the routine checking are rectified immediately & jobs which take more time are planned to be performed later on as soon as possible. 3. PREVENTIVE MAINTENANCE: It includes any actions taken to prevent the failure of the machines & the equipments. Preventive Maintenance is the planned maintenance of plants & equipments of the company including & resulting from routine maintenance inspections & condition monitoring etc. in order to prevent or minimize the cases of breakdown.
CHALLENGES BEFORE THE MAINTENANCE DEPARTMENT
• Maintenance of the old machines & equipments. • Matching the demand of increased production targets & reduced delivery. • Proper maintenance of modern machines . • Spare parts management. • Development of service providers.
MATERIALS DEPARTMENT/ PURCHASE DEPARTMENT
MANUFACTURING COMPANIES
The manufacturing companies are basically of three types: 1. JOB BASED MANUFACTURING COMPANIES: Such companies manufacture the products based on the customer orders received by them. Their functioning & production is guided by the customer orders obtained by them. 2. BATCH PRODUCTION UNITS: Based on the market survey & sales forecast conducted by marketing department these manufacturing companies produce goods in batches or lots. At the same time such companies are not guided by the customer orders, instead they produce the set lots or batches irrespective of the existing demand for their products. The products of such companies are identified by means of their batch number. 3. MASS PRODUCTION UNITS: These kind of manufacturing companies produce goods in bulk. Such companies mainly comprise of the (FMCG ) Fast Moving Consumer Goods like eatables, toiletries etc. These products have Bar Codes inscribed on their back side which is an evidence that the products of the company
conform to the specifications as per the national as well as international standards. NOV SARA INDIA PVT. LTD. is primarily a Job Based Manufacturing company. Its functioning depends on the orders obtained by the company from its customers. The receipt of orders is followed by the preparation of the Bill Of Materials (BOM) by the PPC department giving a detailed description of the raw materials required for the production of the desired products. The Research & Development department then prepares the drawings/ designs that will form the basis of the production of the final product in order to meet the customer’s specifications. The PPC department checks out whether the required raw materials for production purposes is available or not. If not available the Purchase department is intimated by the Production Planning & Control department (PPC) regarding the shortages.
PURCHASE
The basic function of the Materials department is to ensure the procurement of the required raw materials as soon as possible in order to avoid any kind of delays. After the shortages have been identified, these are intimated to the Materials & Licensing department by the PPC department. The purchase department takes the required efforts in order to procure the requirements intimated to it. The manager Materials & Licensing department is responsible for the procurement of raw materials as per the required specifications. Moreover, it calls upon the Materials Manager to ensure that the raw materials are procured: • • • • • Within the stipulated time period From the most appropriate vendor At the most economical rate Of the desired Quality At the most appropriate place in order to ensure that minimum distance has to be covered after the materials have reached the company’s premises.
The raw materials procured by the Materials department can be categorised into three broad categories & these are as follows: • Bought Out • Imported components • Raw materials, Castings & Forgings In this context, it shall be impertinent to say that the Materials department must ensure the timely procurement of the required materials or parts as the case be so that the final assembling of the BOP Control Systems is not delayed.
PROCEDURE FOR THE PROCUREMENT OF REQUIRED RAW MATERIALS & OTHER MANUFACTURED PARTS LOCALLY
The procedure involved in the acquisition of the raw materials & other parts, procured from outside the company in order to meet the company’s requirements are as follows: 1. INTIMATION OF THE REQUIREMENTS FROM THE PPC DEPARTMENT: After the identification of the requirements of raw materials & other parts by the PPC department, the same are communicated to the Materials department for taking the needed steps to procure them. 2. IDENTIFICATION OF THE VENDORS: In order to fulfil the intimated requirements the Materials department identifies suitable vendors via internet & other media so that the required materials can be procured at the most economical rates. Apart from the various vendors who have been identified by the company, the company also considers the already existing vendors of the company. 3. ORDER PLACEMENT: After the vendors have been identified, the Materials manager takes the decision regarding the vendor with
whom the final order has to be placed. The decision regarding the vendor is taken on the basis of the cost, delivery & other factors, offered by them. Finally, the orders are placed with the vendors who offer the best quality & lowest cost. 4. FOLLOW UP : After the orders have been placed, the Materials manager follows up with the vendors till the materials have been finally received by the company. 5. RECEIPT OF MATERIALS: After the ordered materials have been received by the company, a Gate Entry with regard to their receipt is made in the Security Office of the company & at the same time intimation with regard to the receipt of the materials is passed on to the Materials department through the Stores department. 6. PREPARATION OF MATERIAL RECEIPT VOUCHER (MRV): After the materials have been received & the relevant documents (Vendor’s Invoice) have been passed on to the Materials department, the MRV is prepared by the Materials department giving the details of Gate Entry no. & date , MRV no., Supplier’s name, Invoice no., Invoice date, Invoice Value, Quantity received, Rate at which procured & other related commercial details.
IMPORT OF MATERIALS
For any manufacturing company engaged in the import of materials for the manufacture of goods, which have to be exported or are deemed to be exported to companies like ONGC, OIL INDIA, Special Economic Zones (SEZ), the Ministry of Commerce, Government of India has introduced a provision for the Duty Free Import of such goods. The imported materials may be procured at any of the following international prices: • FREE ON BOARD (FOB): The FOB price is inclusive of all the expenditure borne by the supplier for the transportation of materials. This is the case when the supplier undertakes the transportation of the materials sold & the FOB prices are charged by them. However, the FOB prices are exclusive of international freight & insurance.
• EX-WORKS: The Ex-Works prices are exclusive of any transportation charges as in this case the purchaser hires a Freight Forwarder & the onus of transportation of the materials lies with him. The Freight Forwarder charges the purchaser separately for the services provided by him but the supply price of the materials is exclusive of any transportation costs. • COST & FREIGHT (C&F): This price includes the costs borne by the supplier along with the international freight. • COST, INSURANCE & FREIGHT (CIF): This price includes the costs borne by the supplier & is also inclusive of the international freight & insurance. NOV SARA INDIA PVT. LTD. deals with its suppliers on the basis of ExWorks prices & it has engaged Freight Forwarders by the name Logistics International in USA & in India, in order to facilitate timely transportation of the materials.
MANUFACTURING DEPARTMENT
The manufacturing department is responsible for the manufacture of required products as per the specifications given by the Research & Development department. Keeping in view the requirements of the company the machines used for manufacturing in the company are divided into two broad categories and these are the CNC i.e. Computerised Numerical Control machines & the machines that are operated manually. The CNC machines are located in the CNC SHOP & the machines that are operated manually are located in the MACHINE SHOP. The machines on which maximum work is done or in other words the machines that are heavily used for producing the required output have now been computerised & there by a separate CNC SHOP has been set up in the company. The CNC SHOP mainly comprises of the CNC LATHE machines & CNC MILLING machines. Few years back even the above machines were
operated manually, but as the demand of the company’s products started increasing, the company in order to ensure that maximum units are produced within minimum possible time decided to computerise some of its main machines. Since the maximum work has to be performed on the LATHE & MILLING machines, these have been computerised. However, some models of the LATHE & MILLING machines which are operated manually have also been located in the machine shop since the use of CNC machines takes a lot of time in initial setting up, after which the required units of the desired quantity can be produced at a very high speed as compared to the machines that are operated manually.
MACHINE SHOP
All the manually operated machines are located in the MACHINE SHOP. These include the following:
• POWER HACK SAW – This machine is primarily used for the purposes of processing on the raw materials entering into the organisation which includes long and unshaped bars. This particular machine is used for cutting these bars into small sizes according to the requirement and the end product for which these parts are being made. • DRILLING MACHINE – This machine is used to make PRE HOLES for LATHE & MILLING MACHINE components. The Drilling Machine may be used only when holes have to be made in other words its use is optional & depending on the company’s requirements.
After wards, the parts are processed with the help of either Lathe or Milling machine depending on the company’s requirements. If the slots have to be given a cylindrical shape, then they have to be processed with the help of the Lathe Machine. On the other hand, if the slots have to be given rectangular or the shape of a square then they have to be processed with the help of the Milling Machine. • LATHE MACHINE – After the bars have been cut into small and other parts of desired sizes the LATH MACHINE is used for the purpose of giving desired shapes mainly cylindrical shapes to the small parts according to the end product desired. After the Lathe Machine has been used to accord cylindrical shape to the slots these may be further processed with the help of the Milling Machine as per the requirements to perform those functions & give the shapes which can not be accorded with the help of the Lathe Machine. • MILLING MACHINE – Once the bars have been cut into slots & parts of different sizes, the MIILING MACHINE is used for further cutting them into slots of different sizes and shapes mainly squares & rectangular shapes. After wards, these slots may be processed under the Lathe Machine for the purpose of according or making bores of the desired sizes which can not be accorded with the help of the Milling Machines. • GRINDING MACHINE – This machine is used for the purpose of according high accuracy & surface finish to the parts as per the specifications. Where ever the components have to be accorded high accuracy so that they meet the specifications, the Grinding Machine serves the purpose. The grinding machines are of various types and these are Tool & Cutter Grinder, Surface Grinder & Cylindrical Grinder. The tool & cutter grinder is used for according further accuracy & surface finish to the slots of various sizes as per the requirement. The cylindrical grinder is used for according accuracy & surface finish to the slots which have been cut in cylindrical shape. For the machines which have been used up for more than a year or more or the machines which otherwise require sharpening so that they remain effective, the SURFACE GRINDER is used for the purposes of sharpening the required machines.
• SHAPER MACHINE – This machine installed in the machine shop is primarily used to cut slots & maintain the surface of long pieces.
CNC (COMPUTERISED NUMERICAL CONTROL) SHOP
The automation of the machines is beneficial for the company only when the units have to be produced in bulk. When the units to be produced are small in quantity, then the use of machines that are operated manually is more beneficial to the company rather than the CNC machines. Since when the units to be produced are less then the time that will be taken by the CNC machines for initial setting up which is usually two to three hours will be much more than the time that the manually operated machines will take to produce the desired output, therefore in such cases the use of manually operated machines turns out to be more beneficial for the company.
The main parts manufactured in the CNC SHOP of the company with the help of the LATHE & MILLING machines are as follows:
• RING JOINT GASKETS – These joints are manufactured for ceiling purposes, in other words in order to prevent leakage of oil from the oil PIPELINES which is the final product of NOV SARA INDIA PVT.LTD. these joints are manufactured by the CNC SHOP. • SWIVEL JOINT – These joints are used for changing the direction of the pipes while the oil drilling equipment is being used for the purpose of extracting oil from the desired location. • FLANGE – In order to join two pipe lines FLANGE is used which facilitates extraction of oil with ease and convenience. The CNC
SHOP also manufactures FLANGE which is an essential part of the final oil field equipment. • BLOW OUT PREVENTER (BOP) ACCUMULATOR UNIT – This part manufactured by the CNC SHOP of the co. is used primarily for the purpose of storage of crude oil once it has been extracted from the desired location and once the extracted oil has been stored, it can be diverted to the appropriate machine for the purpose of further refinement. • POWER TONG – This particular part manufactured by the CNC SHOP is used for screwing and unscrewing the pipes during extraction of crude oil from the desired location. • TEST UNIT – This unit is used for testing the pressure with which oil is being extracted by the oil field equipment. • HAMMER UNION – These are used as a connector between different pipes that are used while oil is extracted.
Besides, the products of the company that are manufactured in the CNC & MACHINE SHOP, the company also has a separate VARCO SHOP which comes under the product manager for CNC & MACHINE SHOP & in which the following products are manufactured: • SPINNING WRENCHES: These wrenches are manufactured in the VARCO SHOP of the company & these are used for the purposes of spinning the drill pipes used in oil extraction. The various Models of Spinning Wrenches that are manufactured by the company are as follows: SSW-10, SSW20, SSW-30, SSW-40 • KELLY SPINNERS: These Spinners are used for the purposes of moving the drill pipes during the oil extraction process.
• ELEVATORS: These are used the purpose of holding & moving the drill pipes from one location to another during oil extraction within the drilling rig. • CASING SLIPS: The VARCO SHOP also manufactures these slips that are used catch or hold the drill pipes when these pipes are not being used for extraction purposes. • MANUAL TONGS: These tongs are used for spinning the drill pipes when the Spinning Wrenches are available for the purpose of Spinning the drill pipes. • CASING TONGS: These tongs are used for spinning the Casing Pipes which are fitted in the oil extraction well for the purpose of facilitating oil extraction. • TUBING TONGS: These tongs manufactured in the company’s VARCO SHOP are used for the purpose of either tightening or loosening the drill pipes which are used by the oil extraction companies for the purpose of cleaning the wax that gets collected after the oil has been extracted.
BASIC FUNCTIONING OF THE COMPUTERISED NUMERICAL CONTROL (CNC) MACHINES
In a numerically controlled machine, a tool is controlled by a code system that enables it to be operated with minimal supervision & with great deal of repeatability. CNC is the same type of operating system , with the exception that the machine tool is monitored by a computer. The principles used in operating a manual machine are used in programming a CNC machine also. The main difference is that instead of cranking or moving handles to position a slide to a certain point, the dimension is stored in the memory of the machine control once. The control will then move the machines to these positions each time the program is run. The operation of the SL i.e. SERIES LATHE machine requires that a program be designed, written & entered into the memory of the control.
The most common way of writing programs is off-line, that is away from the CNC in a facility that can save the program & send it to the CNC control. In order to operate & program a CNC controlled machine, a basic understanding of machining practises & a working knowledge of maths is necessary. It is also important to become familiar with the control console & the placement of keys, switches, displays etc. that are pertinent to the operation of the machine. In case of the manually operated LATHE machines, the Motor provides the power to Spindle which is used for controlling the speed of the Chuck. Chuck rotates clockwise and anticlockwise and is fitted with Jaws used to hold the component. The component also rotates continuously while being processed. The LATHE machines are also fitted with longitudinal slides (Z axis) and the cross slides (X axis) which are moved manually as and when the requirement arises with the help of the handles fitted to the above said slides. A tool post is fitted on the top of the X axis which provides space for holding one tool at a time for the purposes of performing the required operation on the component. Besides this manually operated LATHE machine there is the CNC machine which operates in the same manner with the difference that instead of the handles, the CNC machine is fitted with Motors for the purposes of moving the longitudinal & cross slides. These Motors are fitted with Encoders which give the details of the position of the Z & X axis. Encoder may be defined as an electronic device to count the revolutions made or the movement along the different axis depending upon where ever we fit the encoder along with the Motors in the CNC machines. Another difference between manually operated LATHE machines & CNC LATHE machines is that in place of the tool post as fitted in the case of manually operated LATHE machines, the CNC LATHE machines are fitted with a TURRET for holding many tools at a time ranging from 6 to 12 with 6 tools being the minimum capacity of any CNC LATHE machine & the maximum capacity varying from company to company but not exceeding 12
tools. The TURRET is also operated with the help of a motor fitted with an encoder which discloses the number of tools being used & the current position of the tools being used. Same is the case with the manually & CNC operated MILLING machines with the difference that while there are two axis in the LATHE machines (Z & X axis) on the other hand there are three axis in the MILLING machines (X, Y & Z axis). This is because the LATHE machines are primarily used to cut & shape cylindrical parts where as the MILLING machines are used to cut & shape square & rectangular parts. Another difference between the LATHE & MILLING machines is that in the LATHE machines the component held by the Jaws of the Chuck rotates and the tool is moved as per the requirements. Where as in the MILLING machines first of all there is no Chuck and therefore the component has to be placed with the help of nuts & bolts & secondly, the component is stationary in the Milling machines & the tool is rotated & moved forward & backward with the help of the slides along the Z axis. The following are the various operations performed by these machines:? 9. Turning, Boring, Threading, Milling, Drilling,etc. The various models & types of CNC machines in SARA are SL 40, SL 30, SL 20, VF 90 etc, these models are from HAAS USA manufacturers.
The following flowchart represents the workflow of the Manufacturing department
FABRICATION & ASSEMBLY SHOP
ASSEMBLY basically refers to the collection of the various units that have been produced in the CNC & MACHINE SHOP of the company & assembling the parts to get the final product which in the case of NOVSARA INDIA PVT. LTD. is the BLOW OUT PREVENTOR (BOP) CONTROL SYSTEM. FABRICATION is a part of the overall process of assembling to get the final product. Fabrication is done prior to the final assembling of the product for the purposes of structural assembling. In other words, the process of fabrication prior to the final assembling helps in developing the base, reservoir & the bottle rack on which further assembling is done to produce the final BOP CONTROL SYSTEM. The whole process begins with the raw materials being procured in the desired quantity. Once the raw materials have been procured the same are inspected by the QUALITY ASSURANCE & QUALITY CONTROL department. If the raw materials so procured are found to be as per the specifications of the company then, they are issued to the concerned department for further processing as per the requirements. Once processed they are sent to the STORES department for the purpose of storing them & recording the materials so received in the suitable registers maintained by the STORES department. The STORES department then issues the processed materials to the FABRICATION & ASSEMBLY SHOP for assembling purposes. Once, the fabrication process is over the fabricated products are inspected. After inspection, they are then painted. After painting is completed, the assembling process begins. The assembling process is followed by the inspection of the final product. If the final products assembled are found to be as per the required specifications, they are sent for packing. The packed products are finally dispatched to the customers in the required quantities.
PROCEDURE FOR ASSEMBLY
The following procedure is followed in the company for the assembling process: The purpose of this procedure is to detail the responsibilities of assembly & testing of components.
RESPONSIBILITY:
The manager of the Assembly department is responsible for all the functions of pertaining to the assembling of the products. He/she is also responsible for the overall safety & quality of work of the Assembly Shop. He shall be responsible for the supervision & inspection of the components assembled & tested in the Assembly Shop. The technicians & fitters are responsible to work as detailed responsible for checking their own work & intimating the Shop In charge regarding any kind of discrepancies.
PROCEDURE:
• On the receipt of instructions from the Product In charge, the Assembly In charge shall plan the assembly, deburring, fitting & painting in the Shop. • The Product Manager shall arrange for components from the Stores department against each job. • All Assembly shall be carried out as per the catalogue/ assembly drawings/ written instructions. • If nonconformity is observed at any stage of assembly/ painting/ dispatch then a Material Rejection Note shall be generated by the relevant in charge & forwarded to the Quality Control department for further disposition. • The History Card of each equipment shall be maintained by the Assembly Shop. The History Card or the Equipment History Card gives the details with regard to the item description, order no., model no. of the BOP Control System, date of starting the job, date of completion, date of dispatch, the batch quantity, number of technicians & electricians involved in the job completion.
STORES DEPARTMENT
A store can be defined as a place where goods or materials are stocked. The Stores department is concerned with efficient storage of the incoming materials procured locally, the imported materials, tools, finally assembled BOP control systems, various parts of the final product as and when they have been produced. The main activities performed by the Stores department are as follows: • Storage of incoming materials which have been procured locally & imported • Posting of the Material Receipt Voucher (MRV) • Storage of the parts manufactured in plant • Issue of the raw materials to the different departments based on the Material Requisition Indent (MRI) furnished by the concerned department. • Issue of the manufactured parts to the different departments based on the MRI received • Issue of returnable materials to the third parties. • Issue of non-returnable materials In order to ensure proper & systematic storage of the raw materials, parts & final products of the company, the company has in place different stores located in proximity to the different departments where the respective manufacturing is carried out. For example the BOP store is located near the Assembly shop to ensure that minimum distance needs to be travelled from the assembly shop to the BOP store once, the BOP control systems have been manufactured & finally assembled.
The following stores are in place in the company:
• BOP STORE : All the related parts which are needed for the final assembly of the BOP control systems are stored here. • TOOL STORE: The different types of tools which are required for processing purposes or for use in the various machines are stored in the Tool Store. • BONDED WAREHOUSE: The imported materials are stored in the Bonded Warehouse of the company. • TONG STORE: all the TONGS related parts viz., tong plates etc. are stored in the Tong Store.
METHOD OF STORING THE RAW MATERIALS , OTHER MANUFACTURED PARTS & IMPORTED MATERIALS
In all of the above mentioned stores in the company the method of storing the raw materials & other manufactured or imported parts is by allotting distinct codes to the different types of materials. The codes are allotted depending on whether the materials have been manufactured in plant or whether they have been imported or whether they have been procured locally. For example, the imported materials are given codes starting from ‘K’, the ones produced in plant are coded starting from the letter ‘I’, the consumable items like dresses, shoes, Anabond etc. have been given codes staring from ‘C’ & in a similar way codes have been allotted to the other items stored in the Stores department. Likewise, distinct codes are given to the parts which have been manufactured for the purpose of their final assembling with the end product of the company. Such parts are coded depending upon their functioning like tongs are coded starting from ‘T’ and similarly the other parts are coded in the same way. Further, the entire storage space in the Stores department has been divided into different bins & racks. These bins/racks are given appropriate codes which are as per the codes given to the different materials. The different materials are stored in the appropriate bins/racks which have the same codes that have been allotted to the different materials. This system of storing the materials helps in storing as well as taking out the materials from the racks where they have been stored with the help of the codes allotted to each of the types of materials .This not only helps in saving the time & efforts to be put in but also ensures that the materials are systematically stored. In order to understand the functioning of the Stores department it is important to highlight the procedures that are followed with regard to the storage of incoming raw materials, the issue of raw materials, the storing of imported raw materials & its issue.
PROCEDURE FOR THE STORAGE OF INCOMING RAW MATERIALS
The raw materials may be procured locally i.e. from Dehradun or they may be procured from outside Dehradun. In case they are procured locally the Material Received Voucher (MRV) prepared in their respect is coded as BL where ‘L’ stands for locally procured raw materials. In case of raw materials procured from outside Dehradun the MRV prepared in their respect is coded as BO where ‘O’ stands for materials procured from outside Dehradun.
The procedure for the storage of the incoming raw materials other than the imported raw materials is as follows:
1. GATE ENTRY: Once the raw materials reach the premises of the company, their Gate Entry is made along with the receipt of the BILL or the DELIVERY CHALLAN (D.C) sent by the vendor from whom the raw materials have been procured. 2. INTIMATION TO THE STORES DEPARTMENT: After the Gate Entry has been made, the Stores department is intimated about the arrival of the raw materials & the Stores department collects the Receipt or the D.C as the case may be. The stores department has to send a copy of this receipt to the Purchase department so as to enable the Purchase department to prepare the Material Receipt Voucher (MRV). The MRV gives the details regarding the Order no., description of the materials procured, quantity procured, code no., job no., rate at which materials have been procured. The MRV also contains the details of date of gate entry of the materials, date of preparation of MRV, MRV no. & other related details.
3. STORAGE AT THE AWAITING STORES: The raw materials which have been procured are kept at the Awaiting Stores till they have been inspected by the Quality Control department of the company & the Purchase department has prepared the MRV. The purchase department prepares the MRV on the basis of the Bill sent to it by the Stores department. 4. INSPECTION BY THE QC DEPARTMENT: The raw materials stored at the Awaiting Stores are kept there till they have been inspected by the QC department. The QC department checks the raw materials in store at the Awaiting Stores after the receipt of the MRV prepared by the Purchase department. If they are found to be as per the desired standards then they are sent to the stores department along with the MRV. 5. APPROVAL OF MRV BY THE STORES DEPARTMENT: Once, the raw materials have been inspected by the QC department, the Stores department receives the MRV from the QC department. After the raw materials have been cleared by the QC department these are received by the Stores department for storage purpose. The MRV has to be approved by the Stores department before it stores the raw materials. 6. STORAGE OF RAW MATERIALS AT THE STORE: If the raw materials are found to be as per the requirements & the MRV then they are stored in the appropriate Bins meant for the different types of raw materials. In this context it is important to highlight the fact that the each type of raw material is given a different code & is allotted a separate Bin/Rack. Each bin/rack is labelled with the code of the materials for which it is meant. 7. RECORDING OF MATERIAL RECEIVED VOUCHER (MRV): Once the MRV has been approved by the Stores department the same is recorded by them & then the MRV is sent over along with the BILL/ DELVERY CHALLAN to the Accounts department for further recording.
PROCEDURE FOR THE ISSUE OF MATERIALS & OTHER PARTS TO THE OTHER DEPARTMENTS
8. RE-INSPECTION & PREPARATION OF MRV: If the raw materials are not found to be as per the desired standards then the Stores department intimates the QC department & then the raw materials are inspected again & later on another MRV is prepared & the above said procedure is carried out again.
The following steps are involved in the issue of either raw materials or different parts manufactured from the Stores to the other departments of the company. 1. FILING OF MATERIAL REQUISITION INDENT (MRI): The department which is in need of either raw materials or any other part prepares a MRI & files the same to the Stores department. The MRI contains the details pertaining to the quantity required & by what time. This forms the basis of the issue of materials by the Stores department. 2. MATERIAL REQUISITION INDENTS (MRI) ISSUED TO EACH DEPARTMENT: Each department of the company is provided with Material Requisition Indents so that they can file these Indents with the Stores department as & when the need arises. The MRI provided to each department of the company has a code inscribed on the top of it. These codes have been given to the departments of the company keeping in view the functions of each department. 3. ISSUE OF REQUESTED MATERIAL: On the basis of the MRI received & the materials requested by the concerned departments, the Stores department issues the requested materials to the concerned department by whom the request has been made. 4. RECORDING THE RELEVANT DETAILS: After the materials have been issued to the concerned departments the relevant
details relating to the issue of materials are recorded in the database system in use in the company like the quantity issued, name of the department to which materials issued, date when issued, Job number & other related details.
PROCEDURE FOR ISSUE OF RAW MATERIALS FOR PROCESSING TO THE THIRD PARTIES WHICH ARE RETURNABLE
Returnable goods are the ones which are issued to the third or outside parties for processing purposes & are returned to the stores department, once the desired processing has been completed within the stipulated time period. The procedure for the issue of raw materials, which are returnable, to the third parties is as follows: 1. PREPARATION OF JOB WORK INDENT: If the raw materials have to be sent to outside or third parties for processing purposes then, first of all the PPC department prepares a Job Work Indent. This Indent gives the details of the quantity to be sent for processing purposes, date by which the goods shall be received back by the company from the third party & other necessary details. This Indent is sent to the Stores department by the PPC department. 2. ISSUE OF RAW MATERIALS : On the basis of the Indent received from the PPC department, the Stores department issues the required quantity of raw materials. 3. PREPARATION OF DELIVERY CHALLAN: The Stores department prepares a Delivery Challan (DC) which gives the details of the quantity being issued, description of material being issued, Job number, code number of raw materials being issued. The DC is sent along with the required raw materials to the third parties. 4. MAINTENANCE OF RECORDS: Four copies of the Delivery Challan are prepared by the Stores department. One is sent
to the third party, another sent to the security office, another kept by the stores department for future reference & another copy filed by the stores department. 5. RECEIPT AFTER PROCESSING: Once the raw materials which were issued to the third parties for processing purposes have been processed, they are returned to the company along with a Bill/Delivery Challan (DC). 6. GATE ENTRY: The processed raw materials are received by the security office of the company & a gate entry with regard to the receipt of these raw materials is made. 7. INTIMATION TO THE STORES DEPARTMENT: The security office informs the Stores department about the receipt of the processed materials & sends the Bill to the Stores department. The stores department then passes on this Bill to the purchase department in order to facilitate the preparation of the Material Received Voucher (MRV) 8. STORAGE OF RAW MATERIALS IN THE AWAITING STORES: The received materials are then passed on to the Awaiting Stores, where they are kept till the materials have been inspected by the QC department. The QC inspects the materials with the help of the MRV prepared by the Purchase department. 9. APPROVAL & FINAL STORAGE: Once the materials received have been finally approved by the QC department, they are sent to the Stores department for the purpose of storing them in the appropriate Bins/Racks meant for storing them.
PROCEDURE FOR THE ISSUE OF MATERIALS WHICH ARE NONRETURNABLE
Non-Returnable goods are the ones which are issued by the Stores department either to the other departments within the company or to any third/outside party but these materials are not returned back to the Stores department. For example consumable items like dresses, shoes etc. In other words, these raw materials are issued by the Stores department & consumed by the party or department to which they are issued. The procedure for the issue of such materials is as follows: 1. INTIMATION OF THE DEMAND TO THE PPC DEPARTMENT: All the requirements pertaining to consumable items are intimated by the different departments or the third parties to the Production Planning & Control (PPC) department of the company. The third party which comes up with such requirements is generally the Second Division of the company. 2. INTIMATION TO THE STORES DEPARTMENT: The PPC department then informs the Stores department regarding all such requirements. 3. ISSUE OF REQIURED RAW MATERIALS: The required raw materials are then issued by the Stores department along with a Delivery Challan prepared by the Stores department to the respective parties.
4. MAINTENANCE OF RECORDS: Four copies of the Delivery Challan are prepared. One is sent to the third party along with the materials, another is kept by the Stores department for future reference, another sent to the security office, another is maintained & filed in the records of the Stores department.
The woking process of stores department is shown as under by the diagram.
MIS & IT
Information management is a general terms that refers to managing any kind of information.
This information that is managed varies according to the industry. Document management is also considered as information management since you are managing the information that is contained in the documents. Management information systems are those systems that allow managers to make decisions for the successful operation of businesses. Management information systems consist of computer resources, people, and procedures used in the modern business enterprise. The term MIS stands for management information systems. MIS also refers to the organization that develops and maintains most or all of the computer systems in the enterprise so that managers can make decisions. The goal of the MIS organization is to deliver information systems to the various levels of corporate managers. MIS professionals create and support the computer system throughout the company. The IT department deals with the connectivity of one department with the other. It prepares LAN and WAN connectivity within the computers in the organization and with the other branches of the office.
THE WORK PROCESS OF MIS DEPTN IS AS FOLLOWS
WHAT ARE KEY RESULT AREAS???
They may be defined as the areas which form the basis of the functioning of a particular department of the company. It is on the basis of the functioning of the department in these areas that one can judge the efficiency & the performance of a particular department. A department can be said to have accomplished its main objectives only when it has been able to perform well in the areas which are earmarked for the respective departments of the company.
The KEY RESULT AREAS of the company are as follows:
Timely delivery of the product so as to avoid any kind of delays. Reducing product related Non Conformance Reports
Besides, the departmental Key Result Areas are as follows:
• Recruitment of manpower to fill all the vacant positions for the senior level within 60 days & for the junior level within 30 days. • • • • Training of staff & workers & identifying their skill levels. Safety & security of the staff & workers Upkeep & maintenance of factory premises Up to date maintenance of the time of arrival & dispersal of each employee as well as the number of leaves taken & also the number of days for which the employee has worked for a month & timely submission of this report to the Accounts department of the company so as to enable them to finalise the pay of each employee for the month.
• Timely planning to maximise the company’s revenues • Ensure efficient storage of the raw materials, manufactured parts • Ensure zero break down of the machines and equipments installed in the company’s premises • Meet the quality standards as per the API and ISO specifications
SWOT ANALYSIS
Building a competitive advantage requires careful analysis of not just your competitors, but your own business as well. A SWOT (strengths, weaknesses, opportunities, and threats) analysis is a proven marketing tool used to clarify market position and shape strategic marketing goals. This highly disciplined process incorporates feedback from a broad range of sources including your internal staff, outside information sources, and strategy groups to provide you with a balanced and comprehensive picture of internal and external factors that are impacting your business. The Definition 6 team will help you use the SWOT approach to analyze your competitive environment and create marketing and promotional strategies that achieve your goals. A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, straightforward model that assesses what an organization can and cannot do as well as its potential opportunities and threats. The method of SWOT analysis is to take the information from an environmental analysis and separate it into internal (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines what may assist the firm in accomplishing its objectives, and what obstacles must be overcome or minimized to achieve desired results.
STRENGTHS
The principal Strengths of the company are as follows: •
LOW COST OF MANUFACTURING: The
company produces products based on the western technology at core competitive costs. This gives an edge to the company as the similar
products of the same quality & design are available to the customers at a lower cost, thereby enhancing the sales levels of the company. •
WELL
The company has a well planned layout. Each department of the company is located in proximity to the other departments with which they have maximum correspondence. In other words the departments whose functioning is related to one another or where the departments are inter dependant & where the work of the different departments are interrelated have been located near to one another. For eg. The maintenance department is located near to the CNC SHOP & MACHINE SHOP so that on one hand Routine Checking by the maintenance department does not require much distance to be covered by the concerned employee. Similarly, the STORES & QUALITY ASSURANCE (QA) departments are located near to the ASSEMBLY & FABRICATION department so that as and when the units have been finally assembled they can be easily moved on to the QA department and after they have been checked as to whether the final product is as per the required specifications or not and then the QA department moves on the final product so produced to the STORES department for storing the final products till the time of final dispatch to the customers of the company.
PLANNED LAYOUT:
•
QUALITY ASSURANCE:
The company’s quality plan meets the specification of the ISO 9001 & the API which legitimises the products of the company in the eyes of its customers.
WEAKNESS
The following weaknesses were observed either in the layout or the basic functioning of the company, which are acting as major hurdles in the smooth functioning of the company. •
LACK OF PROPER DATA BASE SYSTEM:
The company has a very old & outdated database system FOXPRO for all recording & daily up gradation of entries being made. The system in use in the company i.e. FOXPRO requires the use of difficult commands for running it, this creates a problem for those
employees of the company who are not well versed with FOXPRO. Taking into consideration the fact that when systems like ORACLE etc. are available in the market in which no difficult commands are used, instead such systems can easily operated by simply clicking on to the required icons etc. Therefore the use of FOXPRO in such a scenario not only makes it difficult for the employees to operate on it but also affects the effectiveness of the employees & results in wastage of considerable time.
•
LACK OF PROPER PLANNING:
Due to the lack of proper & timely planning in the company, there is considerable wastage of not only time & resources of the company but the company also looses out on much pf the profits that it could have otherwise earned. It is primarily due to lack of timely planning that the units produced by the CNC & MACHINE SHOP of the company lie idle in the company’s premises, as some small parts that need to be added to the final output of the SHOPS before they are ready for sale in the market are either not available or they are not intimated by the Production Planning & Control department to the Purchase department so that the required parts can be procured in time & the final product be made available for sale in the market. Due to the lack of proper planning that the products which could have otherwise earned money for the company lie idle in the premises of the company.
OPPORTUNITIES
The following opportunities can be capitalised by the company to ensure that there is maximisation of profits.
• MERGER WITH VARCO (NOV):
NATIONAL
OILWELL
SARA SERVICES & ENGINEERS (SARA SAE) has now been merged with a USA based company NOV and has been renamed as NOV SARA
INDIA PRIVATE LTD. As a result of this merger the company stands to gain a lot in terms of not only gaining the status of a Multi National Corporation (MNC) but it also stands to gain a lot as far as the company’s customers are concerned. The company prior to the above said Merger did have huge orders but the Merger has given an all together new edge to the company & the company will have access to the customer base of NOV as well in addition to its old customer base.
• TAPPING THE EXISTING MARKET:
NOV SARA INDIA PVT.LTD. is active only in limited countries i.e. say around 10 countries of the approximately 100 companies where a market for the company’s products exists. In other words, the countries, which are into oil extraction industry are much more as compared to the countries in which the company is active. The company’s market reach is only about 10% & the remaining market can be tapped, which would expand the customer base of the company.
THREATS
The following threats must be given special attention by the company , so as to ensure that these do not affect the company’s functioning. •
LOW JOB SATISFACTION:
The level of job satisfaction among the employees of the company is very low. This is primarily because of the lack of internal communication, lack of definition of responsibility and the expectations from the employees.
•
LACK OF UPGRADATION:
INFRASTRUCTURE
The rapid growth experienced by the company during the past 5 years is laying severe stress on the company’s infrastructure and internal operating systems which were designed for a company of much smaller size and have not been
upgraded sufficiently to enable the company to handle the manifold increases in the turnover. Slow growth of infrastructure may lead to a fallout in terms of quality and delivery, which are key to the efficient functioning of the company.
doc_554990198.doc
Human resources is the set of individuals who make up the workforce of an organization, business sector or an economy. "Human capital" is sometimes used synonymously with human resources, although human capital typically refers to a more narrow view; i.e., the knowledge the individuals embody and can contribute to an organization. Likewise, other terms sometimes used include "manpower", "talent", "labor", or simply "people".
RESEARCH REPORTS ON HR TRAINING & DEVELOPMENT AT NOV SARA INDIA (PVT) LTD
CONTENTS
i. ii. iii. iv. v. vi. vii. viii. ix. x. xi. xii. xiii. xiv. xv. COMPANY PROFILE BACKGROUND OF PROMOTERS & THE COMPANY ABOUT NOV PRESENT SCENARIO OF THE COMPANY MEMBERSHIP OF VARIOUS ASSOCIATION FINANCIAL HIGHLIGHTS & INFRASTRUCTURE OF NOV SARA INDIA PVT. LTD. OBJECTIVES OF THE COMPANY POLICIES OF THE COMPANY COMPANY’S OFFICES CURRENT PRODUCTS OF NOV SARA INDIA PVT. LTD. ORGANISATION STRUCTURE OF DIV-1 HUMAN RESOURCE DEPARTMENT TRAINING AND DEVELOPMENT RECRUITMENT SELECTION IN NOV SARA INDIA PVT.LTD.
xvi. xvii. xviii. xix. xx. xxi. xxii. xxiii. xxiv. xxv. xxvi. xxvii.
GRIEVANCES & DISCIPLIANRY ACTION ACCOUNTS DEPARTMENT QUALITY CONTROL DEPARTMENT PROGRAMMABLE LOGIC UNIT MAINTENANCE DEPARTMENT MATERIALS DEPARTMENT/ PURCHASE DEPARTMENT MANUFACTURING DEPARTMENT FABRICATION & ASSEMBLY SHOP STORES DEPARTMENT MIS & IT THE KEY RESULT AREAS SWOT ANALYSIS
Company Profile
Background Of Promoters and The Company
Mr.C.Kumar after graduation in mechanical engineering joined Larson & Turbo Ltd, Bombay in1962 and worked for fourteen years as resident engineer in the oil field division of the company. Mr V.K.Dhawan B.E(Mechanical) joined ONGC as a drilling engineer in 1968 & worked for 6 years in various drill sites of the located in the eastern part of India in 1974 he relinquished the charge in ONGC and joined Larsonn & Turbo. Later he decided to entrepreneur and left it to promote the SARA SAE in May 1980.
SARA SAE the parental company of Sara Group Of Industries ,whose foundation was laid on 27th march 1980, as a business unit started its manufacturing activities in the year 1983. The company was registered under the COMPANIES ACT, 1956 on the above date and received the certificate of incorporation under the act. SARA SAE has now been merged with a MNC- NATIONAL OILWELL VARCO (NOV) ,USA which is a Fortune 500 company, and has adopted the name NOV SARA INDIA PVT. LTD.
About NOV
National Oilwell VARCO is the leading provider for the worldwide oil and gas industry and has been dedicated to providing the highest quality oilfield products and services for more than 140 years. National Oilwell Varco is the single source for all of your rig equipment, integrated systems, downhole tools, and supply chain solutions. From a spare part to a comprehensive drilling system – and from a generic valve to a fully integrated supply chain process, National Oilwell Varco delivers unlimited customer solutions. By constantly developing and acquiring new technologies and services to better serve future customer requirements, National Oilwell Varco will continue to be the premier source for diversified product and services worldwide.
National Oilwell Varco provides a comprehensive range of pumping system to meet the most demanding customer requirement. Engineers of NOV apply years of experience to deliver optimal pumping solutions based on material selection, service application, and performance criteria. National Oilwell Varco provide custom fabrication, training, commission, and field service to meet our customers’ specific pumping requirements worldwide. Innovative product engineering and quality manufacturing processes result in durable, high performance pumps that provide years of reliable service. Whether extensive customer pumping systems or expendable parts are required, National Oilwell Varco can supply the solution. The quality plan of this company meets the requirement of APN(American Pertoleum Institute) Specification and SARA’s design, manufacturing and services are certified under ISO-9001.
PRESENT SCENARIO OF THE COMPANY
Today NOV-SARA is the largest oil field equipment manufacturing company in India with more than 15items in its product line which include BOP control systems, High pressure test unit, Hydraulic Casing& Tubling tongs, Wireline winches, water Blaster, Nitrogen pump, Data Acquisition & Monitoring unit for blow out preventor control system, high pressure flexible steel hose assemblies, hammer unions, valves, high pressure flowline products, flanges, etc. Besides, the company also manufactures components for steam turbines and aircraft’s under carriages for BHEL. The company’s main customers are ONGC, OIL&CONTACTORS engaged in oil exploration. The company also exports in bulk to U.S.A & JORDAN. The company’s highly honed skills in Precision Engineering , CNC Turning , Hydraulics , Pneumatics and High Pressure System as developed for the manufacture of High Technology Oil Field Equipment provide a strong technological base for the company to diversify its activities. With a strong financial base the company , now intends to use this base to expand its infrastructure to meet the increasing demands of the automobile Industry.
MEMBERSHIP OF VARIOUS ASSOCIATION
The SARA group is a member of various associations such as: • Indo-American Chamber of commerce • Confederation of Indian Industry • Federation of Indian Export Organisation • Engineering Export Promotion Council
FINANCIAL HIGHLIGHTS & INFRASTRUCTURE OF NOV SARA INDIA PVT. LTD.
The company’s financial turnover in the financial year 2006-2007 was Rs.85 crores (approx.). The company’s plant is located on an area of 7000 sq. Meters approx. The company is equipped with modern machinery acquired domestically & imported from abroad. Testing facilities provided at NOV – SARA INDIA PVT. LTD. are as per the API standards. Besides this the company has a well organised QUALITY CONTROL department & the company has been accorded the right to use the prestigious ISO-9001 & API monogram. NOV SARA PVT LTD company limited by shares. Registered office is situated at Union territory of Delhi. Share capital 2,80,00,000/- divided into 2,80,000 equity shares of rs 100 each. S.no 1 Shareholders Minority Shareholders No.of Shares 61,235 % of Share Holdings 24
2 Total
NOV
193,912
76 100
OBJECTIVES OF THE COMPANY
The objectives of the company, outline the broad plans formulated, targets forecasted & the activities that need to be performed in order to achieve the set goals. The broad objectives as envisaged by the management of the company include the following: ? The main object of the company as per its Memorandum Of Association is to carry on the business of manufacture of oilfield equipments such as BOP Control Systems, Hydraulic Power Tongs, Hammer Unions and other related oil field equipments. ? It is the management’s resolution to achieve improved Quality by motivating all concerned to involve themselves in the challenging task of continuous innovations and improvements in design and manufacturing processes. ? Management shall undertake all efforts to provide continual training & education to facilitate innovations & improvements. ? The company aims to achieve sales worth 250 million US $ by the end of the year 2012.
POLICIES OF THE COMPANY
The policies envisaged for the company by the management, keeping in view the standards to be achieved in context of the ISO and API standards form of basis of the functioning of the company.
The policies as envisaged by the company’s management are as follows? ? It is the policy of the company to achieve rapid & continual improvement in the performance to ensure that all the products meet or exceed the design specifications & customer requirements. ? It is the company’s policy to be a provider of products of quality, comparable with international standards at prices based on Asian costs i.e. offering customer price advantage of 30-40% over the western costs. ? The company follows a policy of supplementing the product sales with, customer friendly after sale services at competitive costs using lower cost but skilled manpower available in India.
COMPANY’S OFFICES ? The registered office of the company is situated at :
G.L.-3 ASHOKA ESTATE,24 BARAKHAMBA ROAD, NEW DELHI- 110001
? The Head office is situated at :
7/1 PRITAM ROAD DALANWALA, DEHRADUN (U.K)- 248001
? Manufacturing Plant & Service at :
Subhash Nagar , Industrial Area Mohabewala, Dehradun (U.K)- 248001
?
Marketing & Branch Offices are located at Bombay, Dehradun, Delhi & Chennai.
?
NOV- SARA INDIA PVT.LTD.
also has its representative offices at Calcutta, Ahemdabad, Guwahati.
?
Overseas Representative Offices are located at Jordan, Baharin, Kuwait, Turkey, Iraq, Indonesia,
Philippines, Netherlands & China.
CURRENT PRODUCTS OF NOV SARA INDIA PVT. LTD.
1) BLOW OUT PREVENTOR (BOP) CONTROL SYSTEM:
BOP units are mandatory on all exploratory or operational wells to prevent blow outs on account of unexpected upsurges of gas at the well head. A BOP fitted on a well head closes on gas buildup either automatically or through manual activation by sealing inlet & outlet passages of the well with hydraulic rams that operate within 2 to 3 seconds of the buildup. BOP Control Systems can be operated through remote control panels interfaced with the Accumulator Unit through interface modules containing Solenoid Valves, Pressure Switches, Transducers, Transducer Power Supply & Safety Alarm System components in an explosion proof enclosure.
2) HYDRAULIC POWER TONGS: These are used to
hydraulically hold & screw on vertically held additional lengths of threaded steel pipes onto the length of pipe already sunk into an oil well. The subsystems include a robust clutch system for variable speed, explosion proof motors for efficient power, compatible hydraulics & metallurgy & hydraulic power pack with geared or vane pump. Besides, BOP Control Units & Tongs the company also manufactures various other products which include the following:
• Air remote panels
• • • • • • • •
PLC Panels with touch screen display Hydraulic Tongs Power Units Hammer Unions Swivel Joints Spools & Adapters Ring Joint Gaskets Choke Manifolds
Besides, the company also manufactures components for Steam Turbines & Aircrafts Under Carriages for BHARAT HEAVY ELECTRONICS LTD. (BHEL)
ORGANISATION STRUCTURE OF DIV-1
Human Resource Department
Human Resource Management
Human resources are the people that staff and operate an organization … as contrasted with the financial and material resources of an organization. The Human Resources Management (HRM) function includes a variety of activities, and key among them is deciding what staffing needs you have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities also include managing your approach to employee benefits and compensation, employee records and personnel policies. HRM is the art and science of optimum utilisation of human potential engaged at work in any organisation. the objective is to achieve peak motivation of the employees with a view to achieve the desired results in an organisation.
Human resource management serves these key functions:
1. Recruitment Strategy Planning 2. Hiring Processes (recruitment) 3. Selection 4. Training and Development 5. Performance Evaluation and Management 6. Promotions 7. Redundancy 8. Industrial and Employee Relations 9. Record keeping of all personal data. 10.Compensation, pensions, bonuses etc in liaison with Payroll 11.Confidential advice to internal 'customers' in relation to problems at work 12.Career development HRD activities are designed to make people effective in their present job position, which is a part of the training function. But it also helps to focus on future identifiable job and become a part of education function.
The main objectives of HRM are as follows:
• To ensure optimum use of existing human resources. • To forecast future requirement for HR • To ensure effective measures are taken so that the necessary human resource are available as and when required. • To asses the surplus and shortage of HR. • To provide a basis for management development program. • To meet the needs of expansion and diversification of programs.
FUNCTIONS OF HRESOURCE & ADMINISTRATION DEPARTMENT
1) Maintenance of attendance/ incentive against extra work.. i) Handling, updating leave records & processing of LWP applications. ii) Action on data received from FINGERTECH machine in r/o of staff. 2) Manpower- post joining actions. 3) Action against errant employees. 4) Grievance handling. 5) Welfare Activities. 6) Correspondence/ Work related to Government Departments. 7) Other actions. 8) ISO & API related work. 9) General functions. 10) Functions related to Induction & Training. 11)Other Assignments. 12)Heath, Safety, Environment, Security & control. 13)Reception control.
MAINTENANCE OF ATTENDANCE RECORDS
One of the main functions of the HR & Administration department is to ensure that the correct time of arrival & departure of the employees of the company is recorded & entered correctly in the database system in use in the company. The time for arrival is 9 in the morning & for departure is 5:30 in the evening. After the time of arrival & departure has been recorded in the data base system of the company, the system is so designed that it automatically updates the information pertaining to each employee as regards the number of leaves taken by him/her, whether the employees are reaching in time , on which dates they had taken half day leave & short leaves. In this context, it is important to take into consideration the various types of leaves that can be availed by the employees of NOV SARA INDIA PRIVATE LTD. which are as follows: • EARNED LEAVE: The employees get one earned leave for every 20 working days. It is only these leaves which if taken do not result in the reduction of the pay of the employees. • CASUAL LEAVE: As the name suggests the employees can take such leaves whenever there is any kind of emergency by submitting an application for same. An employee can take a maximum of 5 casual leaves in one year. • LEAVE WITHOUT PAY: Once the earned leaves of an employee have been fully availed off by him/her then any leaves taken by the employees without any serious or emergent reasons are known as Leave Without Pay. Such leaves can be availed for a maximum of 30 days & the employees will not be paid for any such leaves taken by them. • MEDICAL LEAVE: This leave can be availed by the employees when suffering from any serious illness. This leave can be availed for a maximum of 10 days. • ESI LEAVE: As per the Employee State Insurance (ESI) scheme, the employees of the company may take leave as per the recommendation of the concerned doctor. The maximum period for
which such leave can be taken depends on the doctor’s recommendation. • MATERNITY LEAVE: In order to ensure convenience of the female employees of the company, maternity leave is granted to them for a period of 90 days so that they can work with full spirit & give their best. • ACCIDENTAL/DISABILITY LEAVE: This leave can be availed by the employees of the company when they meet with an accident & suffer from some kind of disability or injuries. The maximum period for such a leave depends on the gravity of the injuries sustained. • SHORT LEAVE: The employees can take a short leave for a period of two hours on any working day due to some emergent requirements. Short leave calls for the deduction of the employee’s salary by one-fourth of a day’s salary. Any time spent by the employees of the company outside its premises for personal work beyond 2 hours, shall be counted as half day & accordingly salary shall be deducted for half day. In order to ensure that the correct time of arrival & departure of the employees from the company is recorded, the company has a punching system which has been installed right at the entrance of the company’s premises. The employees are expected to punch while entering the company & also while moving out of the company. This updates the database system in use in the HR & Administration department & enables them to maintain correct & accurate records pertaining to the daily attendance. The HR & Administration then sends the details of the number of working days of an employee during a month, the no. of leaves taken in that month & other required details to the Accounts department so as enable them to determine the pay of each employee.
TRAINING AND DEVELOPMENT
Training is the process of increasing the knowledge and skills for doing a particular job. It is an organised procedure by which people learn skills for some definite purpose. The basic purpose of training is to bridge the gap between job requirements and competence of an employee. Training is a short term process utilizing a systematic and organised procedure by which non-managerial personnel learn technical knowledge and skills for a definite purpose. On the other hand , development is a long term educational process utilizing a systematic and organised procedure by which managerial personnel learn conceptual and theoretical knowledge for the general purpose. It is generally designed for the managers and involves broader education and its purpose is to ensure long term development of those managers who undergo such training. I) TRAINING DIRECTIVES : 2007-2008 Due to lack of guidelines, no clear cut policy is being followed in the company for the conduct of training of either the new employees who join the company or the existing employees of the company. Training programmes are being organised in the company on adhoc basis without defining the aims to be achieved thereby, resulting in unfruitful efforts and wastage of considerable amount of time. II) AIM OF THE TRAINING DIRECTIVES: The basic aim of these directives is to lay down specific guidelines for the conduct of training at managerial, supervisory and workers level with a view to achieve qualitative improvement in their professional standards.
III) SCOPE:
The directives lay down guidelines for the following categories of personnel: A) MANAGEMENT/ SUPERVISORY LEVEL • Induction Training for new staff. • Orientation Training for the managerial level/staff • Orientation Training for the middle level managers & supervisory staff B) WORKER LEVEL • Vocational Training (selected trades) • Up-Gradation Training (on job training)
IV) INDUCTION TRAINING :
Induction training is planned twice in a year in the company. Personnel who have joined the organisation in the last 6 months are put through such training. The duration of Induction Training is generally one week (during June/July and Jan/Feb next year)
The following subjects will be covered during INDUCTION TRAINING
1. General information about the SARA GROUP and a briefing on higher appointments &organisations. 2. Rules & regulations for staff. 3. Rules & Regulations for workers. 4. Social behaviour & etiquettes 5. Office procedures (letter writing norms) 6. Labour laws 7. Material management (demand & supply) 8. Logistics (storage & dispatch procedures ) 9. Quality control (norms&procedures)
V)
10.Finances (briefing on documentation &procedures) ORIENTATION TRAINING: (Managerial staff)
The aim of this training is to expose the managerial staff to new innovations & advancements in the fields of marketing, manufacturing &material management. For such training suitable faculty are hired by the company. Besides this many other organisations like Confederation Of Indain Industry (CII)are approached to identify and hire suitable faculty. The duration of these training programmes is generally about a week, with classes being run in the afternoon sessions, since managers will be going through such training in addition to their routine job. These kind of programmes are generally conducted only once in a year. In addition, organisations like CII, FICCI etc. conduct seminars/workshops to given sufficient exposure to the managerial staff of the member companies. Nominated suitable managers of the company attend these seminars/workshops at the company’s expense and these trained managers could then be utilized as faculty to conduct IN HOUSE TRAINING which includes Induction Training & Orientation Training of the junior staff.
VI) ORIENTATION TRAINING (MIDDLE LEVEL MANAGERS & SUPERVISOR) :
The purpose of this training is to give exposure to middle level managers & supervisor so that they can take over independent assignments as managers & can run departments without supervision and guidance. Such training is conducted once in a year for a duration of about one week with classes being organised in afternoon sessions so that it does not affect the routine work of those who undergo such training.
During the training programme the following subjects have to be emphasised upon: 1. Leadership qualities 2. Team building 3. Communication skills 4. Time management 5. Conflict management 6. Inter personnel relationships Suitable faculty is sourced or identified from within the company , since the company does not have the required expertise. The company also identifies suitable management consultancy firms who could conduct a seminar/workshop for giving appropriate advices to the company as well training to the required personnel.
VII) VOCATIONAL TRAINING: (SELECTED TRADES)
Since the company faces difficulty in acquiring trained & experienced tradesmen & suitable candidates from the various technology institutes to meet their requirements , therefore the company has decided to start its own Vocational Training Institute at Mohebewala (Dehradun) Factory Premises. The Modus Operandi will be as follows: 1. Identify four critical trades & decide on the syllabi & duration of each course (say 3 months approx.) 2. Identify suitable instructors to run these courses. 3. Select candidates by newspaper advertisements or campus interviews & various technology institutes. The company prefers to select fresh candidates who are either B.Sc or 10+2 with a science background & have an inclination towards a particular trade. 4. Fix up the stipend to be paid to the selected candidates during training. 5. Periodic assessment procedure should be established so that unsuitable trainees are weeded out during the course.
6. On successful completion after the theory/practical tests conducted by the company, the trainees will be awarded certificates & absorbed within the establishment.
UPGRADATION TRAINING
Upgradation training is given to the company’s employees by means of In House Training and Training with outside agencies. 1) IN HOUSE TRAINING: In House Training is given through either, On The Job Training or Off The Job Training. A) ON THE JOB TRAINING: Trainees earn as they learn under the watchful eyes of a master mechanic or craftsmen , receive immediate feedback , practise in the actual work environment , and associate with the same people they will work with after training. IN NOV- SARA INDIA PVT.LTD. it is acquired by the employees in the following ways: • Coaching By Superiors: In the company employees are coached and instructed by skilled co-workers , by supervisors , by the special training instructors. They also learn the job by personnel observations and practise as well as by occasionally handling it. • Under Study: The employee is trained by his/her immediate superior.
B) OFF -THE JOB TRAINING: Off-the job training simply means that the training is not a part of everyday job activity to upgrade his/her knowledge in the related field. The company organises off-the job training for the existing employees as well as for the newly inducted employees. 2. TRAINING WITH OUTSIDE AGENCIES:
The company ,sometimes sends its employees to outside agencies for performing training. They are sent to BARC BOMBAY , CTR LUDHIANA , ISNT etc. , the employees are also sent to abroad for training purposes.
CAREER PLANNING & DEVELOPMENT
Career planning refers to systematic process by which one selects his/her career goals and the path to attain them. From the company’s point of view it means helping the employees to plan their career in terms of their capacities within the context of the company’s needs. It involves designing an organisational system of career movement & growth opportunities for employment stage to the retirement stage. Career development is very necessary for the employee’s satisfaction. Sufficient & proper incentives & opportunities are made available by the company for the purposes of career development & various promotional avenues are also made available to the employees as per the company’s policy. Promotions are given to the employees based on their performance, potential, hard work & several other factors that distinguish an employee from others. In the company promotions are based on either of the following: 1. RANK-IN-THE-JOB: Under this system content of job including the levels of skill, efforts & responsibilities form the basis. In this system emphasis is laid on job evaluation, organisational planning etc. These are used as the basis to determine the pay & the status of the employee in the organisation. 2. RANK-IN-THE-MAN: Under this system, emphasis is put on the proficiency of the employees of the company. It helps in determining the position of an employee in the organisational hierarchy. At the same time it is important to note that all the promotions in the company are made on trial bases i.e. generally for a period of 6 months to a year. If the employee so promoted is not found to be capable of handling
greater responsibilities then, he may be reverted to his former post & former pay scale.
RECRUITMENT
DEFINITION:
Recruitment refers to the discovery & development of the sources of required personnel so that sufficient number of candidates will always be available for employment in the organisation. It has been defined as the process of searching for prospective employees & stimulating them to apply for jobs in the organisation.
PURPOSE:
The purpose of recruitment is to seek out or explore, to evaluate, to induce & to obtain commitment from the prospective employees so as to fill up the positions required for the successful operation of an enterprise. Recruitment provides a pool of candidates to enable the management to select suitable candidates for different jobs.
SOURCES OF RECRUITMENT
The various sources of Recruitment are as follows:
1.INTERNAL SOURCES:
It refers to recruitment from within the organisation. The main internal sources of recruitment include Transfers & Promotions. Transfer refers to the shifting of an employee from one job to another without a drastic change in the responsibilities & status of the employee. On
the other hand, promotion involves shifting of an employee to a higher position carrying higher responsibilities, higher status & more pay. Business enterprises generally follow the practise of filling higher posts or jobs which involve higher responsibilities by promoting employees from lower jobs. This practise helps in enhancing the motivation & morale of the employees. Internal recruitment also simplifies the process of selection & placement. The candidates are already working in the company & therefore, they can be evaluated more accurately & economically. NOV- SARA INDIA PVT. LTD. makes use of this method for the purpose of filling up any vacancy that may emerge in the company. In order to fill up the vacancies, somebody from within the company is upgraded, transferred or promoted. At the same time the company also recruits the personnel who were once on the payroll of the company but who plan to return or whom the company would like to hire.
2.EXTERNAL SOURCES:
Every company has to tap the various external sources of recruitment for various positions because all the vacancies cannot be filled through the internal sources of recruitment. The present employees may be insufficient or they may otherwise not fulfil the specifications of the jobs to be filled in. A newly established firm has to recruit all its employees from outside & the existing firms have to recruit people from outside to meet the requirements that the existing employees of the company cannot meet. The various external sources of recruitment include recruitment by means of Advertisements, Educational institutions, Recommendations by the existing employees, Employment agencies etc.
NOV- SARA INDIA PVT. LTD. makes use of the following External sources of recruitment: New entrants to the labour force, mostly inexperienced potential employees. The retired experienced persons. The unemployed possessing the required skills who have registered themselves with some job contractors. Recently, the company has hired a portal namely NAUKRI.COM on which the company can invite Resume & thereby serve to be an external source of recruitment. Besides, this the following methods are exclusively adopted by NOVSARA INDIA PVT. LTD. for recruiting the desired manpower from outside the company: A) DIRECT METHOD: The company sends its recruiters to colleges & technical schools for the purposes of choosing the most suitable candidates as per the job requirements. B) INDIRECT METHOD: The company uses various external sources of recruitment which include the use of Advertisements, newspapers, technical magazines, brochures etc. C) THIRD PARTY METHODS: These methods include the use of commercial or private employment agencies, placement cells or offices of colleges & professional associations, recruiting firms, employment exchanges, management consulting firms & also through the recommendations given by friends & relatives.
SELECTION IN NOV SARA INDIA PVT.LTD.
The selection procedure in Nov Sara is concerned with securing relevant information about an applicant. This information is secured in a number of stages. The basic objective of the selection process in the company is to determine the capacity of an applicant and whether the concerned applicant has the required qualifications for the respective job applied for and to choose the most suitable applicant for the vacant job.
SELECTION PROCEDURE IN NOV SARA INDIA PVT.LTD.
The following steps are involved in the selection of an applicant: 1. SCRUTINY OF THE APPLICATION FORMS: Applications are first invited through advertisements in the leading newspapers or other media and after the applications have been received they are scrutinised by the manager of the human resource and administration department of the company. 2. SHORTLISTING:Applications are first screened with regard to the vacancies and further short listed if they meet the basic eligibility criteria demanded by the company. 3. Short listed candidates are subject to further selection process & the applicants who have been rejected are informed via a written letter stating the reasons due to which their applicants have been rejected. Short listing of the candidates is the first step in screening out the unnecessary applicants.
4. PRELIMINARY INTERVIEWS: The basic objective of such interviews is to screen out undesirable candidates at the very outset. Prospective applicants are given the necessary information about the company & the nature of the job to be performed by them once selected. The necessary information is then elicited from the candidates relating to their education, experience, skills, the salary demanded by them, the reasons for leaving their present job (if any), their job interests. After considering all these factors, if the candidate is found to be suitable for the post vacant in the company then he/she may be selected for further scrutiny & examination. 5. EMPLOYMENT TESTS: For particular posts in the company, tests are conducted. The Personnel department organises & helps in the selection of the most suitable candidate for a particular post. Tests are taken with a view to evaluate the intelligence, interest, & psychology of the candidates. 6. TRIALS: In case there is a requirement of skilled manpower, then trials as per the requirements of the company are conducted in company. 7. MEDICAL EXAMINATION: Personnel performing visual examinations & calibration process have to go through an eye test conducted by the company. 8. INTIMATION TO THE SELECTED
CANDIDATES ALONG WITH THE LETTER OF APPOINTMENT: After, the suitable candidates have been
selected, they are intimated about their selection & an Appointment letter is issued to them by the company giving them preliminary information about the company, the date of their joining the company, the terms & conditions at which they have been appointed & other relevant details.
GRIEVANCES & DISCIPLIANRY ACTION
Grievance basically, refers to problems of any kind faced by the employees of the company. Redressal of such grievances is essential in the interest of the company & to ensure that the employees remain motivated to perform efficiently & give their best to the company.
GRIEVANCES may be:
• Written or verbal • Expressly stated by the employees of the company • Valid or legitimate • Untrue or completely false • It may arise with regard to the job or the department in which an employee has been placed. Grievances may arise as and when the employees working in an organisation feel that some kind of injustice has been done to them. Attrition, which basically refers to the disputes or differences among the employees of either the same department or of different departments, is also a part of the Grievances.
MAIN CAUSES OF GRIEVANCES
The main reasons why the employees of a company have grievances & feel that they have been unjustly treated are as follows: • Difference of opinion among the co-workers • Difference of opinion with the superiors • General working conditions in the company • Demand for labour welfare activities • Lack of personal touch in the relationship between the superior & the subordinates. A proper & well planned Grievance procedure must be laid down or adopted by the company as it will be of great help to the company in handling any grievances that the employees may come up with & such procedures will also ensure the satisfaction of the employees & the company as well.
There are two types of Grievance Handling Procedures & these are as follows:
A)
OPEN DOOR TYPE:
Any employee of the company who feels that injustice has been done to him or who has faced any kind of problem can directly approach the highest authority of the company. In other words, there is no restriction on the employees of the company & they get an opportunity to discuss their grievances with higher authorities of the company. This type is beneficial as it enables the owners of the company to have sufficient knowledge about the problems being faced by their employees & it gives the owners a platform whereby they can have a one to one talk with their employees. A)
STEP LADDER TYPE:
However, it is very difficult to have an Open Door type of Grievance handling procedure in place as it generally consumes considerable time of the owners of the company. Therefore, an alternative to the Open Door Type is the Step Ladder Type of Grievance Handling Procedure.
Under this type, as the name suggests the aggrieved employees can not directly approach the owners of the company but they have to first approach the HR & Administration department of the company & get their Grievances registered with the Personnel department. The HR & Administration department of the company then takes the required steps to ensure that the employees Grievances are redressed. The HR & Administration department conducts an enquiry once a grievance is registered with them to find out the truth of the same & take a decision with regard to what measures can be taken up to ensure that both the employees & the company are satisfied. If the employees are not satisfied with the decisions taken by the HR & Administration department, in that case they have the right to approach the higher authorities. NOV-SARA INDIA PVT.LTD. makes use of the second method described above for the purposes of Grievance Handling. Besides, this the company takes efforts to settle down Grievances at the root level & for this purpose the company has set up a SARA SOCIAL COURT. There are certain objectives of the SARA SOCIAL COURT & these are as follows: • It ensures that every employee shall at all times take all possible steps to protect the interest of the company & discharge his duties with integrity, honesty, devotion & diligence. • It ensures that every employee shall maintain good conduct & discipline. • To develop a healthy work atmosphere & harmony & brotherhood amongst the management & employees of the company.
PENALTIES
The following are the Penalties, which may be imposed on the employees for any kind of misconduct or for any other reasons: • Imposing fine for any loss caused to the company, on account of any misconduct or fraudulent activities of the employee which has to be recovered from the pay of the respective employee. The amount so recovered will be kept in a special fund to be utilized for the welfare of the employees. • Recommendation for with holding any increment in the pay of the concerned employee. Besides, the Social Court which is in place in the company, a WORKERS WELFARE COMMITTEE has also been set up in the company for the redressal of the worker’s Grievances. It mainly comprises of the representatives of every SHOP in the company which includes the CNC SHOP, MACHINE SHOP, ASSEMBLY & FABRICATION SHOP.
ACCOUNTS DEPARTMENT
Finance Department is responsible for handling all financial matters in the life of the Organization.The smoothness of a company’s functioning & its profitability depends on the performance of the Accounts department. The main activities performed by the accounts department are as follows: • Recording of all the transactions in the appropriate Books of entry. • Posting of the entries in the Ledger • Reconciliation of the Ledger Accounts • Submission of Sales Tax Returns • Submission of Provident Fund (PF) & Employee’s State Insurance (ESI) Returns • Posting & Recording of Material Receipt Voucher (MRV) • Preparation & maintenance of the Export & Import related documents
• Maintenance of records pertaining to the expenses incurred. • To act as the custodian of cash • To ensure timely preparation & closing of Cash Book. • Disbursement of cash • Preparation of Salary & Wage Sheet(Payroll preparation)
PROCEDURE FOR SALARY & WAGE SHEET PREPARATION
Determination of the wages & salaries of the company’s employees & preparation & maintenance of the relevant records viz. wages sheet , salary sheet & other related documents is one of the main functions to be performed by the Accounts department of a company. The Accounts department of a company determines the salary or wage to be given to the employees based on the information received by the Personnel department. The Personnel department of the company intimates the Accounts department with regard to the attendance of the each employee, which forms the basis of the determination of the wages & salaries by the Accounts department. A definite procedure is followed for the maintenance of records pertaining to wages & salaries, which is as follows: 1. PREPARATION & UPDATION OF THE DEDUCTION LIST: Every month end i.e. between 25th to 28th, the person responsible for the preparation of salary & wage sheet must ensure that all necessary details relating to the Deduction list are updated viz., salary advance, tour advance, term loan, vehicle loan, tax deducted on source (TDS). This list has to be reviewed by the Head of the Accounts department for its accuracy & correctness.
2. RECEIPT OF INFORMATION FROM THE
DIFFERENT DEPARTMENTS & CROSS CHECKING OF THE SALARY & WAGE SHEET:
The “NO. OF DAYS” list prepared by the Personnel department for each employee of the company is normally received on the first day of the next month showing all the deductions with respect to the leaves taken. These must be cross checked with the Deduction List. Thereafter, the Salary & Wages Sheet must be cross checked again to ensure that everything is accurate & correct. Once, these lists are found correct, the remaining lists like payslip, Bank Letter, PF, ESI etc. are prepared for further verification.
3. APPROVAL OF THE SALARY & WAGES VOUCHERS: The necessary vouchers for Salary & Wages should have been passed by the Accounts department prior to approval from the General Manager for final disbursement. Such Vouchers should also be cross checked with the Salary or Wages sheet. 4. PREPARATION OF SALARY & WAGE ANALYSIS SHEET: The Salary & the Wages sheet shall enumerate the Summary of the details pertaining to the employees of the company viz., no. of employees currently working in the company, no. of employees- who left, joined, got increment etc. These details are worked out on the basis of the comparison made between the related figures of the current month with that of the previous month. 5. FINALISATION OF THE PF & ESI AMOUNTS: After collating the data received from the Head Office for Provident Fund (PF), the return should be finalised both for the PF & ESI (Employees State Insurance) before its due dates after properly completing all the required documents viz., challans etc.
ROLE OF PERSONAL DEPARTMENT IN ACCOUNTS SECTION
PAYROLL MANAGEMENT
The human resource department/The personal department of NOV SARA has a brief role in accounts department, Here the HR department prepares a monthly information of the number of working days and Arrear days with the employee code and then it places it to the accounts department for further calculations. the following is the format of the information statement placed by the HR deptn to the Accounts deptn:S.n o Monthly information for wages as on 31/3/2008 Employe Employe Day Arr Me Con Other V/L T/ e code e name s Day d Earnin L s g S/ A Securit I y ta x Other deducti on
After getting the above information from the HR department the Accounts department prepares the wages bill for the workers in which all the
deductions and additions are made and the final net pay amount is calculated. the following is the format of the wage bill:Wages bill for the month of March 2008 of general staff
code Name Days Basic Spl.pay D.A HRA Adhoc Med OA Gpay PF ESI VL Sal adv TL Sal adv Net pay
Basic:-xxxx DA:-xxx Adhoc:-xxx (Computer Section) (General Manager)
Special Pay:-xxxx HRA:-xx Total:-xxxx (Accounts Officer)
wages for PF/EPF:-xxx wages for ESI:- xxxx (Finance Manager)
Apart from the above net salary payments the company pays certain other allowances to the workers, they are: 1. TCI* (term commitment incentives), 2. Washing allowance, 3. Other allowances These allowances are shown in a separate sheet, the following is the format of it:Serial num Code Name Amount • TCI will have to be refunded by the employee if he quits the organization before the completion of two years, an employee may be sued if he does not do so. Employees here are divided in three categories:1. Unskilled 2. Skilled 3. Semi-skilled. DA are distributed according to the above mentioned categories.
In the staff bill unlike wage bill all allowances are shown in it. And certain toher additional allowances are given like CC allowance, Performance incentive,etc but DA are not given to the staffs. The format of the information statement provided by the HR department is as follows:S.no Code Name NOD Basic Conv Med Total T.L.Ins Sal.adv Net Payable Sign
PF of the staff is calculated on the basic pay. PF is calculated 12% on BP then the company pays 8.33% of PF amount as Pension and 3.67% After the PF calculation the accounts department prepares a CHALLAN of Employee Provident fund organization for the bank. Money has to deposited within 1 to 15 th of the respective month. (Separate CHALLAN is prepared for each month.
QUALITY CONTROL DEPARTMENT
The quality of a product or service refers to the perception of the degree to which the product or service meets the customer's expectations. Quality has no specific meaning unless related to a specific function and/or object. Quality is a perceptual, conditional and somewhat subjective attribute. Quality management is a method for ensuring that all the activities necessary to design, develop and implement a product or service are effective and efficient with respect to the system and its performance. Quality management can be considered to have three main components: quality control, quality assurance and quality improvement. Quality management is focused not only on product quality, but also the means to achieve it. Quality management therefore uses quality assurance and control of processes as well as products to achieve more consistent quality. Quality Management is all activities of the overall management function that determine the quality policy, objectives and responsibilities and implement them by means such as quality control and quality improvements within a quality system.
In engineering and manufacturing, quality control and quality engineering are involved in developing systems to ensure products or services are designed and produced to meet or exceed customer requirements. These systems are often developed in conjunction with other business and engineering disciplines using a cross-functional approach. Quality control (QC) is a procedure or set of procedures intended to ensure that a manufactured product or performed service adheres to a defined set of quality criteria or meets the requirements of the client or customer. QC is similar to, but not identical with,
Quality assurance (QA). QA is defined as a procedure or set of procedures intended to ensure that a product or service under development (before work is complete, as opposed to afterwards) meets specified requirements. QA is sometimes expressed together with QC as a single expression, quality assurance and control (QA/QC) In developing products and services, quality assurance is any systematic process of checking to see whether a product or service being developed is meeting specified requirements. Many companies have a separate department devoted to quality assurance. A quality assurance system is said to increase customer confidence and a company's credibility, to improve work processes and efficiency, and to enable a company to better compete with others. Quality assurance was initially introduced in World War II when munitions were inspected and tested for defects after they were made. Today's quality assurance systems emphasize catching defects before they get into the final product. In order to implement an effective QC program, an enterprise must first decide which specific standards the product or service must meet. Then the extent of QC actions must be determined (for example, the percentage of units to be tested from each lot). Next, real-world data must be collected (for example, the percentage of units that fail) and the results reported to management personnel. After this, corrective action must be decided upon and taken (for example, defective units must be repaired or rejected and poor service repeated at no charge until the customer is satisfied). If too many unit failures or instances of poor service occur, a plan must be devised to improve the production or service process and then that plan must be put into action. Finally, the QC process must be ongoing to ensure that remedial
efforts, if required, have produced satisfactory results and to immediately detect recurrences or new instances of trouble Quality assurance covers all activities from design, development, production, installation, servicing and documentation. This introduced the rules: "fit for purpose" and "do it right the first time". It includes the regulation of the quality of raw materials, assemblies, products and components; services related to production; and management, production, and inspection processes.
NOV SARA has its own Quality Policy which states:“Management and employees of NOV S SARA INDIA PRIVATE LIMITED are committed to achieve rapid & continual improvement in performance to ensure that all products meet or exceed design specification & customer requirements.
PROCEDURE FOR QUALITY ASSURANCE & QUALITY CONTROL (QA & QC) RECEIPT OF RAW MATERIALS, INSPECTION & TESTING:
All incoming material shall be kept in the STORES department of the company until their inspection has been done & it has been established that the raw materials received are according to the specifications of the company. No raw material shall be issued by the STORES department of the company until it has passed the inspection process conducted by the QA & QC department of the company & unless the provisions set forth in the procedures for the release of material for urgent production or emergency purposes are followed, in which case the items are properly identified & recorded in order to allow for immediate replacement in case of nonconformance to the specific requirements of the company.
All incoming material shall be inspected as per the documented procedures & quality plans.
IN PROCESS INSPECTION & TESTING:
• All stages during production where inspection, testing & identification are to be performed, are identified by means of the documented procedures & quality plans. • No material is moved on to the next stage or process until the above verification or inspection is complete. • The materials which do not confirm to the specifications of the company are identified & removed from the process.
FINAL INSPECTION & TESTING:
Final Inspection & Testing shall be carried out to ensure that all the required inspection & tests including those in process have been carried out satisfactorily. The Final Inspection results, must be recorded & authorised by the concerned authority.
The following pictorial representation of work process of QC synopses the above explanations.
In the following process a material can be accepted or rejected, rejection may be due to the following reasons:1. Wrong supply of raw materials or 2. Dimensionally wrong or 3. Operators fault or 4. Error in checking or
5. problem in machine, etc Accepted material goes to the store then to its next operation. In case of rejection , the material is send back to the party with a specified laid down procedure. In case of in process rejection a NCR* is prepared for analysis. After analysis QC persons find out if the rejected material is reworkable or is it finally scrap (NCR manager needs to sign before sending it to scrap) (*NCR? NCR tells about the reasons for which the produced component is rejected. The NCR gives a brief synopsis of the defective material and also the operator who was employed in that production. If there are chances of the products reproduction with minute modifications then it is sent for it if not then it is moved to scrap with prior permission of the senior in concern) NOV SARA posses ISO 9000, API which keeps an keen eye over whether the procedures and standards set by the organisation are followed or not. So the ultimate product from NOV SARA is a quality product.
NOV SARA posses an ISO 9001 standard.
ISO 9000 is an international standard that many companies use to ensure that their quality assurance system is in place and effective. Conformance to
ISO 9000 is said to guarantee that a company delivers quality products and services. To follow ISO 9000, a company's management team decides quality assurance policies and objectives. Next, the company or an external consultant formally writes down the company's policies and requirements and how the staff can implement the quality assurance system. Once this guideline is in place and the quality assurance procedures are implemented, an outside assessor examines the company's quality assurance system to make sure it complies with ISO 9000. A detailed report describes the parts of the standard the company missed, and the company agrees to correct any problems within a specific time. Once the problems are corrected, the company is certified as in conformance with the standard. ISO 9000 is a family of standards for quality management systems. ISO 9000 is maintained by ISO, the International Organization for Standardization and is administered by accreditation and certification bodies. Some of the requirements in ISO 9001 (which is one of the standards in the ISO 9000 family) include a set of procedures that cover all key processes in the business; monitoring processes to ensure they are effective; keeping adequate records; checking output for defects, with appropriate and corrective action where necessary; regularly reviewing individual processes and the quality system itself for effectiveness; and facilitating continual improvement A company or organization that has been independently audited and certified to be in conformance with ISO 9001 may publicly state that it is "ISO 9001 certified" or "ISO 9001 registered." Certification to an ISO 9000 standard does not guarantee the compliance (and therefore the quality) of end products and services; rather, it certifies that consistent business processes are being applied. Indeed, some companies enter the ISO 9001 certification as a marketing tool.
PROGRAMMABLE LOGIC UNIT
A programmable logic controller (PLC) or programmable controller is a digital computer used for automation of industrial processes, such as control of machinery on factory assembly lines. Unlike general-purpose computers,
the PLC is designed for multiple inputs and output arrangements, extended temperature ranges, immunity to electrical noise, and resistance to vibration and impact. Programs to control machine operation are typically stored in battery-backed or non-volatile memory. A PLC is an example of a real time system since output results must be produced in response to input conditions within a bounded time, otherwise unintended operation will result. The PLC department of the NOV SARA manufactures Smart Control Panels for BOPs. A blowout preventer (BOP) is a large valve that encases an oil well at surface. During drilling or well interventions, the valve may be closed if overpressure from an oil reservoir causes formation fluids such as oil and natural gas to back up within the wellbore and threaten the rig. By closing this valve (usually operated remotely via hydraulic actuators), the drilling crew can prevent explosive pressure release, thus regaining control of the reservoir pressure. Once this is accomplished, often the drilling mud pressure within the hole can be increased until enough fluid pressure is being placed on the reservoir, and the BOP can be opened for drilling to resume. The invention and use of BOPs resulted in the end of oil gushers, which were dangerous and costly. The basic function of these Control Panels is to collect, process, monitor & display the following data: • Rig Air Pressure • Accumulator Pressure • Annular Pressure & Manifold Pressure • Low Fluid Levels • Mains Fail • Low Accumulator Pressure • Low Manifold Pressure • Low Rig Air Pressure • Rams operation & Rams position • Function Test of Rams • Ram Operating Time • Pressure loss
MAIN COMPONENTS OF THE SMART CONTROL PANEL
The main components of the Smart Control Panel are listed below.
These components are required in all Small Control configurations & these are as follows: • Master Panel • Driller’s Control Panel • Tool Pusher’s Control Panel • MASTER PANEL: It is a data acquisition & processing device of the accumulator unit. Its main functions are as follows: 1. Receives & processes proximity sensor & pressure transducer data & transmits this data to the Driller Control Panel. 2. Receives & processes the data entered by the operator using the Display Touch Screen at the Driller Control Panel. 3. 4. 5. Powers the proximity sensors. Transmits data to the Driller Control Panel. For historical data display & hard copy printouts.
Besides the Master Panel, the Smart Control Panel has two Slave Panels namely: • DRILLER PANEL/RIG FLOOR PANEL: Driller Panel is an intrinsically safe device that displays proximity sensor data, pressure transducer data from the Master Control Panel & controls the Solenoid
Valves of the Master control panel. The master control panel powers it & this panel is mounted near the driller’s position on the Rig Floor. • MINI/ AUXILIARY REMOTE PANEL (TOOL PUSHER’s PANEL): A full or limited function panel is mounted in a remote location for use as an emergency backup. These panels are referred to as Tool Pusher’s Panel. Besides, the above master & its two slave panels the other Components of the Smart Control Unit are as follows: • PROXIMITY SENSOR: These are used to measure the position of the Control Valve of the Accumulator Unit. They are powered from the main PLC cabinet designed to be mounted through the control valve nameplate. It is metal sensitive & produces a signal pulse whenever a metal passes within 10mm of the sensor head. • ALARM (HORN): It is connected to the display panel & sounds when alarm conditions are reached. During an alarm, the horn can be silenced by pressing the “alarm acknowledge” on the display panel touch screen. • PURGE SYSTEM : It is defined as a device which is used to maintain the internal pressure of the panel with respect to the atmospheric pressure.
FUNCTIONING OF THE PROGRMMABLE LOGIC CONTROLLER (PLC) DEPARTMENT
The PLC department begins the process of preparing & assembling the control panels after a request has been made to the R&D department for the issue of designs/drawings that will form the basis of the assembling of the control panels. Once, the drawings/designs have been issued by the R&D to the PLC department, these drawings become the basis of the functioning of the PLC department. Once the drawings are available & the raw materials required have been determined, the head of the PLC department prepares a BOM i.e. Bill Of Material & a copy of which is issued by PLC to the other concerned departments. The BOM contains the following details: • Code number • Part number • Rack number • Drawing number • Description • Unit in which quantity is measured (set/ number) • The actual quantity of raw materials needed as per the requirements. Once, the BOM has been issued to the PLC department, they check whether the required number of Panels Enclosures are available with them or not. If the required number is not available then the PPC department is intimated & there after, efforts are made to acquire the same. The PLC department has to send a daily report of the work performed on the previous day to the PPC department during the meetings which are held on a daily basis in the company. In this context, it is important to note that the company imports the panels enclosures from outside & the PLC department is responsible only for the assembling of the panels. In other words, the PLC department has to perform programming & wiring on the imported panels as per the customer’s requirements. Once, the panels are ready they are finally assembled by the
Technical engineers engaged in the PLC department with the Blow Out Preventor (BOP) units.
STEPS INVOLVED IN THE PROCESSING & FINAL ASSEMBLY OF THE SMART CONTROL PANELS
The following steps are involved in the overall processing of panels & their final assembling or mounting over the BOP CONTROL SYSTEM. 1. RECEIPT OF ORDERS: Once, the company has received orders from its customers for either the BOP Control Systems or the Smart Control Panels, the PLC department determines the specific raw materials that will be needed in order to meet the specifications & the customer’s requirements. 2. REQUEST FOR DRAWINGS: Once the orders have been received, the PLC department requests the R&D department for the drawings related to the Panels made by the PLC department. The drawings made by the R&D department in relation to the control panels include both the schematic as well as wiring diagrams. Schematic drawings give a proper description of the final appearance of the control panels & how the assembling work has to be performed. Whereas, the wiring diagram describes how the wiring has to be done in order to meet the desired specifications. 3. DETERMINING THE SPECIFIC RAW MATERIAL REQUIREMENTS: Based on the orders received from the customers & the drawings issued by the R&D department, the specific raw material requirements are determined by the PLC department. 4. FINALISATION OF BOM: Based on the requirements of raw materials, the Bill Of Material (BOM) is finalised by the PLC department. The BOM forms the basis of the functioning of the department.
CHECKING THE AVAILABILITY OF THE REQUIRED RAW MATERIALS: Based on the BOM the Stores
5. department checks whether the required raw materials are available with the
company or not. If the required raw materials are not available then efforts are made to procure the same. 6. PROCUREMENT OF RAW MATERIALS: Depending on the shortages being faced & non availability of the required raw materials, the Panel enclosures of different sizes are imported & later on the doors of these panel enclosures are sent for etching or inscription of the desired descriptions. Besides, the Panel Enclosures, all the other required raw materials are either imported or procured locally or manufactured in the company itself depending on their availability with the company. 7. WIRING: Meanwhile, the work of wiring is done on a mounting plate & once the wiring as per the desired specifications has been done, the mounting plate is mounted as it is on the Panel Enclosure. 8. PROGRAMMING: After the mounting plate has been so mounted on the panel enclosure, the programmes are loaded in the PLC’s, which are used for the purpose of operating the control panel. 9. TESTING: Once the programmes have been so loaded the control panels are checked for the required functions. If the Control Panels are found to be as per the desired specifications & if their functioning is as desired, then these panels are mounted on to the BOP Control Systems. If the Control Panels have been made & assembled exclusively for the other company’s requirements, then they are made as per the customer’s specifications & supplied to them once these panels are ready. 10. FINAL ASSEMBLY: After final assembling with or mounting on to the BOP Control System, these systems are tested in order to determine their functioning & if any errors are discovered during testing, the same are rectified to meet the desired standards & specifications.
MAINTENANCE DEPARTMENT
This department provides maintenance for manufacturing facilities; safety regulations are observed & are maintained within the desired level of accuracy to enable the respective manufacturing department to produce quality producers as assigned by the management within the scope of NOV-SARA INDIA PVT.LTD. The above department is responsible for field & shop maintenance. The primary objective of the above department is to ensure maximisation of the production capabilities of the company and to ensure that there is zero breakdown if machines & equipments installed in the company through up-gradation, employing latest maintenance techniques. There are 170 machines in NOV SARA.
Besides this, the other main objectives of the Maintenance department are as follows:
• To ensure timely & quality repair. • Increase machine availability through more stress on preventive maintenance. • Root cause analysis of the failures & taking appropriate preventive measures.
• Improve machine accuracy & the life of the machines & equipments of the company through constant & timely maintenance • Modernization with a view to enhance the machine capacity. THE BASIC FUNCTION OF MAINTENANCE DEPARTMENT
Replace, Repair, Overhaul, Rebuilt, Service, Inspect, Test, Adjust, Align, Install.
The following chart throws light on the areas in which this department operates.
TYPES OF MAINTENANCE
1. BREAKDOWN OR EMERGENCY MAINTENANCE: In such a maintenance repair is done after some failure has already occurred. The equipment or machine is allowed to run undisturbed till it fails. Only when the equipment fails to perform the designated functions or comes to a grinding halt, any maintenance or repair job is taken up. 1. CORRECTIVE MAINTENACE: It means maintenance actions for correcting or restoring a failed machinery or equipment. Corrective maintenance is generally a one time task, once taken up it has to be completed fully. 2. ROUTINE MAINTENANCE: It is one of the simplest but very essential form of maintenance. Routine Maintenance is basically concerned with avoiding, eliminating or reducing the consequences of failure. The small & critical defects observed during the routine checking are rectified immediately & jobs which take more time are planned to be performed later on as soon as possible. 3. PREVENTIVE MAINTENANCE: It includes any actions taken to prevent the failure of the machines & the equipments. Preventive Maintenance is the planned maintenance of plants & equipments of the company including & resulting from routine maintenance inspections & condition monitoring etc. in order to prevent or minimize the cases of breakdown.
CHALLENGES BEFORE THE MAINTENANCE DEPARTMENT
• Maintenance of the old machines & equipments. • Matching the demand of increased production targets & reduced delivery. • Proper maintenance of modern machines . • Spare parts management. • Development of service providers.
MATERIALS DEPARTMENT/ PURCHASE DEPARTMENT
MANUFACTURING COMPANIES
The manufacturing companies are basically of three types: 1. JOB BASED MANUFACTURING COMPANIES: Such companies manufacture the products based on the customer orders received by them. Their functioning & production is guided by the customer orders obtained by them. 2. BATCH PRODUCTION UNITS: Based on the market survey & sales forecast conducted by marketing department these manufacturing companies produce goods in batches or lots. At the same time such companies are not guided by the customer orders, instead they produce the set lots or batches irrespective of the existing demand for their products. The products of such companies are identified by means of their batch number. 3. MASS PRODUCTION UNITS: These kind of manufacturing companies produce goods in bulk. Such companies mainly comprise of the (FMCG ) Fast Moving Consumer Goods like eatables, toiletries etc. These products have Bar Codes inscribed on their back side which is an evidence that the products of the company
conform to the specifications as per the national as well as international standards. NOV SARA INDIA PVT. LTD. is primarily a Job Based Manufacturing company. Its functioning depends on the orders obtained by the company from its customers. The receipt of orders is followed by the preparation of the Bill Of Materials (BOM) by the PPC department giving a detailed description of the raw materials required for the production of the desired products. The Research & Development department then prepares the drawings/ designs that will form the basis of the production of the final product in order to meet the customer’s specifications. The PPC department checks out whether the required raw materials for production purposes is available or not. If not available the Purchase department is intimated by the Production Planning & Control department (PPC) regarding the shortages.
PURCHASE
The basic function of the Materials department is to ensure the procurement of the required raw materials as soon as possible in order to avoid any kind of delays. After the shortages have been identified, these are intimated to the Materials & Licensing department by the PPC department. The purchase department takes the required efforts in order to procure the requirements intimated to it. The manager Materials & Licensing department is responsible for the procurement of raw materials as per the required specifications. Moreover, it calls upon the Materials Manager to ensure that the raw materials are procured: • • • • • Within the stipulated time period From the most appropriate vendor At the most economical rate Of the desired Quality At the most appropriate place in order to ensure that minimum distance has to be covered after the materials have reached the company’s premises.
The raw materials procured by the Materials department can be categorised into three broad categories & these are as follows: • Bought Out • Imported components • Raw materials, Castings & Forgings In this context, it shall be impertinent to say that the Materials department must ensure the timely procurement of the required materials or parts as the case be so that the final assembling of the BOP Control Systems is not delayed.
PROCEDURE FOR THE PROCUREMENT OF REQUIRED RAW MATERIALS & OTHER MANUFACTURED PARTS LOCALLY
The procedure involved in the acquisition of the raw materials & other parts, procured from outside the company in order to meet the company’s requirements are as follows: 1. INTIMATION OF THE REQUIREMENTS FROM THE PPC DEPARTMENT: After the identification of the requirements of raw materials & other parts by the PPC department, the same are communicated to the Materials department for taking the needed steps to procure them. 2. IDENTIFICATION OF THE VENDORS: In order to fulfil the intimated requirements the Materials department identifies suitable vendors via internet & other media so that the required materials can be procured at the most economical rates. Apart from the various vendors who have been identified by the company, the company also considers the already existing vendors of the company. 3. ORDER PLACEMENT: After the vendors have been identified, the Materials manager takes the decision regarding the vendor with
whom the final order has to be placed. The decision regarding the vendor is taken on the basis of the cost, delivery & other factors, offered by them. Finally, the orders are placed with the vendors who offer the best quality & lowest cost. 4. FOLLOW UP : After the orders have been placed, the Materials manager follows up with the vendors till the materials have been finally received by the company. 5. RECEIPT OF MATERIALS: After the ordered materials have been received by the company, a Gate Entry with regard to their receipt is made in the Security Office of the company & at the same time intimation with regard to the receipt of the materials is passed on to the Materials department through the Stores department. 6. PREPARATION OF MATERIAL RECEIPT VOUCHER (MRV): After the materials have been received & the relevant documents (Vendor’s Invoice) have been passed on to the Materials department, the MRV is prepared by the Materials department giving the details of Gate Entry no. & date , MRV no., Supplier’s name, Invoice no., Invoice date, Invoice Value, Quantity received, Rate at which procured & other related commercial details.
IMPORT OF MATERIALS
For any manufacturing company engaged in the import of materials for the manufacture of goods, which have to be exported or are deemed to be exported to companies like ONGC, OIL INDIA, Special Economic Zones (SEZ), the Ministry of Commerce, Government of India has introduced a provision for the Duty Free Import of such goods. The imported materials may be procured at any of the following international prices: • FREE ON BOARD (FOB): The FOB price is inclusive of all the expenditure borne by the supplier for the transportation of materials. This is the case when the supplier undertakes the transportation of the materials sold & the FOB prices are charged by them. However, the FOB prices are exclusive of international freight & insurance.
• EX-WORKS: The Ex-Works prices are exclusive of any transportation charges as in this case the purchaser hires a Freight Forwarder & the onus of transportation of the materials lies with him. The Freight Forwarder charges the purchaser separately for the services provided by him but the supply price of the materials is exclusive of any transportation costs. • COST & FREIGHT (C&F): This price includes the costs borne by the supplier along with the international freight. • COST, INSURANCE & FREIGHT (CIF): This price includes the costs borne by the supplier & is also inclusive of the international freight & insurance. NOV SARA INDIA PVT. LTD. deals with its suppliers on the basis of ExWorks prices & it has engaged Freight Forwarders by the name Logistics International in USA & in India, in order to facilitate timely transportation of the materials.
MANUFACTURING DEPARTMENT
The manufacturing department is responsible for the manufacture of required products as per the specifications given by the Research & Development department. Keeping in view the requirements of the company the machines used for manufacturing in the company are divided into two broad categories and these are the CNC i.e. Computerised Numerical Control machines & the machines that are operated manually. The CNC machines are located in the CNC SHOP & the machines that are operated manually are located in the MACHINE SHOP. The machines on which maximum work is done or in other words the machines that are heavily used for producing the required output have now been computerised & there by a separate CNC SHOP has been set up in the company. The CNC SHOP mainly comprises of the CNC LATHE machines & CNC MILLING machines. Few years back even the above machines were
operated manually, but as the demand of the company’s products started increasing, the company in order to ensure that maximum units are produced within minimum possible time decided to computerise some of its main machines. Since the maximum work has to be performed on the LATHE & MILLING machines, these have been computerised. However, some models of the LATHE & MILLING machines which are operated manually have also been located in the machine shop since the use of CNC machines takes a lot of time in initial setting up, after which the required units of the desired quantity can be produced at a very high speed as compared to the machines that are operated manually.
MACHINE SHOP
All the manually operated machines are located in the MACHINE SHOP. These include the following:
• POWER HACK SAW – This machine is primarily used for the purposes of processing on the raw materials entering into the organisation which includes long and unshaped bars. This particular machine is used for cutting these bars into small sizes according to the requirement and the end product for which these parts are being made. • DRILLING MACHINE – This machine is used to make PRE HOLES for LATHE & MILLING MACHINE components. The Drilling Machine may be used only when holes have to be made in other words its use is optional & depending on the company’s requirements.
After wards, the parts are processed with the help of either Lathe or Milling machine depending on the company’s requirements. If the slots have to be given a cylindrical shape, then they have to be processed with the help of the Lathe Machine. On the other hand, if the slots have to be given rectangular or the shape of a square then they have to be processed with the help of the Milling Machine. • LATHE MACHINE – After the bars have been cut into small and other parts of desired sizes the LATH MACHINE is used for the purpose of giving desired shapes mainly cylindrical shapes to the small parts according to the end product desired. After the Lathe Machine has been used to accord cylindrical shape to the slots these may be further processed with the help of the Milling Machine as per the requirements to perform those functions & give the shapes which can not be accorded with the help of the Lathe Machine. • MILLING MACHINE – Once the bars have been cut into slots & parts of different sizes, the MIILING MACHINE is used for further cutting them into slots of different sizes and shapes mainly squares & rectangular shapes. After wards, these slots may be processed under the Lathe Machine for the purpose of according or making bores of the desired sizes which can not be accorded with the help of the Milling Machines. • GRINDING MACHINE – This machine is used for the purpose of according high accuracy & surface finish to the parts as per the specifications. Where ever the components have to be accorded high accuracy so that they meet the specifications, the Grinding Machine serves the purpose. The grinding machines are of various types and these are Tool & Cutter Grinder, Surface Grinder & Cylindrical Grinder. The tool & cutter grinder is used for according further accuracy & surface finish to the slots of various sizes as per the requirement. The cylindrical grinder is used for according accuracy & surface finish to the slots which have been cut in cylindrical shape. For the machines which have been used up for more than a year or more or the machines which otherwise require sharpening so that they remain effective, the SURFACE GRINDER is used for the purposes of sharpening the required machines.
• SHAPER MACHINE – This machine installed in the machine shop is primarily used to cut slots & maintain the surface of long pieces.
CNC (COMPUTERISED NUMERICAL CONTROL) SHOP
The automation of the machines is beneficial for the company only when the units have to be produced in bulk. When the units to be produced are small in quantity, then the use of machines that are operated manually is more beneficial to the company rather than the CNC machines. Since when the units to be produced are less then the time that will be taken by the CNC machines for initial setting up which is usually two to three hours will be much more than the time that the manually operated machines will take to produce the desired output, therefore in such cases the use of manually operated machines turns out to be more beneficial for the company.
The main parts manufactured in the CNC SHOP of the company with the help of the LATHE & MILLING machines are as follows:
• RING JOINT GASKETS – These joints are manufactured for ceiling purposes, in other words in order to prevent leakage of oil from the oil PIPELINES which is the final product of NOV SARA INDIA PVT.LTD. these joints are manufactured by the CNC SHOP. • SWIVEL JOINT – These joints are used for changing the direction of the pipes while the oil drilling equipment is being used for the purpose of extracting oil from the desired location. • FLANGE – In order to join two pipe lines FLANGE is used which facilitates extraction of oil with ease and convenience. The CNC
SHOP also manufactures FLANGE which is an essential part of the final oil field equipment. • BLOW OUT PREVENTER (BOP) ACCUMULATOR UNIT – This part manufactured by the CNC SHOP of the co. is used primarily for the purpose of storage of crude oil once it has been extracted from the desired location and once the extracted oil has been stored, it can be diverted to the appropriate machine for the purpose of further refinement. • POWER TONG – This particular part manufactured by the CNC SHOP is used for screwing and unscrewing the pipes during extraction of crude oil from the desired location. • TEST UNIT – This unit is used for testing the pressure with which oil is being extracted by the oil field equipment. • HAMMER UNION – These are used as a connector between different pipes that are used while oil is extracted.
Besides, the products of the company that are manufactured in the CNC & MACHINE SHOP, the company also has a separate VARCO SHOP which comes under the product manager for CNC & MACHINE SHOP & in which the following products are manufactured: • SPINNING WRENCHES: These wrenches are manufactured in the VARCO SHOP of the company & these are used for the purposes of spinning the drill pipes used in oil extraction. The various Models of Spinning Wrenches that are manufactured by the company are as follows: SSW-10, SSW20, SSW-30, SSW-40 • KELLY SPINNERS: These Spinners are used for the purposes of moving the drill pipes during the oil extraction process.
• ELEVATORS: These are used the purpose of holding & moving the drill pipes from one location to another during oil extraction within the drilling rig. • CASING SLIPS: The VARCO SHOP also manufactures these slips that are used catch or hold the drill pipes when these pipes are not being used for extraction purposes. • MANUAL TONGS: These tongs are used for spinning the drill pipes when the Spinning Wrenches are available for the purpose of Spinning the drill pipes. • CASING TONGS: These tongs are used for spinning the Casing Pipes which are fitted in the oil extraction well for the purpose of facilitating oil extraction. • TUBING TONGS: These tongs manufactured in the company’s VARCO SHOP are used for the purpose of either tightening or loosening the drill pipes which are used by the oil extraction companies for the purpose of cleaning the wax that gets collected after the oil has been extracted.
BASIC FUNCTIONING OF THE COMPUTERISED NUMERICAL CONTROL (CNC) MACHINES
In a numerically controlled machine, a tool is controlled by a code system that enables it to be operated with minimal supervision & with great deal of repeatability. CNC is the same type of operating system , with the exception that the machine tool is monitored by a computer. The principles used in operating a manual machine are used in programming a CNC machine also. The main difference is that instead of cranking or moving handles to position a slide to a certain point, the dimension is stored in the memory of the machine control once. The control will then move the machines to these positions each time the program is run. The operation of the SL i.e. SERIES LATHE machine requires that a program be designed, written & entered into the memory of the control.
The most common way of writing programs is off-line, that is away from the CNC in a facility that can save the program & send it to the CNC control. In order to operate & program a CNC controlled machine, a basic understanding of machining practises & a working knowledge of maths is necessary. It is also important to become familiar with the control console & the placement of keys, switches, displays etc. that are pertinent to the operation of the machine. In case of the manually operated LATHE machines, the Motor provides the power to Spindle which is used for controlling the speed of the Chuck. Chuck rotates clockwise and anticlockwise and is fitted with Jaws used to hold the component. The component also rotates continuously while being processed. The LATHE machines are also fitted with longitudinal slides (Z axis) and the cross slides (X axis) which are moved manually as and when the requirement arises with the help of the handles fitted to the above said slides. A tool post is fitted on the top of the X axis which provides space for holding one tool at a time for the purposes of performing the required operation on the component. Besides this manually operated LATHE machine there is the CNC machine which operates in the same manner with the difference that instead of the handles, the CNC machine is fitted with Motors for the purposes of moving the longitudinal & cross slides. These Motors are fitted with Encoders which give the details of the position of the Z & X axis. Encoder may be defined as an electronic device to count the revolutions made or the movement along the different axis depending upon where ever we fit the encoder along with the Motors in the CNC machines. Another difference between manually operated LATHE machines & CNC LATHE machines is that in place of the tool post as fitted in the case of manually operated LATHE machines, the CNC LATHE machines are fitted with a TURRET for holding many tools at a time ranging from 6 to 12 with 6 tools being the minimum capacity of any CNC LATHE machine & the maximum capacity varying from company to company but not exceeding 12
tools. The TURRET is also operated with the help of a motor fitted with an encoder which discloses the number of tools being used & the current position of the tools being used. Same is the case with the manually & CNC operated MILLING machines with the difference that while there are two axis in the LATHE machines (Z & X axis) on the other hand there are three axis in the MILLING machines (X, Y & Z axis). This is because the LATHE machines are primarily used to cut & shape cylindrical parts where as the MILLING machines are used to cut & shape square & rectangular parts. Another difference between the LATHE & MILLING machines is that in the LATHE machines the component held by the Jaws of the Chuck rotates and the tool is moved as per the requirements. Where as in the MILLING machines first of all there is no Chuck and therefore the component has to be placed with the help of nuts & bolts & secondly, the component is stationary in the Milling machines & the tool is rotated & moved forward & backward with the help of the slides along the Z axis. The following are the various operations performed by these machines:? 9. Turning, Boring, Threading, Milling, Drilling,etc. The various models & types of CNC machines in SARA are SL 40, SL 30, SL 20, VF 90 etc, these models are from HAAS USA manufacturers.
The following flowchart represents the workflow of the Manufacturing department
FABRICATION & ASSEMBLY SHOP
ASSEMBLY basically refers to the collection of the various units that have been produced in the CNC & MACHINE SHOP of the company & assembling the parts to get the final product which in the case of NOVSARA INDIA PVT. LTD. is the BLOW OUT PREVENTOR (BOP) CONTROL SYSTEM. FABRICATION is a part of the overall process of assembling to get the final product. Fabrication is done prior to the final assembling of the product for the purposes of structural assembling. In other words, the process of fabrication prior to the final assembling helps in developing the base, reservoir & the bottle rack on which further assembling is done to produce the final BOP CONTROL SYSTEM. The whole process begins with the raw materials being procured in the desired quantity. Once the raw materials have been procured the same are inspected by the QUALITY ASSURANCE & QUALITY CONTROL department. If the raw materials so procured are found to be as per the specifications of the company then, they are issued to the concerned department for further processing as per the requirements. Once processed they are sent to the STORES department for the purpose of storing them & recording the materials so received in the suitable registers maintained by the STORES department. The STORES department then issues the processed materials to the FABRICATION & ASSEMBLY SHOP for assembling purposes. Once, the fabrication process is over the fabricated products are inspected. After inspection, they are then painted. After painting is completed, the assembling process begins. The assembling process is followed by the inspection of the final product. If the final products assembled are found to be as per the required specifications, they are sent for packing. The packed products are finally dispatched to the customers in the required quantities.
PROCEDURE FOR ASSEMBLY
The following procedure is followed in the company for the assembling process: The purpose of this procedure is to detail the responsibilities of assembly & testing of components.
RESPONSIBILITY:
The manager of the Assembly department is responsible for all the functions of pertaining to the assembling of the products. He/she is also responsible for the overall safety & quality of work of the Assembly Shop. He shall be responsible for the supervision & inspection of the components assembled & tested in the Assembly Shop. The technicians & fitters are responsible to work as detailed responsible for checking their own work & intimating the Shop In charge regarding any kind of discrepancies.
PROCEDURE:
• On the receipt of instructions from the Product In charge, the Assembly In charge shall plan the assembly, deburring, fitting & painting in the Shop. • The Product Manager shall arrange for components from the Stores department against each job. • All Assembly shall be carried out as per the catalogue/ assembly drawings/ written instructions. • If nonconformity is observed at any stage of assembly/ painting/ dispatch then a Material Rejection Note shall be generated by the relevant in charge & forwarded to the Quality Control department for further disposition. • The History Card of each equipment shall be maintained by the Assembly Shop. The History Card or the Equipment History Card gives the details with regard to the item description, order no., model no. of the BOP Control System, date of starting the job, date of completion, date of dispatch, the batch quantity, number of technicians & electricians involved in the job completion.
STORES DEPARTMENT
A store can be defined as a place where goods or materials are stocked. The Stores department is concerned with efficient storage of the incoming materials procured locally, the imported materials, tools, finally assembled BOP control systems, various parts of the final product as and when they have been produced. The main activities performed by the Stores department are as follows: • Storage of incoming materials which have been procured locally & imported • Posting of the Material Receipt Voucher (MRV) • Storage of the parts manufactured in plant • Issue of the raw materials to the different departments based on the Material Requisition Indent (MRI) furnished by the concerned department. • Issue of the manufactured parts to the different departments based on the MRI received • Issue of returnable materials to the third parties. • Issue of non-returnable materials In order to ensure proper & systematic storage of the raw materials, parts & final products of the company, the company has in place different stores located in proximity to the different departments where the respective manufacturing is carried out. For example the BOP store is located near the Assembly shop to ensure that minimum distance needs to be travelled from the assembly shop to the BOP store once, the BOP control systems have been manufactured & finally assembled.
The following stores are in place in the company:
• BOP STORE : All the related parts which are needed for the final assembly of the BOP control systems are stored here. • TOOL STORE: The different types of tools which are required for processing purposes or for use in the various machines are stored in the Tool Store. • BONDED WAREHOUSE: The imported materials are stored in the Bonded Warehouse of the company. • TONG STORE: all the TONGS related parts viz., tong plates etc. are stored in the Tong Store.
METHOD OF STORING THE RAW MATERIALS , OTHER MANUFACTURED PARTS & IMPORTED MATERIALS
In all of the above mentioned stores in the company the method of storing the raw materials & other manufactured or imported parts is by allotting distinct codes to the different types of materials. The codes are allotted depending on whether the materials have been manufactured in plant or whether they have been imported or whether they have been procured locally. For example, the imported materials are given codes starting from ‘K’, the ones produced in plant are coded starting from the letter ‘I’, the consumable items like dresses, shoes, Anabond etc. have been given codes staring from ‘C’ & in a similar way codes have been allotted to the other items stored in the Stores department. Likewise, distinct codes are given to the parts which have been manufactured for the purpose of their final assembling with the end product of the company. Such parts are coded depending upon their functioning like tongs are coded starting from ‘T’ and similarly the other parts are coded in the same way. Further, the entire storage space in the Stores department has been divided into different bins & racks. These bins/racks are given appropriate codes which are as per the codes given to the different materials. The different materials are stored in the appropriate bins/racks which have the same codes that have been allotted to the different materials. This system of storing the materials helps in storing as well as taking out the materials from the racks where they have been stored with the help of the codes allotted to each of the types of materials .This not only helps in saving the time & efforts to be put in but also ensures that the materials are systematically stored. In order to understand the functioning of the Stores department it is important to highlight the procedures that are followed with regard to the storage of incoming raw materials, the issue of raw materials, the storing of imported raw materials & its issue.
PROCEDURE FOR THE STORAGE OF INCOMING RAW MATERIALS
The raw materials may be procured locally i.e. from Dehradun or they may be procured from outside Dehradun. In case they are procured locally the Material Received Voucher (MRV) prepared in their respect is coded as BL where ‘L’ stands for locally procured raw materials. In case of raw materials procured from outside Dehradun the MRV prepared in their respect is coded as BO where ‘O’ stands for materials procured from outside Dehradun.
The procedure for the storage of the incoming raw materials other than the imported raw materials is as follows:
1. GATE ENTRY: Once the raw materials reach the premises of the company, their Gate Entry is made along with the receipt of the BILL or the DELIVERY CHALLAN (D.C) sent by the vendor from whom the raw materials have been procured. 2. INTIMATION TO THE STORES DEPARTMENT: After the Gate Entry has been made, the Stores department is intimated about the arrival of the raw materials & the Stores department collects the Receipt or the D.C as the case may be. The stores department has to send a copy of this receipt to the Purchase department so as to enable the Purchase department to prepare the Material Receipt Voucher (MRV). The MRV gives the details regarding the Order no., description of the materials procured, quantity procured, code no., job no., rate at which materials have been procured. The MRV also contains the details of date of gate entry of the materials, date of preparation of MRV, MRV no. & other related details.
3. STORAGE AT THE AWAITING STORES: The raw materials which have been procured are kept at the Awaiting Stores till they have been inspected by the Quality Control department of the company & the Purchase department has prepared the MRV. The purchase department prepares the MRV on the basis of the Bill sent to it by the Stores department. 4. INSPECTION BY THE QC DEPARTMENT: The raw materials stored at the Awaiting Stores are kept there till they have been inspected by the QC department. The QC department checks the raw materials in store at the Awaiting Stores after the receipt of the MRV prepared by the Purchase department. If they are found to be as per the desired standards then they are sent to the stores department along with the MRV. 5. APPROVAL OF MRV BY THE STORES DEPARTMENT: Once, the raw materials have been inspected by the QC department, the Stores department receives the MRV from the QC department. After the raw materials have been cleared by the QC department these are received by the Stores department for storage purpose. The MRV has to be approved by the Stores department before it stores the raw materials. 6. STORAGE OF RAW MATERIALS AT THE STORE: If the raw materials are found to be as per the requirements & the MRV then they are stored in the appropriate Bins meant for the different types of raw materials. In this context it is important to highlight the fact that the each type of raw material is given a different code & is allotted a separate Bin/Rack. Each bin/rack is labelled with the code of the materials for which it is meant. 7. RECORDING OF MATERIAL RECEIVED VOUCHER (MRV): Once the MRV has been approved by the Stores department the same is recorded by them & then the MRV is sent over along with the BILL/ DELVERY CHALLAN to the Accounts department for further recording.
PROCEDURE FOR THE ISSUE OF MATERIALS & OTHER PARTS TO THE OTHER DEPARTMENTS
8. RE-INSPECTION & PREPARATION OF MRV: If the raw materials are not found to be as per the desired standards then the Stores department intimates the QC department & then the raw materials are inspected again & later on another MRV is prepared & the above said procedure is carried out again.
The following steps are involved in the issue of either raw materials or different parts manufactured from the Stores to the other departments of the company. 1. FILING OF MATERIAL REQUISITION INDENT (MRI): The department which is in need of either raw materials or any other part prepares a MRI & files the same to the Stores department. The MRI contains the details pertaining to the quantity required & by what time. This forms the basis of the issue of materials by the Stores department. 2. MATERIAL REQUISITION INDENTS (MRI) ISSUED TO EACH DEPARTMENT: Each department of the company is provided with Material Requisition Indents so that they can file these Indents with the Stores department as & when the need arises. The MRI provided to each department of the company has a code inscribed on the top of it. These codes have been given to the departments of the company keeping in view the functions of each department. 3. ISSUE OF REQUESTED MATERIAL: On the basis of the MRI received & the materials requested by the concerned departments, the Stores department issues the requested materials to the concerned department by whom the request has been made. 4. RECORDING THE RELEVANT DETAILS: After the materials have been issued to the concerned departments the relevant
details relating to the issue of materials are recorded in the database system in use in the company like the quantity issued, name of the department to which materials issued, date when issued, Job number & other related details.
PROCEDURE FOR ISSUE OF RAW MATERIALS FOR PROCESSING TO THE THIRD PARTIES WHICH ARE RETURNABLE
Returnable goods are the ones which are issued to the third or outside parties for processing purposes & are returned to the stores department, once the desired processing has been completed within the stipulated time period. The procedure for the issue of raw materials, which are returnable, to the third parties is as follows: 1. PREPARATION OF JOB WORK INDENT: If the raw materials have to be sent to outside or third parties for processing purposes then, first of all the PPC department prepares a Job Work Indent. This Indent gives the details of the quantity to be sent for processing purposes, date by which the goods shall be received back by the company from the third party & other necessary details. This Indent is sent to the Stores department by the PPC department. 2. ISSUE OF RAW MATERIALS : On the basis of the Indent received from the PPC department, the Stores department issues the required quantity of raw materials. 3. PREPARATION OF DELIVERY CHALLAN: The Stores department prepares a Delivery Challan (DC) which gives the details of the quantity being issued, description of material being issued, Job number, code number of raw materials being issued. The DC is sent along with the required raw materials to the third parties. 4. MAINTENANCE OF RECORDS: Four copies of the Delivery Challan are prepared by the Stores department. One is sent
to the third party, another sent to the security office, another kept by the stores department for future reference & another copy filed by the stores department. 5. RECEIPT AFTER PROCESSING: Once the raw materials which were issued to the third parties for processing purposes have been processed, they are returned to the company along with a Bill/Delivery Challan (DC). 6. GATE ENTRY: The processed raw materials are received by the security office of the company & a gate entry with regard to the receipt of these raw materials is made. 7. INTIMATION TO THE STORES DEPARTMENT: The security office informs the Stores department about the receipt of the processed materials & sends the Bill to the Stores department. The stores department then passes on this Bill to the purchase department in order to facilitate the preparation of the Material Received Voucher (MRV) 8. STORAGE OF RAW MATERIALS IN THE AWAITING STORES: The received materials are then passed on to the Awaiting Stores, where they are kept till the materials have been inspected by the QC department. The QC inspects the materials with the help of the MRV prepared by the Purchase department. 9. APPROVAL & FINAL STORAGE: Once the materials received have been finally approved by the QC department, they are sent to the Stores department for the purpose of storing them in the appropriate Bins/Racks meant for storing them.
PROCEDURE FOR THE ISSUE OF MATERIALS WHICH ARE NONRETURNABLE
Non-Returnable goods are the ones which are issued by the Stores department either to the other departments within the company or to any third/outside party but these materials are not returned back to the Stores department. For example consumable items like dresses, shoes etc. In other words, these raw materials are issued by the Stores department & consumed by the party or department to which they are issued. The procedure for the issue of such materials is as follows: 1. INTIMATION OF THE DEMAND TO THE PPC DEPARTMENT: All the requirements pertaining to consumable items are intimated by the different departments or the third parties to the Production Planning & Control (PPC) department of the company. The third party which comes up with such requirements is generally the Second Division of the company. 2. INTIMATION TO THE STORES DEPARTMENT: The PPC department then informs the Stores department regarding all such requirements. 3. ISSUE OF REQIURED RAW MATERIALS: The required raw materials are then issued by the Stores department along with a Delivery Challan prepared by the Stores department to the respective parties.
4. MAINTENANCE OF RECORDS: Four copies of the Delivery Challan are prepared. One is sent to the third party along with the materials, another is kept by the Stores department for future reference, another sent to the security office, another is maintained & filed in the records of the Stores department.
The woking process of stores department is shown as under by the diagram.
MIS & IT
Information management is a general terms that refers to managing any kind of information.
This information that is managed varies according to the industry. Document management is also considered as information management since you are managing the information that is contained in the documents. Management information systems are those systems that allow managers to make decisions for the successful operation of businesses. Management information systems consist of computer resources, people, and procedures used in the modern business enterprise. The term MIS stands for management information systems. MIS also refers to the organization that develops and maintains most or all of the computer systems in the enterprise so that managers can make decisions. The goal of the MIS organization is to deliver information systems to the various levels of corporate managers. MIS professionals create and support the computer system throughout the company. The IT department deals with the connectivity of one department with the other. It prepares LAN and WAN connectivity within the computers in the organization and with the other branches of the office.
THE WORK PROCESS OF MIS DEPTN IS AS FOLLOWS
WHAT ARE KEY RESULT AREAS???
They may be defined as the areas which form the basis of the functioning of a particular department of the company. It is on the basis of the functioning of the department in these areas that one can judge the efficiency & the performance of a particular department. A department can be said to have accomplished its main objectives only when it has been able to perform well in the areas which are earmarked for the respective departments of the company.
The KEY RESULT AREAS of the company are as follows:
Timely delivery of the product so as to avoid any kind of delays. Reducing product related Non Conformance Reports
Besides, the departmental Key Result Areas are as follows:
• Recruitment of manpower to fill all the vacant positions for the senior level within 60 days & for the junior level within 30 days. • • • • Training of staff & workers & identifying their skill levels. Safety & security of the staff & workers Upkeep & maintenance of factory premises Up to date maintenance of the time of arrival & dispersal of each employee as well as the number of leaves taken & also the number of days for which the employee has worked for a month & timely submission of this report to the Accounts department of the company so as to enable them to finalise the pay of each employee for the month.
• Timely planning to maximise the company’s revenues • Ensure efficient storage of the raw materials, manufactured parts • Ensure zero break down of the machines and equipments installed in the company’s premises • Meet the quality standards as per the API and ISO specifications
SWOT ANALYSIS
Building a competitive advantage requires careful analysis of not just your competitors, but your own business as well. A SWOT (strengths, weaknesses, opportunities, and threats) analysis is a proven marketing tool used to clarify market position and shape strategic marketing goals. This highly disciplined process incorporates feedback from a broad range of sources including your internal staff, outside information sources, and strategy groups to provide you with a balanced and comprehensive picture of internal and external factors that are impacting your business. The Definition 6 team will help you use the SWOT approach to analyze your competitive environment and create marketing and promotional strategies that achieve your goals. A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, straightforward model that assesses what an organization can and cannot do as well as its potential opportunities and threats. The method of SWOT analysis is to take the information from an environmental analysis and separate it into internal (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines what may assist the firm in accomplishing its objectives, and what obstacles must be overcome or minimized to achieve desired results.
STRENGTHS
The principal Strengths of the company are as follows: •
LOW COST OF MANUFACTURING: The
company produces products based on the western technology at core competitive costs. This gives an edge to the company as the similar
products of the same quality & design are available to the customers at a lower cost, thereby enhancing the sales levels of the company. •
WELL
The company has a well planned layout. Each department of the company is located in proximity to the other departments with which they have maximum correspondence. In other words the departments whose functioning is related to one another or where the departments are inter dependant & where the work of the different departments are interrelated have been located near to one another. For eg. The maintenance department is located near to the CNC SHOP & MACHINE SHOP so that on one hand Routine Checking by the maintenance department does not require much distance to be covered by the concerned employee. Similarly, the STORES & QUALITY ASSURANCE (QA) departments are located near to the ASSEMBLY & FABRICATION department so that as and when the units have been finally assembled they can be easily moved on to the QA department and after they have been checked as to whether the final product is as per the required specifications or not and then the QA department moves on the final product so produced to the STORES department for storing the final products till the time of final dispatch to the customers of the company.
PLANNED LAYOUT:
•
QUALITY ASSURANCE:
The company’s quality plan meets the specification of the ISO 9001 & the API which legitimises the products of the company in the eyes of its customers.
WEAKNESS
The following weaknesses were observed either in the layout or the basic functioning of the company, which are acting as major hurdles in the smooth functioning of the company. •
LACK OF PROPER DATA BASE SYSTEM:
The company has a very old & outdated database system FOXPRO for all recording & daily up gradation of entries being made. The system in use in the company i.e. FOXPRO requires the use of difficult commands for running it, this creates a problem for those
employees of the company who are not well versed with FOXPRO. Taking into consideration the fact that when systems like ORACLE etc. are available in the market in which no difficult commands are used, instead such systems can easily operated by simply clicking on to the required icons etc. Therefore the use of FOXPRO in such a scenario not only makes it difficult for the employees to operate on it but also affects the effectiveness of the employees & results in wastage of considerable time.
•
LACK OF PROPER PLANNING:
Due to the lack of proper & timely planning in the company, there is considerable wastage of not only time & resources of the company but the company also looses out on much pf the profits that it could have otherwise earned. It is primarily due to lack of timely planning that the units produced by the CNC & MACHINE SHOP of the company lie idle in the company’s premises, as some small parts that need to be added to the final output of the SHOPS before they are ready for sale in the market are either not available or they are not intimated by the Production Planning & Control department to the Purchase department so that the required parts can be procured in time & the final product be made available for sale in the market. Due to the lack of proper planning that the products which could have otherwise earned money for the company lie idle in the premises of the company.
OPPORTUNITIES
The following opportunities can be capitalised by the company to ensure that there is maximisation of profits.
• MERGER WITH VARCO (NOV):
NATIONAL
OILWELL
SARA SERVICES & ENGINEERS (SARA SAE) has now been merged with a USA based company NOV and has been renamed as NOV SARA
INDIA PRIVATE LTD. As a result of this merger the company stands to gain a lot in terms of not only gaining the status of a Multi National Corporation (MNC) but it also stands to gain a lot as far as the company’s customers are concerned. The company prior to the above said Merger did have huge orders but the Merger has given an all together new edge to the company & the company will have access to the customer base of NOV as well in addition to its old customer base.
• TAPPING THE EXISTING MARKET:
NOV SARA INDIA PVT.LTD. is active only in limited countries i.e. say around 10 countries of the approximately 100 companies where a market for the company’s products exists. In other words, the countries, which are into oil extraction industry are much more as compared to the countries in which the company is active. The company’s market reach is only about 10% & the remaining market can be tapped, which would expand the customer base of the company.
THREATS
The following threats must be given special attention by the company , so as to ensure that these do not affect the company’s functioning. •
LOW JOB SATISFACTION:
The level of job satisfaction among the employees of the company is very low. This is primarily because of the lack of internal communication, lack of definition of responsibility and the expectations from the employees.
•
LACK OF UPGRADATION:
INFRASTRUCTURE
The rapid growth experienced by the company during the past 5 years is laying severe stress on the company’s infrastructure and internal operating systems which were designed for a company of much smaller size and have not been
upgraded sufficiently to enable the company to handle the manifold increases in the turnover. Slow growth of infrastructure may lead to a fallout in terms of quality and delivery, which are key to the efficient functioning of the company.
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