Transcript
COIMBATORE
PPG INSTITUTE OF TECHNOLOGY,
SUMMER INTERNSHIP PROGRAMME
“A STUDY ON HUMAN RESOURCES AND MARKETING DEPARTMENTS AT ITC LTD, MUNGER”
Submitted by RAVI MANDAL Register No: 098001140048
In partial fulfillment for the award of the degree of MASTER OF BUSINESS ADMINISTRATION
in DEPARTMENT OF MANAGEMENT STUDIES
PPG INSTITUTE OF TECHNOLOGY COIMBATORE-641 035 AUGUST-2010
CONTENTS 1
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CHAPTER
CONTENTS
PAGE NO
1
INTRODCTION 1.1 COMPANY PROFILE 1.2 PRODUCT PROFOLE
1 6
2
ITC Overview 2.1 VISION, MISSION
7
3
ORGANISATION STRUCTURE
10
4
FUNCTIONAL DEPARTMENT 4.1HUMAN RESOURCE DEPARTMENT 4.2COMMERCIAL DEPARTMENT 4.3PRODUCTION DEPARTMENT 4.4 ENGINEERING DEPARTMENT 4.5 SECURITY DEPARTMENT 4.6 MANAGEMENT INFORMATION SYSTEM DEPARTMENT
12 15 17 28 29 29
5
SWOT ANALYSISI
30
6
FINDING
32
7
CONCLUSION
33
8
BIBLIOGRAPHY
34
9
ANNEXTURE
35
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PPG INSTITUTE OF TECHNOLOGY, 1.1 COMPANY PROFILE
MUNGER AT A GLANCE
The township Munger city is located in idyllic surroundings on the Southern bank of Ganga River, in the north the city is flanked by high ranges of the ‘Pirpahar’ hills and on the south Munger is enveloped by the Kali Hill. Asia’s first Railway workshop (148 years old) is in Jamalpur which is also on south of Munger. There is a 250 years old Gun factory at Munger. The Yogashram at Munger is Asia’s first authorized Yoga University. People from India and abroad come here. Within two decades of ITC coming into existence, the city has blossomed into a regional urban centre of over 3 lakhs people from different parts of the country, making the city a Mini Bharath. Direct train services at all four metros are available. Employees of ITC •
Executives : 55
•
Non-executives :1124
The general plan of Munger city covering approximately 3224sq km provides for about 5, 00,000 Residential units. The city has a number of company run and public schools dispersed in various sectors of the city.
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ITC LIMITED
ITC, Munger is the first plant of ITC LTD. Established in 1907 Munger, 180 kms from Patna, Bihar. The plant spans over 20.04 acres. On 24th August the Company was incorporated as a Private Limited Company under the name, Imperial Tobacco Co. of India Ltd. The Company manufactures and distributes cigarettes and smoking tobaccos and specialty papers including cigarette tissue papers (Sole manufacturer in the country). Other activities include tobacco leaf processing, printing and packaging, hotels, food and exports. The Company acquired the manufacturing business of Tobacco Manufacturers (India) Ltd. and the Complementary Lithographic printing business of Printers (India) Ltd in 1953.
COMPANY HISTORY :-
ITC limited started its business from a small manufacturing unit in Munger, Biha from 6th June 1907.
The company was named “Imperial Tobacco Company of India Limited” and was incorporated from 24th August 1910.
In 1925, as a strategic move towards backward integration of cigarette divisio ITC’s Packaging and Printing Business (PPB) was set up. In 1953, Imperial was converted into a public limited company. In 1971,The company set up a marine exports division. In 1974, the ownership of ITC was Indianised and therefore the name was changed to Indian Tobacco Company.
In 1975, ILTC (Indian Leaf Tobacco Company) became a part of ITC.
In 1975, the company started its hotel business under the name of “ITC Welcom Group Hotel Chola”. In 1979, the company entered Bhadrachalam Paperboards Limited.
into
Paperboards
Business
by
promoting
In 1985, the company set up Surya Tobacco Co. in Nepal as an Indo-Nepal-Briti joint venture.
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In 1986, the company established ITC Hotels as a separate division. In 1990, the company set up an International Business Division (IBD), for export agri-commodities. In 1994, Mc. Kinsey was commissioned to study the business. In 2000, ITC's unique e-Choupal initiative was launched. ITC e-Choupal, the largest Internet-based intervention in rural India, empowers over 3.5 million farmers in 35,000 villages.
In 2000, the company diversified its business further by entering into Will Lifestyle Retailing Business with Wills Sports Range of international quality relaxed wear for men and women. In 2000, ITC InfoTech India Limited, a wholly owned subsidiary of ITC, was set up to provide end-to-end IT solutions including e-enabled services and business process outsourcing. In 2001, ITC formed the foods division. In 2002, Surya Tobacco Co. became a subsidiary of ITC Limited and its name changed to Surya Nepal Pvt. Ltd. In 2002, ITC entered into manufacturing of safety match boxes. In 2003, In agarbattis and in 2005, introduced Essenza Di Wills.
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ITC Limited , MUNGER
ITC Munger started its journey on 6 th June,1907. The company is a premier manufacturing center in cigarettes, apart from other three factories located in Saharanpur, Kolkata and Bangalore. It is one of the best with state-of-the art modern technology equipped systems in manufacturing and printing with SAP implementation. The company was started on account of ease of procurement of raw materials, cheap labour, transportation and electricity supply.
Raw
materials-
The
tobacco
leaves
plantation
was
carried
out
in
outskirts of Munger district, and was a major supplier of leaf tobacco to its other divisions.
Transportation- Munger, located on the outskirts of river Ganga, was wel connected to railways, roadways (NH-81), and railways that was directly connected to ITC.
Electricity- Munger had its own D.C. (direct current) plant in Lal Darwaza popularly known as “Dhandaniya Company” by local people.
Cheap Labour- The labour was cheap and easily available.
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BUSINESS SEGMENTS
FMCG •
Cigarettes – Cigarettes & Smoking Mixtures.
•
Others
– Branded Packaged Foods (Staples, Biscuits,
Confectionery, Snack Foods and Ready to Eat Foods), Garments, Educational and other Stationery, Matches, Agarbattis and Personal Care products.
Hotels – Hoteliering Paperboards,
Paper
&
Packaging
–
Paperboards,
Paper
including
Specialty Paper and Packaging including flexible. Agri Business –
Agri commodities such as rice, soya, coffee and leaf
tobacco. Other Business: -
Other businesses of the companies include information
technology (IT) services, investments, golf, resorts and real estate.
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ITC Munger is producing cigarettes with filter and without filter.ITC Munger is also preparing tobacco for the use of secondary units of Munger and Kidderpore. There is also a printing and packaging plant which produce packet of cigarettes and others product.
PRODUCT –MIX
PIECES or KG/DAY
Cigarette
36 Million Pieces
Tobacco
80000 KG
Cigarettes Packet
12 Million Pieces
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2.1. ITC: LEADING WITH A VISION, MISSION AND OBJECTIVE
VISION Sustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for the Indian economy and the Company’s stakeholders.
MISSION To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value
OBJECTIVE •
We build lasting relationships with customers based on trust and mutual benefit
•
We uphold highest ethical standards in conduct of our business
•
We create and nurture a culture that supports flexibility, learning and is proactive to change
•
We chart a challenging career for employees with opportunities for advancement and rewards
•
We value the opportunity and responsibility to make a meaningful difference in people’s lives
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POLICIES OF ITC QUALITY POLICY We shall build and sustain a world-class organization, where quality is the hallmark of every process and activity. With the involvement and dedication of our human resource, we are committed to achieve satisfaction of all our stakeholders, through innovation and continual improvement.
SAFETY POLICY •
Safety of its employees and the people associated with it including those living in the neighborhood of its plants and units
•
Pursue safety efforts in a sustained and consistent way by establishing safety goals, demanding accountability for safety performance and providing resources to make safety programmers work
Triangle
Green
Safety
By:- National Safety Council 10
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CORPORATE ENVIRONMENT POLICY ITC LTD reaffirms its commitment to contributing towards a clean and sustainable environment and continually enhancing its environmental performance as an integral part of its business philosophy and values. Towards this commitment, we shall: Integrate sound environmental management practices in all our activities
Conduct our operations in all environmentally responsible manners to comply with
applicable legal and other requirements related to its environmental aspects and strive to go beyond Progressively adopt cleaner and energy efficient technologies Minimize waste generation and promote recovery, recycle and reuse Increase greenery in and around our plant Strive for continual improvement in our environmental performance by setting
challenging
targets,
measuring
progress,
taking
corrective
action
and
communicating environmental information to all concerned
Enhance environmental awareness amongst employees working for and on behal
of us and the general populace around plants
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Encourage our business associates to adopt similar approach for environmenta
protection
Corporate Social Responsibility Apart from providing primary medical, health and educational facilities to the people living in and around its township, ITC has been undertaking several initiatives to promote art & culture of the country with four sports Academics under its fold, ITC continues to promote sports as an integral part of the company’s corporate philosophy.
3. ORGANIZATIONAL STRUCTURE
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COIMBATORE Classification by level and Greads DESIGNATION
GRADES
Branch Manager
LEVEL
C
Head of Department
Assistant Manager
D,E
4
E,F
5
G(TG1,TG2,TG 3)
Supretendend, Executive, executive Engineering
Assistant security officer
H(H1,H2,H3 )
4.1 HUMAN RESOURCE DEPARTMENT 14
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6
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Putting human energy to productive use of what personnel
management is all
about. The tasks necessary to accomplish the organization’s purposes must be specified, and broken down into workable units that can be performed by one individual. The efforts of each individual must be co-ordinate with those of others Persons with the needed skills and abilities to perform must be acquired. Once they must be motivated to perform. As skills become obsolete, training in new skills must occur. Corrective actions must be taken if work does not meet
prescribed standards. Measures must be instituted to retain the
services of those who make a positive contribution. Personnel management exists to perform these and related activities .
HIERARCHY IN HR DEPARTMENT
FUNCTIONS 15
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COIMBATORE Recruitment
Procedure of recruitment:Internal recruitment – •
Job postings are done in the company
•
It is displayed on the notice boards of various departments.
•
It is only for special posts in the company
External recruitmentIn the month of May recruitment for E1 level jobs are advertised on•
ITC’s website
•
ITC magazines’-News’
•
Employment News
Employee Services:It maintains the general welfare of employees on the job and assists them with problems related to their security and personal well being. 1) Medical Services:
Prevents diseases and physical ailments and cares for diseases,
ailments, and injuries incurred by employees on the job.
2) Recreation: Provides programmers
and facilities for the enjoyment of employees of
the job and for making company employment more attractive and satisfying. 3) S C HOOL: ITC has a primary school for Employee’s child at ITC Park. 4) SPORTS AND GAMES: Competition in sports and games are conducted every year among the employees. A Golf ground is also for managers. 16
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5) CONSUMERS CO-OPERATIVE SOCIETY: Consumers co-operative society is available to meet the needs of the employees for supply of essential commodities. 6) CANTEEN: A pure and hygiene canteen is provided to cater the needs of the employees. Tea, snacks lunch and dinner are providing to all employees.
7) C OLONY /TOWN SHI P: The Company has well planned housing colony with 10 sectors each having about 280 quarters for various grades of employees.80 quarters for managers at ITC Park and 200 quarters for others employees at shankarpur near from ITC. Round the clock security arrangements are provided in the colony. And there are few guest
houses also.
8)
WATER SUPPLY: Portable water is supplied from nearby Ganga River and is
supplied twice a day throughout the year. Separate water storage tanks are available for each quarter.
9) BUS FACILITY: Different buses and cars are available for different sector employees for going to plant. The bus runs timely for different shifts.
10) OTHER SERVICES: Every six month employees are given some gifts (rain coat and other gifts). Holiday’s packages in which they are given total expenditure for themselves and their family to go for holidays in any corner of India and they can stay in ITC’s hotels.
GENERAL ADMINISTRATION:Office general timings: 1) 7:00 am-4:00pm 2) 8:00 am- 5:00 p.m. Shift timings: 17
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‘Early’ shift – 06:00 am – 02:30 pm ‘Late’ shift – 02:30 pm – 11:00 pm ‘Night’ shift – 11:00 pm – 06:00 am
The HR department aligns itself to create a proactive work environment for its customers to enable them to perform and also act as change agents to prepare them for the future by continual improvement and enhancement of their skills and knowledge through motivating means.
4.2 COMMERCIAL DEPARTMENT
The complexities which exist in the management of ITC LTD, Munger has given a distinct position to the head of the finance Department. Manager Finance He is a member of the top management team and is entrusted with the responsibility of planning, organizing and controlling the financial and controlling the financial affairs of the company the finance function assumes greater importance in ITC due to its special features like huge capital investment, longer gestation period lower profitability. Finance Department renders specialized professional service by advising the head of the organization as well as staff members on matters having financial implications.
HIERARCHY IN COMMERCIAL DEPARTMENT
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Stock Exchange Reuters Code Bloomberg
Functions
(a) Acceptance of cash and payment (b) Maintenance of books on accounts completion of balance sheet and then Audit. (c) Maintenance of stationary records like wages Act, Workmen compensation Act, Bonus Act etc. (d) Financial planning for adequate flow and balance of cash. (e) Evaluation of capital project. (f) Budgeting for the operational and capital activities (g) Costing and pricing (h)
Working capital management for materials operating cost & getting money back by selling to customers. 19
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Techniques of capital Budgeting used in ITC:1.) Payback period method 2.) Accounting rate of return method 3.) Net present value method
Finance department helps in efficient allocation of capital. It renders specialized professional services by advising the head of the organization as well as staff members on matters having financial implications.
4.3PRODUCTION DEPARTMENT
Production, Planning & Control (PPC) Production, Planning & control are concerned with the organization and planning of the manufacturing process. The highest efficiency in production is obtained by manufacturing the required quantity of production, of required quality, at the required time, by the best and most economical method. Production, planning & control is a facilitation service to achieve this target.
Functions of PPC 20
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1) Production, planning & control translates the market or sales forecasts into master production plan work out the raw material & other input requirements & prepares the detailed departmental production schedule for different time periods (annual, quarterly, monthly, weekly & daily). 2) It establishes the basic relationship among production capacity, inventory levels and sales rate for some period in the future. The objective of such planning is to achieve optimum utilization of available resources. 3) Production, planning & control also prepare alternative plans to meet emergencies. 4) After planning in the second phase, operation is to be executed in accordance with
the production plan. 5) The third phase is a monitoring phase of production management, a phase where
actual performance is observed and recorded for the purpose of recording and / or follows up. Actual performance is compared with the planned performance and, when required, corrective action is taken. In some cases preplanning may be necessary in view o the change situation and to ensure the effective utilization of men & machines.
Main units of Process Flow & Supporting units
The main units of production in ITC are:Manufacturing Cigarette Factory :Primary Manufacturing Department Secondary Manufacturing Department
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Printing & Packaging Factory :-
Some of the important supporting units are:1. Energy power Plant
2. Engineering 3. Slid Making 4. warehouse 5. Logistic
PROCESS FLOW OF PMD LAMINA
STEM
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Secondary Manufacturing Department IN Secondary cigarettes prepared in these process:Tobacco comes from CTS directly to Maker machine 23
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Maker use WMS material to make cigarettes Final cut off goes to packer for packing Packer packs the cigarettes to use WMS in a process
A laser printer print price of cigarettes as per packet Finally packed cigarettes go to shipping yard
Brands being produced –
Wills Flake Filter, Gold Flake Filter, Gold Flake Filter Premium , Capstan
Filter –
Capstan Scissors
–
Capstan Std, Scissors
SECONDARY PROCCESS FLOW
Tobacco From CTS
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Making Machine ‘LOGA, MAR 8 MAX ’
WM S
Packing Machine ‘FOCKE’
Marshalling Yard
Shipping Yard
Manufacturing Process of Makers
Process of LOGA MARK8 MAX 25
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WM S
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Hopper
Main Feed Drum
Final Cut Off
Suction Chamber
Tipping Unit
Hydraulic WT Control unit
Filter unit
Garniture
In Feed Unit
Cutter Area
LOGA
can produce 9000 cigarettes per Min MARK 8 MAX can produce 3000 Cigarettes per Min
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Manufacturing Process of Packer
Process of FOCKE
Feed
Parceller
Section/SATU
Sealer Section
J Conveyor
Shell Feed
HSW
Section
Link-up Section
Capacity: - FOCKE can pack 300 packets per min.
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PPG INSTITUTE OF TECHNOLOGY, Printing & Packaging Factory
Objective –
To supply packet to Secondary manufacturing department of cigarettes with the desired attributes
Apart from that ITC Printing factory also prepares packets for these products:-
For all ITC products Nokia mobile Motorola
Black Dog Wine Mortine Hance Undergarments Goodnight
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PPG INSTITUTE OF TECHNOLOGY, Process Flow of PRINTING
PAPER BANDAL INFEED COLOUR
FINAL CUT OFF
BOX 1
COLOUR
Q 100 CAMERAS
BOX 2
COLOUR BOX 3
DELIVERY
COLOUR BOX 4
EMBOSSI
COLOUR
NG
BOX 5
COLOUR
CREASING
COLOUR
CUTTING
BOX 6
BOX 7
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WASTAG E
COIMBATORE
PPG INSTITUTE OF TECHNOLOGY, ‘QUIS’ QUALITY CONTROL
The Research and Control Labs at ITC monitor all quality parameters of inputs and products of different shops. A well-equipped Research & Control Laboratory has been provided for testing, inspection, research and many other control functions, ensuring that the customers get the best quality products. The R&C Laboratory has two major wings: 1. Chemical Wing: For testing actual composition of materials before further processing. 2. Inspection Wing: Responsible for inspecting quality of saleable products.
Parameters of Checking PMD •
Moisture content
•
Quality ratio (measure of particle size)
•
Fill value of cut tobacco
SMD •
Weight of cigarettes
•
Circumference
•
Cigarette Firmness
•
Pressure Drop 30
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•
End Stability
•
Pack steal
QUALITY ASSURANCE SYSTEM
As a testimony to its commitment to excellence and enhanced customer satisfaction, all the units of ITC Munger form PMD, SMD are accredited to the ISO 9001:2000 Quality Management Systems. In ITC Munger unwavering commitment to environment protection, the ISO 14001:2004 Environment Management Systems is being implemented across the plant. The Mills Zone has already been certified under these standards, while audit has been successfully completed for Stage-1 certification of the remaining production units. The Mills Zone has already received this certification, and the remaining production departments have been successfully audited Stage-1 certification.
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4.4 ENGINEERING DEPARTMENT The objective of industrial Engineering is to establish and review appropriate methods, standards and programmers for improving production, operating and maintenance practices in the plant. The industrial engineering department is responsible for the following activities:-
Development and review of organization structure and manpower needs. Methods Engineering Development of simplest work methods and processes ensuring effective utilization of men, material and machines.
Development of plant layout which is most economical to operate, and vet safe satisfying to employees.
Waste reduction. Job evaluation, rate and norm setting. Apply network techniques for all major repair / construction jobs to minimize cost and time overruns.
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Application of value Engineering and linear programming and other Operation Research techniques for optimizing the use of scare resources, blending of raw materials and determining the most economical products mix etc.
4.5 SECURITY DEPARTMENT Functions To Protect properties of Munger Factory To check incoming and outgoing material / persons To monitor Fire System Control Globe Intrusion Alarm System
To check and control of ITC vehicle
4.6 MANAGEMENT INFORMATION SYSTEM DEPARTMENT
Functions
Strategic planning for the organization (mission, vision, values, goals). Resource planning for the organization (people, revenue, technologies, facilities, other,). Revenue development (obtaining and allocating funds for major activities). 33
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Board and employee development (recruiting, training, organizing). Development of other resources (facilities, supplies, policies, procedures, etc.). Supervision and teamwork. Product and service development. Advertising and promotions. Processes (cross-functional).
5. SWOT ANALYSIS
STRENGTHS
Proven capability to ramp up production during divisional contingency New and Standardized Technology Project Management Cross functional alignment towards unit objectives Responsiveness to change
WEAKNESS
Skill and Literacy levels of employees Health and number of unallocable
Access Control Transportation Infrastructure
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PPG INSTITUTE OF TECHNOLOGY,
Low productivity Entry tax
OPPORTUNITIES
Long Term Agreement (LTA)
New union formation Identified Investment plan Launch of new Segments/Brands Process Improvements Multiple avenues for CSR activities
THREATS
Unpredictable local environment COTPA enforcement Increasing Naxalite movement in around Munger
Municipality tax 35
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PPG INSTITUTE OF TECHNOLOGY,
6. FINDINGS FINDINGS
The span of management and authority delegation is centralized. The company is guided by ethics Workforce is diverse ITC
maintains
good
industrial
relations.
There
have
been
no
lockouts
or
strike
for a very Long period
The investment decisions of the firm are done by Payback period method, account
rate of return method, Net Present value method Productions department is trying to achieve high efficiency in manufacturing
required quantity of product, at the required time, by the best and most economical method Here, the working culture supports flexibility, learning and is proactive to change 36
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COIMBATORE
PPG INSTITUTE OF TECHNOLOGY,
ITC imparts training to create safety consciousness and to work safely to be
element of safety programs ITC is progressively adopting cleaner and energy efficient technologies. Training programs for employees are held regularly Modernizations of plant are done from time to time to keep pace with the latest trends
in Cigarettes making
7. CONCLUSION
ITC ltd is a profit making company. It boasts of its maximum indigenous content in terms of equipment, materials and knows how. The continuous casting shop, the fastest in country, is equipped with advanced level-3 automation and control system. The fully automatic Making and Packing machine of ITC ltd produces a wide range of products. It is the only continuous Making in India. The machine of ITC ltd the widest in the country-produces high quality products.
Modernization of the plant is done from time to time to keep pace with the latest trends in cigarettes’-making. ITC LTD is the largest cigarettes - maker in India.
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COIMBATORE
PPG INSTITUTE OF TECHNOLOGY,
8. BIBLIOGRAPHY Sl.no
Books
Authors
1.
Human Resources & Personal Management
2.
Production & Operation Management
3.
Company Manual
Website:www.itcportal.com
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K. Ashwathappa
K. Ashwathappa
COIMBATORE
PPG INSTITUTE OF TECHNOLOGY,
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