ORGANIZATIONA

L STUDY
HINDUSTAN MACHINE TOOLS LIMITED, KALAMASSERY

Sl.NO PARTICULARS PG.NO

1 INTRODUCTION TO ORGANISATION STUDY 2

2 HINDUSTAN MACHINE TOOLS LIMITED: OVERVIEW 5

3 THE KALAMASSERY COMPLEX OF HMT MACHINE 7

TOOLSLIMITED, KALAMASSERY

4 COMPANY PROFILE 8

5 FUNCTIONAL AREAS: 14
SEPTEMBER 22, 2021
SUBMITTED BY : SALMANUL FARIZY VA
Bvoc(BPDA),CUSAT
 6 HUMAN RESOURCE DEPARTMENT 15

7 FINANCE DEPARTMENT 19

8 PURCHASE DEPARTMENT 21

9 SALES DEPARTMENT 24

10 MTK MANUFACTURING DEPARTMENT 25

11 MTK ASSEMBLY DEPATMENT 27

12 PLANNING DEPARRTMENT 28

13 SWOT ANALYSIS 31

14 FINDINGS 34

15 SUGGESIONS 34

16 CONCLUTION 34

17 BIBLIOGRAPHY 36

INTRODUCTION TO ORGANISATION STUDY

Organizational studies, sometimes known as organizational science, encompass the

systematic study and careful application of knowledge about how people act within
organizations. Organizational study is “the examination of how people develop hierarchical
structures, techniques, and rehearses and how these, thus, shape social relations and make
foundations that eventually impact individuals”, organizational studies contain distinctive
regions that manage the diverse parts of the organization, a significant number of the
methodologies are functionalist yet discriminating research likewise give option edges to
seeing in the field.

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Whenever people interact in organizational, many factors come into play. Modern
organizational studies attempt to understand and model these factors. Like all modernist
social sciences, organizational studies seek to control, predict, and explain. There is some
controversy over the ethics of controlling worker’s behaviour, as well as the manner in
which workers are treated. As such, organizational behaviour or OB has at times been
accused of being the scientific tool of the powerful. Those accusations notwithstanding, OB
plays a major role in organizational development, enhancing organizational performance, as
well as individual and group performance/satisfaction/commitment. The organization study
is the systematic learning process about an organization to understand the different roles of
each member in the organization. In organization study, the different roles, namely,
interpersonal roles, decisional roles and informational roles of various members are
evaluated and how it affects the functioning of the organization is analysed. In this work M/s
HMT Machine Tool Limited at Kalamassery was selected for the organization study.
It draws on interdisciplinary theories and methods from psychology, sociology, political
science, history, anthropology, and related fields. Although we are diverse in our training
and interests, there is a particular focus on understanding real-world phenomena in detail,
that is, organizational processes and practices in action.
Organizational study helps to understand the working and policy making activities of the
company as a whole. It provides the practical knowledge about the functioning and co-
ordination of the activities of the various departments. An organization study at HMT
Machine Tools Limited is an attempt to understand functions of the organization. The study
also tries to know the various functional departments in a bird’s eye view. The managerial
functions of various departments have been studied in detail. The study in also intended to
understand the technical processes of HMT as much as possible.
It is highly necessary to have a pragmatic approach to functional problems of an
organization. Organization study enables one to know the functions of major departments
and know the differences between theory and practice.
HMT Ltd. was conceived by the government of Indian in 1949, and was incorporated in
1953, with the objective of producing a limited range of machine tools, required for building
an industrial edifice for the country. With the success achieved in the initial years in
absorbing the technology and in attaining production competence far ahead of the original
plans, the company launched a bold plan of diversification and expansion which resulted in
the duplication of the Bangalore unit and the setting up of new units at pinjore, Kalamassery
and Hyderabad, HMT MTL, at Kalamassery was established in 1963 for producing the Lathe.
In the process of expansion, HMT Machine Tool Limited Kalamassery (HMT MTLK) started
producing printing machines in 1972.
They are engaged in the manufacture of engineering goods in diverse areas such as Machine
Tools, Watches, Tractors, Printing Machinery, Die casting and Plastic Processing machines. It
commenced its activities in a small way in 1953 to meet a big commitment: ‘to build mother
machines for a modern industrial India’. From a single product, single unit company in the

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post-independence era it emerged as a conglomerate by the turn of the twentieth century
with several manufacturing bases spread over different states of India.
An industry, which has undergone a radical shift in its paradigm thinking, the Indian machine
tool industry is later recognized as a provider of cost-effective high quality lean
manufacturing solutions. The industry resiliently supports all its users to enhance
productivity as well as improve competitiveness, for the betterment of the final customer.
Being an integral sector, growth of the machine tool industry has an immense bearing on
the economy, especially India’s manufacturing industry. And it is even more crucial for
development of the country’s strategic segments such as defence, railway, space, and
atomic energy. World over too, industrialized advanced countries have created market
niches on the back of a well-developed and supportive machine tool sector.
Had the indigenous machine tool industry not been able to meet the major user industries
demand, then these machine tools would have to be imported, at much higher prices,
irrespective of rising cost of foreign exchange or not.
OBJECTIVES OF THE STUDY
The objective of the study is to understand the functioning of an organization in close
quarters. The main idea is to understand the functioning of each department and the inter
dependence of these departments. They can be grouped as primary objective and
secondary objectives.
Primary objective
To familiarize with the different functional departments and their working at HMT Machine
Tools Ltd.
Secondary objectives
• To know and understand how the management tools, concepts, theories and
principles are applied in an organization.
• To understand the organizational structure and to study the hierarchical
organization.
• To understand the product profile.
• To get an idea about the different development process in the organization and to
know about its future plans.
• To understand how the key processes are carried out in organizations.
SCOPE OF THE STUDY:
The organizational study is intended to provide industrial exposure to the trainee and bridge
the gap between theory and practice. This study covered the different departments of HMT
MACHINE TOOLS LIMITED and was conducted for a period of one month from 02 May 2016
to 31 May 2016. The study was mainly conducted to understand the functions, process and
procedures of different departments of the company.

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METHODOLOGY OF THE STUDY:
The methodology followed in the study are the researcher’s personal observations and done
through primary and secondary sources.
The data can be classified as:
• Primary Data
• Secondary Data
The methods of collecting primary and secondary data differ since primary data are to be
originally collected while in case of secondary data the nature of data collection work is
nearly that of compilation.
Primary data
The primary data are those, which are, collected a fresh for the first time and thus happen
to be original in character.
Primary data required for this study are collected from observations, interactions with
executives and managers of the company.
Secondary Data
The secondary data are those which have already been collected by someone. Secondary
data required for the studies were collected through company files, journals, training report,
company brochures etc.

 
LIMITATIONS OF THE STUDY:
• The findings need not be conclusive but only indicative.
• Area of focus of this study was mainly at HMT MACHINE TOOLS LIMITED
KALAMASSERY, ERNAKULUM.
•The study is based on the current performance and data of the current period of the
company and hence previous records of the company are referred only for validating the
current observations made.

HINDUSTAN MACHINE TOOLS LIMITED: OVERVIEW

INDRODUCTION TO THE INDUSTRY

Machine tools are the basic building blocks of manufacturing. They are used in durable-
goods industries to make items ranging from aircraft to appliances as well as other, more

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specialized, production machinery. During the year 2010, turnover by the 28 principal
machine tool manufacturing countries, totalled 66.3 billion US Dollars, and represented a
gain of 21%over the previous year. During 2011, machine tool production across the globe
increased further by about 35% over 2010, amidst indications that growth rate was starting
to level off. Japan and Germany saw very substantial percentage gains in their production,
completely shaking off the effects of the deep recession that swept the worldwide industry
in 2009.China, already established as both the world’s largest consumer and its biggest
producer, also reported double-digit expansion in dollar-volume output and continues to be
far ahead in the listings, obviously with complete support for the industry from the
government on all fronts. All the three other major Asian Machine Tools manufacturing
countries-Korea, Taiwan and India- grew at over 65% and secured leading positions of fifth,
sixth and thirteen, respectively in the overall productions ranking in 2010. During2011, in
most of the countries, national industries registered revival from their 2009 hit. Japanese
builders whose shipments of machine tools had fallen by more than half during the collapse
four years ago, increased production substantially in 2011, following an excellent rebound in
2010.Third-place producer Germany too reported output gains during 2011.Year-to-year
increases in several countries looked even better when converted to U.S. dollars. American
machine tool builders saw a solid 25%.
OWNERSHIP PATTERN

The company is owned and managed by Central Government, 96% of shares are with the
government and remaining 4% are with the public. The decisions are taken by the company,
which will be sanctioned by the government.

HISTORY
By the end of Second World War, the government of India was confronted by a big problem
of disposing the colossal war waste. Ultimately, a committee was constituted to inquire into
the possibilities. The committee report of 1948 proposed the establishment of a
government owned machine tool industry. This was expected to fulfil two aspects. The first
was utilization of the Rs.4000 million worth of metallic waste. The second waste
incorporation of a state-owned infrastructure-manufacturing facility. The result was the
birth of THE HINDUSTAN MACHINE TOOLSLIMITED, which diversified in due course of time
to the present stature of multi core, multi-location, multi-unit, and multi-product industrial
giant, HMT Ltd
HMT Ltd was started as a single factory to produce Tool Room Lathe at Bangalore in
collaboration M/s Oerlikon of Switzerland in 1953, with capacity to manufacture around 400
machines per year. Since then, different collaborations continued in house R&D and
tremendous marketing efforts brought HMT, to present status.

CORPORATE VISION:
To be a leading Global Engineering Conglomerate Focused on Customers Delight in our field
of Endeavour

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CORPORATE MISSION:

 To establish ourselves as one of the world’s premier companies in the engineering

field having strong international competitiveness.
 To achieve market leadership in India through ensuring customer satisfaction by
supplying internationally competitive products and services.
 To achieve sustained growth in the earnings of the group on behalf of shareholders.

CORPORATE OBJECTIVES:
 To encourage the modernization of Indian Industry through the supply of
engineering goods and services of world class excellence.
 To maintain technological leadership through continuous efforts to update product
technology and manufacturing method.
 To globalize operations by developing a mix of international markets and businesses.
 To ensure a satisfactory return on capital employed, to meet the growth needs and
the aspirations of stakeholders.
 To present an active, pleasant and productive working environment.

GROWTH AND DEVELOPMENT

The growth of HMT Ltd. Was characterized by the forward and back ward integration of
technology and product diversification. Thus, the company that started with manufacturing
and selling lathes expanded its machine tools products range to evolve as the ultimate
solution in metal cutting. The products diversification efforts took the company to the
business of watches in 1962, tractor in 1971, die-casting on plastic machinery in 1971,
printing machinery in 1972, presses in 1972, lamps &lamp making machinery in 1976, food
processing machinery in 1980, CNC systems in 1986, ball screws in 1986 and reconditioning
on 1990.The multi-product activities made HMT Ltd. Change its identity as Hindustan
Machine tools Limited. Today HMT Ltd has 16manufacturing units with 22 products divisions
spread through the length and breadth of India. A subsidiary viz., HMT (International) Ltd
undertakes the exports of the company.

FUTURE EXPANSION

 Infrastructure development like online facility, increasing computer usage.

 Technological acquisition for latest printing machine technology and collaboration to
launch vertical lathe machines.
 Reconditioning and up gradation of the existing plant.

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LEGAL FRAMEWORK OF THE COMPANY

Legal frame work of the company means the rules and regulations which governs the
company. To be more precise it means the rules and regulations that each and all
individual employees of an organization perform. HTM Ltd has a well- structured legal
frame work that can be considered to be the most important factor for the success of
the organization. A standing order has been issued to each and every member of the
organisation.
This standing order prescribes the manner in which every member should perform
their respective tasks. It also contains a detailed report on the rights of each
individual in the organization. An employer cannot dismiss a particular employer
cannot dismiss a particular employee in the organization without following certain
procedures and they must act within the legal frame work of the organization.
In compliance with the Guidelines on Corporate Governance for Central Public Sector
Enterprises framed by the Department of public Enterprises, applicable to
Government Companies and as per the applicable provisions of the Companies act,
1956, the Company is committed to maintain the highest standards of Corporate
Governance and initiate appropriate action for compliance of the Guide lines on
Corporate Governance

THE KALAMASSERY COMPLEX OF HMT MACHINE TOOLSLIMITED,

KALAMASSERY

The kalamassery unit is the 4thmachine tools unit established in 1963 and it started
production in 1964. The unit originally manufactured only two types of centre lathes
viz., H&LB, but later added special purpose lathes like copying and turret lathes
model LT-20. It was the first product to be indigenously developed and this product
was a landmark in the history of the unit. The production of Machine was later
licensed to M/s. QETCOS Ltd. Quilon, Kerala, MATOOLS, Philippines Ceylon Steel
Corporation. The original Centre Lathes H&LB were then replaced by a new family of
Unified Series of Lathes, which designed and developed by the unit, incorporating the
concepts of computer optimized design, manufacturing and unification. MT had
developed conventional machines of different sizes of NH and NC machines. Later the
following products were added through collaboration with world renowned machine
manufacturers.
 S-pilot and T-pilot copying lathes. In collaboration with M/S Euratom of
France.
 RTV 50 Drum turret in collaboration with M/S Glider Meister of Germany.
 HMT had developed a completely hydraulic machine heavy-duty front chucker
(FC-25).

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 During the early 1980’s HMT Ltd 22 lamasery designed, developed and
introduced the manufacturing of CNC Lathe. At present they have a wide
range of CNC lathes which cater to the turning requirements of light and
medium industries.

BIRTH OF PRINTING MACHINERY DIVISIONS

During the period 1972-73 kalamassery unit diversified its product range toinclude
printing machines. Thus, was born the printing machinery division9PMK). The
commercial entry of PMT was with two types of letter presses, which were, RTE and
RTAE under collaboration with M/S Nelbiolo of Italy. Auto platen, an indigenous
development came up subsequently. During the ensuing years the printing machinery
division came up with offset presses via, OMIR in collaboration with M/S Nebbiolo.
Later indigenous offset presses viz., SOM 136 was introduced to the market. The first
two colour machines from HMT were KPO in collaboration with/S Keening & Bauer in
Germany. The latest development of PMK is the paper cutting Guillotine PG 92, in
collaboration with M/S Piano Binders of Italy.

COMPANY PROFILE

By the end of second world war the government of India was confronted by a big problem
of disposing the callosal war waste. ultimately & & a committee was constituted to enquire
into the possibilities. The comity report of 19948 proposed two aspect the first was being
utilisation of 4000 million worth of metallic waste. The second was the incorporation of
state-owned infrastructure manufacturing facility the result was the worth of Hindustan
machine and tools LTD which diversified in due course of time to the present structure of
multi product industrial giant HMT LTD.
The HMT was started as a single factory to produce tool room
lathes at banglour in collaboration with m/Oerlikon of Switzerland in 1953 with a capacity to
manufacture around 400 machines per year. Since, then different collaboration continued in
honour R&D and tremendous marketing effort brought HMT to present status.
The growth HMT was characterised by forward and backword
integration of technology and product. Diversification effort took the company to the
business of watches in 1976, food processing machinery in 1980, CNC system in 1986, ball’s
crew in 1986and reconditioning in1990. The multiproduct activity made HMT LTD changes
its identity as Hindustan machine and tool’s
Today HMT has 16 manufacturing unit with 22 product’s diversifications spread through the
length and breadth of India as subsidiary wiz, HMT (international)undertaker’s then export
of the company. They are also export agent for several other Indian company. HMT was

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restructured in 1992 to facilitate better administration of the multiproduct business groups
was
1. Machine Tool’s business group concentrated on metal cutting machine’s
2. Industrial machinery business group to deal with printing machine, diecasting
and plastic induction moulding machine’s
3. Agricultural business group to concentrate on tractors.
4. engineering components Business group to deal casting and Ball screws
5. consumer products business groups to deal with watches and lamps. In
addition to these business groups the company own’s three subsidiaries. As
follow
 HMT (international): this under take oversea projects and exports.
Para tools Ltd. This manufactures machine tools
 HMT bearing Ltd this manufactures Precisions Bearing in
collaboration with m/s Koyo Japan holding company including
tractors division and presently comprises of follows
a) HMT Machine tools.
b) HMT watches
c) HMT chinar watches
d) HMT bearing
e) HMT international
f) Parga tool’s
HMT MACHINE TOOL’s LTD
HMT is engaged in the manufacture and marketing of general-purpose machine tools,
spectral purpose machine tools, computer machines, metal farming press die casting and
plastic injection moulding machines.

HMT UNITS

 BANGLORE
 HYDERABAD
 KALAMASSERY
 PINJORE
 AJMER
 PRAGA MACHINES HYDERABAD

PRODUCTS OF HMT

BANGLORE
 Heavy duty lathes
 Single/multi swindlers automate
 Radial drilling machines
 Gear cutting machines
 Laser cutting Haber

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Pinjore

 FMS & FMC

 Horizontal machining centre
 Milling machine

Kalamassery

 CNC turning centre

 flexible turning cell
 centre Late
 oyset printing machine
 Paper cutting machine.

Hyderabad

 Special purpose machine

 Horizontal machine centre
 FMS
 CNC horizontal boring machine

Ajmer
 grinding
 SPM
 CNC
.
Major machines and facilities in machine tool

 CNC ram type piano miller

 Horizontal machining centre
 Vertical machining centre
 Horizontal jog boring
 CNC Turing centre
 Cylindrical grinders
 Gear grinders
 HMT Watches: it manufactures and markets watches including hand wound /
Automatic
 HMT chinar watcher: it also engaged with manufacture of Chinar model watches
located in Srinagar
 Bearing: in it is one of the subsidiaries engaged in the manufacture of different types
of industrial bearings
 HMT international: it is engaged in the export of HMT range of product world wide
 Parga tool’s LTD: it also subsidiary of HMT engaged in the manufacture of machine
tools

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THE KALAMASSERY COMPLEX OF HMT

Kalamassery unit the fourth machine unit originally manufactured-only 2 types. of centre
clothe by the unit (1968) and development of this product was a land mark in the history of
unit the original centre Lathe. LB were there replaced by a family. of a unified series of laths
which was designed and developed by 7 unit

MANAGEMENT:
The company is governed by a Board of Directors and is represented by the government in
the board. The administrative control of the company is by the Department of Heavy
Industry under the Ministry of Industry.
Training centre

These unit of HRD as one of the primary concerns as a measure increase productivity and
enhance social standings

 Management orientation programs

 Supervisory development programs
 Customer training programs
 Multi skill training to machine operator
 Industrial familiarisation training programs for engineering college students

DIVERSIFICATION KALAMASSERY UNIT & BIRTH OF PRINTING MACHIENS

In the period of 1972 to 1973 kalmassery unit diversified its product range to include
printing machines this was gone be a printing machinery division (PMK). With entry of PMK
with two type of letter v12 auto platen and indegenion development came the insuring
growth of printing machines
THE CURRENT PRODUCT
PAPER CUTTING MACHINES: kalamasery unit of HMT are famous for FC-25, SBC, SBCNC
machines. The CNC last model STS-25 has won the vasvik industrial research award is
instituted buy the vivdhalaxi audyogik samsodan vikas Kendra (VASVK) for outstanding
advancement of science and technology
The manufacturing shop MTK as supported by various infrastructural
facilities like heigh technology CNC machining centre treatment, computer system, CAD
system etc…

THE MARKETING NETWORK OF HMT MTL LTD

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The machine tools marketing divisions with its headquarters at Bangalore and having wide
network of Regional and Divisional offices spread through out India caters to the marketing
needs of this unit at the primary level. To co-ordinate the marketing activities at the arc unit
level and to offer technical support to machine took marketing. a strong sales and service
team is constituted at unit level HMT's major customers include Defence, Railways,
Automobile and other Engineering Industries in various sectors.

MAIN INLAND COMPETITORS FOR THE UNIT'S PRODUCTS

1) Mysore Kirlocker Ltd.

2) ACE Designers

3) NC Machine private Ltd.

4) Lakshmi Machine works

MAIN FOREIGN COMPETITORSE FOR THE UNIT'S PRODUCTS

1. Okuma, Japan
2. Nori Saiki, co limited, Japan
3. Taki sama Japan
4. Mazak Japan
5. GDM, Germany
6. EMAS, Germany
Welfare measures in HMT

 Company quarters are provided to employees

 Transport facility provided
 Company sponsors a central welfare association
WHAT IS ‘5s’
SEIRI: sort out unnecessary items in the workplace and discard them
SEITON: arrange necessary items in good order.so that they can easily picked for use
SEISO: clean your workplace
SEIKETSU: maintain high standard of housekeeping

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 SHITSUKE: training to follow the good disciplines
ISO 9000
International standard for quality management
Good quality system consists of sound technical and administrate procedures for assuring
quality QA offers more scope for reducing requirements and characteristics of good quality
management
In an increasing number of markets and industries third party quality assessment is
necessary ISO9000 is considered the minimum acceptable level for supplies.
In additional ISO 9000 standard also
 Motivates export
 Set a base line
 Improve efficiency reduce scrap and rework
 Focus training band professional management
 ISO9001: development production installation and services
 ISO 9002: quality assurance production and installation
 ISO 9003: Model for quality assurance in financial inception

Infrastructural Facilities
I. INTERNET
The company has well-furnished computer labs which provide internet facilities for the
employees to get updated themselves on the recent happenings.
II. Library:
Books, magazines, newspapers, records, journals which are useful for employees
to develop their knowledge are available by the company and issued in accordance with
demand. The library has calm and quiet reading room adjacent to library.
III. Canteen:
Neat and hygienic canteen is available for the employees where food is available
at subsidiary rates. The canteen has a seating facility of about 250 people. The canteen
provides only vegetarian food for the employees.
IV. Parking:
Parking lots for employees’ vehicle and customers vehicle are provided by
the company security for the vehicles is also provided by the company.
V. Waiting room:
Waiting room for the visitors which is well furnished on accommodate up to 30 persons
VI. Training centre:
Training centre which has projector, screens scale models, records etc. The senior
engineer is in charge for that

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FUCTIONAL AREAS:

THE VARIOUS DEPARTMENT OF HMT ARE AS FOLLOW:

1. HUMAN RESOURCE DEPARTMENT
2. FINANCE DEPARTMENT
3. PUBLIC RELEATIONS DEPARTMENT
4. PURCHASE DEPARTMENT
5. MANUFACTURUNG DEPARTMENT
6. SALES DEPARTMENT
7. PMK MANUFACTURING
8. SAFETY DEPARTMENT
9. FOUNDARY DEPARTMENT
10. STORES DEPARTMENT
11. QUALITY DEPARTMENT
12. PLANT SERVICE DEPARTMENT
13. PLANNING DEPARTMENT
14. CORPORATE PLANNING DEPARTMENT
15. MTK ASSEMBLY DEPARTMENT

HUMAN RESOURCE DEPARTMENT

HRM Department of HMT is headed by GM (HRM) These are 7 employees working in
department. Human Resource Management strives to ensure continuous
organizational growth by nurturing the strengths of employees and providing the
environment and opportunity for every individual to rise to his/ her highest.
FUNCTIONS:
1.Industrial Relations
2.Training
3.Personal activities
4.Welfare activities

a. Industrial Relations:

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The Company has been enjoying peaceful industrial atmosphere for a long time.
The company has the cooperation of employees in almost all its activities. Whenever conflict
occurs it is the duty of this department to look into matters and take corrective actions. The
IR Officer acts as a liaison with legal advisors. In the early days there was only one
recognized union into and it was CITU. Currently, there exist three major trade unions. They
are:
 HMT Employees Union- This is affiliated to CITU. It is the 1st and the largest union in
the company
 HMT Workers Union
 HMT Employee Federation
The General Manager of the unit meets the trade union leaders once every month to listen
to their suggestions and complaints and to appraise the overall situation of the company. It
is natural that the interest of the management and trade union differs on certain issues. In
an industry the maximum production can be achieved only by securing the confidence and
cooperation of the trade union leaders and utilizing them in a positive way.

2.Training:
HMT gives a very high priority to Human Resource development through training and
organizational activities. The company looks after training needs of employees throughout
their life in the organization. They also conduct customer training programmers. The
programmes are combined with lecture sessions followed by interactive sessions guided by
various expert faculties. The medium of instruction is English. There are mainly four types of
training programmers:
a) Employee Training:
 Induction It is given to the people selected through recruitment. If the person
successfully completes induction, he will be posted in suitable area. Otherwise,
the management will give further training. Duration for conducting induction is
one year
 In plant Training: It is the training given inside the plant or hands on training. It
may be given to the employees who are transferred from different plants in
different places.
 Multi-skill Training: This is provided as and when the employees are recruited.
This is given only for direct workers on the basis of recommendation from
department heads. The durations for three months. But it can be extended
beyond three months if required. During training program workers are
considered as indirect workers.
 Periodical awareness Training: This training is given to supervisors and worker
category employees depending on their needs and nature of work. Employees
for training may be selected by head of department

b) Customer Training:

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 is given to the customers for the optimum utilization of their products. The main
products of the company are machine tools. There are two types of machine tools-
Conventional Lathes and CNC Lathes.
 CNC operation Training: It is the maintenance and operation training
programme. Its duration period is for one week. Free training programmes are
given to a person per machine. It is given in four areas such as computer
programming, CNC programming, Metallic and Hydraulic Programming, electric
and Electrolytic maintaining. Incase, if more than one candidate appears for
training an amount ofRs.1000/- is charged from them. Training calendar is
prepared before March every year calendar is sent to customers through
marketing offices and sales offices. Feedback is collected at the end of the
programmes. Certificate is provided for training programmes.
 Printing Machine Training: The training includes usage and safety measures to
be adopted. The duration period is for one week.
 Product Orientation Training: It is given to the marketing executives, sales
executives and service engineers; it is intended to give awareness about new
properties added to the
c) Statutory Training:(Apprenticeship Training):
It is given as per the guidelines of Ministry of Labour and Ministry of Industry.

 Graduate Training: It is provided to B tech, graduates in mechanical and Production.

It extends to a period of one year during which a stipend amounting to Rs.1000/- is
give.
 Technician Apprenticeship: It is given to Diploma holders with mechanical, civil,
electrical, and electronics background. Stipend amounts to Rs.1400/-
 Vocational Training: Office apprenticeship, medical lab technician etc. comes under
this category. Stipend amounts toRs.1090/-. The duration period of this training is
one year.
Trade Apprenticeship: It is given to those who have SSLC, securing 1st class. For this training
there is an entrance examination and interview. After that trades are fixed. Apprenticeship
training for ITA holders is also conducted by HMT. The company also gives training for the
operation of CNC lathes. The duration is for 6 months. It is provided to six

3.Personal activities:
The includes all the personnel administration activities in the company, the personnel
function is carried out according to the policy framed in the manual. Some of the personnel
functions in the company are:

 HRM grievance procedure: The objective of grievances procedure is to provide a

settlement of grievances of officers and to adopt measures so as to ensure expeditions.
Settlement of grievance leads to increased satisfaction on the job and results in
improved productivity and efficiency in the organization
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  Recruitment: Recruitment of management trainees in engineering and other
professional areas are made by the Corporate Personnel Directorate. For such
centralized recruitment,
the two methods adopted are HMT Site AD’S, Recruitment through open all India
advertisement. The campus recruitment for the post of executives in PSIII for graduate
engineers and post graduates diploma holders on management will be made from
recognized institutions only. The recruitment by Open All India advertisement will be made
for selecting engineering graduates in technical areas and for professionally qualified
candidate. Recruitment of senior executive at the level of ‘corporate Cadre’i.e., PSVII and
above will be taken by the corporate personnel directorate once in 4 months in April,
August and December in a calendar year. The proposals from the units for such recruitments
for the vacancies as per the sanctioned manpower operational plans should be sent to
directorate in January, May, and September every year, who will take further action for
Centralized Recruitment of Corporate Cadre Senior Executives. Recruitment at level of PSV
and below (with the exception of management trainees) will be undertaken by the units.

 induction policy: The induction program is for a period of one year. Out of twelve
months, three months, at H.Q. and the remaining nine months are spent in the
respective units. But the functional relationship between corporate HRD divisions with
management trainees during the induction program continues for the whole year. The
purpose of this induction program is to facilitate the transition of the trainees from the
campus to the industry
 promotion policy: There are two systems of promotion within the executive positions
of HMT which are promotion within the group and promotion between the groups. All
promotions made in accordance with this promotion policy which will be from scale of
pay to the next without skipping any scale of pay. Promotion norms consist of two
parts, which are eligibility factors that includes a qualifying period, and qualification
norms attendance, conduct, prescribed standards in Performance Appraisal. The other
factor is suitability factors, which includes an interview and assessment of the potential
of the executives in their own channel or for a post other than their own channel of
promotion.
e) performance uprisal system: Appraisal is done on the basis of

 Job performance factor: Job knowledge, quality of work, target fulfilment, cost/ time
control, and safety consciousness.
 Managerial ability factors: Planning and organizing, problem analysis and decision,
inter personal skills, communication skills, self- motivation, commitment,
responsiveness to change, developing subordinates, management of human
resource, positive discipline.
Appraisal stages are as follows:
 General comments and overall assessment of developmental needs of the
appraise leading to final assessment.
 Review discussion with appraise

17
  Follow up action to be taken

e) voluntary retirement scheme: The scheme is introduced to cutdown the

manpower strength and reach an optimum level and also provide monetary benefit
to employees. The scheme is not applicable for professionally qualified employees
like graduate employees and professionals in Finance, HRM, and Marketing
4. welfare activity:
a. Washing facilities
b. non-statutory welfare measures
DUTIES AND RESPONSIBILITIES

 To maintain and develop HR policies ensure compliances and contribute to the

development of corporate HR policies
 To ensure timely recruitment of required level/ quality of Management staff, other
business lines staff, including non-billable staff with appropriate global approvals, in
order to meet business needs, focusing on Employee Retention and key Employee
Identification initiatives.
 Develop, refine and fine-tune effective methods or tools for selection/ or provide
external consultants to ensure the right people with the desired level of competence
are brought into the organization or are promoted.
 Prepare information and input for the salary budgets.
 To develop the HR business plan.
 Ensure appropriate communication at all staff levels.
 To facilitate development of staff with special focus on Line Management.
 To recommend and ensure implementation of Strategic directions for people
development within the organization.
 To facilitate/ support the development of the Team members.
 Ensure a motivational climate in the organization, adequate opportunities for career
growth and development

FINANCE DEPARTMENT

INTRODUCTION:
Every organization irrespective of its size relies on its financial health for its survival. The
public sector organization HMT has a full-fledged finance department in each of its units
located at various places. The analysis of financial data is carried out by the finance
department. The process of financial analysis is employed to evaluate past, present and
likely future performance of the organization. The financial strength and weakness of the

18
organization is established based on the balance sheet and P&L account prepared by the
finance department.
FUNCTIONS:
The following are the major functions of finance department in HMT Machine Tools,
Kalamassery
1. To provide strategic financial support regarding operational and general business
planning.
2. To meet internal and external needs and financial reporting requirements of the company
at large.
3. Providing financial information, guidance and advice to other departments.
4. Vetting and appraisal of capital expenditure/ investment proposal to ensure their
financial viability.
5. Budgetary Control.
6. Management of Taxes.
7. Ensuring timely payment of employee’s salary and other welfare expenses.

SECTIONS OF FINANCE DEPARTMENT:

OUTWARD BILL SECTION (OBS)
OBS maintains the records of sundry Debtors, accounts of sale of machines, special
accessories, spares and job order. OBS monitors and follow up with debtors for realization
of outstanding dues. OBS also prepares the provision entries relating to debtors. OBS also
generate sales and servicing invoices. All the work related to sales, tax, excise duty, and
service tax comes under the ambit of OBS.
INWARD BILLS SECTION (IBS)
IBS is concerned with purchase accounting and authorising payments to creditors,
contractors, and also various expenses like water, electricity, hire charges, welfare
expenses, legal charges etc. Thus, this section also handles, import procedure like LC
opening, authorising direct transfer to foreign customer (TT) monitoring exchange rate
variation arranging for forward cover from bank etc. IBS also create provision for
outstanding with respect materials which have not been accounted as purchase.
WAGES & TIME OFFICE SECTION
Wages prepares payrolls of officers, workers, trainees, on the basis of muster roll given by
the time office. Payroll preparation is computerized and the salary or wages are made
through bank. Time office /wages also engage with the work of attendance monitoring,

19
entering the leave of employees, conveyance reimbursement, medical reimbursement, TA
and DA settlement, calculation and disbursement of retirement benefits.
 
PF SECTION
PF section arranges for the recovery of provident fund from the employee salary. Present
statutory minimum recovery is 12%. The employees are allowed to contribute higher
amount voluntarily. Out of 12% contribution made by employer an amount equal to 8.33%
is transferred to employee’s pension fund.PF section also provides the loan facility to
employees as per stipulated terms and conditions.
MAIN ACCOUNTS AND COST ACCOUNTS
All cost data required by financial accounts such as SIT, WIP are prepared by cost accounts
section. Main accounts prepare all the statements related to material accounts. Weighted
Average rate is following for inventory valuation. Half yearly / periodical physical verification
of stock is conducted by main accounts and whenever discrepancies occurred, they are
analysed and rectified. This section prepares monthly and annual financial statements
(Balance sheet, P& L A/C, Cash Flow Statement etc.) and coordinates with internal /
statutory auditors and also with comptroller and Auditor General of India. (C & AG). This
section also prepares Budget and monitoring variance, maintains fixed asset register,
prepares various MIS, fixing selling price of machines, accessories, spares etc. It also
monitors transactions accounted by other sections of finance department and coordinates
with Head office towards settlement of various financial matters of Kalamassery unit of HMT
MACHINE TOOLS LTD.
CASH SECTION
Cash section keeps the cash day work and the bank day book. The payment vouchers
prepared by the Inward Bill Section are sent to the cash section for payments. Generally,
payments are made through NEFT or RTGS. This section also prepares bank reconciliation
statement and daily cash flow statement and also monitor that cash credit does not exceed
the permitted limit.
CONCURRENCE
All purchase proposals are sent to concurrence section for financial vetting. They make it
sure that all purchases are made according to the purchase manual. In short, all purchases
(whatever it may be) can be made only with the approval of finance department.

PURCHASE DEPARTMENT

INTRODUCTION:

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In the present scenario of increased competition, reduced time to market and globalised
outsourcing, material management has evolved as one of the major factors for the success
of an organization. The Purchase function, a key component of material management is now
functioning with more agility and is shouldered with more responsibility than before.
In HMT Ltd., and its subsidiary companies, the purchase function is carried out by the
purchase department of the respective unit or divisions and is responsible for procurement
of the unit or division’s requirement. The heads of the material department and purchase
department are accountable for effective discharge of purchase functions within the
framework of purchase policy of the company.
SCOPE:
This document lay down the directions and guide lines to be followed by HMT Limited and
Subsidiaries, on matters relating to procurement of materials, capital items and subcontract
and hiring service.
OBJECTIVES
1) Timely procurement and supply of required materials with prescribed specifications and
quality at the most competitive price and terms.
2) Fair, consistent and transparent purchase practices.
3) Continuous search for alternate source of supply and to develop reliable source of supply.
RESPONSIBILITIES OF PURCHASE DEPARTMENT:
1. Adherence to guidelines contained in the purchase manual.
2. To issue enquires/ tenders, analyse the quotation received and prepare comparative
statement with a view to obtain competitive price to HMT.
3. To conduct negotiation with L1 tender.
4. To keep tender box with lock for receiving offers in the sealed tender. Tender box should
be opened in the presence of vender and representatives of finance department in the case
of Open tender, limited tender, single tender etc.
5. To ensure fair opportunity to tenders/ supplier and competitive price and terms and
assured quality to HMT.
6. To issue purchase order in terms after obtaining competent authority’s sanction and
follow up further supplies and periodical review of pending purchase order.
7. To follow up with supplies for timely supply and replacement/ settlement of claim and
other dives firm supplies and closure of purchase order is ensured.
8. To coordinate and assist financed and inspection department in settlement of bills and
recovery of dues if any.

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9. To submit applications for import clearance and obtain technical Clarence and import
license whenever applicable.
10. To enter into annual rate contracts with committed delivery schedule for standard
items, whenever applicable.
11. To enter into service contract for transportation, customers claim and maintained of
equipment etc.
12. To ensure after-sales-service is fulfilled by the suppler during warranty and post
warranty periods.
2) Fair, consistent and transparent purchase practices.
3) Continuous search for alternate source of supply and to develop reliable source of supply.
RESPONSIBILITIES OF PURCHASE DEPARTMENT
1. Adherence to guidelines contained in the purchase manual.
2. To issue enquires/ tenders, analyse the quotation received and prepare comparative
statement with a view to obtain competitive price to HMT.
3. To conduct negotiation with L1 tender.
4. To keep tender box with lock for receiving offers in the sealed tender. Tender box should
be opened in the presence of vender and representatives of finance department in the case
of Open tender, limited tender, single tender etc.
5. To ensure fair opportunity to tenders/ supplier and competitive price and terms and
assured quality to HMT.
6. To issue purchase order in terms after obtaining competent authority’s sanction and
follow up further supplies and periodical review of pending purchase order.
7. To follow up with supplies for timely supply and replacement/ settlement of claim and
other dives firm supplies and closure of purchase order is ensured.
8. To coordinate and assist financed and inspection department in settlement of bills and
recovery of dues if any.
9. To submit applications for import clearance and obtain technical Clarence and import
license whenever applicable.
10. To enter into annual rate contracts with committed delivery schedule for standard
items, whenever applicable.
11. To enter into service contract for transportation, customers claim and maintained of
equipment etc.
12. To ensure after-sales-service is fulfilled by the suppler during warranty and post
warranty periods.

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MODES OF PURCHASE SYSTEM:
The tender system is adopted to procure materials at competitive rate and different types of
tenders are in vogue via, Open Tender, limited Tender, Single tender and local purchase
through spot offers. The procurement process can also be through electronic mode (E-
procurement).
1. Open Tender
Open tender refers to calling of quotation by advertising tender enquiry in website of the
company and at least in one reputed local/ national newspaper. Open tender has to be
resorted to for an item where the estimated tenders value of purchase exceeding Rs. 25
lakhs.
2. Limited Tender
Limited tender is those addressed to all parties in the approved list of venders for the
required item, as per the database maintained by the purchase department / a hard copy
signed by the purchase as per ISO system.
 
3. Single Tender
Single tender is those addressed to a single party and reason for the same are to be clearly
recorded in the proposal. Prior approval of purchase coordination committee and sanction
from the unit chief.
4. Local purchases through spot offer
5. Purchase of Raw material from Foreign Suppliers
All import should have prior approval of competent authority as follows. Import value up to
10 lakhs need approval from unit chief and import more than 10 lakh needed approval of
subsidiary chief / function Director of Holding Company.

SALES DEPARTMENT

INTRODUCTION:
Sales and servicing activity is a most important function in fulfilling the objectives of the
organization and needs of the customers. It has the activities of selling the machines as per
customer satisfaction through its after sales activities.
SCOPE:
The scopes of the process mapped are in sales, servicing and dispatch of HMT Kalamassery
products.
OBJECTIVES:

23
To create and sustain customers in the line with the quality policy of the company and
provide after sales services to achieve total Customer Satisfaction.
PROCESS:
The customer contacts the regional office and specifies all his requirements, delivery date
and other details. These details are then conveyed to the Sales department and Finance
department for appropriateness of design time, design, financial concurrence etc. After the
feasibility of the design is confirmed by both the department, it gets into production
process. The finished product, after inspection and formalities, is dispatched to the
customer at the required rate. The payment is made to the Sales department. After sending
the required commission to the regional office, sales department sends the rest of the cash
to the financial department.
FUNCTIONS – SALES OFFICE, MTD AND PMD:
All commercial activities in connection with the sales of machine produced at MTK.
RESPONSIBILITIES
1. Submission of the offer for conventional MIC enquires received at MTK.
2. Scrutiny of order regarding technical and commercial conditions.
3. Reduce of order acceptance.
4. Issue of amendments to order acceptance in case of only changes all required.
5. Release of performance invoice.
6. Follow up with marketing/ customer for payment dispatch clearance.

RESPONSIBILITIES AND AUTHORITIES:

Chief servicing: MTD and PMD
1. Commissioning and the servicing of machine supplied by MTK in target either by
coordinating with the corresponding regional office, servicing of out of warranty machine on
chargeable basis.
2. Arranging replacement spare for rectifying complaints reported during warranty period of
all machine.
3. Monitoring of the customer complaints and to provide technical advice/ suggestion/
classifications where ever required.
4. Furnishing data for quality assurance department for continual improvement.

MTK MANUFACTURING DEPARTMENT

INTRODUCTION:

24
The machine tool manufacturing department at Kalamassery manufactures various
components of conventional lathe and CNC lathes. For convenience, the various parts of the
machine are divided into two, namely, small parts and heavy parts.
SMALL PARTS:
The various small parts are gears, apxon, flanges, lead screw, spline shafts, racks, levers,
rests, compound rests, tool posts, turrets, tool heads, swivel head etc.
• According to the shapes and uses their parts are classified in two sections Rounds
• Non rounds
 
The various sections in small parts are: -
1. Non rounds
2. Rounds
3. Gears
4. Spindles
5. Turrets
6. Accessories
7. Lead screw

HEAVY PARTS:
The heavy parts departments manufacturing the large sizes parts. Special cranes are used
for spacing the parts of various operations.
The various heavy parts manufactured in the heavy parts departments are:
1. Lathe bed
2. Legs
3. Carriage
4. Headstock
5. Tailstock
6. Tool head etc.
Most of the heavy parts are casted at the foundry and has to be milled.
The various machining operations are in the heavy parts department are:

 Milling

25
  Facing
 Drilling
 Grinding
 Housing
 CNC turning etc.
RESPONSIBILITIES OF SECTION HEAD IN MANUFACTURING DEPARTMENT
DISCIPLINE
1. Maintain order and discipline in the section.
2. Do necessary co-ordination with other production as well as service section for the
harmonious functioning of the section.
3. Generate team sprit among employees and supervisory staff and service for the
achievement of the company objectives.
4. Initiate disciplinary actions where required

 
UTILISATION OF OUTPUT:
1. Study the monthly production or dispatch programme and preplant the work.
2. Ensure that the components are loaded on the machines for operations in the order of
priority as per production schedules.
3. Study the operation layout for components along with drawings well in advance, clarify
and settle all doubts with production pre planning before loading the job.

4. Study the requirements of standard and special tooling’s and check the availability of the
same of avoid any delays.
5. If special tooling as per the operation layout are not available, co-ordinate with PPT and
plan alternate process for the completion.
GENERAL:
1. Maintain machine and equipment.
2. Ensure adherence to ISO-9001 system of standards and promote Pip activities.
3. Conduct analysis of non-conforming reports and take corrective actions to prevent
recurrence.
4. Co-ordinate with service department RPM, tool engineering etc. for the efficient
maintenance and utilization of resource.

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 MTK ASSEMBLY DEPARTMENT

INTRODUCTION:
Among the subsidiaries of HMT Limited Machine Tools division Kalamassery, is engaged in
producing various types of turning centre, printing machines and cutting machines.
Assembly activity is the key function of any organization. The machine tool assembly
department at Kalamassery assembles various components of conventional lathe and CNC
lathes. For convenience, the assembly department is subdivided into NH assembly and CNC
assembly. NH assembly section assembles conventional lathe and CNC assembly section
assembles computer numerically controlled lathes. The most of the electrical components
are ‘brought out’ items and is assembled by electrical assembly section.
SCOPE:
The main function of the department is to assemble the machine based on the rolling plan
supplied by the sale department and conform to the performance and quality specified in
the design document. Assembly department will offer the assemble machines for in-house
inspection, will also monitor at different stages of assembly to ensure that the quality
product is delivered to the customer.
PURPOSE:
1. To assemble the machines as per rolling plan supplied by sales department.
2. To assemble the machines to meet the design specification.
3. To complete the assembly of machines as per the dispatch plan.
4. To evolve systems to make the system flexible to adapt the changes in the sales plan.
5. To improve methods any systems to changing needs for market.
6. To assemble the pre- assembles, group assembles and final assemblies to match with
assembly drawings and specification of the machine.
7. To record the non-conformities and take corrective actions to prevent recurrence of the
problem.
8. To interact with departments like production, design tool design, purchase, sub contract
and sales for continual improvements of the machine.
9. To complete the assembly of machines with the act of any short coming and problems for
the final assembly.

OBJECTIVE:
1. To improve performance index.
2. To improve efficiency of operation.

27
3. To reduce number of non-conformists in assembly detected during in process and during
final test.
4. Reduce number customer companies owing to assembly sings.

 
DUTIES &RESPONSIBILITIES OF DEPARTMENTAL HEAD:
1. Co-ordinate the activities in the respective assembly areas effectively and efficiently in
line with the unit’s, dispatch and production programme.
2. Maintain discipline and good industrial relation irrespective assembly groups.
3. Co-ordinate the activities in assembly with other sections like design, planning, etc.
4. To ensure proper upkeep of assemblies facilities.
5. Effective leadership in implementation of productivity improvement programme.
6. Implement and sustain procedure relating to ISO 9001.

PLANNING DEPARTMENT

The planning department is the most vital link between product design and the production
department. The production planning department provides the necessary facilities and
technical know-how for the manufacture of the product. Production requires the organized
utilization of natural resources, men, money, material and machine. But before starting the
work of actual production, production planning has to be done in order to anticipate
possible difficulties and decide in advance, as to how the production should be carried out in
the best and most economical way. The principles of production planning lie in the
statement, “First plan your work, and then work your plan”. The role of production planning
department is as follows.
Production planning department at HMT Machine Tools Ltd Kalamassery companies the
following sections.
1. Production, pre planning & planning estimate-PPP&PPT
2. Production planning orders & FPS-PPO& FPS

OBJECTIVES OF PRODUCTION PLANNING:

In any business organization production activities must be related to market demand as
indicated by the continuous stream of customer order. Aggregate planning is carried out in
an economic manner for maximization of production. From the annual operating plan,

28
rolling production plan for 3 month is made. Objective of the production planning
department is to ensure that annual production is achieved in an economic manner.
FUNCTIONS AND RESPONSIBILITIES OF PLANNING PERSONNEL
FUNCTIONS AND RESPONSIBILITIES OF PRE-PLANNING PERSONNEL.
1. Processing of design documents received for corresponding products.
2. Identification of in-house manufacturing item, outside manufacturing item and bought
out parts.
3. Preparation of operation layout for all house manufacturing items.
4. Identifying and indicating actions for all special tooling.
5. Implementation of design alterations.
6. Maintaining special tool data.
7. Coordinating activities related to alteration request, received from another department.
8. Attending shop problems.
9. Preparation of documents related to assembly of the product viz. list of assembly-
production wise.
10. All data entry in computer related to PPP area of concerned products.
11. Verification and approval of materials warrant being released by PPO.
12. Maintaining all data/ documents/ records and files related to their products.
 
FUNCTIONS AND RESPONSIBILITIES OF PPE PERSONNEL:
1. Estimation of standard time for all manufacturing/ assembly operations identified in
layout and assembly list of operations.
2. Preparation, implementation of alterations and maintains of operation matters and other
documents related to PPE function
3. Data entry and co-ordination of all activities related to computerization of PPE function.
4. Attending shop complains regarding standard time.
5. Authorization for special time in job card.
6. Arranging for time study/ activity sampling.
7. Any other work assigned by superior officer/ chief of production planning.

FUNCTION AND RESPONSIBILITIES OF PERFORMANCE MONITORING WING:

29
1. Analyse the organization requirement for information.
2. Design the structure of statement/ report.
3. Create an appropriate data base for the information.
4. Develop methodology/ software for the statement/ report.
5. Prepare the statement/ report periodically.
6. Prepare a mailing list and ensure the dispatch of statement/ report according to the list
and the appropriate time.
7. Maintain the data base and copy of statement systematically.
8. The information regarding manpower, plant performance, capacity, load production and
sales, stock in trade etc. shall be processed and circulated through weekly, monthly and
yearly statement/ report.
FUNCTIONS OF COSTING SECTION
1. Arranging and furnishing data to accounts department through computer centre about
the standard labour, material and assembly cost of components and assembly groups.
2. Arranging standard labour and material cost for spears, reconditioning machines etc.
3. Assessment of rectification/ rework expenses tec.
4. Co-ordination of all activities in connection with annual product costing.
5. Any other work assigned by the superior officer/ chief of production planning.

FUNCTION AND RESPONSIBILITIES OF TIME RECORDS

1. Monitoring and ensuring the smooth and regular flow of job cards.
2. Entering ticket number and actual hours on each job cards and identifies card.
3. Calculating and entering total standard hours on concerned job cards after inspection of
each and every operation.
4. Obtaining signature of section head on all completed job cards.
5. Handling overall job cads and idle cards to PPE after getting the signature of concerned
section head.
6. Obtaining signature of concerned section heads on all closed idle cards.
7. Maintain attendance of direct workmen of concerned section.
8. Acting as a link between production planning department and shop floor.
9. Any other work assigned by the superior officer/ chief of production planning.

30
FUNCTION AND RESPONSIBILITIES OF OFFICE SUPERINTENDENT
1. Typing of operations layout, statement, letters etc.
2. Maintaining all office flies including leave records.
3. Distribution of all correspondence, circulation of notice etc.
4. Any other work assigned by the superior officer/ chief of production planning.
 

SWOT ANALYSIS
SWOT stands for strengths, weaknesses, opportunities, and threats. SWOT analysis is a tool
for auditing an organization and its environment. SWOT analysis is the first stage of planning
and helps marketers to focus on key issues. Once key issues have been identified, the details
are fed into marketing objectives. SWOT analysis can be used in conjunction with other tools
for audit and analysis, such as PEST analysis and Porter's Five-Force analysis. SWOT analysis
is a very popular tool, quick and easy to learn.
STRENGTHS
1. Strong brand image
As HMT Machine Tools Company is a pioneer in the field of producing machine tools, they
have a well renowned brand image.
2. Good strength in application of engineering and tooling
Each and every machine tool is made according to the requirements and needs of the
customers so that each unit has qualified design team to design the products as per the
requirements of the customers.
3. Good marketing and servicing network
Throughout the years, the company has been following efficient marketing and servicing
networks to attain stability in the market. Though it has some financial difficulties it tries to
promote the products and services effectively.
4. Accumulated knowledge-base in design, application engineering & tooling
The company is equipped with the latest technologies which would help them to excel and
compete with other companies.
5. Wide range of products
The company produces like lathes and printing machines that are produced in a wide range
according to the quality and price. For each item produced the costs ranges from one lakh
to two crores.
6. Good manufacturing facility in foundry
31
The manufacturing premises are favourable for the company such that there is an ample
and vast facility for continuous and quick production.
7. Products of HMT are comparatively better in quality than other Indian
manufacturers.

The company maintains a policy for producing good quality products with quality raw
materials and other input factors.

4.2 WEAKNESS
1. Old plant & machinery
The plant was installed in 1964 and not only few machines were replaced and updated.
2. High average age of employees (50 years)
The workers are aged and are illiterate to the advanced technologies. Hence it is difficult to
teach these new aspects, which would be more time consuming and would leads to loss for
the company.
3. Low rate of salary
The company fails to satisfy the needs of employees in terms of payment of salary. It is
considered as one of the disadvantages of the company in providing lower pay.
4. Difficulties in attracting and retaining talented man-power due to very poor
remunerations compared to other sectors / other organizations
5. Limited resources in information technology, & limited use of information
technology in sourcing and monitoring the large variety of components in production, and in
the activities of marketing, sales and human resources management.
6. Political interference
Involvement of trade unions in the company had been a major drawback as the
management was forced to increase the labour rates even at a bad financial position.
7. Difficulty in fund mobilization
There are difficulties in raising fund for the internal and external needs of the company.

OPPORTUNITIES:
1. Demand from defence sector
As the company is producing machine tools, they are very widely used by the defines
sector to make their vehicles and their products are widely purchased by the defence
sector.
2. Growth in automobile sector

32
 Automobile industries are growing at a fast phase in India, which needs machine tools
for manufacturing their parts.
3. Growth in engineering and infrastructure sectors
The company is capable for improving from the existing operational structure to newly
engineering and infrastructural facility.
4. Growing trend of multinationals establishing manufacturing hub in India and / or
outsourcing manufactured components from India
5. Diversification of products in the future
The company can diversify its product so as to maximize their profit and helps in
improving the goodwill of the company.
6. Expectation of increase in Export
Increased entry of the products and services to the foreign markets will enhance
company’s grow and prosperity.
 
THREATS:
1. Competition from other companies
There are many foreign and domestic players who are in the field of machine tool
manufacturing.
2. Emergence of new firms
Emergence of new firms with advanced technology is the main threat to the HMT
Company. This will reduce the cost of the products.
3. Increase the cost of production through material cost
Raw materials cost has increased due to the increase in fuel, labour, and transportation
cost.
4. Looming onslaught from Chinese industry / imports from China
As there are large number of imports comparatively at a cheaper rate, in spite
decreasing the demand for the products of the company.
5. Increasing price of steel which is a major raw material
There are several developed countries with high advancement that may focus on
refurnishing obsolete machines and are being imported. This gradually decreases the
sale for newly manufactured machines.

FINDINGS
• Most companies talk about social responsibility, but, do not practice it in their
environment. But HMT LIMITED is one of those few companies that practices social
responsibility.
• Temporary employees are given regular training programme.
• Presently company is not able to take bulk orders.
• The salary of the workers is not sufficient.
• Salary pay scale is not improved after 1990’s
• Fresh recruitments are not going well; majority of workers on shop floor is working
for daily wages and on sub- contract basis.
• Punching card system is used for attendance.

33
 • Resources are not fully utilized.
• There is a lack of career growth opportunity in the company.
SUGGESTIONS
• Replacement of the existing outdated machinery with latest.
• Employees must be motivated by giving promotion and cash incentives.
• Adopt JIT technology for the effective utilization of resources.
• Avoid use of costly machines by trainees and casual laborers, this will help to reduce
scrap and increase the life span of machines.
• Recruit new technically skilled employees. It may be skilled trainees within the
organization or the engineers with experience from other reputed organization.
• Proper and regular maintenance of plant and machines should be done.
• Maximum utilization of available resources.
• If Kalamassery unit is made an independent unit, it will be more effective.

CONCLUSION

HMT is the leading machine tool manufacturing company in India. The company is an
ISO certified so the products have demand in Indian and foreign market. The company
has to face tough competition from various companies. Even in the midst of tough
competition from giants it still has a unique reputation of being the producer of a quality
product. Even though the product has goodwill and good demand, the record shows
that the company is running on loss. There are many factors, which contributes to the
loss of the company. They are, high fixed overhead, lack of young blood in the executive
level, potentials are not fully utilizing, wastage of raw materials, conventional Machines
are used in large number in the plant.
The machine tool industry is experiencing both evolutionary and revolutionary change.
The one-month organizational study at HMT Machine Tools Ltd, Kalamassery that is the
only machine tool and printing machine manufacturing company in Kerala, was a great
experience for me. The transparency in the working procedure and the strict discipline
enabled me to learn a lot from the organization. My experience at the company was
really useful and informative as a management student. The old, prestigious
organization and its administration can teach us lot of do’s and do not’s. It gave me a
great insight of a company and how effectively they can work to achieve their goal. Also,
the department heads’ experiences taught us a lot.
The organization study at HMT MACHINE TOOLS LIMITED KALAMASSERY has given me
the opportunity to gain valuable industry related exposure that would allow me in
selecting which specialization I should opt for. The guidance, support, feedback and
useful suggestions provided by my Project Guide helped me to successfully complete
this Organization Study. The organization study definitely broadened my mind.

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This study also helped me to know more about the industry with the new scope and
trend. It also helps me to familiarize with various policies adopted by company HMT Ltd
for their success.

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BIBLIOGRAPHY
Websites
• http://www.hmtindia.com
• http://www.hmtindia.com/html/frame.asp?page=manufacturingunits.htm
• http://www.hmtmachinetools.com/
• http://en.wikipedia.org/wiki/HMT_Limited
• http://www.CMIE.com /Industry Market Size and Shares/Machine tools

Others:
• Manual of Finance Department in HMT
• Manual of Sales Department in HM
• Manual of Human resource Department in HMT
• Manual of Planning Department in HMT
• Manual of Purchase Department in HMT

 Manual of MTK manufacturing

 Manual of MTK assembly

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