Report

Report on OS at KAMCO

1.1 INTRODUCTION

This report is based on an Organisatioanl Study conducted at “Kerala Agro Machinery

Corporation Limited (KAMCO), Athani”. (KAMCO) was established in the year 1973 as a wholly owned

subsidiary of Kerala Agro Industries Corporation Limited (KAIC), Trivandrum for manufacture of agricultural

machinery, specifically Power Tillers and Diesel Engines. KAMCO had technical collaboration with KUBOTA,

Osaka, Japan. Subsequently KAMCO became a separate Government of Kerala undertaking in 1986. KAMCO

has four production plants that are situated in Mala, Palakkad, Kalamassery and Athani.

Agriculture is the backbone of our country. Agriculture is no longer what is used to be. Intensive,

mechanized operations are fast changing the tempo of agriculture. Agriculture is the base of Indian economy. A

large number of populations depend upon the agriculture sector for their lively hood. India needs a very big

quantity of food grains to feed her population. So it is high time that we need improved and modern agriculture

equipments and their implementation to increase the productivity in agriculture sector. The western countries

are now able to produce excess food grains using improved techniques. Now the time has come or had exceeded

to step in to the mechanized agriculture

Agriculture is considered to be the major activity of most of the people in India. Moreover, 200 million

farmers and farm workers have been the backbone of Indian’s agriculture. In the beginning, the farmers adopted

ancient methods for their farming practices. The whole process that is from sowing the seed till harvesting, were

all done by the farmers themselves. It was really a time consuming one, which required lot of labour. The cost

of production was high and the benefits are not promising.

After independence, Indian agriculture has made rapid strides in production of food grains, thus

contributed significantly in achieving self-sufficiency in food and thereby avoiding food shortages in our

country. Rapid growth of agriculture is essential not only to achieve self-reliance at national level but also for

household food security. Kerala Agro Machinery Corporation Ltd (KAMCO) has become the light of the fast

changing agriculture operations in our country.

1.2 OBJECTIVE OF THE STUDY

The main objective of the study in Summer Training lies in understanding the behavior and the culture in

the Organization. The study mainly involves the scrutinizing of various departments that constitute an

Organization. Each department has to be studied with its respective level of hierarchy, responsibility and

authority of each position in that hierarchy functioning of that department and most important, the contribution

of that particular department to the Organization.

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Thus the study mainly includes identification of key results areas of various managerial levels and the

background behind the functioning to achieve the objectives laid down at each level that are consistent with the

Organizational Objectives. The training helps to study various aspects of an Organization with respect to each

departments functioning, the level of people concerned in the department function and thus contributing overall

to the progress of the Organization , the training help to get acquainted with the environment surrounding the

business, the working culture of the Organization and the practical functioning of each department. The training

gets you to know about the various policies of the Organization and its past performance, its present & its future

strategies. The main objectives are as follows:-

1. To study the overall functions of a manufacturing organization.

2. To get the practical knowledge about the different departments of an organization.

3. To relate theories with practical.

4. To understand the relationship between the management and the employees.

5. To understand the relationship between the management and the employees.

1.3 SIGNIFICANCE OF THE STUDY

The organizational study done at KAMCO was very significant in my career path. It

was significant as it helped me to understand the practical side of the business. It was an opportunity for me to

understand the working of an organization and to get familiarize with the various departments of the firm. It also

facilitated to share the job experience with the officials.

1.4 RESEARCH METHODOLOGY OF THE STUDY

The data were collected from primary and secondary sources. Primary data were collected directly

through interviews with the managers of different departments and the staffs of the firm. Secondary data were

collected from publications such as company magazines, annual reports etc.

The important methods of data collection are as follows:

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1. Observation :-

One of the earliest methods of investigation was observation which had the meaning of ‘something

known to all observation’. This is classified into two ways:

Participant Observation – When the observer participate observation, which make him a part of the

group under study.

Non participant Observation -- When the observer does not actually participate in the activities of the

group but simply observer from a distance is known as non-participant observation.

2. Face to face Interview :-

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

METHODS USED IN THIS PROJECT:

The main technique used to collect data was personal interview with the manager and staffs of the firm.

The secondary data was collected from the company’s brouchers, websites, company profiles and magazines.

1.5 PERIOD OF THE STUDY

The duration of organization study was one month. The study was held from 02.05.2011 to 31.05.2011.

1.6 LIMITATIONS OF THE STUDY

The findings may not be conclusive but only indicative.

The area of concentration was only on one unit of KAMCO (Athani), as it has three more units.

The time span of this project was very limited to collect all the information.

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2.1 INTRODUCTION TO INDUSTRY PROFILE

Agriculture is way of life, a tradition that has been shaped the thought, the outlook, the culture and

economic life of the people of India, for centuries. Agriculture is considered to be the major activity of most of

the people. The performance of agriculture sector influences the Indian economy. Agriculture (including allied

activities) accounted for 17.1% of the Gross Domestic Product(GDP at constant prices) in 2008-09 as compared

to 21.7% in2003-04. Now withstanding the fact that the share of this sector in GDP has declining over the years,

its role remains critical as it accounts for about 52% of the employment in the country. The prosperity of rural

economy is closely linked with agriculture and allied activities agriculture sector contributed 12.2% of national

export in 2007-08.

The country witnessed unprecedented growth in agriculture, which has helped India to graduate from

hunger to self sufficiency in food grains by increasing the food grain production from 51 million tones to 208

million tones, with surplus for export. The technology backup by agricultural scientists in the form of ‘Green

Revolution’ combined with industrial growth, positive policy support, and liberal public funding for agricultural

research and fishing production. Application of engineering in agriculture was equally appreciated by the

farmers and today they feel proud to have improved machinery from Banhars to motivators.

The growth in adoption of agricultural machinery in the country has been possible due to their local

manufactures, villages artisans, tiny units, small scale industries organized medium and large scale sector under

take the manufacture of agricultural machinery in India. Traditional hand tools and bullock drawn implements

are largely fabricated by village craftsman and power operated machinery by small scale industries.

India is basically an agrarian nation. There are numerous farmers in India who are cultivating in large

scale or in small scale. There was not much mechanization in India in the field of agriculture till recently .

Economic development without agriculture development creates bottlenecks and generates inflationary pressure.

This is what happened in India. Low rate agricultural development results in shortage of food and essential raw

[4] M.E.S.SOCSAMS


materials leading to inflation. Therefore agricultural development is essential to avoid inflation and to ensure

with stability.

State of Kerala has peculiar state of affairs in its agricultural economy. Being a consumer state, it

depends largely on agricultural products from the neighbouring states. It has tiny and small farm lands owned

by private land owners. Even those available lands are not fully utilized for cultivation, owing to economic

reasons. Low productivity coupled with prohibitive cost of cultivation has virtually driven the traditional

farmers out of their vocation.

Under this scenario, the mechanization of farming is a non-starter proposition in the state. Barring

traditional tools and tackles employed by the farmers in the cultivation, there were no motorized or mechanized

equipment available in the state. KAMCO was adventurous enough to venture into this bleak scenario, and

introduced its power tillers and other medium and small sized mechanical aid of cultivation. The Kerala farmers

grabbed this opportunity, and made use of benefits of automation in their fields, which in turn made the entire

operations of the KAMCO successful. As of now, KAMCO is the one and only industrial unit in the state which

provides machineries to the farming segment as an aid to their cultivation.

2.2 GLOBAL SCENARIO

World demand for agricultural machinery and equipment is forecast to increase 3.7% annually through

2012 to $111 billion. Gains will paced by the accelerating mechanization of the agriculture sectors in currently

large agricultural equipment markets such as China and India whose farm sectors are nevertheless still

significantly unmechanised and inefficient in comparison to those found in more developed markets. Moreover,

rapidly rising global staple food crop prices and shortages in 2007 and early 2008 indicate a growing necessity

to increase farm productivity and efficiency in developing countries .To some extent, gains could be hindered if

energy prices remain at their current high levels through the forecast period and negativity impact global

economic growth. China and India holds best growth prospects in developing areas.

Strongest growth in agricultural equipment demand will be registered in developing countries, with

China and India holding by far the best prospects. Other large developing nations with sizable agricultural

sectors, such as Brazil and Russia, will also post healthy gains as a result of increasing mechanization of their

agricultural sectors. Besides benefiting from rising income, farmers in these regions will continue to strive to

increase productivity through further automation and replacement of older equipment. Increasingly, draft

animals such as horses and oxen used during various stages of the farming process will be agricultural

equipment. In addition, rising wages in many of these countries as well as large scale migration to urban areas

will necessitate the replacement of human capital with fixed capital such as farm machinery.

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The US will experience gains that will lag the world average due to decelerating growth in economic and

agricultural sector output in the country though 2012. Western Europe will post particularly anemic growth

through 2012. Farmers in both the US and Western Europe will adversely impacted by continuing trends in

favour of free trade and against protagonist measures such as subsidies for domestic farmers and tariffs on

agricultural imports.

2.3 INDIAN SCENARIO

Farm mechanization helps in effective utilization of inputs to increase productivity of land and labour.

Besides, it helps in reducing the drudgery in farm operations. The early agricultural mechanization in India was

greatly influenced by technological development in England. Irrigation pumps, tillage equipments, chaff cutters,

tractors and threshers were gradually introduced for farm mechanization. The high yielding varieties with

assured irrigation and higher rate of application of fertilizers gave higher returns that enabled farmers to adopt

mechanization inputs, especially after green revolution in 1960’s.The development of power thresher in 1960’s,

with integrated Bhusa making attachment and aspiration blower and mechanical sieves for grain and strew

separation, was the major achievement of Indian engineers.

These threshers were widely adopted by farmers. Gradually demand for other farm machinery such as

reapers and combine harvesters also increased. Equipment for tillage, sowing, irrigation, plant protection and

threshing has been widely accepted by the farmers. Even farmers with small holdings utilize many improved

farm equipment through custom hiring to ensure timeliness of farming operations. The present trend in

agricultural mechanization is for high capacity machines through custom hiring and for contractual field

operations. However, mechanization of horticulture, plantation crops and commercial agriculture is yet to be

introduced in the country accelerated with the manufacture of agricultural equipment by the local industries.

With the modest beginning of manufacture of tractors in 1960’s with foreign collaboration, today the Indian

farm machinery industries meet the bulk of the requirement of mechanization imports and also exports.

The manufacture of agricultural machinery in India is quiet complex comprising of village artisans,

tiny units, small scale industries, state agro-industrial development corporations and organized tractor, engine

and processing equipment industries. Traditional hand tools and bullock drawn implements are largely

fabricated by village craftsmen (blacksmith and carpenters) and small scale industries. The small scale

industries depend upon public institutions for technological support. These industries however upgrade these

designs and production processes with experience.

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Organized sectors confine to manufacture of machines like tractors, engines, milling and dairing

equipment. These industries have adopted sophisticated production technologies, and some of them match

international standards. The enhanced scope of import of technology (product designs and manufacturing

process) by organized sector and entry of foreign investors is likely to accelerate exports. Since cost of

production of farm machinery in India is more competitive due to lower labour wages, the importers from

various countries will find Indian farm equipment more attractive. Indian products however shall need

improvements in quality for gaining major export growth.

2.4 STATE SCENARIO

Kerala, the State with network of azure backwaters, rivers and streams, boasts of an agrarian economy. The

abundance of water due to the 34 lakes and other small streamlets, innumerable backwaters and water bodies

and 44 rain-fed rivers flowing over the terrain of the state and also the adequate annual rainfall of 3000mm

received by this state probably facilitates agriculture to a great extent and hence the economy of the state is

dominated by agriculture. The most essential or the staple crop is the rice or paddy. Next to rice is Tapioca and

is cultivated mainly in the drier regions. Tapioca is a major food of the Keralites. Besides production of the

main crop, Kerala is also a major producer of spices that form the cash crops of the state. Kerala produces 96%

of the country's national output of pepper. The important spices are cardamom, cinnamon, clove, turmeric,

nutmeg and vanilla.

Agricultural machines increases productivity of land and labour by meeting timeliness of farm

operations and increases work out-put per unit time. To provide broad-base technological services to the farmers

by efficient supply of inputs including agricultural tools, implements and machinery and for extending custom

hiring facilities, the government of India, through a centrally sponsored scheme promoted the establishment of

17 State Agro Industries Corporations (SAICs), one each in the major States of the country as joint ventures

during 1965–70. Noteable change in Kerala agriculture is that the emergence of cash crops. Whatever may be

the changes KAMCO machineries helps farmers of Kerala in easy and suitable farming. But in comparison

between other states, Kerala is in back of queue.

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http://www.kerenvis.nic.in/agriculture/Appendix%204.7.pdf


2.5 MAJOR PLAYERS

Producers in the same industry in the world market are:-

1. KUBOTA POWER LTD, JAPAN

2. SUNTEC LTD, SHENZHEN

Producers in the same industry in the domestic market are:-

1. VST TILLERS LTD, BANGLORE

2. BULL AGRO IMPLEM ENTS, COIMBATHORE

3. ASB GROUP, NEW DELHI

4. SOVZA SIFANG AGRO ENG.PVT.LTD, MAHARASHTRA

5. BANWAIT TRADE SERVICES, PUNJAB

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3.1 INTRODUCTION TO COMPANY PROFILE

KERALA AGRO MACHINERY CORPORATION LTD was established in the year 1973 as a wholly

owned subsidiary of Kerala Agro Industries Corporation Ltd (KAIC), Trivandrum, for the manufacturing of

agricultural machinery specifically power tillers, diesel engines.

Subsequently KAMCO become a Kerala government undertaking firm in 1986, paid up capital is Rs.

161 lakh, present net worth of the company is Rs. 6014.14 lakh. Total work force at present is 567 certified for

ISO 9001-2000 version from Sep.2002. At present KAMCO has four units located at Athani, Kalamassery in

Ernakulam district, Kanjikode in Palakkad district and Mala in Trissur district. Within the present work force

KAMCO can produce 8400 power tiller and 1200 power reaper per annum.

3.1.1. Origin of the Organization

The Kerala Agro Industries Corporation Limited (KAIC Ltd) Trivandrum, (Government of Kerala

Company) promoted the establishment of Kerala Agro Machinery Corporation Limited (KAMCO). It all began

in 1958, when Dr. Rajendra Prasad, the President of India was presented with a ‘Kubota Power Tiller’ by the

Japanese. (M/S. Kubota Limited, Japan, the world’s leading manufacturer of Power Tiller and other agricultural

machinery). The machine helped to open up new avenues in farm mechanization for a country predominantly

agrarian. It was realized that mechanization of farming operations would be one of the keys to engineering a

successful Green Revolution and reliable indigenously manufactured farming equipment became the need of the

day. The KAIC ltd entered into technical collaboration agreement with M/S. KUBOTA Limited, Japan in

February 1972. On 15.11.1972, the Kerala Industrial and Technical Consultancy Organization Limited (KITCO)

were entrusted with the work of M/S KAIC Ltd, which held the entire paid up capital shares in KAMCO. Even

though the company was formed as a subsidiary of KAIC Ltd, subsequently the company has made a fully

owned Government company by transferring the shares held by KAIC Ltd.

3.1.2. Growth & Development of the organisation

A major growth and development of the Organization is that KAMCO has gone to the International

Quality Excellence Certificate under ISO 9002 in October 1996. KAMCO is the second public sector under

taking in Kerala getting this coveted certificate , and the only public sector undertaking who got ISO 9002

certification justifying the high standards of the products for their three units. From 15.03.2002 onwards

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KAMCO becomes an ISO 9001-2000 registered company by KPMG Quality Registration accredited by the

Dutch council for certification.

3.1.3. Present Status and future plans of the Organization

Present status of the KAMCO is synonymous with service to the small and marginal farmers of the

country. KAMCO through their precision and quality is revolutionizing the small and marginal holdings out the

country. Today KAMCO power tiller is the most sought after tiller in India, enjoying over 60% of the market

share at national level. The company with its four plants is confidently meeting the demands for KAMCO

products in India and abroad. The main markets for the power tiller are at West Bengal, Assam, Tripura,

Meghalaya and Manipur.

Future plans of the Organization have a number of diversification plans in the anvil. Its proposed to set

up Research & Development activities which will hope fully help it to develop new products in the future and

live up to its promise, that its products will be “A boon for the farmer and gain for the nation”. The Quality

policy of KAMCO is “Total customer satisfaction through quality products and services with improved

technology and employee participation.

The main products of the company are ‘KAMCO Power Tiller, KAMCO Power Reaper and KAMCO

Diesel Engine’. KAMCO Power Tiller is a versatile machine used for primary farming operations like tilling,

ploughing, weeding, pudding, leveling, hulling, ridging and transporting. KAMCO Power Reaper is a compact

small harvesting machine, suitable for harvesting paddy, wheat, barley etc. KAMCO Diesel Engine is used for

pumping water at high force.

For the last three decades, KAMCO has been meeting the needs and demands of Indian farmers. The

logo of KAMCO is “Engineering Green Revolution”. KAMCO has been successfully engineering the green

revolution in India through the manufacture of indigenous and quality agricultural machineries. KAMCO is also

importing agricultural equipments like “Kubota Combine Harvester” and “KAMCO Kukge Rice Transplanter”.

The company is making profit for the last 22 years continuously increasing its production, turnover and profit

year after year.

KAMCO has established three more units from its internally generated resources. The units are located at

Kalamassery in Ernakulam District, Kanjikode in Palakkad District and Mala in Trissur District. The products

that are being manufactured at different units of KAMCO are:

Athani unit manufacturing Power Tiller and Agria Garden Tiller.

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KAMCO’s Kalamassery unit was purchased outright from SIDCO during 1990 and converted as a

viable Diesel Engine unit.

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

As a Part of diversification activity, the company developed a compact small harvesting machine

‘KAMCO Power Reaper’ and its production is carried out at Mala unit in Thrissur district. The project

cost of the unit was 4.28 crores.

The Company enjoys the position of premier manufacture in the field. The products manufactured are

indigenized and there is no imported content in any of the items. The machines have acquired a reputation for

quality and reliability. KAMCO is an ISO 9001 organization with the aim of providing quality products at

reasonable price to the satisfaction of customer. The Company enjoys all India market through a network of

about 45 dedicated dealers. Products are sold on premium at several places. They have acquired a brand

preference because of the high quality and reliability associated with each machinery.

Power Tiller is equipment suitable for small farm holdings for basic tilling operations. Instead of

conventional ploughing, the tiller breaks the soil into fine parts, which is highly suited for paddy and wheat

cultivation. Originally of Japanese design, the machine has been modified later to perfectly suit to Indian

conditions.

The company plans to diversify its activities further in acquiring technical knowhow and going into regular

manufacture under license, of machines suitable for other agriculture purposes with the small and marginal

farmers in mind. KAMCO is an ISO 9001:2000 registered company. The motto of the company is “A boon for

the farmers and a gain for the nation”. The present workforce of the company in Athani unit is 567.

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3.1.4 Unit wise Business Operation

The business areas operating in KAMCO are indicated in the matrix given below;

Sl. No. Division /

Department

Corporate Set

up

Location

Athani Palakkad Kalamassery Mala

1.0 Corporate Office * *

1.1 Marketing * *

1.2 Materials * *

2.0 Purchase * * * *

3.0 Production

3.1 Assembly * * * *

3.2 Pretreatment & Ptg. * * * *

3.3 Machine Shop *

4.0 Maintenance * * * *

5.0 Quality Assurance * * * *

6.0 Engineering *

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7.0 Store * * * *

8.0 Human Resource Management * * * * *

8.1 Human Resource Development * *

9.0 Finance * * * * *

10.0 Internal Audit * *

11.0 Systems * *

* Applicable in the unit location

Table 1 : Unit wise business operarions

3.2 OBJECTIVES OF THE COMPANY

Objectives of KAMCO are to manufacture in India either in collaboration with or otherwise import and

trade agriculture machinery like Tractors, Power Reapers, Combine Harvester, Transplanted, Diesel engines,

Pump sets, implements accessories and spares thereto. The objectives also include establishment of engineering

work shops, repair shops to undertake repairs and serving of agricultural machinery or other machinery

equipments implements and tools.

3.3 VISION AND MISSION

VISION

KAMCO, with over three decades of engineering excellence, stands as the no.1 power tiller

manufactures in India. Not surprising with four states of the act of production plants, an innovative R&D

and stronger quality control system rates one of the best in the country. The technically competent,

dedicated management and work force will go on to ensure that KAMCO shall be the leader for several

years to come.

MISSION

To be innovative, resourceful, and profitable company.

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To meet customer requirements of quality service and price consistency.

To make doing business with us easy, and delightful to our customers.

To provide an entrepreneurial environment in which employees can respond to the needs of business and

service, earn fair rewards and can be satisfied.

3.5 QUALITY POLICY

Total customer satisfaction through quality product and services with improved technology and

employee participation.

Comply with the requirement of customer and the applicable statutory regulatory requirements. The

effectiveness of the established quality management system is continually improved to enable

achievement of the policy.

3.6. PRODUCT AND SERVICE PROFILE

To ensure that quality requirements of the product and service offered are maintained at all stages.

To create a culture amongst all employees towards total quality concepts productivity through total

involvement and commitment of the employees.

To create healthy working environment for attainment of quality goals with excellence and make quality

a way of life.

To detect and prevent non conformance and defects as early as possible and to eliminate them through

appropriate changes to the quality management system.

To achieve and maintain quality leadership through continuous technology up gradation, improvement in

techniques, systems and procedures to meet customer’s changing needs.

The objectives of the company are to manufacture in India, either in collaboration with or otherwise

import and trade agriculture machinery like Tractors, Power Tillers, Power Reapers, combine harvester,

Transplanted, Diesel Engines, pump sets, implements, accessories and spares there to. The objectives also

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include establishments of engineering workshops repair shops to undertake repairs and servicing of agricultural

machinery or other machinery, equipments implements and tools.

Assembly unit was established in 1970 at Athani by M/s Kerala Agro Industries Corporation for

the assembly of Kubota power Tillers in technical collaboration with of Kubota Ltd, Japan. The words dealing

manufacturer of power Tillers and other agriculture machinery on expiry of the collaboration, KAMCO

manufacturers Power Tillers with their own facilities.

3.7. AREA OF OPERATION

KAMCO manufacturing facilities include special purpose Machines, specially built General machines

and imported machines. The inspection facilities include modern inspection and existing equipment. KAMCO

have their own Metrology, calibration and engine test lab, the following are the main activities of the company.

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

engines etc.

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

vendors in India. There are around 250 vendors now.

c) Kalamassery unit produce Engine for Power Tiller.

d) Power Reaper product at Mala.

e) Trading and manufacturing of other farm machines.

3.8 MILESTONES OF KAMCO[15] M.E.S.SOCSAMS


1973 -KAMCO has established as a wholly owned subsidiary of KAIC (Kerala Agro Industries

Corporation Ltd).

1986 –KAMCO has become a ‘government of Kerala undertaking’ firm.

1992 –KAMCO established second unit at Kalamassery in Ernakulam district for manufacturing ‘Diesel

Engines’.

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

power tillers.

1996 – KAMCO won international quality excellence certification of ISO 9002. KAMCO is the second

public undertaking getting this covered certificate. And the only one public sector undertaking which has

got ISO 9002 certification justifying high standards of products for their three units.

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

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

2011 – KAMCO started tractor manufacturing.

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3.9. PRODUCT PROFILE

1. KAMCO POWER TILLER KMB200

2. KAMCO POWER REAPER 120

3. KAMCO AGRIA 602 DE (06) POWER TILLER

4. KAMCO DIESEL ENGINE MODEL ER 90

5. KAMCO BARBIERI B/30 GARDEN TILLER

1. KAMCO POWER TILLER KMB200

Item Code: 1100002

Details:

Use

KAMCO Power Tiller is a versatile machine primarily used for preparation of land for farming

operations. With suitably designed accessories the machine can be used for large number of

specific operations like tilling, ploughing, weeding, pumping, puddling, leveling, hulling, ridging

etc.

Specifications

Model Engine : ER 90

Tiller KMB 200

Type Rotary, diesel-powered,

Water-cooled, with

radiator

HP Continuous : 9

Max 12

RPM 2000

Fuel consumption 1.5 liters per hour

Fuel tank capacity 0.70 liters[17] M.E.S.SOCSAMS


No. of speeds Forwards : 6

Reverse 2

Tilling 4

Wheel track Maximum: 930 mm

Minimum 690 mm

Tire size 6.00 x 12

Ground clearance 203 mm

Traveling speed 15 kmph (Max.)

Tilling width 600 mm

Tilling depth 190 mm

No. of blades 20

Tilling capacity 1 hectare/8hrs.

Overall dimensions L2250 x W: 820 x H: 1030 mm

Weight 485 Kg

Light Unit 12 volts, 40 Watts

Table 2 : KAMCO POWER TILLER KMB200 specifications

Design and specification are subject to change.

2.KAMCO POWER REAPER 120

Item Code: 2100000

Details:

Use

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KAMCO Power Reaper is ideally suited for harvesting of paddy, wheat and similar crops. It

harvests and makes windrows at the rate of 3-4 hours per ha. Since the fuel used is kerosene, cost

of operation is the lowest and it helps the farmer to harvest his field at the lowest ever cost.

Specifications

Model KR 120

Dimensions

Overall length 2320 mm

Overall width 1490 mm

Height (Up to Handle) 1090 mm

Weight 136 KG

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

Applicable Plant Height 60-120 cm

Crop release Right side of machine (viewed from rear)

Engine

Type Single Cylinder, 4 stroke, side valve, Air cooled

Engine

Fuel Petrol Start, Kerosene run

Rated HP 3.5

Max. HP 3.85

R.P.M 3600

Specific Fuel Consumption 339 gm/H.P hr

Fuel Tank Capacity Kerosene 4 Ltr, Petrol 0.4 liters

Air cleaner Oil Bath Type

Starting Recoil starting

Travel

Forward speed 59.0 m/min

Reverse 50 m/min

Applicability Dry field & Wet field

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Operation & Control

Main Clutch Dog Clutch

Harvesting Clutch Dog Clutch

Cutting

Cutting Device Reciprocating Knife Bar

Cutting Height Adjustable 10-30 Cm grounded level

Cutting width 120 cm

Table 3 : KAMCO POWER REAPER 120 Spcifications

3.KAMCO AGRIA 602 DE (06) POWER TILLER

Item Code: 6100000

Details:

Use

Ideal for paddy /wheat cultivation

Inter cultivation Applications

Various land preparations at horticultural farms

Landscaping

Gardening

Potato harvester

[20] M.E.S.SOCSAMS


Specifications

330 mm to 1200 mm tilling

width

Low maintenance

Highly fuel efficient

Easy controls and

operations

2 speed pulley belt drive

Engine Petrol

Displacement 149 Cc 2 Stroke Electronic

Clutch Belt Stress

Speeds 2 Forward

Starter Reversible

Air Filter Oil Bath

Handle Bar Robust And Easily Adjustable Rotary

Tiller: Adjustable -33 Cms

To 120 Cms

Engine Stop By A Security System Acting Automatically

Transmission By Gear and Chain in Oil Bath

Weight: 67 Kgs Including

Rotary Unit

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

4 .KAMCO DIESEL ENGINE MODEL ER 90

Item Code: 1900000

Details:

Use

KAMCO ER90 Engine is equipped with Radiator and specially designed die cast multi-blade

axial fan. The engine can operate continuously for several hours. It can be used as a prime mover

[21] M.E.S.SOCSAMS


either for stationery or for moving applications.

Specifications

Type Horizontal Water Cooled, 4 strokes

Number of Cylinder One

Bore x Stroke (mm) 95 x105

Displacement (cc) 744

Compression Ratio -

Continuous Rated 20

Output (HP/rpm) 9/2000

Maximum output (HP/rpm) 12/2000

Specific fuel consumption

(G/HP - hr) 195 (At continuous rated output)

Maximum torque (kgm/rpm) 4.5/2000

Cooling System Pressure Radiator type (0.8 Kg/cm2 natural

convection)

Fuel High Speed Diesel Oil

Lubricating Oil SAE 30

Lubricating System

Starting System

Forced Lubrication with Trochoid Pump

By hand cranking assisted by decompression

system

Cooling Water Capacity

(Ltr)

3.8

Fuel Tank Capacity (Ltr) 12

Crank Case Oil Capacity

(Ltr)

3

Overall dimension (mm) 820 x 512 x 640 (L x W x H)

Weight 145 Kg.

Table 5: KAMCO DIESEL ENGINE MODEL ER 90 Specifications

[22] M.E.S.SOCSAMS


4 KAMCO BARBIERI B/30 GARDEN TILLER

KAMCO produces KAMCO BARBIERI B30 an easy-to-handle garden tiller with Italian

technology and design. The powerful HONDA petrol engine ensures efficiency, reduced vibration and

noise ,low emission levels and low maintenance. Overall, it is an economy model that offers a safe and

comfortable operation. The tiller can be easily dismantled. Also it facilitates easy transport across every

kind of ground with the rear wheels which can be easily lowered.

4.2. TECHNICAL SPECIFICATIONS

Engine Honda petrol

Power Kw4.0(HP5.5)

Starter Recoil starter

Clutch Engagement and Disengagement

Gear box 1 forward and 1 reverse

Transmission chain and belt

Little transport wheel standard

Working width 93 cm

Table6: Kamco Barbieri b/30 specificaitons

4.2. MAJOR APPLICATIONS

Tilling

Riding/Furrowing

Soil separation for vegetable cultivation and in orchards and sugarcane fields

Spade work in coconut groves

[23] M.E.S.SOCSAMS


4.1. ORGANISATIONAL STRUCTURE

A Board of Directors governs the company. Board of Directors includes Chairman, Managing Director

and other directors. The Government of Kerala nominates the Chairman of the Board. The Chief Executive

Officer of the company is the Managing Director who shall exercise his powers subject to the overall control

and supervision of the board. The Managing Director is the topmost official and the Government has delegated

authority to the Managing Director as may be entrusted and delegated to him from time to time by the board.

The Managing Director is the operational head of the company supported by General Manager and Deputy

General Managers discharging different functions. Managers and Deputy Managers will assist the General

Managers and Deputy General Managers.

The various departments functioning at KAMCO are Production, Maintenance, Materials and Purchases,

Quality Assurance, Engineering (R&D), Finance, Marketing, Systems and Human Resource Management

departments.

[24] M.E.S.SOCSAMS


4.2. DEPARTMENTS AND FUNCTIONS

Key Departments of the organization:-

[25] M.E.S.SOCSAMS


KAMCO has the following departments.

I. Human Resource Management Department

II. Finance Department

III. Marketing Department

IV. Materials, Stores and Purchases Department

V. Production Department

VI. Quality Assurance Department

VII. Systems Department

VIII. Research & Development Department

4.1.1. HUMAN RESOURCE MANAGEMENT DEPARTMENT

Human Resource is one of the greatest assets of every company. It is a corporate function performed at

the Athani Unit. This department aims at attaining maximum individual development, desirable work

atmosphere, inter personal relations and effective moldings of human resources.. HRM is the backbone of the

organization. The total employee strength is 567 persons KAMCO has determined and provided adequate

resources needed to implement and maintain the quality management system and continually improve its

effectiveness in order to enhance customer satisfaction by meeting customer and other requirements.

[26] M.E.S.SOCSAMS


HR DEPARTMENT FUNCTIONAL HIERARCHY

Figure2 : HR Department hierarchy

FUNCTIONS OF HRD

Recruitment and selection

Induction

Training and development

Performance appraisal

Promotion

Seperation

Welfare Measures

Grievance handling

Discipline

Industrial Relations

Incentives

[27] M.E.S.SOCSAMS

DEPUTYPTY GENERAL MANAGER

MANAGER [HR] (Establishment)

PERSONALASSISTANT

ASSISTANT MANAGER

[SECURITY]

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

ASSISTANT MANAGER [HR] (Establishment matters)

SUPERINTENDENT [HR] PF/Gratuity etc

ASSISTANT MANAGER [HR]

ASSISTANT MANAGER [Medical/ESI etc)

MANAGING DIRECTOR


R ecruitment & Selection

In KAMCO there is a specific recruitment and selection procedure. Recruitment focuses on identifying

the right people for the right job. In KAMCO, there are two types of recruitments. They are as follows:

Recruitment through PSC.

Recruitment through Employment Exchange.

Vacancies are notified as and when they arise and need to be filled. All the technical and non technical

vacancies are notified to PSC. If the PSC are not available in time the same is filled up through

employment exchange on temporary basis for a period of maximum one year. For the post like Assistant,

Accountant, Office staffs, Typists, Stenographer etc., the people are hired through PSC recruitment.

Employment exchange forwards a list of candidates for the required posts in the unit on their notification

to the concerned District Employment Offices. The higher posts of officers are advertised in major news

papers and simultaneously notified to the employment exchange in accordance with the Government

rules. There is no discrimination based on religion, colour, race etc. Appointments are purely based on

merit. Age limit for recruitment of workers is 35 years whereas in the case of officers it is 45 years.

Once probable candidates are short listed, the interview dates are communicated. A general check of the

credentials of the appearing candidates is carried out. The candidates are then put through a written test

and interview. This is followed by a detailed verification of the credentials of selected candidates. The

final step in recruitment involves the issue of the appointment letter.

Steps in selection process

[28] M.E.S.SOCSAMS

PSC RECRUITMENT ADVERTISEMENT EMPLOYMENT EXCHANGE

SELECTION

INTERVIEW


Figure3 : Steps in selection process

Induction

Once selected candidate are appointed on probation, their paper work is completed including collection

of photos, certificates etc. and the issue of identity cards, punching cards etc. The probationary employees are

then put through an orientation program where they are familiarized with all aspects of their jobs. They are

made aware of the job requirements and given their employee numbers.

Training & Development

In an organization, employee training is one of the major factors. Through better training they can

develop the skills of the workers and thus the productivity of the organization can be improved. The training

need is identified only for those whose work directly affects the productivity of the company.

In KAMCO, two types of training are offered. They are internal training and external training. Internal

training is generally carried out in-house for a maximum period of two days. Mostly the training is given by

reputed agencies like Kerala State Productivity Council, Central Board for workers Education, Kuttukaran

Institute for HRD, etc. This type of training is provided with the purpose of increasing productivity and

efficiency. External training involves sending selected workers and officers to attend seminars and training

workshops held outside the premises in response to invitations by reputed agencies. On the completion of

training, the employees are required to submit a training report. Evaluation reports of the employees who have

undergone training are collected from the respective heads of departments after a period of six months. After an

assessment of the effectiveness of the training, the report is placed before the HRD Committee.

[29] M.E.S.SOCSAMS

APPOINMENT

TRAINING


For new recruiters, awareness training or orientation training is given for a period of one week or one

month. After this training, orientation report will be collected from each department. After analyzing this

orientation report they will give placement to the employees as a trainee under probation. Probation period is for

one year. After satisfactory completion of probationary period the employees will be placed in the regular pay

scale. In KAMCO there is a personal record sheet containing all the personal information of the newly joining

employee.

Performance Appraisal

In the case of officers, performance appraisals are carried out once in a year. Appraisals are made by the

31st of December and are collected by the 15th of January in the following year. In the case of workers,

performance appraisal is carried out when they become eligible for a grade change. During the probation and

training periods, appraisals are carried out every quarter. The appraisal reports are then placed before the

promotion and recruitment committee. In the case of officers, a three stage appraisal is performed. In the first

stage, a self appraisal is carried out by them. This is then followed by an appraisal by the departmental head

which in turn is followed by an appraisal by the divisional head.

Promotion

Seniority, performance, educational qualifications and general disposition will form the basis for granting

promotion. These will be judged with reference to the personal records and periodical performance appraisals of

the employees.

As per the promotion policy of KAMCO, an employee will be eligible for promotion if he has served in

a particular post for at least 3 years, or he will be given promotion when the vacancy occurs. Another aspect is

Grade promotion ie, promotions are based on grades of employees. In worker category there will be a grade

change after a period of 5 years.

Seperation.

KAMCO employees retire at the age of 60 years or on attaining superannuation. There is also a Voluntary

Retirement Scheme in place. Employees opting for VRS receive a lump sum payment equivalent to one and a

[30] M.E.S.SOCSAMS


half months’ salary for every year of service or for the remaining service period, whichever is shorter and

additional notice pay for three months. Other benefits received on retirement include Provident Fund, Gratuity,

Welfare fund etc. Earned leave up to a maximum of 300 days can be encashed.

In the case of separation due to disciplinary problems, the employee is dismissed after the conduct of a

domestic enquiry, which has to prove him guilty. The Managing Director appoints the enquiry officer and the

final separation occurs within six months of the initiation of disciplinary proceedings.

Welfare Measures

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

Drinking water

Toilets

Washing facilities

Canteen

Health and Medical facilities

Shift Allowance

Uniforms and protective clothing

Maternity benefits

Occupational safety

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

Educational loans

Workers cooperatives

Recreation facilities

Vocational training

Incentives

Medical facilities

Housing facilities

Social insurance such as Gratuity, Provident fund etc.

Benevolent fund

Leave travel facility

Transportation subsidy

[31] M.E.S.SOCSAMS


Grievance handling

KAMCO does not have specific grievance handling machinery. Grievances if any may be brought to the

notice of the immediate superior. Depending on the seriousness of the grievance, it may or may not be forwarded

to the Managing Director, who is the final authority. Managing Director will forward the same to the HRM

department for examination as per the rules and precedent. Accordingly the grievance is settled. If it is not settled

due to various reason they will take over by the concerned unions and finally the matter will be considered as

industrial dispute and referred to the district labour officer for conciliation.

Discipline

As per the standing orders applicable to the workers, no order of punishment shall be made unless the

workman concerned is informed in writing of the alleged misconduct and is given a reasonable opportunity to

explain the circumstances alleged against him.

If the explanation submitted by the concerned workman is found satisfactory by the management, further

proceedings against him shall be dropped. If the explanation is found unsatisfactory, he may be charge-sheeted

by the management as per the provisions of these standing orders and an impartial domestic enquiry shall be

instituted.

The most common cases of indiscipline are absenteeism and overstaying of leave.

Industrial Relations

KAMCO has recognized trade unions in all the four units of the company. The management has cordial

industrial relations with all of them. The following are the recognized trade unions in the company.

o KAMCO Employees Union, Athani.

o KAMCO Employees Union affiliated to CITU, Athani.

o KAMCO Employees Association affiliated to INTUC, Athani.

o KAMCO Employees Federation affiliated to AITUC, Athani.

o KAMCO Employees Centre affiliated to UTUC, Athani.

Incentives

A production incentive scheme is followed in KAMCO for the benefit of employees, which constitute

quarter of the pay packet. Any system of remuneration in which the amount earned is dependent on the result

[32] M.E.S.SOCSAMS


oriented, there by offering the employee an incentive to achieve better results. It aims at increased output,

productivity and utilization of resources. This scheme covers all the permanent employees.

In KAMCO, incentives are mainly three types:

1) Direct incentives

2) Semi direct incentives

3) Indirect incentives

1. Direct Incentives

It is only for workers who work in Machine shop, Assembly and Painting Booth. After conducting

work study, monthly incentive scheme has been implemented.

2. Semi- Direct Incentives

This incentive is paid for the employees in the Maintenance, Quality Assurance, Engineering Stores,

Charge hands and Chief Mechanics. Semi direct incentive is 80% of direct incentives. It is also paid in monthly.

3. Indirect Incentives

Indirect incentive is paid who are not included in direct and semi direct incentive. Employees in the

managerial category also come under this. Indirect incentive is 60% of direct incentives.

Objectives

1. To increase production, productivity and utilization of resources.

2. To increase in earnings of employees.

3. To reduce absenteeism and reward for punctuality.

4. Employee Welfare

By giving a better working atmosphere, KAMCO is able to keeping a good relation with the

employees and thus it helps to increase their productivity. KAMCO providing these facilities to the employees,

they are:

[33] M.E.S.SOCSAMS


ESI - Employee State insurance - The employers who have below 7500 salary will get ESI allowance.

The employers who do not get the ESI allowance will get Medical Reimbursement facility.

Medical Reimbursement facility - The employer who got treatment in approved

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

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

security staffs.

Stitching and washing allowance - In KAMCO employees who are provided with uniforms must give

washing allowance as Rs.32 for security staff and Rs. 37 for all other eligible employees.

Safety Equipments - As part of the occupational safety concerned employees are provided with safety

equipments such Mask, Helmet , Safety Shoes, Glouses, Safety Googles. According to eye sight, ear

plug, aprons etc and for reviewing the overall safety of the company, KAMCO has set up a good

committee also.

Milk Allowance – In KAMCO, ¼ liters of milk will be given to welder and workmen engaged in

painting / phosphate plant.

Medical Checkup – For selected employer in the technical department they provide medical checkup in

a year. It depends upon the nature of work.

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

Canteen – According to Factories Act, 1948 a canteen shall be provided if there are more than 250

workers employed in factory A full fledged canteen is functioning at KAMCO that can cater to all

employers on day providing breakfast, lunch, dinner, tea, coffee, snacks etc. It provides food at

subsidized rates to the workers and employees working at various shifts.

Society - In KAMCO, there exist a cooperative and housing society. There is a provisional store under

this society which provides service to the employees and also to the outsiders. Each employee can get

the essential commodities from the cooperative store on installments. The members can purchase

commodities upto a limit of Rs 2000. The cooperative society also gives scholarship to the students who

have secured high marks in S.S.L.C. Examination. The Housing Society gives financial help (loans) to

the employees.

Recreation club – KAMCO have a recreation club. Different journals and news papers are subscribing

here for the employees. The employees conducting tour programs from here.

Housing Subsidy – KAMCO is giving an interest subsidy at the rate of 3.75% for a maximum amount

of Rs.50000 for housing loan from any financial institutions.

Transport Subsidy – An amount of Rs. 70 will be given to all employees as Transport subsidy by

KAMCO. KAMCO is not having for transportation. The second shift employees are provided with

vehicle on contract basis and subsidized coupons will be given from administration department.

[34] M.E.S.SOCSAMS


Bonus – In KAMCO about 85% employees are outside the purview of the Payment of Bonus Act 1965

and those employees who are coming under purview of Bonus Act 1965 are given a maximum bonus of

20%. Those people who are not eligible for bonus are given a production incentive, which is based on

total production. These employees are also eligible for the festival advance announced by the

Government.

Time Office

Time Office plays an important role in the functions of shifts. The worker category is provided with

electronic punching card (G1-G7) and for the officers category they uses attendance register instead of punching

cards (G8 -G14). Time office performs the job to prepare the attendance and leave of the employees.

The shift time in KAMCO are as follows:

For Workers 7am - 3pm

11am - 7pm

General shift 9am - 5pm

For Office Staff 9.30am – 5pm

(On Saturdays) 9.30am – 1pm

For Security Staff 8am – 4pm

4pm – 12am

12am – 8am

Table 7: Time shifts

PROCEDURES FOR HRM DEPARTMENT

1. Purpose

To ensure right candidate are recruited as per requirement

To ensure that employee’s safety is managed effectively

To ensure that employee’s welfare is managed effectively

[35] M.E.S.SOCSAMS


2. Scope

Covers all personnel

3. Responsibilities

Department head of hrm will be responsible to see that the procedure is followed by all officers and

staffing department.

4. Procedure

4.1 The recruitment, promotion and pay fixation will be carried out as per the recruitment and promotion

rules notified by the company from time to time

4.2 A safety committee is constitutd by the management from time to time.equal number of nominees of

management and unions constitute the committee . the committee meets every three months to assess

safety requirements as per the factory’s act 1948 and recommendations if any to the management for

consideration.

4.3 Following welfare schemes are in operation as per special Bye- law prepared for each scheme:

4.3.1 Conveyance advance

4.3.2 Group personal accident insurance scheme through Kerala State Department.

4.3.3 Kamco employees group gratuity-cum-life assurance scheme in association with

Life Insurance Corporation of India

4.3.4 Kamco welfare centre

Safety measures

1. Protection of eyes

Workmen, who are working in grinding machines, milling machines, lathes and doing welding and

fettling are provided with googles for protection of eyes.

2. Precautions in case of fire

Fire extinguishersare provided in all departments. Selected employees based on their age and attitude are

given training to use fire extinguishers. A list of trained employees in fire fighting is displayed in the

factory premises.

3. Uniforms

All eligible workmen are provided with uniform as a safety precaution

[36] M.E.S.SOCSAMS


4. Shoes and socks

All workmen in the factory and plant area are provided with shoes and socks as a safety measure.

5. Excessive weight lifting

No person is allowed to lift heavy components. Cranes are provided for lifting the heavy components

and these cranes are tested and certified by the competent authority as per factories act 1948.

6. Protection against dust

All workmen, working in places where dust is present, are provided with a face mask

7. First aid

First aid boxes are provided in production department and employees handling first aid are trained. List

of personnel trained in first aid is displayed in the factory premises.

8. Accidents

All the accidents are recored and reviewed quarterly by HOD {HRM} and submits a brief report to

management, for a corrective and preventive actions. This is also discussed in the management review

meeting

4.1.2. FINANCE DEPARTMENT

The Finance Department deals with the procurement and management of funds. This department

controls the over all financial transaction of the company. It controls the receipts and payments of each and

every activity for all the divisions. In KAMCO, finance department plays a major role because in public sector

only very few companies are earning profit. KAMCO is a multicrore multiunit organization. It means KAMCO

have more than one unit on their own fund without any external fund. Surprising thing is that KAMCO is giving

dividend and carrying profit for 20 years. The surplus money is invested in the treasury and gets an interest of 6-

7 % from the treasury.

The Finance Department keeps a record of everything concerning any expense or income. They have no

interest on working capital and also no secured or unsecured loans. The advance amount they get for the tillers

are sufficient for meeting working capital. In most of the private sectors achievement is always less than budget,

but in the case of KAMCO achievement is always greater than the budget. Annual profit of the company is

[37] M.E.S.SOCSAMS


between 8-10 crores. There is no increase or decrease in the share capital. This shows the company have

adequate fund for business and also the company don’t have secured and unsecured loan. So there is no need of

increase or decrease in the share capital. The areas under the purview of the finance department include salary

administration, bill processing, statutory payments like taxes, central excise etc, financial administration,

costing, internal audits and balance sheet preparation, budgeting, payments and receipts, bank negotiations

etc.KAMCO is third among the state owned corporations in terms of both volumes of sales as well as profits

FINANCE DEPARTMENT HIERARCHY

[38] M.E.S.SOCSAMS

MANAGING DIRECTOR

DEPUTY GENERAL

MANAGER (Finance & CS)

SENIOR MANAGER (Cost & Finance)

MANAGER

(IA)

ASSISTANT MANAGER

ASSISTANT MANAGER

SUPERINTENDENT (IA)

ACCOUNTANT

SUPERINTENDENT (IA)

ACCOUNTANT


Figure 4 : Finance Department Hierarchy

FUNCTIONS OF FINANCE DEPARTMENT

1.Management of receipts

Payment from dealers are received only through marketing department. They issue proper receipts

customer wise/dealer wise accounting is adopted. There will be a debit outstanding and it must be informed to

marketing development once in a month. Insurance, freightoutward,banknegotiation etc are accounted and

maintained to arrive at the cost of sales.

2. Management of payments

Due to the availability of funds, payment commitment are honored on the due dates. All the payments are

supported by approved vouchers. Payments are passed mainly on the basis of IGRR. Advance payments are

settled within a time of 45 days. Non – receipts/delayed receipts etc is brought to the notice of stores for

remedial actions. Payments are usually done by cheque/dd

3.Budget and budgetary control

The annual budgets of the company are prepared both for the capital and revenue based on the

requirements furnished by various units and departments. The requests of the department are analyzed only after

consulting with various departmental heads and corporate divisional management group and finalized only on

the basis of disposition of funds. These budgets are presented before the management for approval. The budget

is reviewed half yearly. If some changes are occurred they are submitted to management/board through a

revised budget for approval.

4. Auditing

Internal audit is mainly based on corporate functioning. The main function of this department is to

ensure that policy decisions of the management is strictly followed by the functional departments and is verified

by the internal audit.

[39] M.E.S.SOCSAMS


5.Costing

Costing records are maintained as per the cost accounting rules. They are mainly subjected to cost audit

ordered by company law board. Costing department also advices management and departments, which are the

potential areas of cost reduction. Mainly costing departments analyses cost of productions on a yearly

basis .costing department advices accounts departments the cost of rejection as per warranty claims

6.Statutory transactions

Sales tax/income tax/tds certificates/c-form/form-18 etcare issued. They are properly accounted and

properly accounted and proper time settlements are made. Salaries and other payments, remittances and

recovery etc in the case of employees are done in a time.

BALANCE SHEET FOR THE LAST FOUR YEARS

[40] M.E.S.SOCSAMS


Table 8:

BALANCE SHEET

FOR THE LAST

FOUR YEARS

CAPITAL

STRUCTURE

[41] M.E.S.SOCSAMS

Sd no 2010 2009 2008 2007

SOURCE OF FUND

(a) Capital 1 16146000 16146000 16146000 16146000

(b) Reserves & Surplus 2 893643379 811293794 740509066 683621559

Loan Fund 0 0 0 0

Deferred Tax Liability (Net) 4042045 4203128 4149867 3733896

TOTAL 913831424 831642922 760804933 703501455

APPLICATION OF FUND

(1) Fixed Asset 3

a) Gross Block 203099030 191577943 186025196 182199221

b) Less Depreciation 138735242 132433912 126484213 120050947

c) Net Block 63793105 58710694 59237609 61881399

d)Work In Progress 634260 853178 302064 53060

e)project expense 9554370 2055472 1042887 0

total 73981735 61619344 60582560 61934459

(2)Investment In Shares 4 20500000 20500000 20500000 20500000

(3) Current Asset Loan &Prov

a) Current Asset 5

1) Loose tools 480912 436175 385719 535983

2) Inventories 274284449 225204092 204090777 194886492

3) Sundry Debtors 310320968 261675468 198942050 122042366

4) Cash & Bank balances 409340433 358566769 352563054 392246980

5) Other Current Assets 23347323 19852164 17939544 13462907


Authorized share capital Rs. 200 lakhs

Paid up capital Rs.15,00,900

Equity share @ 100 each

(161460

in numbers)

Rs 161.46 lakhs

Fully paid up Entirely held by govt. of Kerala.

Table 9: Capital structure

4.1.3. MARKETING DEPARTMENT

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

marketing department include product marketing, invoicing, customer relations, after sales service, warranty

claims, product demonstrations, appointing dealers, advertisement and publicity etc..

KAMCO does not make direct sales to customers. All sales are made through dealers. Dealers are

qualified on the basis of sales objectives and their marketing reach. In every state, one of the assigned dealers is

the State Agro Industries Corporation. In addition, private dealers are also used. All transportation facilities

required by the dealer in ordering their products are arranged by KAMCO. Sales incentives are the main tools

used for motivating dealers. Dealers who sell over and above the set sales target for a period qualify for the

incentives. KAMCO also bears a part of the advertisement cost incurred by the dealers.

Almost all sales are made against cash advances. In very few cases sales are made against bank guarantees,

which again do not exceed 30 days. A company’s survival depends upon a better marketing strategies adopted

by the companies. If the company is a public sector it is very difficult to survive. Due to political Pressures and

other practical difficulties, it will not allow the company for a better free work.

Surviving all these difficulties KAMCO became No: 1 brand in the agricultural machinery market. Due

to globalization KAMCO products have to compete with the international products. The product from China is a

major threat for the company because of its lower price. But KAMCO is not ready to compromise with the

quality of its products for reducing their price. This marketing strategy wins the target. Considering the Indian

market now there is only one competitor that is VST, Bangalore. Even facing all these competitions company’s

[42] M.E.S.SOCSAMS


marketing department plays a better role for getting good result.

Considering the Indian market 60% of the market share is in the hands of KAMCO. By keeping the

quality KAMCO maintains their position. Due to the effect of globalization foreign countries like China and

Korea introduce their products in the Indian market. Economically their products are very cheap. But when we

consider the quality, KAMCO comes in the first place.

MARKETING DEPARTMENT HIERARCHY

Figure 5 : Marketing Department Hierarchy

[43] M.E.S.SOCSAMS

DEPUTY GENERAL MANAGER (MARKETING)

REGIOANAL MANAGER (MARKETING)

AREA MANAGER

PERSONAL ASSISTANT

ASSISTANT ENGINEER

TECHNICALASSISTANT

CHIEF MECHANIC

MECHANIC

WORK ASSISTANT

OFFICE ASSISTNAT

STENO

PEON

SUPERINTENDENT

DRIVER


Purpose

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

To ensure customer requirements are thoroughly understood and differences are resolved before

acceptance of the order.

Products / implements / accessories / spare parts are delivered to the customers as per the

requirements to gain the satisfaction of the customers.

Establish and develop dealership network to facilitate proper sales and services for the products

marketed by the company.

Establish adequate communication with the customers to effectively gauge their feedback and

incorporate it to enhance customer satisfaction.

Competitors

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

KAMCO.

International market

KAMCO Power Reaper has been exported to Iran and Srilanka recently. And Kamco tillers have been

exported to Haiti. The export quantity is not a huge one but still they getting order from these countries. These

machines have been well accepted by the customers.

Dealers

The company has 60 dealers all over India. New dealers appointed to cover selected districts in Tamil

Nadu, Karnataka, Maharashtra, Orissa and Andhra Pradesh. And in the other states the company has

dealerships. The dealers will get Rs.6500 per tiller and want to provide three free services to the customers. The

dealer’s target depends upon the area. If a dealer exceed their target he will get incentives depends upon the

excess quantity.

Major dealers in India

1. West Bengal

Govt. – West Bengal Agro Industries Corporation

[44] M.E.S.SOCSAMS


Pvt. – Friends Machinery and spares ltd.

2. Assam

Govt. – Assam Agro Industries Development Group

Pvt. – Chem Trade India Pvt Ltd.

3. Tripura

Govt. – Tripura Horticulture group

Pvt. – KrishishilpaUdyog

4. Meghalaya

Pvt. – Stanley Roy Constructions

5. Kerala

Kerala Agro Industries Corporation.

Sales Promotion

In International market the sales promotion of the company is only through web sites. In India, all the

state Govts have their own dealerships to sell the products. The company gives dealerships to the private groups

also.

Major sales promotional activities

1. Customer training

2. Demonstration

3. after sales services

Advertising

Advertising is also a part of sales promotion. In every budget company allocated nearly rupees 50 lakhs

for advertising. Sign boards and news papers are the major channels of advertising. Company also gives some

financial helps to the dealers for advertisements.

Price Fixation

Retail price = Dealer price + Margin (inside Kerala)

[45] M.E.S.SOCSAMS


= Dealer price + Margin + Freight (outside Kerala)

Pricing Strategy

The pricing strategy is cost based, ie, by summing the variable cost, material cost and administrative

cost.

Market Segmentation

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

Environmental Analysis

As it is a public limited company KAMCO have certain limitations. They can’t do more to the

environmental protection. The all new DI engine will reduce pollution and it also reduces the fuel consumption

than the ordinary engine.

4.1.4. MATERIALS, STORES AND PURCHASE DEPARTMENT

The functions of Purchase and Materials are coming under one roof. The material department has the

charges of all the inflow and outflow of materials used for production purposes. Purchasing department

purchases the products from their vendors as the required quantity that gets from the material department. The

company has around 300 qualified vendors and from these vendors company purchasing the materials.

Company gives best vendor awards for best vendors. It will help the company to get quality products at

the right time. The best vendor of 2010 was BOSH industries. Company has regular suppliers and they are ready

[46] M.E.S.SOCSAMS


to give materials as per the requirements of the company. So at present company is not conducting any vendor

development programs.

Out of the 300 regular suppliers they are classified into three categories A, B and C. Company gives

these grades to the vendors depends upon some factors. They are best quality, giving the materials at the right

time and keeping good relations with the company etc. Company has 189 A class vendors i.e. 63% of the

suppliers are in this category and 87 B class vendors and the rest of 24 are coming under ‘C’ class category.

If a supplier gets ‘A’ grade, that means company trusts the vendor. After that company take the same

product from the vendor without initial inspection. So the vendor who gets ‘A’ grade has certain commitment

with the company. They want to keep the relationship without any interruption. So they want to give quality

goods at right time. By receiving the materials from the vendors, purchase department keeps that materials in

the stores and it is handed over to the Quality Assurance department. A corporate purchasing system is

following in KAMCO. All the other units give their material requirements to the head office (Athani unit) and

the head office’s purchase department purchases the materials for all the other three units.

All item required for the production are classified based on the ABC Analysis. ‘A’ category components

constituting about 70% of total cost of the components. ‘B’ category components constitute about 20% of total

cost of the components. ‘C’ category components constitute about 10% of total cost of the components

Maximum permitted inventory is controlled according to the guidelines given below, based on ABC

Analysis.

‘A’ category Components - Stock for 1 month production

‘B’ category Components - Stock for 2 month production

‘C’ category Components - Stock for 3 month production

Purchase procedure

A well defined purchase system exists in the organization. A proposal is placed by the vendors to the

company. The proposal will be evaluated the internal audit department and will look in to the entire details of

the proposal. If the commission is satisfied, they will place the proposal to the purchase commission which may

include Managing Director, purchase manager, finance manager, and marketing manager. If the purchase

commission satisfied with the commission it will be placed before the MD for the approval. If the MD approves

the proposal, purchase order can be placed to the vendors to supply the materials. The order costing Rs 25000

can be sanctioned by the purchase committee and the matter costing above Rs.1lakh should go through the

hands of MD.

[47] M.E.S.SOCSAMS


The entire payment is paid through the finance department and through the bank. No cash transactions

are allowed in the organization. Only some petty cash transactions are made by cash. The purchase department

also takes care of the general purchase.

Purchase costing up to Rs 500 can be paid by cash. Above 500 should invite quotations (at least 3 in

numbers). And the lowest quotation will be selected and the order may be placed. The suppliers will be awarded

for the prompt supply and it is done for the purpose assuring the right materials at right time to the stores so as

to ensure an uninterrupted production.

Purchase Order approvals

Purchase proposals are prepared in standard format based on the master purchase plan for all units of

KAMCO put together. Purchase orders are released, separately, for each unit of KAMCO after obtaining

approvals from concerned authorities. In respective formats & copy of the order is forwarded to the concerned

unit.

Follow up with Vendors

Order follow up is an important process in the purchasing function. Periodic follow up with the vendor

is made to ensure timely delivery. In KAMCO order follow up is done by the concerned staff to which the work

is entrusted.

Order Amendment

Purchase order amendments in respect of Terms and Conditions, Quantity, price and specification are

issued by the materials department when required. The purchase order amendment is signed by the head of

materials department.

Performance rating

Performance rating is a mix of quality rating and delivery rating and is carried out annually. Quality of

the suppliers and delivery are the main factors of performance rating and equal i.e. 50% weight age is given to

each.

Deletion of vendors

[48] M.E.S.SOCSAMS


In the case of performance rating of the vendor is found unsatisfactory, Purchase department advices the

vendors to take necessary corrective action and is allowed 3 months time for improvement. Their performance is

again reviewed after 3 months, and if found unsatisfactory, a report is submitted to the next Management

Review Meeting. MRM will decide on delete/continue of the vendor, considering his performance in

Kalamassery, Mala & Palakkad Units

Storage Procedure

All materials including raw material, components, & production consumables which are received from

vendors /such contractors, directly through transports along with dispatch notes are received.

Packaging

The finished engines dispatched to customer /dealers are packed in separate wooden box for avoiding

damage during transit. Spare parts are packed in polythin covers/corrugated card board and are put in a wooden

box for dispatch.

Farmer’s Kit: - The item coming in farmer’s kit is packed in separate card board carton.

Tool Kit: - The items coming in tool kit are packed in separate plastic bags.

[49] M.E.S.SOCSAMS


MATERIAL DEPARTMENT HIERARCHY

Figure 6 : Materials Department Hierarchy

4.1.5. PRODUCTION DEPARTMENT

[50] M.E.S.SOCSAMS

MANAGING DIRECTOR

SENIOR MANAGER (Materials)

DEPUTY MANAGER (Purchase)

DEPUTY MANAGER (Materials)

DEPUTY MANAGER (Stores)

ASSISTANT MANAGER (Stores)

TECHNICAL ASSISTANT

WORK ASSISRANT

GENERAL WORKERS

ASSISTANT ENGINEER (Purchase)

TECHNICAL ASSISTANT TECHNICAL ASSISTANT


The production is the largest department of the company. Under the production department there are mainly

two sections:

1) Assembly shop

2) Machine shop

MACHINE SHOP

Company has got a modern machine shop with Special Purpose Machines (SPM), which ensures

conformity with prescribed quality standards. Inspection at various stages of manufacturing is carried out, which

help in reducing the process rejection to the minimum. The workforce is qualified and fully experienced which

makes the right contribution to the process. In machine shop, there is a process chart or written document.

The material purchased by the purchase department moves to the store. From there, the material

sends to the QA. After that it sends to the machine shop and there, the processes like milling, drilling, turning &

boring, grinding etc are doing on the materials. For getting the products, materials are used in the assembly

shop. From the machine shop, the finished components are not directly sending to the assembly shop. It will

send to the QA department for inspection and will send to the stores thereafter.

ASSEMBLY SHOP

Assembly is one of the major sections in production department. The finished components are

taken from the store and are sent to the assembly as required. The engine assembling is one of the major works

in the assembly. After testing the assembled engines, they are sent to the painting section. Through different

transmission in the assembly, we get the finished product. In case of the power tiller, here using two types of

engines. They are Diesel Engine and DI engine. The assembly consist of two divisions:

a) Assembling

b) Painting booth.

Assembling: The assembly line consists of an engine line, a transmission line and a tiller assembly line.

Transmission and engine assemblies converged to the tiller assembly

line, where finished power tiller is produced.

The following process takes place in the transmission line:

a. T1 : Main Gear Case, Axle Gear Case(Wheel), Axle Shaft, Fourth Shaft etc.

b. T2 : Gears are set, Axillaries Gear Case Setting, Brake Setting etc

[51] M.E.S.SOCSAMS


c. T3 : Upper cover, Central Gear Case for blade, Clutch Assembly, Brake Lever, Low speed and

high speed Lever.

After testing, the engines are sent to the painting section.

b) Painting booth: In Kamco, there is a modern painting system for the components and

assemblies, where Uniblake liquid paints are used. Seven tank system of Pretreatment is

employed. Paints and chemicals needed for this system are produced only from well-

known manufacturers. After cleaning the components, it will go for painting through a

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

PRODUCTION DEPARTMENT HIERARCHY

[52] M.E.S.SOCSAMS

SHIFT OFFICER (MACHINESHOP)

CHARGE HEADS

OPERATORS

WORK ASSISTANT

SHIFT OFFICER (ASSEMBLY)

CHIEF MECHANICIS CHARGE HEAD

MECHANICS PAINTERS

WORK ASSISTANTS WORK ASSISTANTS

ASSISTANT MANAGER (MAINTENANCE)

ASSIST ENGINEER (MAINTENANCE)

MECHANICS & ELECTRICIANS

MANAGING DIRECTOR

MANAGER (PRODUCTION)

DEPUTY MANAGER

CHARGE HEADS


Figure7: Production Department Hierarchy

TANK

PRE-

TREATMENT PROCESS

Process 1: Degreasing

In this process the item or product which is to be cleaned is dipped in the tank

with chemical at 60 degree temperature for about 20-25 minutes.

[53] M.E.S.SOCSAMS


Process 2: Water rinsing

Here the item is simply rinsed with water for about 2 minutes.

Process 3: Acid treatment

Again the item is dipped in a solution containing 35% HCL for about 20 minutes. This is mainly

done to remove rust.

Process 4: The component is again passed through two cold water tanks and rinsed.

Process 5: Phosphating

Again the item is dipped in a solution containing phosphate content for about 45 minutes. After this

process the surface of the component will be completely cleaned.

Process 6: Water rinsing

The component is washed with water.

Process 7: Passivation

Here the component is dipped in a solution containing chromic acid for about 20 minutes.

After cleaning the components it will go for painting through a conveyer belt and after painting it will go

to the oven through the belt. Mainly they are using two colors for painting, one is Ash and the other one is Post

office Red.

The population of tiller is about two and a half lakhs and the weight of tiller is 430 kgs consisting of 740

components. The final product, tiller is finally checked to see whether there is leak or produces abnormal sound.

The maintenance measure followed here is Total Preventive Maintenance (TPM) which is a Japanese

concept. Under maintenance department there are two types of maintenance rooms. They are civil maintenance

and electrical maintenance. Once in 90 days maintenance is done. Another major aspect of KAMCO is zero

down time which leads to continuous production.

In this company 67% is considered as minimum productivity for an employee. An employee is

considered eligible for getting production incentive only if he crosses this minimum productivity line. During

early periods 3000 tillers were produced, but now it has been raised to 5000.

Production planning is carried out when the production budget is made. Production figures are decided

upon at the beginning of the year. Production quotas for each month are to be met. The daily requirement of

[54] M.E.S.SOCSAMS


production is communicated by the Manager (Production) to the shift supervisors. Daily production figures

may be flexible as long as the monthly quotas are met.

PRODUCTION CYCLE

[55] M.E.S.SOCSAMS

E1

E2

E3 TESTING

ENGINEERING TESTING

T1

T2

T3 K1

K2

K3

K4

PAINTING

PAINTING


Figure 8: Production Cycle

E1, E2, E3- Engine

T1, T2, T3- Transmission

K1, K2, K3, K4- KMP Process.

4.1.6. QUALITY ASSURANCE DEPARTMENT

Company keeps a good quality in all the products with the help of quality assurance department. The

company follows the ISO 9001-2000 standards. It is mainly for the quality. The hierarchical structure of QA

department is as follows.

QUALITY ASSURANCE DEPARTMENT HIERARCHY

[56] M.E.S.SOCSAMS

ENGINE MOULDING

(Tiller Finishing)

MANAGING DIRECTOR

DEPUTY GENERAL MANAGER (MKT)

ASSISTANT ENGINEER

CHIEF MECHANIC

MECHANIC


Figure9: Quality Department Hierarchy

The QA Dept. is responsible for carrying out the Inspection and Testing for all components received

against the Quality Plans/ Work Instructions/ Drawings / Flow Process Charts /Check list as appropriate.

Consideration has been given to products which need not be inspected if they have been inspected at the

Vendor’s premises by KAMCO’s personnel. It is the policy of the company to fix vendors for critical items,

where material testing is required on established vendors only. For this purpose, during vendor evaluation

such facilities are verified. No material is released to production without inspection and hence no recall

procedure exists in KAMCO. To further assure no bad quality parts get in to the product due to oversight,

KAMCO established a Parts call back system when a defect is noticed in the production line.

Materials and components from the vendors receive the store department. At that receiving time there

occur only the quantities checking as per the order. There is an inward receipt in the hands of the store (IGRR).

This IGRR contains the IGRR No:, Delivery Chelan No:, Date , name of the vendor , Quantity, Grade of the

vendors etc. With this receipt the store department handed over the components to the quality assurance

department.

From here start the functions of Q.A department. The major functions of the quality department are

testing, acceptance and rejection. In the Q.A department there are specifications of all the components. Q.A

thoroughly checks the components, to know these components have all the specifications that are needed for

production.

Q.A classifies the components into two, critical components and non-critical components. Critical

components are crank shaft, all engine parts, gears etc. Non-critical components are nuts, bolts and screws etc.

The classification is mainly for ignoring the practical difficulty in checking. Complete inspection occurs in

critical components and only sample inspection occurs in the non-critical components. Practical difficulty of

checking all the non-critical components is the problem here. From here all the accepted components are gone

towards the stocks department. From there the components are taken by the production department as per their

requirements. Q.A department is equipped with all modern facilities. The company has a calibration cell to

check and correct the measurements of all the measuring instruments.

[57] M.E.S.SOCSAMS


There are mainly two sections in the Quality Assurance department. They are:

a. Inplant section

b. Bought out section

The inplant section deals with the inspection of products from machine shop ,where as the bought out

section deals with the testing of finished products which are bought from outside.

Assembly Dept. is responsible for line inspection & Testing. No product is allowed to pass through to

the next stage until it has been inspected and cleared. The Flow Process Charts / Quality Plan identifies the

Inspection stages & the parameters to be tested.

QA Dept. is responsible for final Inspection and Testing carried out on each and every product based on

the Quality Plan. The Final Inspection / Testing will take into account all the Inspection and Testing

requirements at receiving and in Process. No Product is dispatched without satisfactorily meeting all the

specified requirements and approved by QA for dispatch.

Records are maintained by QA Department on the performance of the products, on the Inspection and

Testing done at the above stages indicating whether they have passed or failed the tests .Records are also

available to show the list of authorized Inspectors / Personnel responsible for the release of the product.

Tillers are kept for one day running which is considered as the final inspection. By doing so they can test

whether there is leak or whether it generates sound more than permissible.

Calibration Cell

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

the measurements of all the measuring instruments

QUALITY STANDARDS

TREM - (Tractor Emission)

ARAI - (Automotive Research Association of India, Pune) diesel engine certification

CMVR – (Central Motor Vehicles Rules) certification for moving vehicle.

The company follows trail and error method for improvement.

[58] M.E.S.SOCSAMS


QUALITY SYSTEMS

Well defined quality system procedures adopted covering all activities to ensure quality of products &

customer satisfaction.

Improvements are made on regular basis based on the feed back from the customers & dealers

Regular interactions with all Venders including site visits to maintain and improve the acceptance level

of components

KAMCO Power Tiller certified for compliance with Minimum Performance Standards of Govt. of India

KAMCO Power Reaper has been tested by SRFMT&TI, Ananthapur of Govt. of India

QUALITY POLICY

Total customer satisfaction through quality products and services with improved technology and

employee participation.

Comply with the requirements of customers and the applicable statutory / regulatory requirements. The

effectiveness of the established quality management system is continually improved to enable

achievement of the policy.

QUALITY OBJECTIVES

The major objectives of the quality assurance department are the following:

To ensure that quality requirements of the products and services offered are maintained at all stages.

To create a culture amongst all employees towards total quality concepts and productivity through total

involvement and commitment of all employees.

To create a healthy working environment for attaining the quality goals with excellence and to make

quality a way of life.

To detect and prevent non-conformance and defects as early as possible and to eliminate them through

appropriate changes to the Quality Management System.

To achieve and maintain quality leadership through continuous technology up gradation, improvements

in techniques, systems and procedures and to meet customers changing needs.

[59] M.E.S.SOCSAMS


ISO 9001-2000 STANDARD

International Organization for Standardization, ISO was formed in 1947 with its headquarters at Geneva,

Switzerland, at the initiative of United Nations Standards co-ordination committee “to facilitate the International

Co-ordination and Unification of industrial standards”. The term ‘ISO’ is derived from the Greek word ‘isos’,

which means equality. From “equal” to “standard”, is the line of thinking that lead to the choice of “ISO” as the

name of the organization.

ISO is a worldwide federation of standard bodies from more than 100 countries. Its mission is to

promote the development of standardization and related activities in the world with a view to facilitate the

exchange of goods and services worldwide and to develop co-operation in the spheres of intellectual, scientific,

technological and economic activity. ISO has so far developed more than 10000 standards covering industrial,

economic, scientific and technological activities.

ISO 9001 - 2000 Version

Improvement in the systems and improved Customer/Dealer satisfaction

Comply with the requirement of Customers and applicable statutory/regulatory requirements

Improvement in the effectiveness of the established quality systems

Addresses Customer, Dealer, Vendor, Society, Employees & Share holders –

for their requirement & satisfaction

ADVANTAGES OF HAVING ISO 9001-2000 CERTIFICATION

a. Increased customer satisfaction.

b. Acts as a set of discipline.

c. Companies own management has greater confidence in its own internal systems.

d. Brings clarity in roles and responsibilities.

e. Helps to revisit the system.

f. Brings about quality culture.

g. Sets a bench mark.

[60] M.E.S.SOCSAMS


h. More stream lined process, which ensures that dead lines are met.

i. Satisfaction for each individual to know that once work is professional and meets a high personal

standard.

j. Measurable improvements in the over all functioning and quality system of the organization.

Mainly visual and manual methods are adopted for the testing purposes. Some of the gauges and

machines used for the testing purposes are venire calipers, venire height gauge, inspection gauge, dial gauge,

bevel protractor, plug gauge, micro meter, hardness testing machine, spring testing machine etc.

One day test is done for the finished products as per the standard testing conditions specified in the IS

25000 standards

4.1.7 RESEARCH AND DAVELOPEMENT DEPARTMENT

Research and development is one of the important departments in KAMCO. R & D is working

with a very intelligent team. R& D has a role to design or drawing the product. Their latest innovation was the

DI engine and they also produce a garden tiller, which is a new product in the market. The company gets order

from KCL for producing 6 KVA generator engine, which will cost nearly Rs.60,000/- engine. One of the

functions of R & D is to check the materials and draw the products.

RESEARCH AND DAVELOPEMENT DEPARTMENT HIERARCHY

[61] M.E.S.SOCSAMS

MANAGING DIRECTOR

DEPUTY GENERAL MANAGER

ASSISTANT MANAGET 1 ASSISTANT MANAGET 2 ASSISTANT MANAGET 3


Figure 10 : Research & Development Department Hierarchy

The product upgradation is done as per the results of the researches conducted by the department. At

present researches are going on to develop a product for the harvesting of “pokkali”, an agro product which is

cultivated in water.

The engineering department also comes under the R&D department which deals with the research

processes regarding the design and various other aspects of the products. The company is in the process of

setting up a separate and more advanced R&D facility as part of its plans to diversify its product line. Plans are

on the anvil to diversify into the food processing machinery industry. KAMCO is also looking at producing

water pumps and generator engines, the latter in collaboration with KEL who will be the primary customers.

The company conducts its R&D activities in association with the Automotive Research Association of India

(ARAI), Pune.

At present the whole body of the tiller is made up of aluminum and cast iron. With newer engineering

materials evolving world wide, these materials are likely to be replaced by stronger and more flexible materials

in the coming decade. Sometimes the department uses the re-engineering where it tries to design a model on a

previously existing working model. Company has a plan for diversification. The company plans to produce

tractors at the price less than 3 lacs.So it is very useful to small scale farmers in India.

[62] M.E.S.SOCSAMS

CHIEF DRAFTS MEN

DRAFTS MEN


4.1.8. SYSTEMS DEPARTMENT

At present the whole body of the tiller is made up of aluminum and cast iron. With newer engineering

materials evolving worldwide, these materials are likely to be replaced by stronger and more flexible materials

in the coming decade. Sometimes the department uses the re-engineering where it tries to design a model on a

previously existing working model. Company has a plan for diversification. The company plans to produce

tractors at the price less than 3 lacs.So it is very useful to small scale farmers in India. The systems department

in KAMCO was established during 80`s.Formerly it was known as EDP but now changed to systems. All the

four units of the company are connected through internet and all the four units have their servers. In this

corporate unit each department is connected through a LAN. The system department uses a customer ERP

(Enterprise Resource Planning) package, back-ended with Oracle. Company’s system department is not as much

developed, so it is not used in any part of production. There is an inbuilt MIS function in this. ERP package is

divided into different modules in which, each module is for each department. By the help of these modules,

departments can transact the datas and it makes the work easy. The system department uses CD as a backup file

to store data. There is LAN in every unit and these are connected each other through BSNL network. As part of

the security, each department provides separate user name and password. The maintenance of the system is done

by the experts in the system department. The training programmes are:

1. Implementation training is mainly for the experts in system department by the developer.

2. Training to the users by the experts from the system department.

3. Refreshers training to make users aware of all the functions of slow.

The future priorities are given to Business Process Reengineering and Internet connectivity to all departments

SYSTEMS DEPARTMENT HIERARCHY

[63] M.E.S.SOCSAMS MANAGING DIRECTOR


Figure 11: Systems Department Hierarchy

Now systems department is doing the work of preparing a cost accounting module and a product cost

analysis software for the company. An online integration to make all the four servers into a single server

through net is another future plan of this department.

5. SWOT ANALYSIS

SWOT analysis has been defined as 'a conceptual framework for a systematic analysis that facilitates

matching the external threats and opportunities with the internal weaknesses and strengths of the organization'.

SWOT analysis is a well defined study about the strength, weakness, opportunities and threats of the organisation.

SWOT analysis is very much helpful in analyzing the strength, weakness, opportunities and threats of the

organizations. SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of

[64] M.E.S.SOCSAMS

DEPUTY GENERAL MANAGER (Finance & Company Security)

SENIOR

MANAGER

DATA ENTRY OPERATORS

MANAGER (Information & Security)

DATA ENTRY OPERATORS


planning and helps marketers to focus on key issues. Once key issues have been identified, they feed into

marketing objectives.

These data helps the managements to plan, design and develop its future actions.

SWOT Analysis based on organizational study

5.1. STRENGTHS

1. Environmental Friendly :Wastes like Aluminium and Iron chips can be recycled to new products.

2. Brand Image :KAMCO has a good brand image. The products of KAMCO seldom fails or require maintenance.

3. Financially sound :KAMCO has a fixed deposit of more than 35 crores and has been running in profit for the last 30 years.

4. Good marketing network :KAMCO has 60 trusted dealers in 23 states.

5. Effective power utilization in production department :KAMCO has been following an overlapped-shifting system for the last 3 years, thereby 4hrs of mixed time-shift per day. This result in the usage of only 70% of the earlier, saves 1.5 lakhs.

6. Good management and punctual workers :KAMCO follows electronic punching system for the workers so that they are available at the right time at the right place.

7. Transparent incentive scheme :KAMCO has a special incentive scheme which divides three types as Direct, Semi-Direct and Indirect Incentive schemes.

8. High demand for the products :KAMCO products are having high demand in the market. The demand is still more than the overall production.

9. High quality products :KAMCO producing high quality products which are having ISO 9001-2000 certificaiton.

10. Incentives for the dealers :KAMCO offer incentives to the dealers if they cross the minimum target.

5.2. WEAKNESS

1. Focus on only two products mainly :KAMCO focus on only two products, Power tiller and Diesel Engine mainly, out of 5 products.

2. Production is not upto the demand :KAMCO still fail to meet the actual demand in the market, as they manufacture products not depends on the demand, but depends on the budget.

3. Time delay in recruitment and selection: The recruitment is mainly through PSC and thats why time day may occur.

[65] M.E.S.SOCSAMS


4. Political interference :

As KAMCO is a public limited company, lot of political interference can be there.5. High transportation cost :

As all the four units of KAMCO are in Kerala and potential market is in northeast, the transportation cost will be high.

6. Only agricultural based products :KAMCO manufacture only agricultural based products.

5.3. OPPORTUNITIES

1. Only small part of the market is exploiting as huge reservoir of expertise can be used to set up technological collaborations.

2. Accumulated funds can be used in future expansion activities.

3. Government support in financial matters.

4. KAMCO has good exporting opportunities.

5. The trustable brand image makes an opportunity to grow more and to get mote customers.

6. Boom in the farm mechanization.

5.4. THREATS

1. The changing government policies.

2. Earning of agriculture is very less

3. Lack of recognition for farmers

4. High competition from Chinese and Korean product low cost

5. LPG – Liberalization, Privatization, Globalization: Liberalization, Privatization,

Globalization opened the Indian market to the global players.These players are coming

with highly developed low cost products which may attracts its potential customers.

6. Growth of private enterprises in the sector

[66] M.E.S.SOCSAMS


6. FINDINGS, SUGGESTIONS AND CONCLUSION

6.1. FINDINGS

1. The company environment friendly.

2. Good production facility.

3. 8th profit making company in the undertaking of Kerala govt

4. High demanded product

5. Good industrial relationship.

6. Qualified and skilled workers.

7. Good brand name.

8. Good incentive system.

9. Unique company running with profit for the last 30 years.

10. Political interference.

6.2. SUGGESTIONS

1. The company should expand export opportunities, so a bit more promotional activities should be

included.

2. The company has to engage in production of variety products

3. Introduce new major strategies to the empowering dealers.

[67] M.E.S.SOCSAMS


4. The company resources should be utilized to the maximum, so that there will be efficiency in its

operation.

5. Training facilities should be given to the unskilled workers.

6. Timely promotion must be given to the employees for motivation.

7. Counseling facility should be provided to the employees.

8. Reaching better horizons by fostering new partnerships.

9. The organization should provide better in the recreation facilities to the employees.

6.3. CONCLUSION

The organisational study done at “Kerala Agro Machinery Corporation Limited, Athani” was

undertaken with the objective to get an idea about the administration, management of business firms. It enabled

to understand the various functions of each departments of a manufacturing firm and also the problems faced by

the public sector undertakings due to the changes in government policy. KAMCO an ISO 9001:2000 company

was established in the year 1973 at Athani. KAMCO has different units situated at Kalamassery, Palakkad and

Mala. The main products of the company are KAMCO Power Tiller, KAMCO Power Reaper and KAMCO

Diesel Engine. In spite of threat from imported and indigenous makes of power tiller, KAMCO Power Tiller

continuous to be the preferred choice of farmers attaining the moderate market share for the year. Power Reaper

also had been able to catch the imagination of the small farmers. The response for the newly launched KDI

Super Power Tiller is very encouraging. Diversification of products and services is an essential prerequisite for

success. KAMCO is the 8th profit making company in the government undertaking.

[68] M.E.S.SOCSAMS


ABBREVIATIONS

[69] M.E.S.SOCSAMS

DGM Deputy General Manager

MGR Manager

Sr.MGR Senior Manager

Reg.MGR Regional Manager

DM Deputy Manager

AM Assistant Manager

Area MGR Area Manager

AE Assistant Engineer

TA Technical Assistant

ACCNT Accountant

HRM Human Resource Management

F & CS Finance & Company Secretary

MKT Marketing

R & D Research & Development

PURCH Purchase

MATL Material

STOR Stores

ASMBLY Assembly

MchShop Machine Shop

PF Provident Fund

GOVT Government

PVT Private

LTD Limited

SPM Special Purpose Machines

ERP Enterprise Resource Planning

MPS Monthly Production Schedule

LTS Long Term Settlement

DI Direct Injection

ESI Employee State Insurance

CH Charge Head

CM Chief Mechanic

WA Work Assistant

SYSTM Systems

IA Internal Auditor

PRODN Production

PA Personal Assistant

QA Quality Assurance

MTNC Maintenance

MC & ET Mechanics & Electricians

SO Shift Officer


BIBLIOGRAPHY

WEBSITES

www.kamco.co.in

www.hinduonnet.com

www.agriculturalindustry.com

MAGAZINES AND BROUCHERS

KAMCO Brochure

KAMCO Departmental manuals

KAMCO Annual reports

BOOKS

KOTHARI C.R., RESEARCH METHODOLOGY-METHODS & TECHNIQUES, 2ND EDITION NEW

DELHI, WISHWA PRAKASHAN PVT. LTD.

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

6TH EDITION

[70] M.E.S.SOCSAMS

http://www.agriculturalindustry.com/

http://www.hinduonnet.com/

http://www.kamco.co.in/

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