CHAPTER I

INDUSTRY PROFILE

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 INDUSTRY PROFILE
Steel is essential to our society. As a permanent material which
can be recycled over and over again without losing its properties, steel is also
fundamental to a successful circular economy. From transport systems,
infrastructure and housing, to manufacturing, agriculture or energy, the industry
is continuing to expand its offer of advanced high-strength steels which reduce
the weight of applications and encourage circular economy practices. For
society, the benefits include durable products, local jobs, reduced emissions and
the conservation of raw materials for future generations.
The project entitled “A STUDY ON EFFECTIVENESS OF
PRODUCTION AND QUALITY MANAGEMENT PROCESS IN STEEL
MAX ROLLINT MILLS LTD.” is a brief summary of the production function
in STEEL MAX LTD., KANJIKODE. The purpose of the study is to analyze
the production functions. The project deals with various aspects of production
such as product, production system, organizations physical facilities, capacity
planning and maintenance management and so on.

Steel Industry in World ( Macro Scenario )

Over the last 35 years, the iron and steel industry has seen significant changes.
In 1980 716 mln tonnes of steel was produced and the following countries were
among the leaders: USSR (21% of global steel production), Japan (16%), USA
(14%), Germany (6%), China (5%), Italy (4%), France and Poland (3%),
Canada and Brazil (2%). According to the World Steel Association (WSA), in
2014 world steel production amounted to 1665 mln tonnes - a 1% rise in
comparison with 2013. The list of leading countries has changed significantly.
China ranks first and is far ahead of other countries (60% of global steel
production), the share of other countries from the top-10 is 2-8% - Japan (8%),
USA and India (6%), South Korea and Russia (5%), Germany (3%), Turkey,
Brazil and Taiwan (2%) (see Figure 2). Besides China, other countries that have
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strengthened their positions in the top-10 are India, South Korea, Brazil and
Turkey.

World crude steel production for the 64 countries reporting to the World Steel
Association (worldsteel) was 161.9 million tonnes (Mt) in October 2020, a 7.0%
increase compared to October 2019. Due to the ongoing difficulties presented
by the COVID-19 pandemic, many of this month’s figures are estimates that
may be revised with next month’s production update.

In Asia, China produced 92.2 Mt of crude steel in October 2020, an increase of

12.7% compared to October 2019. India produced 9.1 Mt of crude steel in
October 2020, up 0.9% on October 2019. Japan produced 7.2 Mt of crude steel
in October 2020, down 11.7% on October 2019. South Korea’s crude steel
production for October 2020 was 5.9 Mt, down by 1.8% on October 2019.

In the European Union, Germany produced 3.4 Mt of crude steel in October

2020, up 3.1% on October 2019. Italy produced 2.1 Mt of crude steel in October
2020, down 4.6% on October 2019. Spain produced 1.1 Mt of crude steel in
October 2020, down 7.7% on October 2019.

In North America, the United States produced 6.1 Mt of crude steel in October
2020, a decrease of 15.3% compared to October 2019.

In the C.I.S., production is estimated to be 8.4 Mt in October 2020, up 4.7% on

October 2019. Ukraine produced 1.7 Mt of crude steel in October 2020, up
5.9% on October 2019.

In other Europe, Turkey’s crude steel production for October 2020 was 3.2 Mt,
up by 19.4% on October 2019.

In South America, Brazil produced 2.8 Mt of crude steel in October 2020, up

3.5% on October 2019.

Steelmaking technologies
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Steel is a class of malleable alloys made up of iron and carbon (less than 2%),
plus some other additives in small amounts (with proportions ranging widely
from less than 1% for low alloy steels to more than 10% in the case of stainless
steel or special steels for tools). Tempo differing in composition and physical
and chemical properties (Fenton 2005). Steel is one of the most important
materials in the world, with applications in virtually all construction,
manufacturing, and engineering-related fields. Steel is produced by melting iron
and reducing its content of carbon down to the desired level.

Primary steelmaking involves up to four major steps which require large

facilities:

1) mining and preparation of raw materials,

2) iron production,

3) steel production,

4) casting, rolling and finishing.

The main raw materials are iron ore, coal, limestone, scrap and energy.
Approximately95% of the energy input consists of solid fuels (mainly
coal), ~3% of gaseous fuels,and ~2% of liquid fuels; electricity input is much
smaller. The secondary method produces steel by recycling used steel products
and ferrous scrap in electric arc furnaces.

Secondary steelmaking usually involves stages 3 and 4. The main inputs are
scrap and electricity.

Mining and preparation of raw materials

The first step to produce steel by means of a primary steelmaking method
consists of themining and preparation of raw materials. The most important
raw materials are iron ore,coke, limestone, and ferrous scrap. Iron ore
ismostly obtained from open cast mines, thencrushed and concentrated into
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pellets (small iron ore balls) or sinter (iron ore lumps bakedwith coke or
coal). Iron ore is mined in about 50 countries, the majority originating
fromBrazil, Australia, China, India, the US and Russia. Australia and Brazil
accounting togetherfor about one third of total world exports (Worldsteel
2010).

Pig Iron Production

In the second step, hot metal (or molten iron, also known as pig iron when
solidified)may be produced by two means:—either charging iron ore and coke
to a blast furnace,—by reducing iron ore with natural gas or low quality coke
(this can be done in direct reduction units, which may be shaft furnaces, rotary
kiln furnaces, or fluidized beds).The blast furnace-based process uses sinter,
pellets, lump ore and coke. All the inputs are charged to the top of the furnace,
and heated to remove oxygen from the iron ore and produce the hot metal. The
direct reduction process uses pellets, lump ore, and natural gas (or low quality
coke)to reduce the iron ore. Pellets and lump ore are heated under pressure in
the presence of natural gas and reduced to DRI (direct reduced iron: pelletized
iron.

Steel Production

In the third phase the steel is produced by oxidizing the hot metal (or direct-
reduced iron(DRI)). There are three possible furnaces to produce the steel:—
open hearth furnace (OHF),—basic oxygen furnace (BOF),—electric arc
furnace (EAF).The BOF is a vessel where oxygen is injected into the hot metal
to remove carbon andother impurities. The BOF can take a mixture of hot
metal, scrap and DRI. The OHF is similarto the BOF, but much slower and with
a higher energy input, and therefore is not competitivewith the BOF and has
become obsolete. In these two furnaces, the energy that drives thesteelmaking
process comes from the heat of the hot metal charge and from the combustion
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ofthe contained carbon. The EAF can take a full charge of scrap or DRI
(mixtures are alsopossible), and requires electricity to melt the cold charge.

Casting, rolling and finishing

During the fourth step, once the crude steel is produced by any of the processes
described above, it is transferred to an ingot casting shop(where ingots are
produced in batches by pouring steel into moulds) or to a continuous casting
shop (where liquid steel is poured continuously and then cut into the desired
shapes). The semi finished products obtained from the casting processes are
ingots (blocks), slabs (a length of metal with rectangular cross-section),
billets (a length of metal with round or square cross-section), or
blooms(similar to billets, with greater cross sectional area). These semi finished
products are later rolled into different shapes. Slabs are converted into thinner
steel plates (flat products) in plate mills or hot strip mills. Other finished shapes
(long products) are rolled from blooms and billets into beams, reinforcing
bars, and wire rods through different types of mills.

Further treatments (coating, annealing, galvanizing, tinning, etc.) are provided

in specific finishing mills.

Energy use and emissions

The steel industry is highly energy-intensive and very dependent on the use of
fossil fuels.At the global level, energy flows within the iron and steel industry
are rather complex, sinceenergy is simultaneously converted (e.g. from coking
coal into coke) and consumed by thesteel production processes. In Table 1, the
first two columns show the transformation com-ponents of the steel industry’s
energy balance in 2006. Globally, blast furnaces consumed13.58 Mtoe of coal
and peat, and 3.23 Mtoe of petroleum products, and generated 10.69 Mtoeof gas

products which were usually re-used somewhere else within the steel industry.

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Indian Steel Industry ( Micro Scenario )

India is the eighth steel producing company in the world. The steel
industry is the major industries in India. The Indian government plays a very
important role on the development of the steel industry. Steel industry began in
the late 1850`s but since the steel has been basic to the world`s industrial
economy. This article is intended only to address the business, economic and
social dimension of the industry, since the bulk of steel began as a result of
Henry`s Bessemer`s development of the Bessemer`s converter in 1857.
The Indian steel industry began expanding into Europe in the 21th
century. In January 2007 India’s tata steel made a successful 11.3 billion offer
to buy European steel makes chorus group steel makes chorus group PLC. The
steel industry in India has a huge scope in the future with massive scale of
infrastructural development happening all across the country. The Indian steel
industry caters to many other industrial sections such as construction industry,
mining industry, transportation industry, automobile industry, etc.
Global demand for steel continuous to grow and through there are
large amounts of steel existing, much of its actively in use.
The steel industry in nearly a century old with tata iron and steel
company being the first integrated steel plant setup in 1907. Post- independence
the steel industry made in a steady progress. Over the last few years the
performance of the Indian steel industry have been adversely affected due to
over capacity, economic slowdown, cheap products imposed by USA on Indian
reports.
There are approximately 2100 re-rolling mill in the country was
installed in the year 1982 at Kanpur mainly for salvaging scrap material. Since
then till 1980`s most of rolling capacity, which came in the sector, was mainly
based on arising of scrap and defective of main steel producers throughout
India.

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 The policy planning for steel in India commenced during the second and
third five year plans. The first three public sector plant that is Bhilai, Rourkela
& Durgapur were set up in collaboration with three different countries.
Subsequently, Bokarao was commissioned in early seventies. It was rightly
called the Swadeshi steel plant as a substantial percentage of indigenous
machinery and equipment were used in Bokarao. With TISCO & IISCO already
having their own set of specification, there was a huge proliferation of types,
sizes and even designs leading to high inventories, problems in maintenance and
difficulties in procurement. With a view to overcoming the above difficulties,
the ministry of steel appointed a panel of experts on standardization of Steel
Plant equipment which recommended creation of a permanent body of experts
to carry out the standardization work. IPSS Secretariat was created in 1975 to
fulfill these objectives. Members of IPSS were SAIL, TISCO, HEC, BHEL,
MECON and DASTURCO. It started functioning under the Indian Standards
Institution (now Bureau of Indian Standards) premises. In 1990, the whole
activity was taken over by SAIL and placed under centre for Engineering &
Technology (CET). Subsequently, Vishakapatnam Steel Plant (RINL) and
joined this forum. In addition to the above mentioned member organizations.
The Ministry of Steel and Mines drafted a policy statement to evolve a
new model for managing industry. The policy statement was presented to the
parliament on December 2, 1972. On this basis the concept of creating a holding
company to manage inputs and outputs under one umbrella was mooted. This
lead to the formation of Steel Authority of Indian Ltd. The company,
incorporated on January 24, 1973 with an authorized capital of Rs. 2000crore,
was made responsible for managing five integrated steel plants at Bhilai,
Bokaro, Durgapur, Rourkela and Burnpur, the Alloy Steel Plant and the Salem
Steel Plant. In 1978 SAIL was reconstructed as an operating company. Since its
inception, SAIL has been instrumental in laying a sound infrastructure for the
industrial development of the country. Besides, it has immensely contributed to

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the development of technical and managerial expertise. It has triggered the
secondary and tertiary waves of economic growth by continuously providing the
inputs.
During the late 1950s The Government of India encouraged the growth of mini
steel plants in private sector to overcome shortage in constructional steel. On
the basis of new liberalized economics policies of the government, there is
dynamic increase in investments in mini steel plant sector. New industrial
policy 1991 was modified from time to time for faster industrialization. New
liberalized import/export policy, Abolition of industrial licensing for are
growing quickly due to Small investment in project cost, low installation period,
ease of incremental growth, low operating expenses, availability of raw
materials and marketability etc. steels, Deregulation of distribution and pricing
of Iron and Steel etc. are examples of Mini steel plants.
The recent development in steel making by means of coreless induction
Furnace has created a revolution in India. The technological advancement of
induction melting apart from improving the equipment efficiency and reliability
has widened the horizons of process application. These influences include in
plant and external environment relation, energy conservation and a more rigid
control of metal specification. Above all, it consumes less electrical power than
Arc Furnace. Also it absorbs the cheapest steel turnings and borings and light
bundle scrap. It requires minimum working space less capital investment high
operational efficiency, low production cost and low installation cost. The
induction melting plants are ideal for developing countries where steel scrap
generated in the country can be converted into Mild Steel Ingot in India one can
find hundreds of such Micro Steel Plants participating in contributing to the
country’s economical growth and creating jobs for the local.

Growth Of Steel Industries In India

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Steel industry reforms in India particularly in 1991-1992 have led to strong and
sustainable growth in India's steel industry. Since its independence it has
experienced steady growth in the steel industry, further illustrating, this plan is
the fact that a number of steel plants where established in India with
technological assistance and investment by foreign countries.
In 1991, a substantial number of economic reforms were introduced by the
Indian government. These reforms boosted the development process of number
of industries the steel industries particular in India which has subsequently
developed rapidly.
The 1991 reforms allowed no license to be required for capacity creation,
except for some location. Also once India's steel industry was moved from the
listing of the industries that were reserved exclusively for the public sector,
huge foreign investment were made in this industry.
Continually posts phenomenal growth record in steel production. In
1992, India produced 1433 million tones of finished carbon steel and 1.59
million tones ofpig iron. Furthermore, the steel production capacity of the
country has increased rapidly. India is the fifth largest steel producer and has a
capacity to produce 95 million tonnes of steel annually and producers have
pledged to take it to 124 milliontonnes by 2012. in order to provide some
support to the falling price, steel ministry is planning to impose 5% import duty
and withdraw 15% export tax in order to increase the outflow. Since 1991-2008
India has produced nearly 46.567 million tones of finished steel and 4.393
million tones of pig iron.
Both primary and secondary producers contributed their share to this
phenomenal development, while these increase have pushed up the demand for
finished steel at a very stable price.
In 1992, the total consumption of the finished steel was 14.84 million tones. In
2008, the total amount of domestic steel consumption was 43.92 million tones,

10
with the increased demand in the national market, a huge part of international
market also served by the industry.
Today, India is fifth position among all the crud steel producing countries. The
following are the premier steel plants operating in India.
1.Salem Steel Plant at Tamilnadu
2.Bhilai Steel Plant at Chattisgarh
3.Alloy Steel Plant at West Bengal
4.Visveswara Iron and Steel Plant at Karnataka
5.Rourkela Steel Plant at Orissa
6.Bokaro Steel Plant at Jharkhand

Steel Industry In Kerala

Steel industry in Kerala, which is providing direct employment to over 15000
people is generating to revenue to the tune of 75 crores to the state ex-chequer
towards the excise duty, sales tax and power charges.
The steel manufacturers association of Kerala has demanded the state
government to provide uninterrupted power supply as promised in the industry
policy 1992 for the smooth functioning of several steel industries units in India.
The policy enthused industrialists to setup production unit in the state on
account of the government promise of non-stop power supply for the first 5
years along with other concessions such as pre 1992 power tariff, exception of
electricity duty and sales tax.

STEEL AUTHORITY OF INDIA

To Co-ordinate the development of the iron and steel industry both in the
private and public sectors, the government of India has setup the steel authority
of India limited. It is responsible for the management of the integrated steel
plants at Bhilai, Durgapur, Rourkela, Bokaro and Burnpur and also of alloy
steel plants at Durgapur and Salem Steel Plant.
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From 1 May 1978, SAIL has emerged as the main integrated steel company
with overall control over five public sector steel plants. The Indian steel has
acquired a high degree of technical self reliance, India now possesses capability
to plan and execute the expansion of its steel making. capacity.

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 CHAPTER II
COMPANY PROFILE

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 COMPANY PROFILE
Steel Max Rolling Mills Limited is a Public incorporated on 17 February 2004.
It is classified as Non-govt company and is registered at Registrar of
Companies, Ernakulam. Its authorized share capital is Rs. 50,000,000 and its
paid up capital is Rs. 48,059,900. It is inolved in Manufacture of Basic Iron &
SteelSteel Max Rolling Mills Limited's Annual General Meeting (AGM) was
last held on 29 September 2018 and as per records from Ministry of Corporate
Affairs (MCA), its balance sheet was last filed on 31 March 2018.
Directors of Steel Max Rolling Mills Limited are Mangattil Moosa Kutty,
Mangattil Ummer, Mangattil Majeed, Parayil Asharaf, Mohammed Koya
Mohamed Basheer, Parayil Moideenkutty, Parayil Aliasbava Mammukutty,
Kodalil Abdul Nazar, Abdullah Athiyanathil, Mohamed Safeer, Parayil
Kunhimohamed, .

Steel Max Rolling Mills Limited's Corporate Identification Number is (CIN)

U27106KL2004PLC016868 and its registration number is 16868.Its Email
address is [email protected] and its registered address is STEEL
MAX ROLLING MILLS LIMITED XIII/898,PETRONET ROAD,WISE
PARK,KANJIKODE PALGHAT Palakkad KL 678621.

Email ID: [email protected]

Address:

STEEL MAX ROLLING MILLS LIMITED XIII/898,PETRONET

ROAD,WISE PARK,KANJIKODE PALGHAT Palakkad KL 678621 IN

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The basic QST process and subsequent improvements are patented worldwide.
Due to its simplicity and ease-of-operation, THERMEX QST Technology
gained immediate global acceptance. Rolling mills are authorized to use
Thermex Technology, only on a License basis. It is mandatory for all Thermex
licensees, to obtain all critical and proprietary equipment for the Thermex QST
System, from H&K India. This reduces the start-up time without compromising
on the quality. The desired Thermex rebar properties are also established right
from the day “one”.

TMT is not a brand, but the generic name given to rebars produced using a
general rolling and quenching process. Many rolling mills do not have a proper
quenching & self-tempering system. Hence the rebars produced through such
systems don’t necessarily comply with BIS and International standards.

THERMEX –THE QST REBAR TECHNOLOGY

Hennigsdorfer Stahl Engineering GmbH (HSE) Germany developed, after years
of research and field trials, a unique Quenching and Self-tempering (QST)
process that allowed rolling mills to produce high strength deformed bars which
fully met the demands of civil engineers of different countries, at a lower cost
(without the use of costly alloys). This basic process and subsequent
improvements were patented worldwide. THERMEX is the registered
trademark of HSE Germany who has allowed H&K India to own it in the Indian
Region. STEELMAX TMX uses the QST rebar technology and therefore owns
TMX (THERMEX) license to use the mark on the product. Each Thermex
System is specifically designed to suit individual mill parameters and the rebar
properties desired by the client. Thermex Systems can be offered to meet any of
the main and popular international specifications besides any special
requirements.
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THERMEX/TMX steel rebars- All rebars that are produced through the
Thermex system of HSE, Germany are called THERMEX rebars. TMX is an
acronym for THERMEX. THERMEX is the brand name referring to the
Quenching & Self-tempering process. It is a Licensed Technology & System
obtained by more than 300 mills in India and overseas. So, TMX rebar is a
specific brand of rebar.

TMX VS TMT

All TMX steel rebars are TMT rebars, but all TMT rebars are not THERMEX/TMX rebars.
Only those TMT bars manufactured using the licensed QST technology are TMX or
THERMEX rebars. The structural uniformity is the highlight feature of TMX Bars.

THERMEX process converts the bar surface to a hardened structure. The subsequent phase
involves cooling at ambient temperature to allow the hot core to temper the surface through
the Thermex exchange. This results in a unique structure of tempered martensite periphery
and fine-grained ferrite-pearlite at the core. This structure should be uniform throughout the
cross-section of rebars.

MICROSTRUCTURE OF BARS

PEARLITE

Pearlite is a lamellar aggregate of ferrite and cementite. It is a result of the eutectoid reaction
which takes place when a plain carbon is cooled slowly from the temperature range at which
austenite is stable.

BAINITE

Bainite is a decomposition of austenite consisting of an aggregate of ferrite and carbide. Its

appearance is feather-like if formed in the upper part of the temperature range and acicular if
formed in the lower part.

MARTENSITE

It is formed by the rapid cooling of Austenite. Martensite is not shown in the equilibrium
phase diagram of the Iron- Carbon system because it is a metastable phase, the kinetic
product of rapid cooling of steel containing sufficient carbon.

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 POLLUTION CONTROL EQUIPMENTS
The company operates, friendly to the nature and by adopting all
norms and regulations of state and central pollution control boards. Lifting
magnet are used for charging raw material to induction furnace and melt it by
providing electricity power to the furnace. During in the course of melting two
types of omission are formulating i.e. slag and smoke. Machineries are provided
for controlling these slag and smoke.
 Dumping yard
 Primary hood
 Cooler
 Primary pulse jet filter bag
 Secondary pulse jet filter bag
 Blower
 Ventury scrubber
 Cyclone separator
 Chimmini

VISION, MISSION AND QUALITY POLICY

VISION
Vision of the company is to become a major producer and trader of
reclaimed steel in India.. Their own Research and Development centre is
planning to achieve the highest market share in such industry. They are also
trying to achieve ongoing revenue growth through increasing business with
existing customers and also by developing new customers.

• To be the partner choice for the customers, suppliers and other creators of
innovative concepts.

17
• To be the preferred employer wherever organization operates. To
recognize the value of human assets.
• To be the recognized leader in the target market.
• To be the major contributor to our national economy and take full
advantage of strong concept.

MISSION
Steel Max Rolling Mills Limited, group mission embodies these
objectives.The company is setting its eye on international market, through
continuous production and technical innovations and customer orientation
with the focus on cost effectiveness.
• To create strong brand image and reputation.
• Improving and maintaining the quality of products.
• Conducting constant study and research on various projects.
• Keeping a close relation with employee and maintaining good working
infrastructure

OBJECTIVES OF THE COMPANY

The main objective of Steel Max Rolling Mills Limited is to formulate
strategies to increase the market share of steel. The other important objectives
specified in the Memorandum of Association are as follows:

• Manufacturing and marketing of the steel.

• Maximization of sales and productivity.
• Purchasing, selling, exporting and dealing in reclaimed rubber like
products to steel industry.
• Research and Development in steel and related goods.
• Maintaining employment and safeguard the interest of workers.
• Helping the rapid economic growth and industrial development.

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 • Doing all such things which may be convenient in the attainment of any
of the above objective
All these objectives have been clearly specified in the object clause of
Memorandum of Association.

QUALITY STANDARDS
An ISO 9001:2008 certified organization, strength and prime aim is strict
adherence to quality standards. At Steel Max Rolling Mills Limited, success
depends entirely on delivering the quality customer demands.

Our policy is to always attain and wherever possible exceed the standards
expected by our valued customers. This is achieved by continuous improvement
programme in process discipline, manufacturing methods and Quality Systems.
Our success is in regular interactions with National Laboratories, premier
forging institutes and of course long term association with our prestigious
customers.

19
 CHAPTER III
PRODUCT PROFILE

20
 PRODUCT PROFILE

TMT TECHNOLOGY
The thermo mechanical process consists of online heat treatment in
two successive phases. The billets pass through number of stages processing
and come out in the form reinforcing bars. Being the first stage in TMT process,
these bars pass through a fully automated quenching box and turbo cooled. As a
result the outer layer of the bar solidified in to a marten state. In the next stage
i.e. self tempering, the heat from the inner layer of the bar surface up. Due to
this the outer crust become even more strengthen. In addition these bars are
allowed to cool at room temperature in cooling bed. At this stage the inner core
of the bars, become ductile pearlier.

ABOUT PRODUCT
The company now manufacturing 8mm, 10mm, 12mm, 16mm bars. The raw
material for the unit is steel ingots or billers which is readily available. In the
state of Kerala there are number of induction furnace units. The other inputs are
consumable like furnace oil; rolls are readily available at economic price in the
domestic market. Each and every ingot weighs more than 100kg.
METHOD OF PRODUCTION
The Steel Max Rolling Mills LTD uses both machine oriented
production and labor oriented production methods. The company will adopt
continuous production process. The machines are arranged according to the
production sequence of the company. The materials handled by both man and
machine. The production will be conducted to the order received, it is known as
job lot manufacturing.

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 CLASSIFICATION OF STEEL
1) Carbon steels:
More than 90% of the steels are carbon steels. They contain varying
amount of carbon and not more than 1.65% manganese, 0.60% copper,
machines, automobile bodies, most structural steel for building, ship hulls,
bed springs and bobby pins are the products made of carbon steels.
2) Alloy steels:
These steels have specified composition, containing certain % of
vanadium, molybdenum, or the elements, as well as large amounts of
manganese, silicon, and copper than do the regular carbon steels.

3) High-strengthen low-alloy steels:

This steel is the newest of the five chief families of steels. They
cause less than regular alloy steels because they contain only small amount
of the expensive alloying element. They have been specially processed,
however, to have much more strengthened than carbon steels of the same
weight.
4) Tool steels:
These steels are fabricated into many type of tools into cutting and
shaping part of power-driven machinery for various manufacturing
operations. They contain tungsten, molybdenum, and other alloying element
that give them extra strength, hardness and resistance to wear.

5) Stainless steel:
Stainless steels are used for the pipes and tanks of petroleum
refineries and chemical plants, for jet planes and for space capsules.
Surgical instrument and equipments are made from these steels, and they
are used to patch or replace broken bones because the steel can with stand
the action of body fluids.
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 CHAPTER IV
ORGANIZATION STRUCTURE

23
 ADMINISTRATIVE HIERARCHY

MANAGING DIRECTOR

GANARAL MANAGER

FINANCE MANAGER PURCHASE MANAGER PRODUCTION MANAGER MARKETING MANAGER HR MANAGER

ACCOUNTANT QUALITY PRODUCTION AREA MANAGER

INSPECTOR SUPERVISORS

CASHIER AND STAFF SALES EXECUTIVE

CLERK

STORE KEEPER

WORKERS TECHNICIANS

CLEANERS

24
 CHAPTER IV
KEY FUNCTIONAL AREAS

25
 HUMAN RESOURSE DEPARTMENT

Human resource is of paramount importance for the success of any

organization. It is a source of strength, aid and, it is the most important asset of an
organization. Human resources are the wealth of an organization which can help it
in achieving its goals. Human resource management is the planning, organizing,
directing and controlling of procurement ,development, compensation, integration,
maintenance and reproduction of human resources to the end of the individual,
organizational and societal objectives are accomplished.

The HR manager organizes the HR department to carry out the functions

entrusted to him. In steel max rolling mills limited personnel department functions
are controlled by Personnel Manager.

Functions of Human Resource Department

1. Recruitment

Recruitment is the process of searching for prospective employees and stimulating

them to apply for jobs in the organization. This is made on the base of personal
interview. Only qualified candidates are selected. Final selection is done by the
head office.

2. Pay Fixation

It is based on the job analysis, conduct of salary survey, group similar jobs into pay
grades, price each pay grade and wage administration rules.

3. Promotion

Advancement within an organization is ordinarily labeled as promotion. It refers to

the advancement on an employee to a better job. Promotion is a mean of filling up
vacancies which occur in any organization from time to time. Promotion is given
on the basis of:

26
 Seniority
 Performance
 Additional Qualification

There is an understanding between the workers and the management that

promotions will be made on the basis of ability and seniority.

4. Welfare

Labour welfare means anything done for the comfort and improvement intellectual
or social, of the employees over and above the wages paid which is not necessary
for the industry. Steel Max Rolling Mills Limited gives first priority to the welfare
of the employees. Statutory and non-statutory benefits are provided.

5.Performance Appraisal

Performance appraisal is the systematic, periodic and an impartial rating of an

employee, excellence in matters pertaining to his present job and his potential for a
better job. It is done to ensure the efficiency of workers.

6. Statutory Requirement

 Factory license and boiler license renewed every year.

 Punchayathu tax and building tax, company tax, individual employee tax, etc.
are paid.
 Diesel license and environmentally acceptable licenses are renewed every two
years.

MARKETING DEPARTMENT

Functions

Marketing Department of the company concentrates on building long

term relationship with the customers, dealers, distributors and suppliers. The
company also undertakes sales promotion works. Marketing department mainly
concentrate on consumer promotion and dealers promotion.

27
 In this company the departments by Marketing Manager and under him
there are 2 Assistant Manager. One for sales Dispatch other for Customer
service and Sales promotion. The company sells its products only through the
dealers, No direct sales are allowed. The company has around 500 dealers. It
delivers goods at their shop unloading changes; rent etc will not bear by the
company.

Advertisement and sales promotion

The company does not give much importance to advertisement but it

concentrate on sales promotion to a greater extends. However the advertising
and sales promotion expenditure for the year 2008-2009 amounts to Rs 7,
92,913: catalogues and Descriptive leaflets are also provided to dealers. The
main users of the product are farmers. So the advertisement is given in local
channels only. The company also gives dealers board to dealers as an
advertisement for their product.

Sales Procedure

1. Dealers can use own or rented vehicle

2. Vehicle is weighted before going to godown
3. After weighting it is loaded with required quantity
4. Vehicle is then weighed with load
5. Weight of products is verified
6. Bill clearance done

Training

Training for KS sales persons was conducted from 2001. According to

the training session the main objectives of sales management were

a) Sales volume
b) Contribution to growth
c) Continuing growth

Cattle Shows

Company sponsors cattle shows conducted by milk society, dairy

departments etc. Cattle shows neither help the company to reach many
prospects nor reached their sales force.

Feedback from Customers

28
 Marketing department encourage feedback from the customers. Labels
with address for enquiry are put each packet for feedbacks.

Obtaining sales order

Dealers are selected by proper methods. Dealers can give order either
directly or through telephone. Date of delivery is given in advance.

FINANCE DEPARTMENT

Source of Finance

Long term Finance, Medium term Finance and short term

Finance is considered as source of finance. Source of long term finance are

 Shares
 Debentures
 Internal finance
 Public deposits
 Industrial financial institution
 Industrial banks

Sources of Medium term Finance

 Redeemable preference shares

 Debentures
 Bank loans
 Hire purchase and installment system
 Public deposits

29
PERSONAL DEPARTMENT
 It recruits required employ for the departments of the company.
 It facilitates job analysis and job description to different people
 It administers “training and development programmers for the required
employees.
 It administers the wages and salaries for different levels of management
 It fixes and provides reward and incentives on the basis of wage policy.
 It deals in solving and avoiding any disputes and grievances.
 It frames the disciplinary outs to be followed by each level of
management and has provided sufficient authority to take such
disciplinary action at required time.
 It ensures safety to workers of the company

PRODUCTION DEPARTMENT
In production department the skilled, semi skilled and unskilled labours are
working under the supervisor. The supervisors have the authority to direct
and control the labours. The supervisor is controlled by the production
manager. The each and every labour in the plant has their own place to work
and the part of work given to them.

30
 CHAPTER VI
RESEARCH PROBLEM

31
 RESEARCH MATHODOLOGY
Methodology refers to method of collecting data. The method I
have selected for collecting data is both primary and secondary.
PRIMARY DATA:
Primary data refers to fresh data needed for the study. It includes
the following:
 Observation method.
 Interview from various department head.
SECONDARY DATA:
Secondary data refers to the data which have been already used. It
includes the following:
 Company website
 Magazine and journals
 Its official document t etc.
 SAMPLING METHOD
 TOOLS FOR ANALYSIS

a) Sampling method:
Random sampling method is used in this study.
b) Tools for analysis:
 Average
 Percentage
 Graph and diagram
 Tables
c) Sample size:
 50

LIMITATION OF THE STUDY

32
1) The period allow to the project was limited so it was difficult to study the
total structure with in the limited time.
2) Chance of personal biased.
3) The production process is too dangerous, so I could not see whole
production process.
4) Busy work schedule of the employee make it difficult to communicate
with them.

33
 CHAPTER VII
DATA ANALYSIS AND INTERPRETATION

34
 PURCHASE OF FURNACE OIL IN RUPEES

RAW
MATERI 2010 2011 2012 2013 2014
AL
32,92
FURNAC
16,921,438.91 18,905,835.95 24,543,586.78 30,382,593 7,895
E OIL
.60
PERCEN
14% 15% 20% 24% 27%
TAGE

PURCHASE OF FURNACE OIL

2014
27% 2010
14%
2011
15%

2013 2012
24% 20%

INTERPRETATION:
From the above chart it is clear that the purchase of raw material
(furnace oil) has a continuous increase during different months. In 2010 it is
16,921,438.91 then increased to 18,905,835.95 in 2011 then to 24,543,586.78 in
2012 and 30,382,593, to 32,927,895.60 in the succeeding year 2013, 2014.
35
 PURCHASE OF RAW MATERIALS IN RUPEES
(MS.INGOTS & MS.BILLETS)

YEAR 2010 2011 2012 2013 2014

MS.INGOTS
452,317,900.9 500,861,619.6 593,682,133.8 700,699,920.4 653,266,455.4
&
7 7 5 0 9
MS.BILLETS

PERCENTAG
17 20 24 23
E 16

800000000

700000000

600000000

500000000

400000000

300000000

200000000

100000000

0
1 2 3 4 5 6

INTERPRETATION:
From the above chart it is clear that the purchase of MS. Ingots and MS.
Billets have a continuous increase till 2013 from 452,317,900.97 in 2010 to
500,861,619.67 to 593,682,133.85 to 700,699,920.40 in the succeeding year 2011, 2012,
2013. Afterwards face a decline to 653,266,455.49 in 2014.

36
 CONSUMPTION OF ELECTRICITY

PARTICULAR
2010 2011 2012 2013 2014
S
ELECTRICITY
14,835,70 14,611,56 14,142,94 13,336,41 17,004,41
CONSUMPTIO
4 5 2 4 3
N

PERCENTAGE 20% 20% 19% 18% 23%

CONSUMPTION OF ELECTRICITY

2010
2014 20%
23%

2011
2013 20%
18%

2012
19%

INTERPRETATION:
From the above chart it is clear that the consumption of electricity face a
continuous decline in the years from 2010 to 2013 from 14,835,704 to
14,611,565 to 14,142,942 and to 13,336,414. Then face a high rate of increase
to 17,004,413 in 2013.

37
 SALE OF FINISHED PRODUCTS (IN RUPEES)

PRODUCT 2010 2011 2012 2013 2014

S
BARS & 564,162,911.4 567,183,607.9 720,437,874.7 806,902,923 804,818,946.3
TORS 6 4 4 3
MISS 14,130,613 15,484,713.49 17,959,172 20,891,331.3 22,030,947
ROLLS & 2

SCRAP

900000000

800000000

700000000

600000000

500000000 MISS ROLLS & SCRAP

BARS & TORS
400000000
PRODUCTS
300000000

200000000

100000000

0
1 2 3 4 5

INTERPRETATION:
From the above chart it is clear that the sale of finished products face a
continuous increase in case of bars & tors from 564,162,911.46 in 2010 to
567,183,607.94 to 720,437,874.74 and to 806,902,923in 2011, 2012, 2013
respectively and have a slight decrease to 804,818,946.33 in 2014.

38
 In case of miss rolls & scrap it have a continuous increase till 2014
from 14,130,613, to1 5,484,713.49, to 17,959,172, to 20,891,331.32, to
22,030,947 in 2010, 2011, 2012, 2013, 2014 respectively.

39
 OPINION ABOUT QUALITY CONTROL

OPINION NO. OF % OF RESPONDENTS

RESPONDENTS
EXCELLENT 32 64%
GOOD 14 28%
NOT BAD 4 8%
BAD 0 0%
TOTAL 50 100%

70% 64%

60%

50%

40%
28% Series 1
30%

20%
8%
10%
0%
0%
EXCELLENT GOOD NOT BAD BAD

INTERPRETATION:
From the above chart it is clear that the opinion about quality
control were 64% of respondents agreed with that it is excellent, while 28%
responds that it is good. The rest 4% opinion that not bad.

40
 BIBLIOGRAPHY

BOOKS:
1. Production and operation management (A DAN.E., ELBERT.R.J
(PRENTICE HALL OF INDIA DELHI)).
2. Production and operation management K. ASHWATHAPPA,
K.SRIDHARABATT (HIMALAYA PUBLISHER).
3. Operations management-ABDUL ASSIS KOROTH, K.
VENUGOPALAN (CALICUT UNIVERSITY).
4. Basics of business management K. VENUGOPALAN, A.VINOD
(CALICUT UNIVERSITY).

WEBSITES:
 www.wikipedia.com
 www.steelmax.com
 m.businessdictionary.com

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