AN ORGANISATIONAL STUDY ON NIDEC INDIA PRECISION

TOOLS LIMITED
Submitted by

(Name:SURYA.S )
(Reg. No: 510123631040)

SUMMER INTERNSHIP REPORT

Submitted to the

FACULTY OF MANAGEMENT STUDIES

In partial fulfillment for the award of the degree

Of
MASTER OF BUSINESS ADMINISTRATION

AUGUST 2024

ADHIPARASAKTHI COLLEGE OF ENGINEERING

KALAVAI- 632056

AFFILATED TO ANNA UNIVERSITY CHENNAI- 600 005

 Bonafide Certificate

Certificated that this Summer Project report titled as “AN ORGANIZATIONAL STUDY ON
NIDEC INDIA PRECISION TOOLS LIMITED” is the bonafide work of Mr. SURYA.S
(Reg No.510123631040), who carried out the organizational study under my supervision.
Certified further, that to the best of my knowledge the work reported herein does not from part of
any other project report or dissertation on the basis of which a degree or reward was conferred
on an earlier occasion on this or any other candidate.

Internal Guide Director/MBA

 DECLARATION

I hereby declare that the project is titled as "AN ORGANISTAIONAL STUDY ON NIDEC
INDIA PRECISION TOOLS LIMITED" submitted by me to ADHIPARASAKTHI COLLEGE
OF ENGINEERING, KALVAI, in partial fulfillment of the requirement for the award of the degree
of MASTER OF BUSINESS ADMINISTRATION is a Bonafide work carried out by me under the
supervision of Asst.Prof MS.T. ELAKIYA B.com, MBA, Department of Management studies

I further declare that the work reported in this project has not been submitted and will not
be submitted, either in part or in full, for be Award of any other degree or diploma in this institute or
any other institute or university.

DATE: SURYA.S
(Reg.No:510123631040)
 ACKNOWLEGEMENT

First of all, I thank the almighty who has been with us throughout the Endeavour and helped me in
completing this project successfully.

I am deeply indebted to our college Principal Dr. S. MOHANAMURUGAN, M.E., Ph.D., of

Adhiparasakthi College of Engineering, Kalavai for giving me an opportunity to undergo MBA Programme
during 2023-2025.

I am grateful to express my sincere thanks and deep sense of gratitude to our MBA Director, Dr. P.
Govindasamy, MBA., M.Phil.,Ph.D.,PGDCA., of Adhiparasakthi College of Engineering, Kalavai, who
encouraged the internship programme.

I also would like to express my thanks towards the internal guide of my project , Ms.T. Elakkiya
B.COM, MBA. Department of Management Studies, for their timely support and guidance in completing
of the Summer Internship.

I am grateful to Mr. N. Valliappan, HR for providing necessary information and great

encouragement in prompt completion of Internship.

I would like to thank my faculty members for their valuable inputs as and when required. I am very
much grateful to my fellow classmates and my friends for their invaluable suggestions and encouragements
during this Internship Journey.
 TABLE OF CONTENT

CHAPTER
NO. TITLE PAGE. NO.
1.1 INTRODUCTION 1
1.2 INDUSTRY PROFILE 2
1.3 COMPANYPROFILE 3
I 1.4VISION, MISSION AND 5
QUALITY POLICY
1.5 ORGANISATION 7
STRUCYURE

2.1 HUMANRESOURCE 8
DEPARTMENT

2.2 PRODUCTION
16
DEPARTMENT
II
2.3 MARKETING
27
DEPARTMENT
2.4 FINANCE
DEPARTMENT 30

2.5 STORE
DEPARTMENT 40

2.6 PURCHASE 45
DEPARTMENT
III
SWOT ANALYSIS 49

IV CONCLUSION 50
 CHAPTER I

1.1 INTRODUCTION

“NIDEC INDIA PRECISION TOOLS LIMITED” was started in the year 1974 in RANIPET 120
km away from Chennai it was formerly known as SRD tools Ltd.

Since 1974 SRP tools has the technical collaboration with Mitsubishi heavy
Industries Japan is synonymous of precision and quality NIDEC INDIA PRECISION TOLLS
LIMITED was first in India to set ISO 9001 certification for great cutting tool and broaches has get
Sufficient technical background.

In order to achieve perfection and accuracy it terms of micro certification for gear cutting tools
and broacher has got sufficient technical background in order to achieve perfection and accuracy.

It terms of microns NIDEC INDIA PRECISION TOOLS LTD., It well equipped with the
imported machineries high precision special purpose machines and sophisticated.

Inspection equipment has been imported from Japan Germany, USA Italy, ete and are installed
In temperature control in the recent year CNC machines also imported from Japan and installed the
plant to their manufacturing their high accuracy products.

1
 1.2 INDUSTRY PROFILE

Machining is a key part of manufacturing. Machining refers to a set of processes that raw materials
being cut into a certain shape or through the removal of certain materials. The machining process has
a long history, which many people are unaware of the fact, machining goes back to ancient times.
In fact, the original machining tools date back to 1200 B.C. and were carefully
handcrafted. The lathe, a machining tool that is still used today, was originally used in Ancient
Egypt. Machining was a key part of early civilization, long before mass scale manufacturing was in
existence.
Gear manufacturing industry plays a vital role in sectors includes automotives, aerospace,
machinery and many others. Gears and Broaches are mechanical components that interlock to
transmit power and motion between rotating shafts. They are essential for the smooth operation of
Machinery, enabling speed and torque conversion, direction changes and precision control.

Gear Cutting Tools and Broaches manufacturing industry are specialized sector with the broader
gear manufacturing industry. These sectors support automotive sectors by providing high-quality
tools that enable the production of precise and reliable gears. It encompasses a range of processes
involved in producing gears of different sizes, types and specialization. The history of gear cutting
tools and broach manufacturing industry dates back several centuries. Here is a short overview of
its periodical development.
• Early Gear Cutting Method- involves manual techniques and hand craving from
wooden or metal material. Development of watermills led to advancement in gear
cutting techniques.
• Industrial Revolution – introduction of milling machines significantly brought
advancement in gear cutting technology. In the mid of 19th century, the invention of
gear shaping machine improved gear cutting accuracy and productivity.
• Advancements in Gear Cutting Technology (20th Century)-this century witnesses
significant advancements in gear cutting technology with automatic indexing and gear
shaping machines such as,
⮚ Computer numerical control (CNC)
⮚ High-speed steel (HSS)

2
 1.3 COMPANY PROFILE

Nidec India Precision Tools Limited is one of the world‟s leading manufacturers of Gear Cutting
Tools and Broaches, large machining centers and gear cutting tools and the pioneer in introducing the
latest „Superdry‟ technology in gear cutting. This company was started its first factory in the year of
1963 as S.R.P Tools Limited., at Chennai, India for manufacturing conventional cutting tools. It
signed an agreement with Mitsubishi Heavy Industries Limited, Japan for the technical
collaboration to manufacture Gear Cutting Tools and Broaches in the year of 1972. S.R.P Tools
Limited‟s second factory started in the year 1973 at Ranipet, for manufacturing Gear Cutting Tools
and Broaches.

In 2005 , S.R.P Tools Limited was acquired by Mitsubishi Heavy Industries Limited-Japan. Later,
this unit functioning as a subsidiary of Mitsubishi Heavy Industries India Precision Limited (MHI-
IPT). MHI-IPT expanded its plant capacity in 2007-08 by adding CNC machines and conventional
machines, to make more than double its production capacity to cater to the needs of its customers. In
2021, Nidec India Private Limited, taken over the MHI-IPT by acquiring major shares such as
96.48% of shares from the company and changed its name as NIDEC INDIA PRECISION TOOLS
LIMITED.

Nidec-IPT is now India‟s largest manufacturer of Gear Cutting Tools and Broaches, featuring the
most advanced Precision technologies and commanding the largest market share. Its product range
includes hobs, gear shaping cutters, gear shaving cutters, rotary cutters, spline broaches and other
types of broaches, used in manufacturing of various and engineering components.

In addition to this, this company is a public company with shareholder of 440 members. It is a
company limited by shares with an authorized capital of Rs 8Crores and paid-up capital of
Rs.697Crores as per Ministry of Corporate Affairs (MCA).

3
 BASIC INFORMATION

Company Name : NIDEC INDIAPRECISION TOOLS LIMITED

Location : 2, Sipcot Industrial Complex, Ranipet – 632403, Vellore.
Email Id : accounts@nidec-ipt.in
Headquarters : Kyoto, Japan.
Registered office : RoC – Chennai (reg no:04990)
Company Activity : Manufacturing Gear Cutting Tools and Broaches.
Company Categor : Company limited by shares
Company Sub-Category : Non-government Company
Class of company : Public
Date of incorporate : 12th March 1963.
GSTN : 33AAACS508ILIZ9
CIN : U29130TN1963PLC004990
Authorized capital : Rs 8,00,00,000(8cr)
Paid up capital : Rs 6,97,00,000(6.97cr)
Type : Unlisted
No. of Directors : 6 Members
Previous Name : Mitsubishi Heavy Industries India Precision Tools Limited
Corporate Slogan : All for Dreams
Number of employees : Around 540

COMPANY LOGO

4
 1.4 VISION MISSIONAND QUALITY POLICY

NIDEC MISSION:

• We will create joy and inspiration through the fusion of logistics and energy.

NIDEC VISION:

• We will exceed all customer’s expectations, earn their full trust and create new
markets.

• We will always remain a reputable company through actions based on our conscience.
We will pursue the most efficient utilization of resources with an aim to realize zero
emissions

.
VALUE:
⮚ Move forward. Take positive steps with purpose.
⮚ Fairness: Adopt a fair and square attitude
⮚ Efficiency: Operate with a sense of speed and efficiency.
⮚ Top Quality: Always offer high quality products and services
⮚ Innovation: Tenacious pursuit of innovation.
⮚ Safety: Live the safety-first philosophy every day

5
6
 1.5 Organization Structure

Chairperson
(Managingdirector)

Whole time director

(Director sale)

Vice president 1 Vice president 2 Accounts Department

Personnel Department
(Design and quality)
Finished Goods Store
Tool Engineer Service
Sales Department
Manufacturing, Heart treatment
and metrological laboratory,
purchase

Rawmaterial and General Stores

Mechanical Maintenance
Department
Electrical Maintenance Department

7
 CHAPTER II

HUMAN RESOURSE DEPARTMENT

❖ Sr. Personal officer

❖ Personnel officer
❖ Assistant officer
❖ Trainees

MEANING:

“Human Resource Management (HRM) is about managing these people effectively. It is aimed
at achieving business objectives through the best use of an organization‟s human resources”.

DEFINITION:

“It is the field of management which has to do with planning, organizing directing and controlling
the various operating functions of procuring developing, maintaining and utilizing a labour force the
attainment of the company‟s objectives”.

---Prof Jucius

8
 INTRODUCTION

The human resources is an organization consists of all people who perform its activities a human
resource is concerned with the personnel policies and managerial practices and system that influence
the workforce. In boarder terms all decisions that affect the workforce of the organization concern
the human resource function.

The organization has to provide healthy work climate in order to get best of people to utilize the
capacity of people of fully, you need competent leadership willing to recognize, and reward and
nature talent at all levels. It is an art of production development and maintaining competent workforce
to effective and efficient manner.

RECRUITMENT:

Therecruitment process in NIDEC is basically done only for few categories

⮚ Trainess IT and |T| |T|

⮚ BE Candidates
⮚ Diploma candidates

Employees who are all working in this organization are on full time basis. Theydon‟t hire
employee on contractual basic.

9
WAGESPAY:

In NIDEC there are 500 employees working there are operating in two shifts basic all the employees
are paid fairly based on their working scenario. The minimum wages has been fixed by Central
government. In Nidec India Precision Tools Limited, there are around 540 employees working. They are
operating in two shifts all the employees are paid fairly based on their working scenario, the minimum
wage has been fixed by central government.

In Nidec there are three kinds of employees working, they are:

• Officer
• Team members
• Trainee

In addition to this, company invested in LIC for the employees benefit to provide gratuity at the time
of retirement.

TRAINING:

Training for employees is continuous throughout his/her organizational He Initially training is

provided to new employees to have a letter orientation for the skill knowledge required to perform the
job.

Training have to tailored according to the need of the person therefore training is necessary to raise
the skill level and increase the versatility, adoptability and efficiency of the employees.

Development is related process it covers not only those activity which improves job performance
but also those which brings about growth, personality and capabilities.

10
 Training for employee is continuous throughout his/her organization life. Initially training is
provided to new employees to have a better orientation for the skill knowledge required to perform the
job.

Training need have to be tailored according to the need of the person therefore training is necessary
10 raise the skill level and increased the versatility, adoptability and efficiency of the employees.

Development is a related process. It covers not only those activities which improve job performance
but also those which bring about growth of personality. Help individual in ten programs towards maturity
and actualization of their capabilities.

Company provide periodically training to trainee for period of 3 months and 1 year company
training.

If performance good, needed further training then training period will extend to another 1 year.

SERVICE BENEFITS:

Today every organization looks at employee satisfaction employees in the organization.

So to be provided for them, MITSUBISHI Provides following benefits to its employee.

⮚ Two sets of clothes are given to all permanent employees

⮚ Medical reimbursement is done for the entire employee and the provide medical insurance
⮚ Free breakfast to be available for employees.
⮚ No transport facilities provided for employee, instead conveyance allowance is given to
them.
⮚ Employees are given conveyance allowance based on their vehicle and depending upon its

11
RELATIONSHIPBETWEEN THE COMPANYAND EMPLOYEE:

• The company will follow environment related laws and try to preserve the environment.
• The company will firmly respond to and social force.
• The company will disclose the information related to management in an appropriate and
timely manner.

RELATIONSHIPBETWEEN COMPANYAND THE EMPLOYEES:

• The company will secure healthy environment and company members will make clear
Distinction between the public and private company with laws internal rules and execute their
duties faith fully.
• Thecompany labor related laws and try to secure a safe healthy work environment.

PERSONNEL DEPARTMENT:

The following are the major functions of the personnel department.

⮚ Manpower
⮚ Recruitment
⮚ Placemen
⮚ Induction
⮚ Training and development
⮚ Transfer
⮚ Documentation
⮚ Maintenance of department
⮚ Statutory compliance of all industrial lands
⮚ Industrial relations and public relations.

12
QUALITYCONTROLS OF EMPLOYEES:

• Manpower
• Training
• Medical examination
• Assessment

HIGHLIGHTS OF MITSUBISHI HEAVY INDUSTRIES INDIAPRECISION:

TOOLS LIMITED:

❖ Longest private sector.

❖ Leading manufacturing of machine tools.
❖ Worldwide reputation
❖ Annual turnover 60 corers
❖ ISO9001 &ISO 14001 Company

DEVELOPING THE HR POLICIES:

An HR practice provides an organization with a mechanism to manage risk by staying up to date

with current trends in employment standards and legislation. The policies must be firmed in a manner
that the companies vision& the human resource helping the company deviated from their main
objectives.

WORK ENVIRONMENT:

A safe and happy work place makes the employees feel good about being these. Each one is given
importance and provide the security that gives them the motivation and incentives to stay this is usually
achieved through internal surveys to find out whether they are satisfied and if not what they think needs
to be changed.

13
EMPLOYEE EDUCATION:

Every company has an employee evaluation system in place but a good system links individual
performance to the goals and priority of the organization this work were when achievement are tracked
over a year for a fair review of each employees, the evaluation, apart from being done by the boos should
be done by another person at a higher level, for whom the employees contribution is important ratings
can also be obtained by other employees. This ensures a fair and accurate rating of each and every
employee.

Workforce Performance Management Systems (WPM) (also called labor

management systems):

This software optimizes workforce deployment by establishments realistic performance standard and
those and matching standards to planned activity for optimal scheduling, it captures time and attendance
date, supports best practices/preferred methods development including engineered labor standard
measures performance and feeds incentive tracking and payroll system.

POLICY OF SAFETYAND HEALTH:

• NIDEC I shall make salary the first consideration in any job or post and ensure that human
life is safe guard at all cost.
• NIDEC shall contribute to social development by doing everything possible to incorporate
safety into each and every one of our excellent products.
• NIDEC shall make all efforts needed to maintain a healthy body and to create a comfortable
workplace health is the most fundamental asset.
• Creating safe and healthy workplace centered on a basic policy for employee safety and
health.
• MHI embraces a basic policy for employee safety and health founded on the following three

14
COMMITMENTS:

1) Always hold fast to the conviction that life is precious, and carry out measures that prioritize
safety and are appropriate to each position and location.
2) Devote every effort to safety in creating outstanding products that contribute to the development
of society.
3) Maintain awareness that sound health is the basis upon which all else depends, and ensure that
all employees have comfortable workplace that enable them to be sound in body.

We will continue to further enhance our efforts aimed at reducing occupational accidents and
leave due to injury or sickness.

Maintaining and improving physical and mental health:

At NIDEC, we create healthcare divisions at each works in order to proactively support employees
in maintaining their physical and mental wellbeing. We carry out the maintenance of systems, as well as
the drafting and unified development of measure, as part of a project to strength health management
throughout the entire company. Specifically, NIDEC is implementing health promotion measures that
include health-related guidance and the setting of company-wide targets based on the body mass index
(BMI: a body mass index that serves as a standard for obesity, etc.) Various mental health measures are
also implemented.

Health promotion and mental health measures:

⮚ Health promotion measures(implemented at each office)

⮚ Measures to prevent lifestyle diseases(implementing health-related guidance targeted at
reducing the ratio of employees with a BMI of 25 or greater)
⮚ Health lectures, health consultations
⮚ Activities to increase health(Walking rallies, athletic meets, long-distance relay) .

15
2.2 PRODUCTION DEPARTMENT

General Manager
Of Production

Senior Manager
Of Production

Senior Engineers

Assistant Engineers

Team Members

MACHINES:
Generally NIDEC uses special purpose machines for their production process. These
machines are purchased from micrometric, hart and NIDEC. The machines are arranged in a
sequence, especially in product layout.

16
NIDEC PRODUCTS:

NIDEC INDIA PRECISION TOOLS LTD is the manufactures the gear cutting tools and broaches.
These offer the following range of cutting fools.

HOBS:
o Gear hobs
o In volute spline hob
o Parallel spline hob
o Sprocket hob
o Worm wheel hob

SHAPING CUTTER:

❖ Gear shaper
❖ Spar
❖ Helical
❖ Sprocket shaper

SHAVING CUTTER:

• Conventional or diagonal
• Under-pass
• Plunge-cut

MASTER GEAR:

o Spur
o Helical

17
SWAGING CUTTERS:

⮚ These cutters are used to produce taper flanks in external splines or internal splines.
⮚ Most of the synchromesh gear boxes require taper splines which are formed by this process.
⮚ External splines are produced by hobbing or shaping process. Then, these swaging cutters
areused on special purpose machines to obtain taper teeth.
⮚ Internal splines are produced by broaching or shaping process. Then these swaging cutters are
sued on a special purpose machines to get taper splines.

CHAMFERING CUTTERS

• These cutters are used to produce chamfers along in volute profile of gears at end faces.

• Normally, it is used after gear cutting by hobbing or shaping process. Cutters are supplied in
pairs and to suit gear profile.

18
GEAR SHAVINGCUTTERS:

• Manufacturing of various types of shaving cutters such as conventional, diagonal, under-pass

and plunge-cut are undertaken.
• Special profile is incorporated on the cutter to generate tip relief, profile crowing, lead crowing
etc., on component.
• The shaving machines at MHI-IPT tires out the shaving cutter manufactured here, to confirm the
profile accuracy. This is done at etc. supplied by the customer.
• Pre-shaved tools likehobs/shaping cutter along with shaving cutters can be supplied from a single
source-MHI-IPT
• Gear shaving cutters made out of special steels will be supplied for special application.
• Re-sharping of cutters as well as imported cutters is carried out

MASTER GEARS:

19
 ⮚ It is used on double flank roll-testing machines to confirm the gear accuracy
⮚ To improve the life of master gears, we manufacture the same out of HSS material and
hardness is maintained above 63HR
⮚ Company can offer master gears in quality class 3.4& of DIN 3962.

SHAPING CUTTER:

• Module, DP and CP series cutters are supplied by MHI-IPT

• Various forms of shaper cutters such as non-topping, semi-topping, finishing, roughing, pre-
shaving or pre-grinding, with or without protuberance, etc., are manufactured.
• Each spur type and helical type gear shaping cutters are made.
• Designed and production of relief ground shaping cutters for in volute splinted, worms
(cutters to be used in hobbing machine by kinematics inversion process) and relief machined
cutters for sprocket parallel sided splines etc., are done at MHI-IPT
• The range of shaping cutters available at MHI-IPT includes different varieties of dise type
hub type hub and shank type
• Shuping cutter material is generally M35 (6-5-2+%co).on special request, shapers made in
powder material (ASP 2030. ASP2052) and TIN coated shapers are supplied.
• Normally, accuracy classes are as per DIN 1829 standard AA, A. however shaper cutters are
made to suit other accuracy standards also.

20
HUBS:

Module DP and CP series hobs are supplied by MHI-IPT

Various forms of hobs such as non-topping, semi topping, topping, finishing, roughing pre
shaving or pre-grinding, with or without protuberance, tip relief, full fillet radius etc. are manufactured.

Multi start hobs, multi gash hobs and dry hobs are also supplied.

Designing & production of spline hobs-both in volute and parallel sided, sprocket hobs
.
Worm wheel hobs, serration hobs. Timing belt pulley hobs and ratchet are done at NIDEC

Both bore type and shank type hobs are made.

Hob material is generally M35(6-5-2+5% CO) on special request, hobs made in powder material
(ASP2030, ASP2052) and AL crone coated hobs are supplied.

DRYCUT HOB:

1) With the support ofour parent company NIDEC INDUSTRY Ltd-Japan we have started offering
Dry cut hob
2) Dry cut hob allows for dry cutting gear manufacturing system.
3) Dry cut hob not only features high cutting and long life, but also provided resistance to oxidation
and wear because of their fine coating.
4) Dry cutting eliminates the need for large amount of coolant oil to lower costs and reduce
environment impact.

21
 ADVANTAGE OF DRYCUTHOB:

5) Environment friendly

6) Extended tool life

7) Higher productivity

8) Production without cutting oil

9) Clean & safe working environment

10) Free from dioxide and acidity rain

11) Better cost per component

12) Good for mass production gears.

BROACHES:

1) Broaches are madeto suit component specifications, customer‟s machine and holder details
2) Different internal profiles are undertaken for manufacture of
• Splines-in volute parallel and trapezoidal
• Serration
• Round
• Rectangular
• Ratchet, etc.
3) Different types of broaches are supplied
• Burnishing for round hole
• Only spline
• Plain combination round and spline
• Interspaced round and spline

22
 4) Pull end/rear end details
• Sleeve type as per DIN 1415 or 1417 standard
• Cotter type
• Any other type to suit the customer‟s holder details

5) Equipped to manufacture and supply surface broaches for plain and curved profiles

6) Different type of keyway broaches are supplied

• With/without chamfer
• With/without shoulder

Packaging, protects products and components during shipping and storage. It is used by nearly
every industry, including
• Aerospace
• Appliance
• Automotive
• Beverage
• Chemicals
• Construction
• Consumer goods
• E-commerce
• Food
• Hardware
• Hospital
• Manufacturing
• Materials processing
• Paper
• Pharmaceutical
• Plastic
• Warehousing and distribution

23
CATEGORY PRODUCT CODE SUB COST CODE
CATEGORY

10 Gear hob

HOB
18 Miller cutter PRD1

20 Rotary cutter

40 Gear shaper

Shaper 42 Chamfering cutter PRD2

43 Deburring cutter

44 Swaging Master

45 Roll Testing Master

Shavingcutterand 50 Shaving cutter PRD3

Roll Testing
Master 51 Resharpening shaving
Cutter

65 Spline gauge
PRD4
Broach 67 Spline mandrel

70 Spline broach

PRODUCT OFFERING

24
 Nidec India Precision Tools Limited offers wide variety of Gear Cutting tools and Broaches to
the automotive industry.

This company is engaged with in manufacturing of gear cutting machines, large machining
centers and gear cutting tools.

The following are the major category of products:

⮚ Gear Hobs
⮚ Gear Shapers
⮚ Shaving Cutters and Toll Testing Masters
⮚ Broaches

Each category of products consists of various sub-category products.

The below mentioned table clearly explains the sub-category of each products along with its
product code and cost code.

25
26
2.3 MARKETING DEPARTMENT

DEFINITION:

Marketing is defined by the American marketing association as the activity, set of institutions, and
processes for creating, communicating, delivering and exchanging offerings that have value for creating,
clients, partners, and society at large. The term developed from the original meaning which referred
literally to going to a market to buy or sell goods or service.

The charted institutes of marketing define marketing as “The management process responsible for
identifying, anticipating a satisfying customer requirement profitably.

Marketing practice tended to be seen as creative industry in which included advertising distribution
and selling, however, because the academic study of marketing makes extensive use of social sciences
psychology sociology mathematics economics. Anthropology and neuroscience the profession is now
widely recognized us a science, allowing numerous universities to offer master-of-science the overall
process stats with marketing research and goes through market segmentation, business planning
execution, ending with pre and post sales promotional activities. It is also related to many of the creative
arts. The marketing literature is also adept at re-inventing itself and its vocabulary according to the times
and the culture.

Seen from a system point of view, sales process engineering views marketing as a set of processes
that are interconnected and interdependent with other functions, whose methods can be improved using
a variety of relatively new approaches.

MARKETING PROFILE:

MITSUBISHI has a market share of 40% and also it involve in direct exporting. It does not export
its products through expert agent.

27
CUSTOMER:

Voltasmanufacturing limited markets the Mitsubishi products. The Voltas, marketing limited directs
all the customers of NIDEC INDIA LTD.

Sales agent & service arelocated in cities like ahmedabad, Bangalore, Chennai Jamshedpur, Kanpur,
Kolkata, Mumbai, Newdelhi, pune, Secunderabad.

Company exports its product to Australia, Taiwan and Singapore etc., The export are done through
air counties and through ships, based on the demands of customer.

• Tata motors
• Bajaj
• Hindustan motors
• TVS
• Hyundai
• Punjab tractor
• Ashok Leyland

COMPETITOR:
The only competitor in their field who matches their level of standard “DAGGER FORST”
This company has the same to the INDIA PRECISION TOOLS LTD.

SALESAND SERVICE SYSTEM:

Our products are marketed by Voltas Ltd(machine tools division) for domestic market and they have
office at all important locations NIDEC INDIA PRECISION TOOLS LTD has it service engineers at
important locating in India to satisfy the requirement of customers. MITUSUBISHI NIDEC INDIA
PRECISION TOOLS LTD conducts an awareness regarding products usage and new

28
PRODUCT DIFFERENTIATION:

⮚ Quality
⮚ Distribution timing

QUALITY:

The quality is the greater competitive advantages for NIDEC to dominate the cutting tools industry.

MARKETTESTING:

In this stage, market testing for the developed product has been gathered from focus groups. If
needed, company can invest on new technology to explore new material, advance technique or
digitalization.

MARKETINGAND LAUNCH:

Once the product has been produced effectively company plans to develop a comprehensive
marketing strategy to create awareness and generate demand for the product.

This stage includes all the promotional activities like advertising, trade shows and client dealings
etc

29
 2.4 FINANCE DEPARTMENT

MEANING OF FINANCE:

Finance is the life blood and centre of business just as circulation of blood is essential in human body
for maintaining life; finance is very essential for smooth running of the business. It has been rightly
termed as universal lubricant that keeps the firm dynamic.

FINANCE DEPARTMENT:
In NIDEC the finance department the major function department are as follows
A. Managerial function
B. Routine function

A. MANAGERIAL FUNCTION
• Investment (assistant mix)
• Financing (capital mix)

B. ROUTING FUCTION
For the effective execution of managerial finance function, that incidental or routine
functions have to be performed these decisions, the procedures involve lot of paper work and time.

FORMS OF THE ROUTINE FINANCE FUNCTIONSARE:

A. Supervision of cash receipts and payments and safeguarding of cash balance.

B. Custody and safeguarding of securities, insurance policies and other valuable papers.
C. Record keeping and reporting

30
FINANCEAND ACCOUNTS:
Internal controls are set to be achieving the following objectives.
i. Cost control
ii. Optimum use of resources
iii. Right advice at right time
iv. Prudent finance planning and forecasting
v. Working towards the goods goals of organization.

THE CONTROLACCOUNTING FUNCTION:

General ledger and its subsidiary ledger control.

i. Reconciliation of stock accounts

ii. Ledger accounts
iii. Excise duty of all accounts
iv. Review of all accounts
v. Valuation of inventory
Management information report such as, monthly current assets movements to monitor the inventory
levels and investment in other current assets monthly operation result quarterly half yearly unaudited
balance sheet are provided to the management for their review and decision making.

ACCOUNTING RECORDS:
The following books accounts are maintained.
⮚ Cash book
⮚ General ledger
⮚ Bank book
⮚ Journal book
⮚ Sundry creditors ledger for goods
⮚ Sundry creditors ledger for expenses
⮚ C&F agency deposit ledger
⮚ Others liabilities ledger
⮚ Fixed assets register
⮚ Sundry advance ledger
⮚ Sundry debtor register
⮚ Staff loans and advance consisting

31
 ⮚ Trade deposit and advances consisting
⮚ Materials ledger
⮚ Overhead ledger
⮚ Distribution expenses

INTERNALAUDITFUNCTION INCLUDES:
i. Verification of vouchers
ii. Verification of sales invoice
iii. Verification of purchase bills
iv. Verification of credit note/ debit note
v. Bank reconciliation
vi. Analysis of customers/suppliers ledger
vii. Internal calculation on cash credit accounts

Any difference/ variation on such verification are bought to the notice of the concern department head
and necessary rectifications were carried out immediately. No periodically audit reports are provided and
issued of any are discussed periodically sorted out.

Physical verification reports handwritten are provided as and when physical verification is carried
out. No significant differences were noticed during such verification.

DOCUMENTATION IN THE DEPARTMENT:

The following documents are maintained in the finance department such as

a) Purchase order
b) Goods received notes
c) Bills
d) Indent from the marketing department

32
BUDGET:

MEANING OF BUDGET:

A budget deposit how much an organization expects to spend (expenses) and earn revenues) over
time period. Amounts are categorized according to the type of business activity or account, such as
telephone costs or sales of catalogue. Budget not only help managers plan their finance, but also help
them keep track of their overall spending.

BUDGETARY CONTROL:

“Budgetary control is a process of comparing the actual results with the corresponding budget data in
order to approve accomplishment or to remedy differences by either adjusting the budget estimates or
corresponding cause the difference.”

ESSENTIALBUDGETARY CONTROL SYSTEM:

Thereare certain steps that necessary for the successful implementation of budgetary control system.
They are follows:

ORGANIZATION FOR BUDGETING:

i. Budget controller
ii. Budget committee
iii. Budget centrals
iv. Budget period.

CLASSIFICATION OF BUDGET:
i. According to time
ii. According to flexible

33
ACCORDING TO TIME:

A. Long term budget

B. Short term budget
C. Current budget

A.LONG TERM BUDGET:

Long term budgets are prepared to reflect long term planning. Generally the long term period various
between five to ten years they are prepared for specialized activities like capital expenditure, research
and development long term finance, etc.,

B.SHORTTERM BUDGET:
These budgets are generally for the duration of ten years and expressed in monetary term.

C.CURRENT BUDGET:
The duration of current budget is generally in months and weeks. The budgets are prepared for the
current operation of the business.

2. ACCORDINGTO FLEXIBILITY:
a. Fixed budget
b. Flexible budget

a. FIXED BUDGET:
A budget prepared on the basis of a standard or a fixed level of a fixed level of activity is
called fixed budged. It does not change in the level of activity.

b. FLEXIBLE BUDGET:
A budget designed in a manner so as to given the budgeted cost of any activity is termed as
flexible budgets. It is the prepared for various activities by classification for expenditures under
fixed. Various and semi fixed categories.

34
SIGNIFICANCEACCOUNTING POLICIES:

1. The financial statements are drawn up in accordance with the historical cost convention except
for the revalued cost for land, buildings, plant and machineries and on the going concern concept.
Accrual system of accounting is followed to record income and expenditure generally excepting
in the areas here in specifically mentioned.

2. Fixed assets acquired are shown at the cost of acquisition less where availed or revalued cost.

3. Investments are carried in the financial statements at cost. The company does not carry any
current investment.

4. Inventories are valued as specified here under:

Raw materials, stores and spares are valued at lower of cost and net realizable value. Cost is
ascertained on first out basis. Work-in-process is valued at lower of cost and net realizable value.
Loose tools are valued at cost.

5. Insurance on company‟s properties, immovable and movable is on re-instatement value basis.

6. Claims/income arising from price escalation and/or any other item of compensation which are in
determinate are accounted for on cash basis on acceptance by the partly claimed against as also
scrap sales proceeds.

35
ACCOUNTING FUNCTION:

• Theaccounts department is in charge for verifying drafted bills.

• This department is responsible for verifying purchase order with Goods Receivable Note.
• It is the duty of department to voucher the each and every credit and cash transaction in books of
accounts.
• Company never made cash purchase.
• It is responsible to file GSTR in due date of 11th and GSTR3B in the date of 20th every month.
• Thesales transaction have been taken place with e-way bills and e-invoices.
• The company deduct TDS includes Supply, Service, Salary Payments, Royalty for Technical
Services from Parent Company (Japan) on 7th every month.

SECRETARIAL FUNCTIONS:

• To filing financial date to department of Ministry of Corporate Affairs under the basis of
Annually, Half-Yearly, Quarterly and Monthly.
• To responsible to convening Board Meeting at least once in every three months, Annual General
Meeting(AGM) once in a year and Extra-ordinary General Meeting, if needed.

COSTING FUNCTION:

• To prepare costing on the basis of job/process.

• The costing has been done under the basis of process of Gear Cutting Tools Manufacturing and
process of Broaches.
• Preparemonthly profit and Loss Account.
• Valuation of Stock in category of Raw material, Consumables, Work in Progress and Finished
Goods.

36
SECRETARIAL FUNCTIONS:

• To filing financial date to department of Ministry of Corporate Affairs under the basis of
Annually, Half-Yearly, Quarterly and Monthly.
• To responsible to convening Board Meeting at least once in every three months, Annual General
Meeting(AGM) once in a year and Extra-ordinary General Meeting, if needed.

COSTING FUNCTION:

• To prepare costing on the basis of job/process.

• The costing has been done under the basis of process of Gear Cutting Tools Manufacturing and
process of Broaches.

ACCOUNTS DEPARTMENT:

Accounts department deals with day to day monetary functions of the company. The functions
of this department have been briefly discussed below:
The major activities of accounts department is to perform
1. Accounting
2. Financing
3. Secretarial
4. Costing

1. Accounting Function:
• Theaccounts department is in charge for verifying drafted bills.
• It is the duty of department to voucher the each and every credit and cash transaction in
books of accounts

• Company never made cash purchase.

37
 • It is responsible to file GSTR 1 in due date of 11th and GSTR3B in the due date of 20th
every month.
• Thesales transactions have been taken place with e-way bills and e-invoices.
• The company deduct TDS includes supply, Service, Salary Payments, Royalty for
Technical Services from Parent Company(Japan) on 7th every month.

2. Financing Function:

• Prepare monthly Profit and Loss Account.

• Valuation of stock in category of Raw material, Consumables, Work in Progress and
Finishe d goods.
• Recording all the Direct and indirect expenses.

3. Secretarial Function:

• To filling financial data to department of Ministry of Corporate Affairs under the basis
of Annually, Half-Yearly, Quarterly and Monthly.
• To responsible to convening Board Meeting at least once in every three months,
Annual General Meeting(AGM) once in a year and Extra-ordinary General Meeting, if
needed.

4. COSTING FUNCTION:

• To prepare costing on the basis of job/process.

• The costing has been done under the basis of process of Gear Cutting Tools
Manufacturing and process of Broaches.

38
FINANCIALINFORMATION:

The following are the current financial data gathered from the finance department under the financial
report 2022-2023:

DATA RATIO

CURRENT RATIO 19.47Times

DEBT-EQUITYRATIO 25Times

RETURNTURNOVER RATIO 3Times

TRADERECEIVABLE RATIO 5Times

TRADEPAYABLE RATIO 13Times

CAPITALTURNOVER RATIO 1Time

NETPROFIT RATIO 0%

RETURN ON CAPITAL EMPLOYED 3Times

39
2.5 STORE DEPARTMENT:

PRODUCTION
REQUIREMENT’S(MRP)

NO PURCHASE
CHECK STOCK
OREDER
YES
a) RAW MATERIALS
b) BOUGHT OUT
ITEMS
c) JOB OERDER

MATERIAL DISTRIBUTE

UPDATE STOCK

40
1.) PRODUCTION REQUIRMENT’S:

➢ Raw material are place major roles in the universal engineers to manufacture job to ICF items
i.e. Windows, Ducks, Nose cone of train, Door’s, Handle and Their need jobs.
2.) CHECK STOCK:

➢ Set a date and time for the stock take. ...

➢ Ensure your stock records are maintained and printed before the count starts. ...
➢ Count all physical items of stock. .
➢ Check suitable raw material to make jobs.

3.) PURCHASE ORDER:

➢ A purchase order is a legal document form used by a buyer and sent to a supplier for an order.
➢ A purchase order specifies items, quantities, prices, and credit terms for a purchase from the
vendor.
➢ A PO becomes a legally binding contract when a vendor accepts the purchase order.

4.) TYPES OF PURCHASE ORDER:

➢ Raw materials: Raw materials are materials or substances used in the primary production or
manufacturing of goods.

➢ Bought item: acquisition by the payment of money or its equivalent; buying, or a single act
of buying.

➢ Work order/Job order: A work order is a document that includes all the details of
maintenance tasks and outlines a process for completing those tasks.

41
5.) MATERIAL DISTRIBUTE:

➢ The Stores Department is performing the function of Materials Management to achieve the
objective of procuring goods of right quality in right quantity at right time form right vendor at
right price.

6.) UPDATE STOCK:

➢ Control inventory. You'll always need to keep your inventory at an optimal level for your retail
business growth.
➢ Develop modern management tools. You always need to innovate store management processes
and streamline them in the long term.

STORE DEPARTMENT ROLES AND RESPONSIBILITIES:

1.) Inventory Management:

⮚ Stock Control: Ensuring accurate stock levels by monitoring inventory levels, conducting
regular stock counts, and reconciling discrepancies.
⮚ Ordering and Replenishment: Placing orders for stock replenishment based on demand
forecasts and ensuring timely delivery of goods.
⮚ Supplier Management: Developing relationships with suppliers, negotiating terms and pricing,
and managing supplier performance.
⮚ Inventory Optimization: Analyzing inventory turnover rates, identifying slow-moving or
obsolete stock, and implementing strategies to minimize holding costs.
2.) Warehousing and Storage:
⮚ Storage Management: Organizing and optimizing warehouse space to maximize efficiency and
accessibility.
⮚ Handling and Packing: Ensuring proper handling, packing, and labeling of goods to prevent
damage and facilitate accurate picking and shipping.
⮚ Safety and Security: Implementing safety protocols and security measures to protect inventory
and personnel.

42
3.) Logistics and Distribution:
⮚ Order Processing: Processing incoming orders, picking and packing items accurately, and
preparing shipments for dispatch.
⮚ Shipping and Receiving: Coordinating inbound and outbound logistics, managing
transportation logistics, and overseeing shipping documentation.
⮚ Distribution Planning: Planning routes and schedules for deliveries to ensure timely and cost-
effective distribution.
4.) Customer Service and Support:
⮚ Internal Customers: Providing support to internal departments or teams by fulfilling their
requests for materials or supplies.
⮚ External Customers: Managing customer inquiries, fulfilling orders, and ensuring customer
satisfaction with timely and accurate deliveries.
5.) Documentation and Record Keeping:
⮚ Inventory Records: Maintaining accurate records of inventory levels, transactions, and
movements using inventory management systems or software.
⮚ Documentation: Handling paperwork such as purchase orders, delivery notes, and invoices,
and ensuring compliance with legal and regulatory requirements.
6.) Process Improvement and Efficiency:
⮚ Continuous Improvement: Identifying opportunities to streamline processes, reduce costs, and
improve efficiency in store operations.
⮚ Quality Assurance: Implementing quality control measures to ensure the accuracy and
integrity of inventory data and processes.
7.) Team Management and Supervision:
⮚ Staff Training: Providing training and development opportunities for store personnel to
enhance their skills and knowledge.
⮚ Performance Management: Monitoring performance metrics, setting objectives, and providing
feedback to improve team performance.
⮚ Workforce Planning: Planning and scheduling staffing levels to meet operational requirements
and seasonal demand fluctuations.

43
8.) Health and Safety:
⮚ Compliance: Ensuring compliance with health and safety regulations and promoting a safe
working environment for all store department personnel.

In summary, the store department plays a critical role in managing inventory, logistics, and customer
service operations effectively. By maintaining accurate inventory levels, optimizing warehouse
processes, ensuring timely deliveries, and providing excellent customer support, the store department
contributes.

44
2.6 PURCHASE DEPARTMENT:

45
1.) BILL OF MATERIAL:

➢ A bill of materials (BOM) is a comprehensive inventory of the raw materials, assemblies,

subassemblies, parts and components, as well as the quantities of each needed to manufacture a
product.
➢ In a nutshell, it is the complete list of all the items that are required to build a product.

2.) Material requirement planning:

➢ Material requirements planning (MRP) is a system for calculating the materials and components
needed to manufacture a product.
➢ It consists of three primary steps: taking inventory of the materials and components on hand,
identifying which additional ones are needed and then scheduling their production or purchase.

3.) PURCHASE REQUISTION:

➢ A purchase requisition is a document that an employee within your organization creates to request
a purchase of goods or services.
➢ When you fill out a purchase requisition, you are not yet purchasing anything. You are merely
beginning the process of a purchase by asking for internal permission.

4.) APPROVAL BY AUTHORIZED:

➢ Request received. Purchase requests are submitted to the procurement team either via email or
through the team's purchasing system. ...
➢ Review request. ...
➢ Reject or approve request. ...
➢ Create purchase order.

5.) REQUEST FOR QUOTATION(RFQ):

➢ A request for quotation (RFQ) is a business process in which a company or public entity requests a
quote from a supplier for the purchase of specific products or services.

6.) VALIDATION:

46
 ➢ Validate price
➢ Validate delivery date
➢ Validate quality and grade of material.

7.) NEGOTIATION:
➢ Procurement negotiation is a process by which professionals engage with each other to create
agreeable terms for a contract.
➢ Both parties typically discuss pricing, payment, delivery date, and timeline.

8.) DELIVER GOODS:

➢ Goods Received Note (GRN) is a record of goods received from suppliers, and the record is
shown as a proof that ordered products had been received.
➢ Moreover, the record is used by the buyer for comparing the number of goods ordered to the
ones delivered.

PURCHASE DEPARTMENT ROLES AND REPONSIBILITIES

The Purchase Department, also known as the Procurement Department in some organizations, is
responsible for managing the procurement process and ensuring that goods, services, and materials are
acquired efficiently, economically, and in accordance with organizational policies and regulatory
requirements. Here are the key roles and regulations typically associated with the Purchase Department

1.) Sourcing and Vendor Management:

✓ Identifying potential suppliers and vendors through market research and networking.
✓ Evaluating supplier capabilities, reliability, and financial stability to ensure quality and timely
delivery of goods and services.

2.) Negotiation and Contract Management:

✓ Negotiating prices, terms, and conditions with suppliers to obtain favorable terms while
maintaining quality standards and cost-effectiveness.
✓ Drafting and managing contracts with suppliers to define deliverables, timelines, payment terms,
and dispute resolution procedures.

47
3.) Purchase Planning and Forecasting:
✓ Collaborating with other departments to forecast demand and plan procurement activities
accordingly.
✓ Developing procurement strategies and sourcing plans to optimize inventory levels and minimize
supply chain risks.

4.) Order Processing and Fulfillment:

✓ Processing purchase requisitions and issuing purchase orders to approved suppliers.
✓ Monitoring order status, expediting deliveries, and resolving issues related to late deliveries or
discrepancies in quantity or quality.

5.) Supplier Relationship Management:

✓ Building and maintaining strong relationships with suppliers based on trust, communication, and
mutual benefit.
✓ Conducting supplier performance evaluations and providing feedback to suppliers to improve
performance and resolve issues.

6.) Inventory Management and Control:

✓ Coordinating with inventory or warehouse teams to ensure adequate stock levels based on demand
forecasts and lead times.
✓ Implementing inventory control measures to optimize inventory turnover, minimize carrying
costs, and reduce obsolete stock.

7.) Compliance and Risk Management:

✓ Ensuring compliance with internal procurement policies, procedures, and ethical standards.
✓ Adhering to legal and regulatory requirements related to procurement, including fair competition
laws, import/export regulations, and environmental standards.

8.) Cost Management and Budgeting:

✓ Monitoring procurement expenditures and analyzing spending patterns to identify cost-saving
opportunities.
✓ Developing and managing procurement budgets to ensure expenditures are within allocated
budgets and financial constraints.

48
 CHAPTER III

SWOT ANALYSIS

The SWOT Analysis for Nidec Corporation is given below:

Strengths:
1.Nidec Research and Development Center gets the "Green Electricity Certificate System".
2.Diversified portfolios with multiple subsidiaries.
3. Massive annual production capacity of over 3 billion units.
4.Financials of the company have shown consistent growth.
Weaknesses:
1. Exposed to key management and succession risk
2. Reliance on third party suppliers for raw materials.
3. Risks related to operations in overseas countries.

Opportunities:
1. Supply components and parts to support the growing trend of automation, data explosion,
decarbonization.
2. Acquiring shares of Mitsubishi Heavy Industries Machine Tools to support electric vehicle
traction units.
3. Strong growth opportunity in the electric motor industry.

Threats:
1. Change in demand of HDD drives.
2. Economic downturns in their international markets will negatively impact the revenue.
3.Defective products may lead to significant legal claims and disputes with customers.
4.Risk of leakage of confidential information.

49
 CONCLUSION

The conclusion is based on the analysis and observation can be prepared this report at the tools
industry working process.

The tools industry culture can be easily served to working at the organization. The tools industry
working employees maintains good relationship to co-workers.

This organization follows the rule and regulations strictly to maintain the employees and workers.
This industry has given lot of opportunity to get the job. This organization follows all the safety
measures, provides incentives, allowances and a satisfactory working atmosphere. The company can
be given the proper training.

50