A Project Report

On
JYOTI CNC AUTOMATION

Prepared By
Tank Prashant S.

Class
S.Y.B.B.A

Roll No.
32

Academic year
2008-09

Collage
Shree H.N.Shukla College of
IT & Management

Submitted To
Saurashtra University

Guide By
Mrs. Dina Kanani

1
 PREFACE

It is said that “Knowledge is power” but

“Applied knowledge is power” seems to be a correct
statement.

In this modern word, theoretical study has no value

without its practical application. Practical knowledge is more
powerful than the knowledge of books.

In this area of Globalization where every minute

India is moving a step ahead and expanding it horizontally,
management in India is heading towards a profession. The
demand for management’s professionals is increasing day by
day. It becomes a requirement to have an edge over others and
B.B.A is such a course, which helps and assists students in
doing that.

I visited an industry name “JYOTI CNC

AUTOMATION.” I have observed its location like
Manufacturing Process, Marketing, and Finance & Personnel
Management. I had prepared a Questionnaire and on the basis
of that I have asked various questions to concerned authorities.
After collecting this information I prepared my report with
help of my collage and the members of “JYOTI CNC
AUTOMATION”.

2
 ACKNOWLEDGEMENT
I feel great pleasure to present this before you. I
am thankful to all member of the unit who help me in guidance
and collecting necessary information.

I express my deepstense of gratitude towards of

collage PROF. DINA KANANI who have guided me in
preparing project report. And I am sure without their guidance
and support my report would be very difficult for me to
complete. The project report would be very difficult for me to
complete the project report with adequate information. I am
very thankful to our college staff member and my classmates
who have help me in collecting true and necessary information
and providing adequate & true guidance during the preparing
project report.

I am very much thankful to manager, officer of

the “JYOTI CNC AUTOMATION”. Who have provided has
proper guidance and necessary information about the unit,
which I am incorporated in this report.

Last but not least I am very thankful to my family

members who have encouraged to join this course and
provided me necessary help and motivation throughout the
year.

(TANK PRASHANT)

3
 DECLARATION

I am the undersign Tank Prashant S student of

S.Y.B.B.A. Declare that the project report of “CNC
MACHINE” undergone at “JYOTI CNC AUTOMATION”.
Frequently visited by me and data collected by me has been
curried out under the supervision of Prof. Dina kanani of Shri
H.N. Shukla Collage of IT & Management, Rajkot.

This work has not been previously submitted to any

other university examination.

Date: - student Sign

------------------------
Tank Prashant S.
[S.Y.B.B.A]

4
 INDEX

NO. PARTICULAR PG.NO.

1. GENERAL INFORMATION 06

2. PRODUCTION DEPARTMENT 17

3. PERSONNEL DEPARTMENT 25

4. MARKETING DEPARTMENT 43

5. FINANCE DEPARTMENT 57

6. FUTURE PLANS 66

7. CONCLUSION 68

8. SUGGESTION 70

9. SWOT ANALYSIS 72

10. BIBLIOGRAPHY 74

5
 GENERAL
INFORMATION

6
 INDEX

NO. PARTICULAR PG.NO.

1. COMPANY AT A GLANCE 8.

2. HISTORY AND DEVELOPMENT 9.

3. AWARDS 10.

4. EXHIBITION PARTICIPATION IN – 11.

2006
5. PLANT LOCATION 12.

6. SIZE OF THE UNIT & FIRM OF 13.

ORGANIZATION

7. AM, VISSION & MISSION 14.

8. TIME KEEPING SYSTEM 15.

9. ORGANIZATION STRUCTURE 16.

7
 COMPANY AT A GLANCE
NAME : JYOTI CNC AUTOMATION
PVT.LTD.

ADDRESS : G-506,GIDC.
VILL.MRTODA
DAIST.RAJKOT-360021(INDIA)

CONTECT : PH.: +91-2827-287081/82

FAX: +91-2827-287480
WEB SITE: www.jyoti.com

E-MAIL ID : [email protected].

YEAR OF ESTABLISHED : 1989.

FROM OF OGRANIZATION: PVT.LTD.

NO. OF EMPLOYEES : 500

C.E.O. : P.G.JADEJA.

BANKERS : CORPORTION BANK

HDFC BAKN
IDBI BANK

CHIEF PRAMOTORS :MR.PARAKRAM SINGH JADEJA

MR. SAHDEV SINGH JADEJA
MR. VIKRAM SINGH RANA

AREA OCCUPIED : 36000 sq. mtr.

8
 HISTORY AND DEVELOPMENT
JYOTI is the brain child of legendary. In 1989,
P.G.Jadaja the CEO of the company started the “Jyoti Enterprise”
with his cousin brother in hire room around 8X8 space at the
gondal road at that time they have only a lathe machine and a drill
machine thought these machines they do job work but up till now
the increasing growth rate of jyoti is very high due to intelligent
mind of P.G.Jadeja.

In April 2005 jyoti enterprise merged with JYOTI CNC

AUTOMATION PVT. LTD.

In the initial company produce 8 CNC machines per

month but in current position company produce 200 CNC
machines per month. The expend the business with 500 workers
around 36000 sq. meter.

The growth of different industries like automobiles

textile industry allied machinery diamond and jewelers industry
etc. are depended various key part used in it further the
manufacturing of this key components depended on CNC
processing so growth of above industry have given momentum to
the growth of CNC machines industries.

“To send a satellite in the space is very hard but after

gone one time in the space never it will come returns on the earth
from the space and never decrease its moving speed.”

The growth of jyoti is well received and acknowledges

by both Indian as well as foreign manufacturers the company
thoroughly exploited the liberalize market economics and has now
become a name in the international market too.

9
 AWARDS
2001 : Honored with the CMTI – PMT. Trust
awarded in “Imex – 01” for the best
innovative machine design Combater.

2001 : MACHINIST awarded the best stall in

“Imex – 01” at coimbator.

2002 : Award for “The Best Innovative

Technology” display at the show in
Ahmedabad.

2003 : Mr.P.G.Jadaja the CEO of the company

has recently achieved a national award
for “The Best Entrepreneurship” 2003
from his Excellency on ministry of
small industry, Govt. of India.

2004 : ‘CMIT - PMT’ trust award in Imtex –

2004 for the best innovative machine
designing of VMC 70 Linear.

2005 : “FIE Foundation” award for oval

turning machine [I - Sect] “Imtex - 4”.

2006 : In November, “Black Pear” award for

display & demonstration of Best
Innovation Technology at
‘EMGIMACH – 06’ Mumbai.

10
EXHIBITION PARTICIPATION
IN 2006
1. At Die mould, India 3 to 6 March.

2. At Emagly, Buenos, Aries, Argentina 18 to 23 May.

3. At Fimaly, Buenos, Aries, Argentina 30th May to 3rd

June

4. At AEMEE, Chennai, India 8 to 12 June

5. At INTEC, Coimbator, India 7 to 12 July.

6. At IMTS, Chicago 6th to 13th september

7. At BIMU, Millan, Italy 5 to 10 October.

8. At “The economic Times of India 2 to 5th November.”

And also they will go for take part in “IMTEX - 2007”

with 15 CNC machine in January-2007 BANGLOR.

11
 PLOCATIONANT L

Plant location is nothing but the exact site where

plant of the organization is established. Plant location is
important from the point of view of efficiency and
effectiveness of the unit. The location of the firm should be
choosing after considering several factors.

The plant of JYOTI CNC AUTOMATION PVT.

LTD. Is located at G.I.D.C. Lodhika, G-506, Village-Metoda,
Dist.Rajkot – 360 021, 13 km. Away from Rajkot.

The reason for locating the units at this place are as under:

 Government allots land at subsidized rate.

 Minimum local levies & taxes.
 Subsidized electricity supply.
 Tax benefit.
 Various incentives for setting up industry in that area.
 And other many small benefits may be.

JYOTI CNC AUTOMATION PVT.LTD. LOCATED

NEW LOCATION IS IN THIS TIME UNDER
CONSTRUCTION THERE IS 3, 00,000 Sq. Mtr.

12
 SIZE OF THE UNIT & FIRM OF
ORGANIZATION

The division of the unit with reference of the

investment in broadly done as.

Small scale : up to 3 Crore

Medium scale : between 3 to 100 Crore
Large scale : above the 100 Crore

Considering the above three type of industry

this company is classified as a medium scale because it’s
total capital in near about 50 crore.

JYOTI CNC AUTOMATION PVT. LTD. Was

estabilish as a tiny sector or small enterprise in the year
1989 and was incorporated as private limited in April –
2005.

13
 AIM, VISSION & MISSION

Every organization should hold Aim, Vision &

Mission. This will enable the organization to survive and
succeed in this competitive business world.

MISSION indicates the line of business of activity

and reflects the philosophy of its management.

AIM is a broad long term plan for bringing the

organization from present position to the desired position in
future.

VISION is the determination of the basic long term

objective of an enterprise & the adoption action & allocation of
recourses necessary to achieve these goals.

AIM, MISSION & VISION of the jyoti are as under:-

AIM : “Becoming no. 1 machine tool manufacturer in INDIA”

VISION : “A conscious corporation with an excellent to the

society”

MISSION : “propelling Technology prospering life”

“AIM TO GO WHERE YOU HAVE NEVER

BEEN BEFORE”
- SWAMI VIVEKAND

14
 TIME KEEPING SYSTEM

We all know that time schedule is very

important for today’s era. Time will never return gone one
time. So we can say it is the continue process. That‘s why
every organization has to try to maintain & manage time
according to their work.

So working time of organization is 8:30 am to

6:30 pm. In between this time 15 minutes tea break & 45
minute lunch break is given to them.

Total time:- 8 Hrs. per Day

26 Days of month
310 Days for Annual

RULES & REGULATION FOR TIME KEEPING

 Every worker has to gate their punch card from time

keeper by his own responsibilities at started of month.
 When they enter in the organization they have to
punch their punch card in machine and time will
recorded.

15
 ORGANIZATION STRUCTURE

“Organization is a process of identifying and

grouping of the work to be performed defining and
delegating authority & responsibility and establishing
relationships among the members of the organization
together in accomplishing objective”.

It includes a structure through which all the

persons in the organization can know their positions &
responsibilities and top management can easily co ordinate
with their personnel. Thus an organization structure means
a specific system through which co-ordination and enters
personnel relationship can be maintained.

16
PRODUCTION
DEPARTMENT

17
 INDEX

NO. PRATICULAR PG.NO.

1. INTRODUCTION 18.
2. USE OF PRODUCT 19.
3. RAW MATERIALS AND ITS 20.
SOURCES
4. MACHINERY USE IN PRODUCTION 21.
5. PRODUCTION PROCESS 22.
6. QUALITY ASSURANCE 23.
7. ENTERPRISE RESOURCE 24.
PLANNING

18
 INTRODUCTION

Production can be defined as “A sequence of

technical process requiring either directly or indirectly the
mental and physical skill of the craftsmen & consist of
changing the shape size and properties of materials and
ultimately converting them in to more useful articles”.

Production means creation of utilities and

covers all the activities of procurement allocation and
utilization of resources such as labor, energy material
equipments, machinery etc.

Production is a process of developed to

transform a set inputs link like man materials money
machinery energy in to a specified set of out put like
finished product and service in desired quantity and quality
in order to achieve objectors of the enterprise.

19
 USE OF PRODUCT

JYOTI has developed sophisticated design,

manufacture, and assembly capabilities of CNC machine to
meet the need to today’s industries.

The use of CNC machine is to manufacture &

Turing of different part or various key components of
various machine industries like…

 Automobiles
 Textiles industries
 Allied machinery
 Die & mould manufacturers
 Medical equipment
 Diamond & jeweler industries etc.

That‘s why CNC machine gives momentum to

above all industries.

Turning & Machining the oval profile was

complicity and this complicity converted in easy
operation in 2001 by the JYOTI by develop & design

20
 special type of CNC turning machine. This is the boon
for the above industries.

RAW MATERIAL & IT’S

SOURCES
In the production department the raw material
is a crucial task for the production. It has to be maintaining
according to the present and future requirement of the firm.

The raw materials which use for the

manufacturing of CNC machine are given as below.

 Sinumarik – 802 D
 Sinumarik – 810 D
 Sinumarik – 840 D

[With NCU 57.4 & PCU 50]

 Casting, also from out side

 L.M. guidvills
 Steel
 Guarding

And near about 70 % of parts which used in

production of CNC machine are manufactured by their
own.

21
 The market is very dynamic every moment
according to the situation is change. That’s why JYOTI
has fixed buyer for their raw materials. They go for raw
materials where they find good quality at reasonable.

MACHINERY USED IN
PRODUCTION

We all know that………

We can shape to any metal by the steel,

But make a shape to steel only by steel.

So, we can make anything through the machine

but for make
Machine, machine must require.

JYOTI has fully quipped & high technological

machines which are use for manufacture of CNC machine
as under:

1. 5 axis machining center

[From Nicolas –Korea]
2. D.M.E
[From USA]
3. Mitsusiky - Horizontal machining center
4. studat
5. E.L.B.

22
6. sensenaty
7. Bhown

PRDOCTION PROCESS CHART

Planning

Design by Design staff

Raw material & Equipment

Enter in the department

Inspection of raw material

Inspection of size

Raw material goes in to

Individual department

Machining

Assembling

23
 Checking

Packing

QUALITY ASSURANCE
JYOTI believes in the quote “quality is
avoidance of financial loss to society after the product is
shipped.”

JYOTI has enhanced quality tasting and

measuring capabilities that incorporate sophisticated
measuring equipment like CMM, roundness taster and
autocollimators.

ENTERPRISE RESOURCE OF
PLANNING
JYOTI is the first Indian machine tools
manufacturing in adopting SAR R/3. Enterprise resources
planning [ERP], which is a useful tool to make decision
drives the organizations over all performance.

It helps integrating customer order information

right from closing the sale order to the delivery of the
product at customer.

24
 “The first rule of any technology used in a
business is that automation applied to an efficient operation
magnifies the efficiency. The second in that automation
applied to and inefficient operation will magnify the
inefficiency”.
-BILLGATES

PERSONNEL
DEPARTMENT

25
 INDEX
NO. PARTICULAR PG.NO.
1. INRODUCTION 27.
2. STRUCTURE OF PERSONNEL 28.
DEPARTMENT
3. RECRUITMENT 29.
4. SELECTION 30.
5. INDUCTION 31.
6. TRANING AND DEVELOPMENT 32.
7. MANPOWER PLANNING 33.
8. PROMOTION AND TRANSFER 34.
POLICY
9. PERFORMANCE APPRAISAL SYSTEM 35.
10. WAGES AND SALARY 36.
ADMINISTRATION
11. WORKING OF ESI SCHEME 37.
12. STUDY OF PROVIDANT FULD 38.

26
 SCHEME
13. PERSONNEL RECORDS 39.
14. TRADE UNION 40.
15. GRIVANCE HANDLING PROCEDURE 41.

16. WALFARE OF PERSONNELS 42.

INTRODUCTION
Human resources are of paramount in the
success of any organization. The important component of
any company is its human resources or personnel. It is this
human resources which are of prominent important in the
success of any organization because most of the problems
in organization setting are human and social rather then
physical, technical, or economical. Due to vast important of
human resources it should be managed properly that’s why
personnel management is of prominent important.

ACCORDING TO ADWARD FILIPO :

“Personnel management is planning,
organization, directing, and controlling of the procurement
development compaction integration maintains and
separation of human resource ton the and that individual,
organization and social objective are accomplished.”

27
 “Management is the development of people
and not the direction of things”.

STRUCTURE OF PERSONNEL
MANAGEMENT

GENERAL MANAGER

PERSONNEL MANAGER

Training Time Customer R&D

Manager keeper supporter manager

28
 Workers

RECRUIRMENT
Recruitment is the process of searching for
prospective employment and stimulating them to apply to
the vacant jobs. There are three method of recruitment.

 Direct method
 Indirect method
 Third party method

And there are two sources of recruitment.

 Internal sources
 External sources

In JYOTI CNC, when any type of vacancy

arise the management decide that what type of skill &
experienced employees are require and they should be able

29
to sound develop or handle his task. The company
advertises in news paper according to the vacancies. In
advertise they write skill & experience which they need and
last they receive application.

SELECTION
Selection is the process of choosing the
individual who pusses the necessary skill, ability and
personality to successfully fill specific job in the
organization.

In the JYOTI selection of an employee at the

bottom level is according to technical skill and experience
but in cash of officers a long selection procedure is to be
followed….

 Application form
 Interview
 Physical testing
 Reference checking
 Final selection

30
 INDUCTION

Introduction is a welcoming process to the new

comer. It is a technique by which a new employee is made
familiar with practice policies and purpose followed by the
organization. It is to make a new comer look comfortable &
generate a feeling in him of his own job.

In JYOTI CNC the personal is information

about policies, rules & regulation of organization. He is
made known about his duties & responsibilities. The head
of the department does the formally of induction.

31
 TRAINING & DEVELOPMENT
Training is the corner stone of sound
management. It is an act of increasing the skill &
knowledge of a worker for doing a certain job.

Training and development holds a special

attention & place at jyoti.

CNC operators are equivalent to service

engineers after under going few years of training &
development activities that they provide each new
employee is brought up speedily. So that he can he
productive as quickly as possible & the training do not stop
here. They arranging various periodically training programs
that can help them to learn & practice their field of work in
department.

Their firm believes in the old saying……..

32
 “Give man a fish; you feed him for a day
teaches him how to fish; you feed for a life time.”

“The illiterate of 21st century will not be those

who can not read & write but those who can not learn
unlearn and relearn.”
- Alwin Toffler

MAN POWER PLANNING

Man power planning or human resource

planning is a process by which company ensures that it
has………

 Right no. of people

 Right kind of people
 At right time etc.

JYOTI has young them comparing of members

having an average age of less than 27 years.

Each of the functional term workers toward

making respective functional area as a “self sufficient
center” & “profit center.”

33
 The retention ratio of term member is nearly
99% which is far ahead of any industrial standards.In the
JYOTI there is 40% technical man power.

PROMOTION & TRANSFER

POLICY
A promotion is the transfer of an employee to a
job that pays more money or one that enjoys some
preferred status. Promotion is transfer to higher pay and
better work for merit, the making of them stimulates
employees to earn merit. A promotion is vertical move in
work and responsibilities.

According to Dale Yoder

“Promotion is a movement to a position in
which irresponsibility and prestiges are increase.”

Here Jyoti gives promotion to their employees.

The ratio of promotion is three years from the begging.

34
TRANSFER:

Transfer means a lateral shift causing

movement of individuals from one position to another
usually without involving any market charge in duties
responsibility and skill need of compensation. In Jyoti there
is no any written policy for transfer is frame. Jyoti CNC has
some branches at various places in India. That’s why many
times they need for transfer urgently. So it transfer to it’s
employees at any branch.

PERFOMANCE APPRAISAL
SYSTEM
Performance appraisal is a systematic
evaluation of an employee’s performance on the job in
terms of requirement of the job.

According to Flippo,

“Performance appraisal is a systematic

periodical and so for as humanly possible, an impartial
rating of on employee’s excellence in matter pertaining to
his present job and to his potentialities for a better job.”

In jyoti they appraisal of performance of

employee in term of his behaviors how much time is taken

35
by him how they reject the order of top management
absenteeism etc. in jyoti there is not specific format for
approval.

WAGE AND SALARY

ADMINISTRATION
Wages and salary administration refer to sound
policies and practice of practice of employee compensation.
The main purpose of wages and salary administration is to
establish and maintain and equitable wages and salary
structure.

There are two types of wage

 TIME WAGE
 PIECE WAGE

Under the time wage system wages arte

determined according to the time which worker spends on
the job.

36
 In jyoti they follow time wage system wages
plus incentive is given to the workers and salary is given to
the managerial or administration staff for their work. The
salary structure of this company is starting from 4000 and
up to 20000 Rs. Per month.

WORKING OF ESI SCHEME

ESI [employee state insurance] is one of the
most popular schemes for the employees. The ESI scheme
has been designed to the employee under the workman
compensation act of 1948.

Persons having Rs.3000/month salary are

eligible for ESI scheme. If any company has more than
1000 worker then ESI is compulsory this scheme include
sickness death benefit accident on duty etc.

In jyoti they don’t adopt ESI scheme for the

worker. They have general insurance and mediclaim of all
employees.

37
 STUDY OF PROVIDET FUND
SCHEME
Provident fund scheme is a king of savings.
Any company having more than 50 employees can joint
this scheme. This is a statutory scheme meant for welfare
of the employees. In India it was started in 1962 and
applied in all the industry. It is necessary for every
company to provide provident fund scheme to its
permanent employee.

In order to get the benefit of that scheme

employee should have completed continuous at list 90 days
service. Here in employee has to contribute 3.67% is for
provident fund while 8.33% is for pension scheme. An

38
employee gets 12% interest on the contribution of his
provident fund.

PERSONNEL RECORDS
Personnel Record meant to record of
information regarding the employees in files and
documents.

A separate is maintained in Jyoti in which

name, address, sex, educational qualification, etc. are
entered which serves as a permanent record of employees.

Also punch cards are used to record the

attendance of the employees.

39
 TRADE UNION
According to the Act of Trade Union of 1926,
“A Trade Union is an any combination of person whether
temporary or permanent preliminary for the purpose of
regulating the relation the relations between workers and
employees or between worker and worker and for imposing
restrictive condition on the conduct of any trade bus.” It is
the association of worker exposed in securing economic
benefits of its member.

Jyoti CNC automation Pvt. Ltd. Has no trade

union because company maintain cordial working
atmosphere among the workforce.

40
 GRIVANCE HANDLING
PROCEDURE
It is very difficult to define a grievance.
Dissatisfaction which is orally made known by one
employee to another, is known us a complaint. A company
becomes a grievance when this dissatisfaction which is
related to work, is bright it the notice of management. Laws
like National Commission of Labor, 1956 and 16th section
of Indian Labor Board, 1958 is adopted in order to handle
the grievance.

When arise any problem to the workers of their

organization they go for solution to their superior even they

41
can’t get satisfaction then they go direct to the top
management and some time meet direct with the CEO of
the company because here all the persons behave same type
of behavior.

WALFARE OF PERSONNELS
Employees are important assets of a unit. So,
for better work performance they should be motivated for
this they should be given not only financial incentives but
also non financial incentives and facilities.

Facility and benefit given to his employees by

this organization are as under…..

 They provide tea and free launch facility to all the

employees at factory.
 Provide uniform to them.
 Provide free transportation facility by buses.

42
 They provide insurance to all workers.
 Free saving account opened by the company to all
individual in HDFC bank and salary or wages given in
to direct their account.
 They provide medical facility. They also provide guest
room at factory to the out side workers.
 Monthly incentive and bonus by the company.
 They provide equipment of sports.
 Workers enjoying and celebrate all the festival with
top management and even some time with chairman.

MARKETING
DEPARTMENT
43
 INDEX
NO. PARTICULAR PG.NO.

1. INTRODUCTION 45.

2. ORGANIZATION OF MARKETING 46.

DEPARTMENT

3. PRODUCT PLANNING 47.

4. PRICING POLITY 48.

5. MARKET SEGMENTATION 50.

44
6. CHANNELS OF DISTRIBUTION 51.

7. CHART OF DSTRIBUTION 52.

8. SALES PROMOTION 53.

9. ADVERTISING 54.

10. MARKETING RESEARCH 55.

11. COMPETITIOR OF THE COMPANY 56.

INTRODUCTION
Marketing is the performance of the business
activity through which the goods and services are provident
from producers to customers. It is a very important function
for each organization.

“Marketing is a process by which individual

and group obtains that what they need. It is also defined as
the determination of the needs & desires.”

The JYOTI CNC expands their business in

India as well as foreign countries. So, different branches
can do the marketing. The core advantage of the company
is excellent technology which is adopted by it.

45
STRUCTURE OF MARKETING
DEPARTMENT

General Manager

Marketing Manager

46
Sales –Purchase Advertisement Officer
officer officer Research

Export – Import
Head

PRODUCT PLANNING
Production planning is very essential part of
marketing. A product plan is a company plane for
marketing its products. A product should be planned is such
a way that the customers desires maximum satisfaction.
Product planning includes product line product mix,
packing, labeling, product research & development
etc…….

JYOYI has got good product planning. The

company has potential market and so there is a perfect
planning about the product care is a taken for maintaining

47
the quality on time delivery and reasonable rate. The
company produces product as pr the order of the customer.

PRICING POLICY
Pricing decision play a vital role in the
development of any industries because pricing polity is the
only factory in marketing mix of any firm which produces
the revenue.

Factory affecting the price of product.

 Cost of production
 Normal profit
 Advertising cost

48
  Distribution cost
 Overhead expenses cost

As far as export pricing is concerned same is

absolutely different and many things are to be taken in to
consideration. They are as follows.

 Manufacturing cost
 Packing cost
 Transportation cost
 Loading and unloading cost
 Insurance cost
 Inspection cost
 Clearing and for warding cost

 Bank charges if payment is through A/c

 Miscellaneous cost
 Norma profit

JYOTI is successfully design and

manufacturing CNC machines. The cost of CNC machines
which are produced by the Jyoti is started from 15 lacks
and up to 1 crore.

49
 MARKETING SEGMENT
“Marketing segmentation consists of taking the
total heterogeneous market or segment each of which tends
to be homogeneous in all significant aspects.”

- William Stalon
-
Market segmentation can be of following
ways.

 Geographical segmentation

50
  Demographical segmentation

In case of Jyoti they segment of market

according to geographically. They try to develop CNC
machine in which area where CNC machine is not more
developd.

CHANNEL OF DISTRIBUTION
Channel of distribution is the chain of middle
man or marketing intermediaries that may help in
marketing product available to the final consumer product
may pass through this channel step by step and may
research to the final consumer.

JYOTI has a wide demand for its products but

it does not take any help from the middlemen or any other
selling or distribution agent. Due to potential market they

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supplies product directly to the customer. The head office
handles the foreign export distribution.

CHART OF DISTRIBUTION

52
 COMPANY

DISTRIBUTER

DISTRICT LEADER

DEAL LEADER

COSTUMER

SALES PROMOTION
In the other words of Masson and Ruth,

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 “Promotion consists of those activities that are
design to bring a company’s goods of services to the
favorable attention of consumers.”

Sales promotion is an important instrument in

marketing lubricant marketing efforts. Today sales
promotion is necessity. It is not expenditure. It is and
investment which pay rich dividends. It is and integral part
of marketing efforts. It covers all marketing activities like
advertising publicity and personnel selling that stimulate
consumer purchasing and dealer effectiveness.

JYOTI Has adopted various incentives to

increase the sales of its products such as they produce
guarantee or warranty and also provide fast service to their
customers and provide basic training for operate the
machine.

ADVERTISEMENT

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 Advertisement is the form of mass
communication it is the tool to aware the consumer about
the production of particular produce. According to a
Japanese industrialist. “A satisfied customer is the best
advertisement” and jyoti CNC also believe this type of
advertisement. This firm has no need to advertisement.
They give more and more belief to its customer and they
increase its market. But the Jyoti take part in exhibition fair.

MARKETING RESEARCH
In the words of Cardiff and skill….

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 Marketing research is a systematic gathering
recording and analyzing the data about market problems to
facilities decision making.

JYOTI is having a well versed and versatile in

house R&D division to keep the company with
international trends towards the automation manufacturing
excellence.

Active R&D team of Jyoti has achieved

outstanding success by developing TPM [Total Production
Maintenance] friendly machines CNC machine with linear
technology of higher dynamic and productivity in house
developed software like “POSTS” etc.

Instead of proposing a bare machine with the

help of R&D and application efforts jyoti believes in
providing solution to the customers. R&D expenses occupy
a major share in each of the budget projected by jyoti. It
invests 15% in R&D department and 85% in miscellaneous
expense.

COMPETITORS

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 Every business organization is bound to face
competition in this modern age of industrialization and
highest technical know how also.

This organization has some competitors in

India which are stand with jyoti CNC Company in market
near by 8-10 competitors are there India like……

 Mac power CNC

 Pitler Petra
 Frontiers Weisser
 Mazak CNC
 Manfort etc.

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 FINANCE
MANAGEMENT

INDEX

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NO. PARTICULAR PG.NO.

1. INTRODUCTION 59.

2. ORGANIZATION OF FINANCE 60.

DEPARTMENT

3. FINANCIAL PLAN 61.

4. CAPITALIZATION 62.

5. CAPITAL STRUCTURE 63.

6. MANAGEMENT OF FIXED ASSETS 64.

7. MANAGEMENT WORKING CAPITAL 65.

INTRODUCTION

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 Finance is one of the basis foundations of all
kinds of economic activities. It is a master key of business
and industry. Finance is regarded as the life blood of a
business organization. It said “Finance is the oil of the will,
marrow of bones and spirit of trade, commerce and
industry.”

According to Kenneth Midgley & Ronal State,

“Finance is the process of organizing the flow of

funds so a business can carry out its objectives as they fall
due.”

“Money is the pivot around which all economic

activities cluster”
- Prof.S.C.Kuchhar

The efficient of producing and marketing

operation is directly influenced by manner in which the
function of finance personal finance function assumes in
important role in the business system in JYOTI CNC
AUTOMATION.

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 STRUCTURE OF
MANAGEMENT

GENERAL MANAGER

FINANCE MANAGER

AUDITOR

CHIEF ACCOUNTANT

TREASURER CONTROLLER

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 FINANCIAL PLANNING
Planning process includes the selection of
objective and selection of policies programming and
producers to achieve the objectives. The basis purpose of
financial planning is to make sure that adequate fund are
raised or minimum cost and that they are used wisely. They
financial should be set up to provide for present needs and
future development.

There are 2 types of financial planning.

 Long term planning

 Short term planning

Jyoti has adopted both type of planning. They

plan for 5 years in advance. The 5 year budget proposes are
then divided per year and per month.

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 CAPATALIZATION
Capitalization of an organization comprises of
ownership capital & borrowed capital as represented by
longtime securities. It may also mean the total accounting
value capital stock surplus in whatever firm it may appear
and the refunded long debts.

Capitalization is of 3 type’s viz. normal

overcapitalization and under capitalization.

In Jyoti there is normal capitalization. The total

capital of Jyoti is as under.

PARTICULAR RS. [IN CRORE]

 Land and building 15

 Machinery 35
 Working capital 20
--------------
 Total assets 70

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 CAPITAL STRUCTURE
The structure of various sources is called capital
structure of company. Finance manager has to plan the
pattern and the capital structure and select the most
advantageous sources. Keeping view large capital structure
there are 2 basis forms of long term capital.

 Ownership capital
 Debt capital

JYOTI has 70 crore capitals out of this…….

Particular Rs.[crore]

 Owner ship capital 42

 From relatives 10
 Loanble capital 18
--------------
 TOTAL CAPITAL 70

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MANAGEMENT OF FIX ASSETS

Fix assets are distinguished from current assets

on the basis of their physical and economic Life. Fixed
asserts are permanent in nature and can not be converted in
to cash except at considerable loss. Efficient allocation of
capital is one of the most important functions of fixed
assets management. The financial manager of the company
is responsible for maintaining proper management fixed
assets.

JYOTI manager it’s fixed assets effectively

and also proper the budget to capital and investment
periodically they prepare a budget it 5 year at a stretch &
from that they decided yearly & monthly budget. They
count depreciation on fixed assets at the rate of 10%.

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 WORKING CAPITAL
MANAGEMENT

Working capital refers to that part of capital

which is not tied up in fixed assets but is used to meet the
day to requirements of business.

According to Bonneville….

Any acquisition of fund which increases the

current assets increases working capital for they are one
and the same.

There is mainly two type of working capital.

 Gross working capital

 Net-working capital

Inventory cash & receivable management are

key area of working capital management.

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FUTURE PLAN

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 FUTURE PLAN
Every company wants to develop its firm and
increase its production and earn profit.

The future plans of Jyoti CNC Company are to

increase its production and want to provide more
qualitative product and services to their customers.

Now, the company working in this direction. In

near future they start a new project with more capacity of
the production.

Through these plans, the company desire to

become No.1 machine tool manufacturer in India.

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CONCLUSION

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 CONCLUSION
After going through all the process of the unit,
I am concluding that unit is one of the best units
contributing in the state industries.

JYOTI CNC Company is very famous unit in

CNC machine industry. It is engaged in production of CNC
machine.

The unit is very efficient and has good credit in

the market. It is well managed by its top management. The
unit processes good efficient and co-operatives staff
member.

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SUGGESTION

71
 SUGGESTIONS

At now Jyoti CNC machine but just for the

turning. Here suggestion is that they have ability capacity
and also they have super technology. They’s why this
company has to start produce of other CNC machine
instead of just produce turning machine.

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 S.W.O.T.
ANALYSIS

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 SWAT ANALYSIS

I visited JYOTI CNC AUTOMATION. for taken

practical knowledge. S.W.O.T. analysis means strength,
weakness, opportunities and threats.

Strength :

The quality of the product is very good.

The are latest technology
The teams spirit of company are good.

Weakness :

Wastage of resources
Don’t research of market

Opportunity :

The company enjoys the leadership in local market so

it can expand its business more.

Threats :

In this type of the company there is risk of higher

investment.
In future cost of raw material is increased

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BIBILOGRAPH
Y

75
 BIBLIOGRAPHY

NO. BOOK PUBLISHER

1. B.S.SHAH
MARKETING MANAGEMENT PRAKASHAN

2. B.S.SHAH
ECONOMICS [B.B.A.] PRAKASHAN

3. FORMS OF BUSINESS PROF. S.P.SHAH

ORGANISATION

4.
WWW.JYOTICOM

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