CHAPTER 1

INTRODUCTION

Each and every organization has its own importance in the economic wealth of nation.
Different organization meets different needs people by offering different products and
service. Due to globalization the world has changed in to a global village each. In this fast
and changing business scenario, it is imperative for every entrepreneur to have a vivid
understanding of the functional application of the new age business .As a part of the
academic curriculum each student has to undertake an internship to get practical exposure.
This internship is conducted at Indian Rare Earth Limited, Chavara

IREL Chavara is located 10km north of Kerala and 85km from Trivandrum, capital of kerala
and 135km by Road from Kochi is perhaps blessed with the best mineral sand deposit of the
country. The IREL, chavara has a significant place in the industrial chart of kerala. The
chavara deposit contains Illmenite, Rutile, Leucoxene, Sillmanite, Zircon, Monazite and
Zirflour. These product have both domestic and international market. Since the cost of
production is low in kerala, products of IREL have captured in the market in the midst of
acute competition.

The deposit is quite rich with respect to ilmenite,Rutile and Zircon and the mineral ilmenite
happens to be of weatherdvarity analyzing 60%Titanium Dioxide(TIO2).The presently
production capacity of chavara unit engaged in dry as well as
wet(dredging/upgradation)mining and mineral separation stands at 200000 tons of
ilminite,114500 tons of Rutile,117500 tons of Zircons and 10000 tons of sillimanite.In
addition to that ,the plant has facilitates for annual production of ground Zircon called
Zirflour and microzir of the order of 6000 tons and 300 tons respectively.

IREL Chavara is one of the oldest and leading public sector undertaking under the
Department of Atomic Energy(DAE).It is an ISO 14001:2000;OHSAS 18000 Certified
company supplies beach sand minerals to the foreign and domestic market. It take the
requirement of developed countries like USA,UK,Germany,Australia,

1
1.1 OBJECTIVES OF THE INTERNSHIP

The main objective of the internship is to familiarize with a particular job profile in an
organization.

To get a practical exposure as the future manager.

To study the managerial activities performed in an organization.
To know the process and relevance of purchase department in IRE.
To gather information about purchase department in IRE.
To know how an organization coordinate its activities.

1.2 INDUSTRY ANALYSIS

Rare earths elements series of chemical elements of the periodic table.The rare elements with
atomic numbers 57 through 71.In the early years these elements where considered as rare
elements and so they are called as rare earth metals. Later many elements in these group were
found splendid, but there name remained unchanged.The primary source of rare earth
elements is greenish yellow colored mineral sand, Which is monazite .Its availability in
nature is confined to certain beaches and rock found in certain countries. The beaches
containing the monazite are found mixed with other minerals too. Most of these are ores for
valuable metals. An ore is a mineral form which metals can be separated economically. These
ore are Ilmenite, Rutile and zircon. Ilmenite and Rutile forms the ore for Titanium, Zircon for
Zirconium. Even though Aluminium bearing metal Garnet and sillimanite are also found
along with these beach sand minerals. But they are not commercially exploited for aluminium
production due to economic reasons. However granite and siliminate in there natural form are
commercially significant. Ilmenite which is black in color constitutes a major chuck of these
minerals presence of these minerals make the beaches appear black. These minerals are
commercially known as beach sand minerals or heavy minerals.

The origin of beach sand is from rocks,which are rich with heavy minerals. This particle
reachs are through rivers, sea level is not remained constant it is regarded that the sea level.it
is now really 100 meters above what we have seen 20000years ago. This white sand seen at
the beach are a contains the main constitutes as quartz. This is higher than black sand .as a
result of movement of the sea the sand will erode away and black sand will deposited. The
black sand thus deposited 100years ago is mined and processed.

2
Key success factors for the beach sand mineral industry are;

Increases the ilmenite capacity to reach economic scale of production

Value addition projects in minerals and rare earth compounds.
Initiate action to develop new mining areas.
Forward integrated through stake in world leader in pigment industry like
Tinfoss, selling up a pigment plant.
Explore other mining options in neighboring countries.
Social and political environment.

WORLD SCENARIO
Current demand is steadly increasing but may not be sufficient to support the projected
productions from all the new projects.The major mineral sand deposit of the world are spread
through out the different countries across the globe.major countries were the deposit are
found in Australia , China,France and India.

Australia : Australia remained one of the worlds major potential source of rare earth
elemants from its heavy minerals,sand and rare earth literature deposite.It is normally
recovered and separated during processing but in most cases either returned to tailing because
of a lack of demand or stored for future state.

China : China is building strategic resources in Rare Earth Metals,an effort that could give
by increased power to influence global prices and supplies in a sector.It already dominates
that China is responsible for aprroximately 975 of the worlds Rare Earth metals Mines
productions.

France : France focuses on its directions to become a development partner and supplier of
advanced materials,especially to the electronic and catalistsmarkets.Three new business units
in the rhodia , their structured to embrace the companies market focus- new markets ,
electronic and catalyst.the growth in added value products will be an extention of its core
business in rare earth technologies.

INDIAN SCENARIO

Indian has over 700Km costal line and has huge reserves of minerals in the beach sand. India
has large reserves of beach sand heavy minerals in the coastal stretches around the country
specifically in south west coast of Kerala and Maharashtra. Beach sand contains the

3
important heavy minerals such as llmenite , Rutile, Leucoxene ,Zircon,Monazite and
Sillimanite. IRE has situated various plants in different locations such as Bombay
(Maharashtra) ,Manvalakurichi (Tamil Nadu) ,Chatrapur (Orissa).Chavara and Aluva
(Kerala). There are some private companies also which are operating in India.

STATE SCENARIO

Kerala is best owned with a long coastal belt. Kerala state is endowed with a number of
occurrences or deposit of minerals such as heavy mineral sand ( llmenite , Rutile ,Zircon and
Sillimanite),China clay ,Silica sand , Lignit99e , Lime shell , Granite etc. The major mineral
based industries like Indian Rare Earth Ltd chavara ,Kerala Minerals & Metal Ltd (KMML)
chavara , Travancore cement Limited Kottayam , Kundara Ceramics Kollam, English India
ClayLtdPalayangadi,Kannur are some of the mineral based industries in the state. IREL itself
has got two plants in the state. One is at chavara and the other in Aluva. Chavara plant is
engaged in the processing of beach sand deposits available on the coast belt of Neendakara to
Kayamkulam.

Chavara beach with a width of 225m is divided into 8 block numbered 1 to 8 for separating
llmenite for the manufacture of TiO2. The blocks are apportioned between Kerala Mineral &
Metals Ltd, a state government undertaking and IREL , a goverment of India enterprise under
the Department of Atomic Energy.

4
 CHAPTER 2

ORGANIZATIONAL ANALYSIS

2.1 NATURE OF THE ORGANIZATION

2.1.1INDUSTRY PROFILE

Rare earths elements series of chemical elements of the periodic table. The rare elements are
with atomic numbers 57 through 71. In the early years these elements were considered as rare
elements and so they are called as rare earth metals. Later many elements in this group were
found splendid but their name remained unchanged. The primary source of rare earth
elements is greenish yellow coloured mineral sand, which is Monazite. Its availability in
nature is confined to certain beaches and rock found in certain countries. The beaches
containing the Monazite are found mixed with other minerals too. Most of these are ores for
valuable metals. An ore is a mineral form which metal can be separated economically. These
ores are Ilmenite, Rutile and Zircon. Ilmenite and Rutile forms the ore for Titanium, Zircon
for Zirconium. Even though Aluminum bearing metal Garnet and Sillimaniteare also found
along with these beach sand minerals. But they are not commercially exploited for Aluminum
production due to economic reasons. However Garnet and Sillimanite in their natural form
are commercially significant. Ilmenite which is black in colour constitutes a major chuck of
these minerals (60%) presence of these minerals makes the beaches appear black. These
minerals are commercially known as beach sand minerals or heavy minerals.The origin of
beach sand is from rocks, which are rich with heavyminerals. This sand particle reaches sea
through rivers. The sea level is not remaining constant. Itis regarded that the sea level. It is
now really 100 meters above what we had seen 20,000 yearsago. This white sand seen at the
beach area contains the main constitute as Quartz. This is lighterthan black sand. As a result
of movement of the sea this sand will erode away and black sand get deposited. The black
sand thus deposited 100 years ago is mined and processed.
In the year 1789 Fr. William George (1761- 1817) discovered Ilmeniteatknower in England
and stated that this black sand contains some important metal. But he failed todiscover which
metal it was. After several time, in the year 1875 the Hungarian scientist
MartinHeenWitchKlapporth found the same metal contains in the Rutile minerals about
which Fr.William George mentioned. After a series of investigations are found those metals
content asTitanium after Titan of Greek mythology.

5
Technology developed over the year has made the beach sand minerals tobeutilised in a
variety of industrial and domestic applications. Monazite was mainly used inthe gas mantle
industry. After the advent of electricity its demand decreased in the gas mantleindustry.
Ilmenite and Rutile are used in high temperature refactory industry, ceramics industryetc.
Zircon is used in foundries, ceramics, refectories and in the manufacturing of
Zirconiumchemicals, metals and alloys. Zirflour is used in foundries for high temperature
castings. Garnetis used in the manufacturing of abrassive polishing glass, TV tubes, for sand
blasting and forwater filtration. The beach sand mining and processing industry has vast
future because of theirdemand in nuclear industry too. In the present scenario of booming
economics like India andchina there is a huge demand for the beach sand minerals, Ilmenite
in particular.The current world production capacity of Ilmenite and other Titanium feedstocks
for production of Titanium Dioxide Pigment, Titanium metal, Welding electrodes etcisused
around 70 lakhs million tons per annum (tpa).
Approximately half of this from beach sandsand the balance from Ilmenite rocks mostly
found in Canada and Norway. In view of the limitedsupply of natural Rutile its share of
consumption in pigment production is rather small and 55%of its total availability of about 5
lakhs tpa is used in the non-pigment applications predominantlyin the production of welding
rods and Titanium metal. The present production capacity ofpigment in the world is just
above 4 lakhs tpa. North America is the largest producer with 37% ofthe global capacity.
Europe with 32% capacity is the second largest producer and Asia-Pacificregion with 21%
capacity is the third. The balance 10% distributed among the rest of the world.India has the
largest resources base of 278 million tones forIlmenite. This is the single largest and Ilmenite
and least exploited mineral deposit in the world.However 10% of this is only minerable
resources base in India for other minerals are:-
Minerals In Million Tones Contribution to theWorld
Rutile 18 10%
Zircon 21 14%
Monazite 8 7%
Sillimanite 130 25%
Ilmenite 107 35%

Table 2.1: Contribution of Minerals to the World

6
In India the installed production capacity for Ilmenite is around 5-2 lakh tpa (5-6% of global
Ilmenite production) and the production of Ilmenite and Rutile during 2004-05 was over 3-5
lakh tones and 1300 tons respectively.

Presently there are few private organizations engaged in the mining and mineral separation of
beach sand minerals. The Indian players at present are Transworld Garnet Private Limited,
VV minerals, Earth Minerals Private Limited, Tuticorn Titanium Resources and value
addition.

Ti Mineral TiO2 USD/Tones

Mineral feed stock

50-60 200-250
Ilmenite

Manufacturing feed stock

Stag 87 575
Syn Rutile 93 878

TiO2 Pigment
Rutile GR 99.8 3666
Antase GR 99.8 3333

Ti Sponge 99% Ti 11111

Ti Mill Productions 99% Ti 22222

Table2.2 Titanium Mineral in USD/Tonnes

It can be seen that value will be increased about 100 time through value addition natural
Ilmenite.

Key successes for the beach sand mineral industry are:-

Increase the Ilmenite capacity to reach economic scale of production.

Value addition project in minerals and rare earths compound.
Initiate action to develop new mining areas.
Forward integrate through stake in world leader in pigment Industry likeTinfoss,
DuPont or selling up a pigments plant.
Explore other mining o ptions in neighboring countries

7
2.1.2 COMPANY PROFILE

On August 18, 1950 Indian Rare Earths Limited (IREL) was incorporated as a private
limited company jointly owned by the govt. of India and Govt. of Travancore, Cochin with
the primary intention of taking up commercial scale processing of monazite sand at its first
unit namely Rare Earths Division (RED) Aluva and Kerala for the recovery of thorium.
After becoming a full-fledged central govt. undertaking in 1963 under the administrative
control of Department of Atomic Energy (DAE), IREL took over a number of private
companies engaged in mining and separation of beach sand minerals in southern part of the
country and established two ore divisions one at Chavara, Kerala and other at
Manavalakurichi(MK), Tamilnadu.

After a gap of 20 years IREL commissioned its largest division called Orissa Sand
Complex (OSCOM) at Chatrapur, Orissa. Today IREL operates these four units with
corporate office in Mumbai and produces/ sells six heavy minerals namely Ilmenite, Rutile,
Zircon, Monazite, Sillimanite and Garnet as well as various value added products IREL is
making profit for the last 6 years with its sales turnover reaching a peak exceeding Rs:
2600millions in 2000-01, with export component of above Rs: 1000 million.
Chavara plant is engaged in the processing of beach deposits available on the coastal belt of
Neendakara- Kayamkulam.
IREL shares are wholly owned by Government; of India. The board of management consists
of seven directors under the chairman ship of Mr. Siva Subramanian appointed by
Government; of India. There are three fulltime directors and four part time directors who are
nominated by DAE and state Governments in addition, nominee from the president of India
also participate in Board meetings. Approximately 2750 people are employed by IREL in all
units and they constitute one of its greatest resource.

8
2.1.3 ORGANIZATIONAL STRUCTURE

UNIT

HEAD

HOD HOD HOD HOD HOD HOD HOD HOD HOD HOD

PDN MKT PUR S&D MNG QCL HRM MED FIN IA

SH SH SH SH SH SH SH SH SH SH

PDN MKT PUR S&D MN QCL HR MED FIN IA

PDN MKT PUR S&D MN QCL HRM MED FIN IA

PERS PERS PERS PERS PERS PERS PERS PERS PERS PERS

9
DEPARTMENTS OF IREL

As in every successful business venture, the success of IREL depends upon a perfect
synchronization and co-ordination between the various departments of the huge monolith.
IREL is headed by Chief General Manager who hold the thread of the functioning of the
various departments. Each of the Department has a General Manager as its head & a Deputy
General Manager assisting him. IREL has separate Department Head for each Department.

1. Human Resource Department

2. Mining Department
3. Production Department
4. Quality Control Department
5. Purchase Department
6. Marketing & Sales Department
7. Management Information System Department
8. Store & Dispatch Department
9. Finance Department
10. Internal Audit Department
11. Civil Department
12. Project & Maintenance Department
13. Research & Development Department
14. Safety & Environment Department
15. Medical Department.

1. HUMAN RESOURCE DEPARTEMENT

IREL Chavara takes place its highly motivated and trained human resource that has
maximized its performance and there by its highest business growth and profit. Morale of
employees remains facilitating smooth working of the company. Skill requirement related to
different disciplines are identified and training programs and workshops are conducted to
improve overall efficiency of the human resource. Department structure as follow

10
 Unit Head

HOD (HRM)

SH SH SH
SH (HRM)-1 SH (HRM)-2 Legal service
Trainee Security
t

In charge In charge
Subordinates Subordinates Subordinates
(Forum) (Welfare & Time)

Subordinates Subordinates

Fig 2.1.1 Department structure of Human Resource

2. MINING DEPARTMENT

In IRE the raw material for production process are collected through mining process. The
production process starts with the collection of beach sand from various places. For collecting
this beach sand IRE uses the following two Methods: Sea Washing and dredging.

HOD (MINING)

SECTION HEAD

IN-CHARGE SURVEY IN-CHARGE DWUP IN-CHARGE DWC

DWUP OPERATOR MINING PERSONAL

Fig 2.1.2 Department structure of Mining

11
3. PRODUCTION DEPARTMENT

The main function of this department is to separate the minerals from raw sand using the
physical resources so as to provide desired utility to customer while meeting other
organizations objectives, efficiency and adaptability. IRE takes the nature boundary in the
form of beach sand and separates it to extract rare earths and minerals. These materials go for
a wide variety of products like ceramics paints, flints of lighters, detergent etc. IRE produces
the major beach sand heavy minerals like Ilmenite, Rutile, Zircon, Sillimanite, brown
Ilmenite and value added products like Zirflor and Microzir.

4. QUALITY CONTROL DEPARTMENT

One of the quality control departments is to ensure quality products according to customer
requirement. They harness beach sands in environmentally responsible manner to produce
minerals and innovative value added products, which are used to make novel products
required by customers.IREL Chavara got ISO 9001:2000 certifications for quality
management system established for mining, manufacturing and marketing of mineral
products for the certification body of TUV management service:

5. MARKETING AND SALES DEPARTMENT

Marketing occupies an important position in the organization of any business unit. Marketing
function necessary to satisfy the customer such as financing, storage risk bearing and after
sales services etc. Marketing is a vital connecting link between the producer and the
customer.

Objective of marketing department

Maximum turn over

Maximum profit
Maximum customer relation
Maximum customer satisfaction

Earlier IRE had the monopoly in the field of rare earth products. Now some private players
are present in the market. IRE is engaged in the production of minerals such as Ilmenite,
Rutile, zircon and Sillimanite from naturally available beach sand deposits. It also produces
like Zirflour and Microzir. On specific requirements of customers, company also supplies
Sillimanite powder by sub contracting among there Ilmenite, Rutile, , zircon are categorized

12
as scheduled minerals for which the customer is require to obtain license from the department
of Atomic Energy (DAE) Bombay of their purchase.

6. MANAGEMENT INFORMATION SYSTEM DEPARTMENT

The main function of MIS is to provide information to top management for the purpose of
decision making this department is responsible to collect information from the other
departments relating to their functions in the organization, and then giving relevant data to
the top management for taking decision. MIS is under the control of Deputy Manager

Functions:

1. To control document and record related to Quality Management System (QMS),

Environment Management System (EMS) and Occupational Health and Safety
Management system (OHSMS).

2. To organize internal Audit.

3. To arrange for the review of the performance of QMS,EMS and OSHMS
4. To define the procedure of significant analysis of environment aspects.

7. STORES AND DESPATCH DEPARTMENT

The stores department acts as a store and supply chain, keeping inventory of the product
produced on one hand and supplying requisite raw materials to the manifold department on
theother hand.

All the items in IRE are properly stored by this function area, including finished product
inventory. It stores furnace oil, machine parts, officeequipments and stationary etc.

Functions:-

Control of inventory.
Procurement of materials
Issue of material to different department
Record the rate of consumption
Issue of purchase requirement

13
8. FINANCE DEPARTMENT

The department is headed by a senior manager at unit level. He is reporting to Gm at Bombay

through Chief General Manager Chavara. Finance accounting package is in Oracle language
has been implemented at finance and Accounts division. The main function of this
department is to get all receipt and make all transactions to prepare final accounts. IREL
annual report is publishing from Bombay gives only consolidated figures of all units together.
Normally no annual report is published at unit level.

Functions:-

Maintain the accounts as per the provision of the sec 20 G of the companies act 1956.
Provide depreciation at the rate prescribed in schedule 14 of the companies Act 1956, on
straight line method.
To account excise duty on goods manufactured when it dispatched.
To ascertain the accrued gratuity liability of the company on the date of balance sheet.
To value finished goods at cost or market price whichever is lower, value stock of raw
materials, spares and chemicals using weighted average method.
Treat the claims against the company which are not admitted as contingent liability.

HOD (FINANCE)

SENIOR MANAGER

(ACCOUNTING)

SENIOR ACCOUNTS

OFFICER

ACCOUNTS OFFICER

STAFF

Fig 2.1.8 Department structure of Finance

14
9. INTERNAL AUDIT DEPARTMENT

Chief General Manager is directly looking after the functioning of internal Audit Department.
Manager (Internal Audit) is the head of the department. There are internal audit officers and
administrative officers other than accountants and clerks works in this department Inter audit
department is not regular in many of the companies. But in IREL this department is holding
special privilege of auditing in to every accounting matters of IREL. It is functioning in
accordance with finance department. It is necessary to get audit approved from internal audit
department for the finalization of anything concerned to accounts.

MANAGER

INTERNAL AUDIT
OFFICER

PERSONNEL

Fig 2.1.9 Department structure of Internal audit

10. CIVIL DEPARTMENT

Civil department consists of Dy. Manager (civil), two Dy. Officer and the work force. They
frequently monitor company structures and maintain them properly. In case of new projects,
the basic infrastructure has to be erected by this department.

Functions:-

To create infrastructure to facilitate smooth operation of the organization.

To carryout construction as per plans and maintain related record
To monitor and maintain company structure
To estimate the cost involved in the erection of new structure

15
 To report to finance department about the plans and cost involved in the construction
and maintenance of new structure as well as existing ones.

HOD (CIVIL)

SECTION HEAD

CIVIL DEPARTMENT
PERSONNEL

Fig2.1.10 Department structure of Civil

11. PROJECT AND MAINTENANCE DEPARTMENT

This department stands for the maintenance of machineries in plants. This department is
taking place daily inspection of the equipments; thereby they are able to understand the
efficiency of the machine by looking into the performance of the machines. Sometimes the
maintenance will go for 7days to 15 days.

Functions:-

To carryout preventive maintenance to ensure continuous capability and to attend

breakdown maintenance if any
Projects on mining area of IREL
Project on technological development
Project on quality assurance

12. RESEARCH & DEVELOPMENT

The company has well Equipped Research and Development Facilities to support flow sheet
development works and for solution to process related problems. The laboratory is equipped
with lab models of Magnetic Separator, High Tension Separators , wet Shaking Tables and
Forth Floatation Equipment etc.

16
Function:-

New product development

New compound development
Selection and evaluation of alternative method
Testing of new products
To analysis and assist plants in problem solving
Ensure quality of raw materials and finished products
Maintain quality
Research and development attempts

13. SAFETY AND ENVIRONMENT DEPARTMENT

This department looks after the safety issues of the manpower. This team is lead by
Manager (safety and environment). He is assisted by Dy. Manager (Safety and environment)
.There are staff to assist these officers.

This department provides personnel protecting equipments like safety shoes, gun boots,
helmet, goggles, mask, air muffs etc to workers from time to time. This department conducts
mines safety week during August- September month in every year. There will be competition
in safety slogan, safety song, safety speech etc. At induction level every employee gets an
intense training in safety issues. Under safety department there is a committee accident
inspection committee, to face unexpected accidents IRE has a safety and environmental
protection committee consists of unit head as chairman and all department /section heads as
members, employees union are also participating in the committee. This committee is
meeting in every month to evaluate safety measures and forms new policies if necessary.

14. MEDICAL DEPARTMENT

An effective and efficient medical department is functioning in IREL chavara .Every family
members of the employee is eligible for free attendance and treatment in the dispensary. Case
beyond the scope of the dispensary will be referred to major hospitals which are centered in
kollam and karunakappally .The whole payment in such cases are done by the company itself.
The dispensary is working around the clock.

17
Functions:-

To carryout medical examination of employees and their family members.

Examining compliance to environment requirement.

Senior manager (medical) is the top most authority of the medical department. Senior
Manager is followed by a Section Head/Lady Doctor. The department comprise of two
doctors, three pharmacists, three nurses/compounders, Laboratory Technician and an
Ambulance Driver.

15.SECURITY DEPARTMENT

Security of company assets and premises laid on the staff of security department It is lead by
security manager and he is assisted by 6 head security officers and 26 security guard The
security department gives security of company and also maintains the entry of employees and
visitors. According to ISO procedure they maintain the discipline of employees like uniform
visitors pass etc.

Two major threats they are present in IRE they are;

1. Sabotage
2. Theft

GM

Manager (Security)

Head Security

Security Guards (26)

Fig 2.1.15 Department structure of Safety &Environment Department

18
16. PURCHASE DEPARTMENT

The main function of department is procurement of materials at competitive price. All items
including real materials other than raw sand are purchased by this department. In IRE
purchase department has a prime importance

Functions:

To scrutinize department requisitions.

To issue enquiries or tenders.
To receive quotations.
To tabulate quotations and forward it to intenders and receive back recommendations.
To issue purchase order or work order.
To assist vendor evaluation.
To keep informed the department concerned about the lead time on all usual supply
situations

Formalities for placing an order:

1. Organization of an indent

2. Tender enquiry

3. Opening the tender at the due date

4. Make comparative statement

5. Send it for technical evaluation

6. Selection of the best one

7. If an negotiation needed it is done with party

8. Obtaining approval

9. Place the order

10.Follow up

Formalities of purchase:

1. Float inquiry to right source

19
2. Scrutinize the quotations

3. Obtaining the financial approval

4. Release an order

5. Flow up for times requirement

6. Receipt at the store

7. Assistance to give payment in time

HOD (PURCHASE)

SH (PURCHASE)

PURCHASE PERSONALS

WORK FORCE

Fig 2.1.16 Departmental structure of Purchase

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 2.2 VISION AND MISSION
VISION

To be a leading supplier of beach sand minerals from Asia by supplying 10% of the
world demand for beach sand minerals over the next 7-10 years. It would be achieved by
maximum utilization of existing capacities, new capacity addition, and capturing major
portion of the incremental growth in the global TiO2 feedstock demand and by
developing competitive value added Rutile, zircon, Sillimanite and garnet products that
make handsome contribution to revenue.
To become the preferred rare earths products supplier (producer and / or marketer) for
domestic customers to ensure long-term sustenance and profitability of rare earths
business and to achieve adequate efficiency in monazite processing as long as it is
necessary / worthwhile.

MISSION

To harness beach sands in an environmentally and socially responsible manner for

efficiently producing minerals and their traditional and innovative value-added products
of world-class quality, that are used to make increasingly superior / novel products
required by customers.
To play a dominant role in developing domestic rare earths market by producing and / or
marketing the quality value-added products to realize maximum potential of rare earths
in a range of applications.
To build a professional, creative and committed workforce and nurture an environment
that fosters learning, sharing and development.

2.3 PRODUCT PROFILE

IREL Chavara plant produces the major heavy beach sand minerals like Rutile, Zircon,
Sillimanite, and Ilmenite. The product range includes value added products like Zirflor and
Microzir.

21
 PRODUCTS AND THEIR RESPECTIVE USES IN IREL

Products Colour Uses

Manufacturing of TiO2
dull black
Ilmenite pigment synthetic Rutile
and Titanium slag

metallic black Fluxes for welding

Rutile
electrodes

Ceramics, Refractories and

Zircon sand Brownish yellow
foundries.

Sillimanite bluish white Refractories

Raw material for production

Monazite greenish yellow of Rare earth Component

Table2.3Products and their respective uses in IREL

2.4 FINANCIAL PERFORMANCE

IREL has fairly good record in its performance during the past decade. From 1997-1998
onwards all out team effort was taken to achieve name plate capacity for the mining and
mineral separation plants in all the three locations. Total sales turnover, share of export and
profit after tax started improved by leaps and bounds and the company recorded increasing
profit since then. In addition to production and financial performance, IREL has excelled in
the areas of marketing, safety and human resource management. In recognition of the
companys efforts, SCOPE awarded prestigious Silver trophy of SCOPE award for
excellence and outstanding contribution to the Public Sector Management Special
turnaround category for the year 1999-2000. During the year 2006-07, IREL posted all time
high sales turnover exceeding 3600 million with export component over Rs.1000 million and
all time high profit before tax of Rs.1000 million. It has also won Enterprise Excellence
awards from Indian Institute of Industrial Engineering, Hindi Rajbhasa Shield for the best
performance among PSUs under Department of Atomic Energy.

22
 CHAPTER 3
POSITION OF THE INTERN AND ROLE

3.1 STRUCTURE OF THE OFFICE-PURCHASE DEPARTMENT

The main work in purchase department is to regulate procurement of various items that
include land, buildings, vehicles, plant and machinery, equipment, furniture & fittings,
fixtures, spares, stores and materials etc. and to ensure that necessary works / service contract
including consultancy as required by indenter is in place with a view to: Helping and
maintaining continuity of production and other allied function by making available required
supplies and services in time as per user requirements. Ensuring that the supplies and services
are availed at most competitive price by taking into account their quality, durability,
efficiency etc.

DEPARTMENT STRUCTURE-PURCHASE

HOD (PURCHASE)

SH (PURCHASE)

PURCHASE PERSONALS

WORK FORCE

Fig 3.1.1 Department Structure of Purchase

The main function of department is procurement of materials at competitive price. All items
including real materials other than raw sand are purchased by this department. In IRE
purchase department has a prime importance

23
Functions:

To scrutinize department requisitions.

To issue enquiries or tenders.
To receive quotations.
To tabulate quotations and forward it to intenders and receive back recommendations.
To issue purchase order or work order.
To assist vendor evaluation.
To keep informed the department concerned about the lead time on all usual supply
situations

Formalities for placing an order:

1. Organization of an indent

2. Tender enquiry

3. Opening the tender at the due date

4. Make comparative statement

5. Send it for technical evaluation

6. Selection of the best one

7. If an negotiation needed it is done with party

8. Obtaining approval

9. Place the order

10.Follow up

Formalities of purchase:

1. Float inquiry to right source

2. Scrutinize the quotations

3. Obtaining the financial approval

4. Release an order

24
5. Flow up for times requirement

6. Receipt at the store

7. Assistance to give payment in time

3.2 DETAILS ABOUT THE ROLE OF THE INTERN AND THE

VARIOUS DUTIES AND RESPONSIBILITIES ASSIGNED TO HIM
WITHIN THE ORGANIZATION.
(a)Duties & Responsibilities assigned to the intern
In the beginning of internship started with a detailed explanation about the functioning and
environmental aspects of organization..The information regarding the various departments in
the organization was collected.The main work in purchase department is to regulate
procurement of various items that include land, buildings, vehicles, plant and machinery,
equipment, furniture & fittings, fixtures, spares, stores and materials etc. and to ensure that
necessary works / service contract including consultancy as required by indenter is in place
with a view to: Helping and maintaining continuity of production and other allied function by
making available required supplies and services in time as per user requirements. Ensuring
that the supplies and services are availed at most competitive price by taking into account
their quality, durability, efficiency etc.

The main function of production department is to separate the minerals from raw sand using
the physical resources so as to provide desired utility to customer while meeting other
organizations objectives, efficiency and adaptability. IRE takes the nature boundary in the
form of beach sand and separates it to extract rare earths and minerals. These materials go for
a wide variety of products like ceramics paints, flints of lighters, detergent etc. IRE produces
the major beach sand heavy minerals like Ilmenite, Rutile, Zircon, Sillimanite, brown
Ilmenite and value added products like Zirflor and Microzir.

The main manual work done in the purchase department are,vendorevaluation,record

purchase indent in purchase requisition register,send enquiry and order to the
registerdparties,prepare work order and tendor,maintain register for purchase
order,purchaseenquiry,vendorregistration,purchaserequisition,workorder,SPC,etc.

25
Objectives of purchase department

The primary objective of purchase procedure is to regulate procurement of various items that
include land, buildings, vehicles, plant and machinery, equipment, furniture & fittings,
fixtures, spares, stores and materials etc. and to ensure that necessary works / service contract
including consultancy as required by indenter is in place with a view to:
Helping and maintaining continuity of production and other allied function by
making available required supplies and services in time as per user requirements.
Ensuring that the supplies and services are availed at most competitive price by
taking into account their quality, durability, efficiency etc.
Developing effective and on- going vendor relationship to ensure fair play and
equality with transparency.
Training of purchase personnel, concerned officials of other departments in the latest
trends / practices of material management.

The materials / services obtained shall be:

of right quality
in right quantity
at right time
at right prices and
from right source

PURCHASE PROCEDURE

INDENTS
Items of supply/ work of similar nature shall be clubbed together to the extent possible prior
to initiating tendering action in order to stimulate competition and achieve utmost economy.
Indents shall be raised in the prescribed form by EIC/ OIC / Stores duly countersigned by
head of the department and approved by the competent authority as per delegation of power
after due verification of administrative approval required if any, availability of budget
provision etc.

26
 SELECTION OF APPROPRIATE PURCHASE MODE

Invitation to tender and instructions at enquiry stage are important step as the vendors offer is
based upon these instructions. Any ill-conceived and incomplete action at this stage results
not only in delays, but leading to incorrect purchase and hampers production. To improve the
system of ethics in tendering and other business dealings an undertaking is to be obtained
from all the bidders/ vendors/ suppliers, to the effect that they will not provide any gift and/
or influence any employee of the company in connection with securing any decision in their
favor. This should be included in GCOC of all tenders.

Tenders fall under following categories

(i) GLOBAL TENDERING (GT):

Global Tendering is Public tender except where items to be procured are not indigenously
available and procured from overseas sources.

(ii) PUBLIC TENDER (PT):

Advertisements for PT are to be released in minimum two prominent dailies, one in national
english daily and the other in local daily and attention of vendors who may be interested to
quote can be drawn with a request to participate in the PT.In cases where considering the
nature and value of work.

(iii)EARNEST MONEY DEPOSIT (EMD)

Earnest Money Deposit (EMD) is a deposit received from the tenderers in token of their
earnestness in submitting their offer to undertake the supplies/works/services/consultancy
contracts and conclude a contract if entrusted to them on the basis of their tender.

27
RECEIVING, OPENING AND CONSIDERATION OF TENDERS

RECEIVING
Tenders (including all received by post/ courier and personal delivery) shall be deposited in a
locked tender box with two different locks or lock can be opened using two different keys.
Two officers shall be nominated and each one will hold one key each. Nomination of officer
in case of corporate office & units shall be done by D (T) & Head of unit respectively.
Tender Committee members should maintain secrecy regarding the particular of the tender
received and about the proceedings of the committee.

OPENING:
Minimum 3 (three) offers from the parties who are in the line of supply/services are desirable.
However, in cases where this requirement (three parties in line of the supply/service) is not
available or is not fulfilled, the tender committee shall inform the same to head of
commercial department/ materials department. Head of commercial department / material
department shall take suitable decision to open the tenders with the approval of competent
authority by recording the reasons. No extension of due date is allowed in cases where there
is no change in scope or specification of tender and without approval of competent authority.

CONSIDERATION
A comparative statement (CS) of tenders is to be prepared by purchase department/technical
department irrespective of its value. CS should reflect the value of material on FOR-
Destination basis. In other words including all taxes, duties, levies, cess, packing &
forwarding, insurance, transportation, etc. shall be considered for determination of landed
cost. The credits on VAT, CENVAT, entry tax, etc. if any, are to be considered in
determining the landed cost.
Purchase department should only make a comparative statement on the basis of landed cost
including applicable taxes, duties, transportation charges etc without stating the L-1 status.
Indenter after examining the technical capability of offers shall certify the L-1 status.

28
DEPARTMENT STRUCTURE - PRODUCTION

HOD
(PRODUCTION)

SH (PRODUCTION)

SHIFT IN-CHARGE SH
(PROCESS CONTROL)

SHIFT ENGINEERS

PRODUCTION DEPT.
PERSONNELS

Fig3.2 Department Structure of Production

Functions of Production Department

Prepare detailed raw material plan and ensure the incoming raw material quality
and proper usage.
Constantly evaluate alternative sources of raw material and help management to
firm-up sources.
Prepare detailed production plans consistent with company's production objective
and control the implementation of the same.
Co-ordinate with consumer service department and to take corrective actions from
the point of quality assurance to the customers.

29
 Ensure implementation of safety measures in the preparation of equipments and
process to avoid dangers to. the structures, equipments and men.
Carry out investigations and guide management as long term measures towards
achievement of the goal of expansion in the area of production and quality.

Production Process

The basic input for production process is raw sand. There are two processes for the
pllection of raw sand. They are:

Beach Washing

Dredging

Beach Washing

Due to wave action of sea, the beach sand containing minerals get deposited and it is
collected and Transported by tippers, these beach sand which sea pushes to coastal area
contains 55-60% minerals.

Dredging

IREL uses plaint /facilities i.p. DWUP1, DWUP2, DWUP3 for the mechanized
recovery of minerals from sand. DWUP consists of a floating dredging plant operated and
electrically which could be moved from one place to another based on requirement. The
plant is floating in an area having a water depth of 6m. The sand along with water In the form
of slurry is pumped to the heavy up-gradation equipments. The equipment consist of a series
of transfer bins, rotating screens called Trammel, Spiral separators, hydro Cyclones, Pumps
all being electrically operated.

The DWUP can be drudge about 120 MT/Hour by simultaneously upgrading the
concentrate at the rate of 30 MT/Hour with 85-90% heavy minerals. The waste sand (Quartz)
from DWUP is used for backfill the dredged area.

The concentrate from DWUP is fed to the Heavy Upgrading Plant (HUP) and
upgraded to 93-96%. The raw sand collected through sea washing is blended with the
upgraded heavies from DWUP before feeding to HUP. At HUP the heavies are further
upgraded and split into magnetic heavies and non-magnetic heavies that contain the minerals
to be separated. These two inputs from HUP are hydraulically transported in the form of

30
slurry to separate yards (magnetic yard or non-magnetic yard) where the water content is
allowed to seep and flow back to the HUP pond for recycling and use at HUP.

The annual production capacity of Chavara plant is:

Product Quantity in MT

Imenite 28593

Zircon 1738

Rutile 993

Sillimanite 6944

Monazite 156

Table 3.1 Annual production capacity of Chavara plant

31
PRODUCTION PROCESS

Beach wastes Conveyors Screens 30 T Bin

Middling Primary Aspirals

Cup Spirals

Seavenger Spirals

Waste Midddlings Tail

Plant QIL Conducting

IRMS

ILMENITE CBMS IRMS

HTS

IRMS To NC Circuit

Floatex
Routile IRMS

Spirals

Fig 3.2.2 Production process flowchart

3.2(b) Department alloted & reporting to whom

The Deputy HR manager Mrs.Sujatha Menon allotted me to work in the Purchase department
of IREL, Chavara.There is a Deputy General Manager and Senior Manager.I reported my
daily reports to Mr.Pramod P. Mani,Senior Manager,Purchase Department.

32
33
 CHAPTER 4

DETAILS ABOUT THE INTERNSHIP

4.1WEEKLY ACTIVITY

DATE FROM: - DATE TO: -

4TH JULY 2016 8TH JUL2016
DAY & DATE TIME TASKS ASSIGNED TASKS COMPLETED OBSERVATIONS
Safety induction and Safety induction and Studied
overall organizational overall organizational Organizational
MONDAY, 4th JULY 9AM 4PM study study Structure
Operations/Production
department induction Operations Got an overview
& visit to HUP plant & Department induction on various plants
TUESDAY, 5th JULY 9AM 4PM site & visited HUP plant of IRE
Studies different
WEDNESDAY, 6th Visit to Illumnite plant Visited illumnite plant process of filtering
JULY 9AM-4PM site site Illumnite
Understood the
Production Production production
department report department reports department
THURSDAY, 7th JULY 9AM 4PM analysis are analyzed responsibilities

Induction at Induction at Studied different

Production production methods to
department & visit to department & visited process the
FRIDAY, 8th JULY 9AM 4PM MSP plant & site MSP plant & site minerals

REMARKS OF INDUSTRY GUID: MR.PRAMOD P MANI(PURCHASE DEPARTMENT) GOOD

Table4.1 Weekly activity 1

34
DATE FROM:- DATE TO:-
11th JULY 2016 15th JULY 2016
DAY & DATE TIME TASKS ASSIGNED TASKS COMPLETED OBSERVATIONS
To enter datas of Entered datas of Studied how to
comparative comparative enter the data in
MONDAY,11th 9AM statement of statement of comparative
JULY 4PM quotations/tender quotations/tender statement
To prepare Supplier Supplier evaluation 24 datas of
Evaluation sheet is prepared vendors are
sheet(above based on three entered and
TUESDAY, 12th 9AM Rs.50000) of year indexes enquiry, evaluated their
JULY 4PM 2016 delivery and quality performance
To prepare Supplier Supplier evaluation 32 datas of
Evaluation sheet is prepared vendors are
sheet(below based on three entered and
WEDNESDAY, Rs.50000)of year indexes enquiry, evaluated their
13th JULY 9AM-4 PM 2016 delivery and quality performance
To enter enquiries Entered enquiries Enquiries are
THURSDAY, 9AM of materials in the of materials in the entered in
14th JULY 4PM enquiry register enquiry register enquiry register
To enter purchase Entered purchase Purchase orders
orders in the orders in the are entered in
FRIDAY, 15th 9AM purchase order purchase order purchase order
JULY 4PM register register register

REMARKS OF INDUSTRY GUIDE :MR. PRAMOD MANI(PURCHASE

DEPARTMENT) GOOD

Table4.2 Weekly activity 2

35
DATE FROM: - DATE TO: -22NDJULY
18TH JULY 2016 2016
DAY & DATE TIME TASKS ASSIGNED TASKS COMPLETED OBSERVATIONS
To enter datas of Entered datas of
comparative comparative Datas are entered
th
MONDAY,18 statement of statement of in comparative
JULY 9AM 4PM quotations/tender quotations/tender statement
To sort the Bills of
TUESDAY, 19th Furnace oil of year Bills sorted of years Sorted
JULY 9AM 4PM 2013-2016 2013-2016 successfully
Introduction to
purchase Purchase Study of purchase
WEDNESDAY, management management is Management
20th JULY 9AM-4 PM system studied system
To enter enquiries Entered enquiries of Enquiries are
THURSDAY, of materials in the materials in the entered in enquiry
21st JULY 9AM 4PM enquiry register enquiry register register
To enter purchase Entered purchase
orders in the orders in the The format of
nd
FRIDAY, 22 purchase order purchase order purchase orders
JULY 9AM 4PM register register are studied

REMARKS OF INDUSTRY GUIDE :MR. PRAMOD MANI(PURCHASE

DEPARTMENT) GOOD

4.3 Weekly activity 3

36
DATE FROM: - DATE TO: -
25TH JULY 2016 29TH JULY 2016
DAY & DATE TIME TASKS ASSIGNED TASKS COMPLETED OBSERVATIONS

To enter enquiries of Entered enquiries of Enquiries are entered

MONDAY, 25th materials in the enquiry materials in the enquiry in enquiry register
JULY 9AM 4PM register register
Purchase orders are
To enter purchase Entered purchase orders entered in purchase
TUESDAY, 26th orders in the purchase in the purchase order order register
JULY 9AM 4PM order register register

To enter datas of Entered datas of Comparative statement

WEDNESDAY, comparative statement comparative statement of preparation is studied
27th JULY 9AM 4PM of quotations/tender quotations/tender
Studied how to check
THURSDAY, 28th To check cumulative Checked cumulative cumulative records
JULY 9AM 4PM records of annual rate records of annual rate annual rate

To enter enquiries of Entered enquiries of

th
FRIDAY, 29 materials in the enquiry materials in the enquiry Enquiries are entered
JULY 9AM 4PM register register in enquiry register

REMARKS OF INDUSTRY GUIDE :MR. PRAMOD MANI(PURCHASE DEPARTMENT) GOOD

Table4.4 Weekly activity 4

37
DATE FROM: - DATE TO: -
1TH AUG 2016 5TH AUG 2016
TASKS TASKS
DAY & DATE TIME ASSIGNED COMPLETED OBSERVATIONS

To enter datas Entered datas of

of overtime work overtime work in Studied how to
in overtime overtime store datas of
MONDAY, 1th 9AM monitoring monitoring record overtime work
AUG 4PM record

To enter details Entered details in

in overtime Entered details in overtime payment
TUESDAY, 2th 9AM payment overtime payment certificate
AUG 4PM certificate certificate
CITU Strike in Observed different
WEDNESDAY, 9AM CITU Strike in company unions in the
3th AUG 4PM company company
Production
THURSDAY, 9AM To enter production Entered production comparison is
4th AUG 4PM comparison details comparison details done
CITU Strike in
FRIDAY, 5th 9AM company
AUG 4PM CITU Strike Lockout

REMARKS OF INDUSTRY GUIDE: MR. Good

PRABHU(PRODUCTION DEPARTMENT)

Table4.5 Weekly activity 5

38
 DATE FROM: - DATE TO: -
8TH AUG 2016 12TH AUG 2016
TASKS TASKS
DAY & DATE TIME ASSIGNED COMPLETED OBSERVATIONS
To enter details of
breakdown
analysis Breakdown
Entered details of analysis is
MONDAY, 8th 9AM break down studied
AUG 4PM analysis

To enter details Studied how to

in overtime Entered details in monitor overtime
TUESDAY, 9th 9AM payment overtime payment payment
AUG 4PM certificate certificate
To enter datas of Entered datas of
overtime work in overtime work in Overtime work
overtime overtime records are
WEDNESDAY, 9AM monitoring record monitoring record monitored
10th AUG 4PM
To enter Production
production Entered comparison on
THURSDAY, 9AM comparison production each day is
11th AUG 4PM details comparison details analysed
Production
To enter comparison on
production Entered each day is
FRIDAY, 12th 9AM comparison production analysed
AUG 4PM details comparison details

REMARKS OF INDUSTRY GUIDE: MR.

PRABHU(PRODUCTION DEPARTMENT) Good

Table4.6 Weekly activity 6

39
 DATE FROM: - DATE TO: -
15TH AUG 2016 19TH AUG 2016
TASKS TASKS
DAY & DATE TIME ASSIGNED COMPLETED OBSERVATIONS

MONDAY, 15th 9AM

AUG 4PM
HOLIDAY

To enter
Entered enquiries Enquiries are
enquiries of
TUESDAY, 9AM of materials in the entered in enquiry
materials in the
16th AUG 4PM enquiry register register
enquiry register

To enter
Purchase orders are
purchase orders Entered purchase
9AM entered in purchase
in the purchase orders in the
4PM order register
order register purchase order
WEDNESDAY, ,To enter the register ,Entered
17th AUG STR number STR number
Comparative
To enter datas Entered datas of statement
9AM
of comparative comparative preparation is
4PM
THURSDAY, statement of statement of studied
18th AUG quotations/tender quotations/tender
To enter
enquiries of
Entered enquiries of
materials in the
materials in the
enquiry register Purchase orders are
enquiry register and
FRIDAY, 19th 9AM and enter entered in purchase
entered purchase
AUG 4PM purchase orders order register
orders in the
in the purchase
purchase order
order register
register

REMARKS OF INDUSTRY GUIDE: MR. PRAMOD

Good
MANI(PURCHASE DEPARTMENT)

Table4.7 Weekly activity 7

40
 DATE FROM: - DATE TO: - 26TH
22ND AUG 2016 AUG 2016
TASKS TASKS
DAY & DATE TIME ASSIGNED COMPLETED OBSERVATIONS
Entered enquiries of
To enter
materials in the
enquiries of Enquiries are
materials in the enquiry register and
entered in enquiry
enquiry register entered purchase
register and
MONDAY, 22th 9AM and enter orders in the purchase orders
AUG 4PM purchase orders purchase order are entered in
in the purchase register purchase register
order register

To enter
Entered enquiries Enquiries are
enquiries of
TUESDAY, 9AM of materials in the entered in enquiry
materials in the
23th AUG 4PM enquiry register register
enquiry register

Comparative
To enter datas Entered datas of statement
9AM
of comparative comparative preparation is
4PM
WEDNESDAY, statement of statement of studied
24th AUG quotations/tender quotations/tender

To enter Entered purchase Purchase orders are

9AM
purchase orders orders in the entered in purchase
4PM
THURSDAY, in the purchase purchase order register
25th AUG order register register
To enter
enquiries of
Entered enquiries of
materials in the
materials in the
enquiry register Enquiries are
th enquiry register and
FRIDAY, 26 9AM and enter entered in enquiry
entered purchase
AUG 4PM purchase orders register
orders in the
in the purchase
purchase order
order register
register

REMARKS OF INDUSTRY GUIDE: MR. PRAMOD

MANI(PURCHASE DEPARTMENT)
Good

Table4.8 Weekly activity 8

41
DATE FROM:-29th AUGUST 2016 DATE TO:-31st AUGUST 2016

Day and Date Time Task assigned Task completed Observations

Monday 29th 9am -4pm Work order Entered work Work order
Aug register entry order in register entries are
2016 entered

Tuesday 30th 9am -4pm Purchase order Prepared A new format is

Aug preparation and purchase order prepared for
2016 sorting and sorted purchase order

Wednesday 31st 9am -4pm Purchase Entered Purchase

Aug 2016 requisition purchase requisition is
register entry requisition in entered in
register register

REMARKS OF INDUSTRY GUIDE MR. PRAMOD P MANI Good

(PURCHASE DEPT.)

42
4.2 CONTRIBUTION OF THE INTERN TO THE ORGANIZATION

In the beginning of internship started with a detailed explanation about the functioning and
environmental aspects of organization. The work assigned were able to complete on time
.The information regarding the various departments in the organization was collected.The
main work in purchase department is to regulate procurement of various items that include
land, buildings, vehicles, plant and machinery, equipment, furniture & fittings, fixtures,
spares, stores and materials etc. and to ensure that necessary works / service contract
including consultancy as required by indenter is in place with a view to: Helping and
maintaining continuity of production and other allied function by making available required
supplies and services in time as per user requirements. Ensuring that the supplies and services
are availed at most competitive price by taking into account their quality, durability,
efficiency etc.

The main function of production department is to separate the minerals from raw sand using
the physical resources so as to provide desired utility to customer while meeting other
organizations objectives, efficiency and adaptability. IRE takes the nature boundary in the
form of beach sand and separates it to extract rare earths and minerals. These materials go for
a wide variety of products like ceramics paints, flints of lighters, detergent etc. IRE produces
the major beach sand heavy minerals like Ilmenite, Rutile, Zircon, Sillimanite, brown
Ilmenite and value added products like Zirflor and Microzir.

The main manual work done in the purchase department are,vendorevaluation,record

purchase indent in purchase requisition register,send enquiry and order to the
registerdparties,prepare work order and tendor,maintain register for purchase
order,purchaseenquiry,vendorregistration,purchaserequisition,workorder,SPC,etc.

4.2.1Initiatives and Responsibilities given

Upload the details of registered vendors in the system

With a view to establish reliable source for procurement of goods and services the unit will
prepare and maintain item wise list of eligible and qualified suppliers/contractors for approval
of competent authority. Such list of suppliers/contractors after approval of competent
authority will be known as registered vendors. Firms desirous of registration including
those registered with DGS&D, MSME, NSIC, Director of Small Scale Industries and

43
Ancillaries attached to other PSUs Central/ State Govt. Departments shall be issued Vendor
Registration Form in prescribed format or they can be asked to download the same from the
website(in case of indigenous suppliers).
Prepared the list of unsuccessful bidders(in the month of April-June) that there
EMD should be remitted. (purchase order above 2lakh)

Earnest Money Deposit (EMD) is a deposit received from the tenderers in token of their
earnestness in submitting their offer to undertake the supplies/works/services/consultancy
contractsand conclude a contract if entrusted to them on the basis of their tender. EMD of
unsuccessful bidders should be returned immediately after finalization of order but not later
than 30 days after the finalization of order. However, EMD may be adjusted against security
deposit of the party on whom order is being released.
Prepared comparative statement

A comparative statement (CS) of tenders is to be prepared by purchase department/technical

department irrespective of its value. CS should reflect the value of material on FOR-
Destination basis. In other words including all taxes, duties, levies, cess, packing &
forwarding, insurance, transportation, etc. shall be considered for determination of landed
cost. The credits on VAT, CENVAT, entry tax, etc. if any, are to be considered in
determining the landed cost.
Prepared fort night review

Prepare fort night review list regarding the No. of purchase order, No. of enquiry, No. of
receipt voucher, No. of work order, No. of purchase Requisition, etc. in the month of
march,April,may and july.

Prepared register for the vendors that responded for vendor Registration
Advertisement

Vendors approaching IREL for registration can be classified as under: Manufacturer who
supply indigenous items. Agents/ Distributors of such manufacturers, who desire to market
their products only through their agents. Foreign manufacturer with/without their accredited
agent(s) in India.
Entered the indent and enquiry details in the purchase requisition register

Indents shall be raised in the prescribed form by EIC/ OIC / Stores duly countersigned by
head of the department and approved by the competent authority as per delegation of power
after due verification of administrative approval required if any, availability of budget

44
provision etc. Invitation to tender and instructions at enquiry stage are important step as the
vendors offer is based upon these instructions.

Entered the purchase/work order details in the purchase requisition register

Description of items, Rate, Value of order, Delivery schedule/ Completion Schedule,

Insurance, Security Deposit & retention money, Performanceguarantee, Paymentterms,
Dispatchinstructions, Penalty/ Bonus clause, Liquidateddamage, Other points related to
statutory obligations, safety procedures, PF registration of workman of the contractor.

Entered the enquiry details in enquiry Register

Enter the enquiry details like, enquiry number, name of parties, details of item, Required
department etc. in the Enquiry register.

Upload the SPC (Store Purchase Committee) minutes details.

The SPC is appointed by Unit Head consisting of permanent members from stores,
purchase, technical officers, HOD (Internal Audit) / HOD (Finance). The Chairman of SPC is
also nominated by the Unit Head and preferably an officer immediately below the Unit Head.
Concerned Intender is also an SPC committee member. The SPC evaluates the
technical/financial competency of the tenderer before final selection. SPC while
recommending the proposal will take note of the recommendations made by the indentor and
observations of the internal audit and makes its recommendation for clearance from
competent authority.

Entered the purchase order and work order details in purchase order register
and work order register respectively
Purchase order (CH-PUR-F-09) / work order (CH-PUR-F-16) is prepared in 7 copies and the
order is signed by the competent authority and distributed as follows: For purchase orders,
Original to supplier, 1st copy to supplier as acceptance copy 2nd to finance department, 3 rd
copy to the file in purchase (auditing), 4th copy to the concerned file, 5th copy to
indentor and 6th copy to control file. For work orders copies are circulated to concerned
departments.The details are entered in purchase order register as per CH-PUR-F-10 or work
order register CH-PUR-F-17 as the case may be.

45
 Verification of Receipt voucher file with cash purchase register

When the value of an item to be purchased (or items of similar nature) covered by an indent
does not exceed Rs.5000/- , purchase can be made by cash. Routine consumables are not to
be purchased in cash. The details of cash purchase done are entered in Cash Purchase
Register CH-PUR-F-26.The entries are made in local purchase dairy CH-PUR-F-23.
Prepare Reminder list of black listed vendors
Being responsible for three times failure to supply/execute the contract as per order in three
years duration shall be considered for black listing vendors name from approved list of
vendors while periodical review/updating of vendor list. The black listed vendor shall not be
considered for a period of one year from the date of black listing. However CMD can revoke
any black list order subject to adequate justification for the same. Further the competent
authority D(T)/CMD can blacklist the bidder, if the bidder changes terms & conditions or
prices or withdraw his quotation subsequent to the date of opening.

4.2.2 Task accomplishments made in production department

The main function of production department is to separate the minerals from raw sand using
the physical resources so as to provide desired utility to customer while meeting other
organizations objectives, efficiency and adaptability. IRE takes the nature boundary in the
form of beach sand and separates it to extract rare earths and minerals.

Various tasks of production department

Enter datas of overtime work in overtime monitoring record

Enter details in overtime payment certificate.

Prepare detailed production plans consistent with companys production objectives

and direct control the same.
Enter production comparison details
Constantly evaluate alternate source of raw materials, direct trials of the same and
help management to firm up such sources.

Carryout investigation and guide management on long term measures towards

achievements of the goals of expansion in the across of production and quality

46
 co-ordinate with customer service department and initiate actions in different
departments to take corrective actions from the points of the quality assurance to
customers
Ensure implementation of safety measures in the operations, equipments and process
to avoid dangers to the structures and man and equipment.
Evolve standard operating for different process and equipments, documents, standard
operating data and periodically update the same

4.2.3 New Ideas and Concepts

IREL being a central government enterprise lacks efficiency in packing and marketing and
after sales support. Customers require good sales support. Defects due to loss of materials are
major problems for the customers. As the cost of product and the credit facilities are based on
the quantity purchase such industries are not benefited from IREL marketing policies. Prompt
delivery and timely action is one where the IREL can put some effort to improve the present
scenario.
The company can start their own plants for the production of various value added products
through diversification
.
4.2.4 Involvement in Major Assignment
The work assigned was able to complete on time. The information regarding various vendors
are collected and their performance is evaluated based on the criteria given below. It made to
get an initial idea of the performance of suppliers.
VENDOR EVALUATION

Source of identifying potential vendors could be through industry sources, internet and online
directorate, manufacturer catalogs and sources identified by other units. Vendor registration
should be open throughout the year and vendor rating method prequalification criteria (PQ)
should be posted in the website to enable prospective suppliers/contractors to register.
Vendor may also be provisionally selected for execution of trial order. Based on satisfactory
performance, such vendors may be regularized

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METHOD OF EVALUATION FOR EXISTING VENDORS:

Vendor Rating
Head of Materials department shall rate the performance of each vendor on a scale of 100
considering weightage for each criterion as follows:

Criteria Weightage
Response to enquiries index (REI) 30
Promptness of delivery index (PDI) 30
Delivery of quality goods index (DQI) 40
(No marks for supply of substandard goods/ services) Composite performance index = (0.3x
REI+ 0.3x PDI+0.4xDQI) x 100
Vendors scoring less than 60 marks as per the Composite Performance Index in any year of
evaluation will be informed to improve and will be deleted from the vendor list for one year,
if they score less than 60 marks in next evaluation.Vendor rating should be communicated to
registered vendors in the month of May/June every year. Once in a year SPC/ WTC will
review the performance of suppliers/contractors and will suggest deletion from the approved
list based on their performance. After getting due approval from competent authority (Unit,
Head in case of unit and D(T) in case of HO), these names will be deleted.

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4.3 LEARNING FROM INTERNSHIP

IREL, a public limited company under the government of India is one of the major exporters
of minerals. They got support from government of India and the department of Atomic
Energy. They maintain a strong and symbiotic relationship between the top management and
the lower level management and a cordial relationship between management and trade
unions. IREL possess highly skilled managers and experienced workers having excellent
knowledge and experience about mining and the production. Company hold abundance of
raw materials in the company premises itself and the constant up gradation of technology.

In the beginning of internship started with a detailed explanation about the functioning and
environmental aspects of organization. The main work in purchase department is to regulate
procurement of various items that include land, buildings, vehicles, plant and machinery,
equipment, furniture & fittings, fixtures, spares, stores and materials etc. and to ensure that
necessary works / service contract including consultancy as required by indenter is in place
with a view to: Helping and maintaining continuity of production and other allied function by
making available required supplies and services in time as per user requirements. Ensuring
that the supplies and services are availed at most competitive price by taking into account
their quality, durability, efficiency etc.

The main function of production department is to separate the minerals from raw sand using
the physical resources so as to provide desired utility to customer while meeting other
organizations objectives, efficiency and adaptability. IRE takes the nature boundary in the
form of beach sand and separates it to extract rare earths and minerals. These materials go for
a wide variety of products like ceramics paints, flints of lighters, detergent etc. IRE produces
the major beach sand heavy minerals like Ilmenite, Rutile, Zircon, Sillimanite, brown
Ilmenite and value added products like Zirflor and Microzir

The internship at IRE was an unforgettable experience. The organizational atmosphere

prevailing at IRE is not that of a timid public sector unit. The concern for the environment
and social responsibility are worth studying. This helped in having a practical exposure to
real practice in organization. This provides insight into the functioning and coordination of
purchase department in an effective organization.

There are some suggestions which could improve the performance and functioning of the
organization. The company can start their own plants for the production of various value

49
added products through diversification. Being a strategic industry, the company will always
have the support from the central government. Then the recent efforts to tie up with other
mining companies like KMML Chavara. Higher demand for products and the favorable state
government policies like prohibition of entry of private companies into the mining sector and
acquiring technology to utilize their available resources. IREL can give more training to
employees to reduce their absentism and improve morale of the employees. The vertical and
horizontal communication inn the organization is to be improved. The organization can also
increase the work load of the employees within a limit for their better utilsation of time and
performance.

The target was achieved within the time limit. The visit to various departments made to get
acquainted with the trends in the functioning and organizational structure of the organization.
The discussions with the section head of the departments were held and were able to
understand the proper operations of every department. Even though some of them where busy
in their schedule they give appointment and discussions took place in detail about the proper
functions of the departments. And the internship was successfully completed on 31st August
2016.

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 CHAPTER 5

CONCLUSION

Internship is a process of attaining new knowledge and increasing skills from working in a
particular section in a particular department. It was a great deal to be a part of IREs purchase
department (work order section &purchase order section).

IREL, Chavara is the leading suppliers of beach sand minerals to the nation. The company, in
its search of new heights, has reached a level of quality which is remarkable. It is one among
well performing companies in kerala engaged in the process of processing rare earth products
available among the coastal belts. The timely adaptation of technological innovations has
been the hallmark of IRE since its inception. It was found out that the employees are satisfied
with the welfare policies which are in practice and the scale of pay at present after revision.
The intervention of political parties continued to be a menace. IREL, Chavara is capable of
converting its threats into opportunities with the guidance and control of the top management
whose leadership quality is impeccable.

IREL, in the constant pursuit of excellence, have established a reputation as the leading
supplier of beach sand heavy mineral in the country. In the light of new changing economic
scenario IREL is poised to adapt a two pronged strategy namely Consolidation and expansion
of operations and joint-venture for value addition and new production facilities.

The internship at IRE was an unforgettable experience. The organizational atmosphere

prevailing at IRE is not that of a timid public sector unit. The concern for the environment
and social responsibility are worth studying. This helped in having a practical exposure to
real practice in organization. This provides insight into the functioning and coordination of
purchase department in an effective organization. One main thing Intern have learned through
this internship is time management skills as well as self motivation. At last this internship has
given new insights and motivation to pursue for career In review this internship has been an
excellent and rewarding experience.

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 REFERENCES

BOOKS:

Kothari C.R, Research Methodology Methods and Techniques, New Delhi: New
Age International Publishers, 2008.

Chhabra T.N, Human Resource Management Concept and issues New Delhi:
DhanpantRai& Co (P) Ltd., 2008.

Kotler Philip, Marketing Management- A South Asian Perspective, New Delhi:

Pearson Education, 2007.

Chase B Richard, Aquilano J Nicholas, Jacobs Robert F, Agarwal K NithinOperation

Management for Competitive Advantage, New Delhi: The McGraw- Hill Publishing
Company Ltd., 2006.

JOURNALS AND MAGAZINES:

U.S Geological Survey Minerals,Yearbook2001.

Annual Report 2013- 2014 Indian Rare Earth Limited

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