Report Final
Report Final
Report Final
CHAPTER 1
INTRODUCTION
1. 1 INTRODUCTION
Infrastructure is the tiny world which encompasses the profit and pride of a nation. Infrastructure
includes energy, transportation and communication. Infrastructure facilitates are also called as social
overhead and belong to the core sector of the economy. Adequate quantity, quality and reliability of
infrastructure are the key factor of an economy. Power is needed to turn the wheels of machine. Vehicles
are necessary and essential to transport goods and services. Communication links are vital to talk to
suppliers, customers and creditors. Economy growth of any country depends on these factors. Due to
the effective infrastructure India has gained competitive strategies that have placed firmly in the midst
of the most advance nation in the world. Electricity is also a part of Indians lifetime achievement. The
availability of electricity is very much needed in our nation now days. Electricity in Kerala is sold out to
others states the availability of electrical energy and its per capita consumption is regarded as an index
of national standard of living. Electricity has become synonymous with progress of lack of inadequate
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measure which can throttle the entire economic activity and well being of the country. An organization
is a social unit of people, systematically structured and managed to meet a need or to pursue collective
goals on a continuing basis.
I consider myself fortunate enough to get an opportunity to undergo my study with Transformers
And Electricals Kerala Ltd. This progressive and forward looking organization constantly strives for
improvement in its systems and procedures so as to improve the organizational effectiveness.
1.2 NEED OF THE STUDY
The study was to have a general awareness of the functioning of the various departments and
management of TELK. The study helps to analyze each department and to attain information regarding
the strengths, weakness, opportunities and threats of various departments.
1.3 OBJECTIVES OF THE STUDY
1.4 METHODOLOGY
Research in common parlance refers to a search for knowledge. One can also define research as a
scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of
scientific investigation. The Advanced Learners Dictionary of Current English lays down the meaning
of research as a careful investigation or inquiry specially through search for new facts in any branch of
knowledge.1 Redman and Mory define research as a systematized effort to gain new
knowledge.Research is an academic activity and as such the term should be used in a technical sense.
According to Clifford Woody research comprises defining and redefining problems, formulating
hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and
reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the
formulating hypothesis.
Method of data collection:
Primary data: It can be collected either through experiment or through survey. If the researcher
conducts an experiment, he observes some quantitative measurements, or the data, with the help
of which he examines the truth contained in his hypothesis. The data were collected through
The time frame was limited ie there was lack of time for the study
Lack of sufficient data.
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CHAPTER 2
INDUSTRIAL PROFILE
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and inappropriate maintenance of existing T&D equipment/infrastructure Rampant power theft, leading
to high T&D losses (at the end of XI Plan, T&D losses were to the tune of 23.3 per cent) impacting
financial condition of power T&D utilities (discoms and transcos) A robust and efficient power T&D
infrastructure is imperative for effective transfer of power from generation source to the consumption
points / demand centers. Thus, expanding the T&D infrastructure to transmit the power generated to
consumer points across the length and breadth of the country becomes imperative. Transformers are
critical components of the power T&D network that are used to change voltage in the power
transmission and distribution process, and hence play a key role. Transformers can be broadly classified,
based on the output rating as:
Power is a critical infrastructure on which the socio-economic development of the country depends.
Recognizing that the electricity is one of the key drivers for rapid economic growth and poverty
alleviation, the Indian government decided to bring all new power generation, transmission and
distribution in rural and urban centers, under the purview of state and central government agencies.
Accordingly state electricity boards were formed in all states. The central government was giving
priority to this sector, while fixing plan outlays. Commencing with the fifth plan (1974-1979) the
government increased its direct role in the generation and bulk transmission of power to supplement the
efforts of the states.
2.2. TRANSFORMER INDUSTRIES IN INDIA
The Indian transformer industry is more than five decades old, hence mature. Domestic manufacturers
have developed capabilities to manufacture all types of equipment to meet the countrys demand for
transformers up to 800kV and going up to 1,200kV. The industry enjoys a good reputation in terms of
quality, price, and delivery in the domestic as well as overseas markets. Indias transformer market is
predominantly unorganized with many small participants catering to the smaller distribution transformer
markets. However, many are slowly graduating to the medium-sized category, thus expanding the
organized participants base. There are 300+ transformer companies in India, with an overall annual
installed capacity of over 370,000 MVA. The market is fragmented with around 20 organized players
such as Bharat Heavy Electricals Ltd (BHEL), ABB Ltd, Crompton Greaves Ltd (CGL), Areva T&D,
EMCO Ltd, Bharat Bijlee Ltd (BBL), Vijai Electricals, Transformers & Rectifiers India Ltd (TRIL),
Voltamp Transformer sLtd, and others. In the power transformers category, companies in the high-end
segment (400kV and above) mainly include international players such as ABB Ltd, Alstom T&D
(erstwhile Areva T&D India), and Siemens; and Indian manufacturers such as BHEL, CGL, TRIL, and
Vijai Electricals. Majority of other companies in this sector are present in the 220kV segment in power
and distribution transformers. Leading players have significant presence in both power and distribution
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transformermarket.
Fig.2.1: Transformer
Large players such as BHEL, ABB Ltd, Alstom T&D (erstwhile Areva T&D India), and CGL have
installed capacities exceeding 15,000 MVA per annum. However, these are diversified power equipment
players and the transformer segment is not a major revenue contributor. Among players who primarily
manufacture transformers, TRIL is the largest in capacity followed by EMCO, Vijai Electricals, Voltamp
Transformers, and Bharat Bijlee. The unorganized sector primarily caters to smaller rating transformer
requirements.
Apart from catering to domestic demand, India exports transformers to over 100 nations including
the US, Europe, Malaysia, Singapore, Bangladesh, African countries, and Gulf countries. India is also
an importer of transformers; the major source countries include China, Germany, USA, Korea, and
Japan.
2.3. TRANSFORMER MARKET
2.3.1. TRANSFORMER MARKET SIZE IN INDIA
The transformer market in India can be pegged at more than Rs.13,000 crore. Power transformers
contribute 45 per cent of the total market and distribution transformers 55 per cent. Over the last two
years the market has grown at a very moderate rate at less than 4 per cent, due to the slowdown of
power generation capacity addition and T&D infrastructure expansion. Anticipating the huge domestic
(due to a power deficit scenario, requirement of power sector expansion) and overseas demand, the
transformer industry in India has more than doubled its manufacturing capacity over the last five years.
Transformer manufacturing capacity in India stands at ~370 GVA with capacity utilization rates
hovering around 60-70 per cent on an average over the last five years. Transformer over-capacity in the
Indian market has led to immense pricing pressure scenario severely impacting the profit ability of the
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market players. New entrants Indias huge power shortage, need to ramp up power T&D infrastructure,
economic slowdown of developed markets like Europe and North America and excess Transformer
manufacturing capacity in China has resulted in India being an attractive destination for transformer
companies globally to tap the Indian market opportunity. Anticipating this, many foreign players are
already in the process of setting up base in India. Over the last 12-15 months, new players have entered
the market either through acquisitions or through setting up of facilities within India. A few notable
examples are: Canadian company, Hammond Power Solutions Inc. had acquired 70 per cent equity
stake in the Hyderabad based transformer supplier Pan- Electro Technic Enterprises Pvt. Ltd in
February 2012.
Chinese manufacturer, TBEA has set up transformer manufacturing unit in Gujarat in order to
factory in India.
South Korea's Hyundai Heavy Industries is also planning a facility for manufacturing
transformers in Sanand, Gujarat.
Power generation capacity augmentation and Power T&D infrastructure expansion to be in-line
with power generation capacity addition. According to the XII Plan, Rs.12,00,000-13,00,000
crore is likely to be invested in the power sector. This spending on the power sector is expected
to be equally distributed between generation and T&D. Spending on power T&D infrastructure
distribution level and improve the financial health of the state electricity boards.
Industrial sector Growth.
Replacement of ageing equipment.
These reforms are expected to significantly affect demand for transformers over the next four to
five years.
CRGO: Inadequate supply of prime quality Cold Rolled Grain Oriented (CRGO) steel is the
biggest challenge faced by transformer manufacturers in the country. CRGO requirement is
completely met through imports; it is in fact challenging to assess the true quality of the material
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that is used by the transformer manufacturers in India. India needs 2.5 lakh tonnes of CRGO
every year and an appalling 70 per cent of this is scrap grade material.
Failure rate of Transformers: High failure rate of distribution transformers is a big concern for
the transformer industry in India. The average operational life of a transformer is between 25 to
30 years; however, transformers in India are known to be recalled for repair in as early as three
years. The failure rate of distribution transformers in India is estimated at 10-15 per cent (in
stark contrast to the less than 2 per cent in developing countries). This is due to the low entry
barriers in the distribution transformer market leading to unorganized players entering the
market, and competing on the price factor. SEBs historically follow a L1 vendor selection
criteria, which has led to proliferation of many small players, that compromise on the quality of
transformers manufactured.
Financial condition of state utilities: State power utilities have been facing losses due to the
supply of subsidized power to agricultural farmers, theft of power, and inefficient T&D
infrastructure. This has restricted private investment in the power T&D sector, thereby reducing
the quality of service from SEBs. This, in turn, is affecting the capacity building program and
transmission of power.
Lack of testing facilities: The growth in testing infrastructure has not kept pace with that of
production, both, quantitatively and qualitatively. Testing infrastructure available at India's
premier agency, the Central Power Research Institute (CPRI) is proving short of demand.
Manufacturers of large power transformers at times need to send their equipment for testing to
overseas facilities like Korea Electro technology Research Institute (KERI) and KEMA which is
expensive. Apart from this, huge logistical costs and lead time are also involved.
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balance 50 per cent of liabilities is to be accompanied by concrete and measurable action (performance
linked) by the discoms/states to improve operational performance of discoms. Power tariff increase is
one of the metrics, which the utilities have to undertake as part of their structuring package. The
improvement in SEBs financial condition would enable them to undertake power T&D infrastructure
expansion in line with the requirement resulting in driving transformers demand. With huge investments
proposed across sectors such as power, infrastructure, etc., the transformers market in India is slated for
strong growth. The excess capacity in the Transformer industry in India, and entry of new players is
further expected to increase market competitiveness. Market consolidation over the next few years is
inevitable. Electric equipment industry contributes over 2% of GDP which is projected to increase to
about 12% in 2015 according to a study by Frost & Sullivan. During the period, consumption of
electrical equipment is estimated to increase from over USD 28 bn now to USD 363 bn, growing at a
CAGR of about 30%. It is also expected that during 2010-2015, the Indian equipment manufacturing
will grow at 5.5 times the growth rate of global electronic equipment production.
The electrical equipment and accessories industry, with its highly diversified content, may be broadly
segmented into (i) generation equipment, (ii) transmission equipment, and (iii) distribution equipment.
The equipments and accessories under these segments include motors, turbines, gene-rators,
switchgears, transformers, circuit breakers, induction motors, power capacitors, meters, transmission
towers. Besides these, the spectrum covers a whole range of power cables including XLPE and AAC
and ACSR conductors and electrical consumer products like fans, electric lamps, exhausts and domestic
appliances and accessories. Inverters, gensets, UPS also fall under its domain. The electrical industry
has been showing signs of recovery after poor performance in the recent years. The domestic electrical
industry, which includes equipment for generation, transmission, distribution and use of power in
industrial units, constitutes a major part of the electrical products. The growth of the industry is directly
related to the development of power generation and distribution. India's generation capacity of 2,300
MW in 1950 expanded to over 116,500 MW including non-utilities at the end 2000-01. The total
installed capacity of electric power generation further increased to 141,080 MW in 2007-08 (upto
January 2008) compared to a capacity of 128,000 MW during the same period in 2006-07. The Eleventh
Plan has targeted a capacity addition of 78,570 MW. The five years (2007-2012) may be the best of
times for power equipment makers with the power sector on a expansion spree. With order-book growth
expanding over the last three years, there is a good chance that this will continue. Close to 82% of the
planned generation capacity for the Tenth Plan was either implemented or was in the process of being
implemented. Even assuming a 70% implementation ratio for the Eleventh Plan, close to 55,000 MW
will be added. Five ultra mega power projects, totaling 20,000 MW are coming up in 2008. In the
transmission sector, for example, Power Grid Corporation is planning a capex of Rs 710 billion by
2010.
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Earlier, the shortfalls in achieving the Plan targets of addition to power generation and up-gradation of
transmission and distribution had adversely affected the electrical equipment industry. The peak
shortage which was over 11% of the requirement in 2003-04 increased to 11.7% in 2004-05 and to over
12% in 2005-06. The shortage further rose to about 14% in 2006-07. In the ten months of 2007-08 the
peak shortage had risen to over 15% of the peak demand of 107,010 MW.
According to the Power Ministry, the power sector has tied up Rs 2,240 billion worth of investments
to build power plants with 70,000 MW capacities in the next three years. India's capacity to
manufacture power equipment is set to increase four-fold to around 43,000 MW over the next 5 years,
through investments of over Rs 300 bn. The additional capacity of 33,000 MW is expected to be added
by 2015. Companies like L&T, JSW, and Reliance are in process of setting up equipment manufacturing
capacities. Apart from the addition of indigenous capacity, this will also lead to up gradation of
technology in the equipment sector. There is also a significant presence of the small scale and mediumsized companies in the electrical equipment industry, the share of which is estimated at around 35%.
According to the Power Ministry, the power sector has tied up Rs 2,240 billion worth of investments
to build power plants with 70,000 MW capacities in the next three years. The Indian government has set
ambitious goals in the 11th plan for power sector owing to which the power sector is poised for
significant expansion. In order to provide availability of over 1000 units of per capita electricity by year
2012, it has been estimated that need-based capacity addition of more than 100,000 MW would be
required. This has resulted in massive addition plans being proposed in the sub-sectors of Generation
Transmission and Distribution. Investment is also expected to flow into different segments of the value
chain, covering the segments of power generation, transmission and distribution and allied sectors such
as equipment, technology and services. The private sector is expected to play a more active role in
investment and capital productivity. The government has undertaken a number of initiatives to facilitate
private sector participation.
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With some fast moves at launching fast track projects to augment supplies, the Indian industry
needs to improve its competitiveness. The Indian market is growing and multinationals with newer
technologies are now more active.
Power Transformer
Power Transformers are used in Transmission network so they do not directly connect to the
consumers. These are not loaded fully at all time so iron losses takes place 24hr a day and cu losses
takes place based on load cycle. Average loads are about only 75% of full load and these are designed
in such a way that max efficiency occurs at 75% of full load. These are independent of time so in
calculating the efficiency only power basis is enough. Power transformers are used for transmission as
a step up devices so that the I to R loss can be minimized for a given power flow. These transformers
are designed to utilize the core to maximum and will operate very much near to the knee point of B-H
curve (slightly above the knee point value). This brings down the mass of the core enormously.
Naturally these transformers have the matched iron losses and copper losses at peak load (i.e. the
maximum efficiency point where both the losses match). Bulk AC power transmission necessitates the
use of high voltages. Progressively, the transmission voltages have risen to 400 kV AC in India. In
India, system voltages up to 400 kV are well established and 800 kV AC transmission systems are
being planned. This will require manufacturing of 800 kV transformers. Most of the major
transformer manufacturers in India had collaborations with reputed international companies, such as
Associated Electrical Industries (AEI,) U.K.; Alsthom, France; Hawker Siddely, U.K.; Hitachi, Japan
and Siemens, Germany. Market Survey Electric equipment industry contributes over 2% of GDP
which is projected to increase to about 12% in 2015 according to a study by Frost & Sullivan. During
the period, consumption of electrical equipment is estimated to increase from over USD 28 bn now to
USD 363 bn, growing at a CAGR of about 30%. It is also expected that during 2010-2015, the Indian
equipment manufacturing will grow at 5.5 times the growth rate of global electronic equipment
production. The electrical industry has been showing signs of recovery after poor performance in the
recent years. The domestic electrical industry, which includes equipment for generation, transmission,
distribution and use of power in industrial units, constitutes a major part of the electrical products.
India's capacity to manufacture power equipment is set to increase four-fold to around 43,000 MW
over the next 5 years, through investments of over Rs 300 bn. The additional capacity of 33,000 MW
is expected to be added by 2015. With some fast moves at launching fast track projects to augment
supplies, the Indian industry needs to improve its competitiveness. The Indian market is growing and
multinationals with newer technologies are now more active. The industry, as a consequence, needs
strategic alliances and tie-ups with technology suppliers to upgrade their supplies. The technology for
the manufacture of transformers, for instance, is largely European. As a result, most players have the
same level of technology. Even prices do not differ substantially. Lately, encouraging sign are
emerging. The entry of private sector in the power area and the emergence of captive power plants
have changed the scenario for the transformer segment. Earlier, the business revolved around power
utilities such as the State Electricity Boards. As against this, the customers in the private sector prefer
contracting out the entire substation to a single vendor, in the process thus reducing costs as well as
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avoiding problems of logistics. As more and more MNCs and specialized industries make India their
business destination, special economic zones have been allocated and feeding mega projects of robust
Distribution Transformer
PRODUCT PROFILE: The transformers are a device that transfers electricity or energy
from one electric circuit to another without change of frequency and usually, but not
always, with a change in voltage. In India the role of transformers assumes an added
significance since in most of the states; electric supplies are not only erratic but are also
characterized by wide variations in frequencies or voltages. These causes enormous damage
to the electrical appliance like refrigerators, television and other industrial machinery
engaged in the production of commodities. The transformer industry with the help of
innovative methods, up gradation in technology etc., will have to manufacture transformers
which offer maximum functional efficiency and are at the same time less hazardous or
dangerous and economically viable. Over the past hundred years Transformers have played
a major role in the growth of almost all industries in the world. The foundation for the ideal
of a "Transformer" was laid by Michael Faraday in the year 1931. Due to continuous efforts
of physicists and engineers in the past year, Transformers, underwent many changes, to keep
pace with the rapid growth of electrical industries. Now there exists a variety of
transformers each differing from the other in its operation, construction, size and
applications. Applications In India the role of transformers assumes an added significance
since in most of the states; electric supplies are not only erratic but are also characterized by
wide variations in frequencies or voltages. These causes enormous damage to the electrical
appliance like refrigerators, television and other industrial machinery engaged in the
production of commodities. The transformer industry with the help of innovative methods,
up gradation in technology etc., will have to manufacture transformers which offer
maximum functional efficiency and are at the same time less hazardous or dangerous and
economically viable. Global demand Indias Power and Distribution Transformers Market
to Grow Exponentially by 2012 Realizing the importance of private participation in the
power sector, India is strengthening its policies to encourage private investments. The
countrys Electricity Act of 2003 caused the compulsory unbundling of the state electricity
boards to improve their operational efficiencies, thus creating new market demand for better
transmission equipment. As a result the Indian power and distribution transformers market
is growing rapidly, according to a recent study by Frost & Sullivan, a global growth
consulting company. The Frost & Sullivan studies found that revenues in this industry
totaled US$1.04 billion in 2005 and are likely to reach $5.31 billion in 2012. Governments
emphasis on the transmission and distribution sector reforms and investments are showing
signs of fruition, thus creating a phenomenal growth opportunity for the Indian transformer
market. Due to rapid economic development and governments target of power for all by
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2012, the Indian power sector will need to replicate what has been achieved during the last
50 years in the next 10 years. During the period, consumption of electrical equipment is
estimated to increase from over USD 28 billion now to USD 363 billion, growing at a
CAGR of about 30%. The demand of Transformers in the market is immense and therefore
its market position is splendid. Hence it is an excellent field to venture.
Plant capacity: 900 No.s/Annum
DT(100KVA),
600No.s/Annum DT(100KVA)
Working capital: -
Return: 43.00%
Breakeven: 60.00%
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collaboration of Lubrizol and Chevron, respectively. The demand of transformer oil is increasing year
by year due to increase in demand of transformers. There is good scope to venture in to this project for
new entrepreneurs. Few Indian Major Players are as under: Apar Industries Ltd. Apar Ltd. [Merged]
Electra (Jaipur) Ltd. M P Petrochem Ltd. Madras Petrochem Ltd. Powerlink Oil Refinery Ltd. R T S
Power Corpn. Ltd. Raj Lubricants (Madras) Ltd. Rams Transformers Ltd. Savita Oil Technologies Ltd.
Vijai Electricals Ltd.
Plant capacity: 30000.00 KLS/annum
Working capital: -
Return: 43.00%
Breakeven: 34.00%
Transformer Industry, a segment of Heavy Electrical Industry depends solely on the power
development in the country in particular and of the world in general. That is, demand for Transformers
and related products are a derived demand dependent on Power Sector Development. The power
generating capacity in India increased almost 50 times during the past fifty years. The transformer
Industry mainly comprises the Power Transformers Segment and the Industrial Transformer Segment.
The industry is monopolistic in nature with the bulk of the demand for Power Transformer being
generated by State Electricity Boards and Central Government undertakings, Independent Power
producers and Turnkey Projects. Power is a basic input for growth and development of a country and it
is essential ingredient for improving the standard of living of the people. As such, in developing
economies, the importance of growth of power sector cannot be over emphasized. India, with its
planned economy, was giving ample importance to the power sector in the five-year plans.
Transformer industry is divided into distribution, power and other types of transformers. The demand
for transformers comprises of new demand as well as replacement demand. About 95% of transformers
used in the Indian power network are of indigenous make. New demand is dependent on the new power
generation capacities added. Currently, India has an installed capacity of approximately 115,000 mw. As
per the planning estimates, the installed capacity should be increased to 200,000 mw by 2012, majority
of which is to be installed within next 3 years. The replacement demand depends on the life of the
transformer and the existing capacity in the economy. At the end of the sixth five-year plan (1980-1985)
a total of 337,584 MVA of transformer capacity was added. Since these transformers' life exceeds 20
years, they are due for replacement. Also, Indian players in the engineering segment, foraying into
turnkey projects overseas, are further adding to the demand for transformers. The demand is expected to
experience double digit growth over the next few years.
Large players such as BHEL, ABB, Areva T&D, Crompton Greaves, and Siemens have capacity
of more than 15,000 MVA p.a. However, they are diversified power equipment players and the
transformer segment is not a major revenue contributor. Among players who primarily
manufacture transformers, TRIL is the largest by capacity followed by EMCO, Vijai Electrics,
Voltamp, and Bharat Bijlee. Most players have significantly expanded capacity to tap demand.
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Over the past four years, capacity utilization has improved to 80%, on the back of strong
demand and as expansion projects were under construction for majority of the companies.
Demand for Power Sector:
Indias power demand is likely to cross 300GW, in the next 10 years earlier than the most estimates.
Meeting this demand will require a fivefold to tenfold increase in the pace of capacity addition. The
profile of planned capacity will also need to be suitably modified to fulfil peak demand, keep emissions
under check, reduce dependence on imported fuels and provide affordable power. The Indian power
transformers market has grown by leaps and bounds for over five decades and has a well-matured
technology base up to the 800 kV class. As there is a demand upswing for reliable power in the country,
the transformers market is witnessing a growth trend. With huge demand for power evacuation from
large generating stations and strengthening of the inter-regional transmission grid, the transmission and
distribution (T&D) utilities are the major end users of power transformers in India. The Indian economy
is witnessing a restoration and so is the electrical industry and its various segments including the
transformer industry. High demand arising from the energy intensive oil and gas, and cement segments
has buoyed prospects for the Indian power transformer market. Developments in the power sector will
have huge ramifications for the Indian transformer industry. The transformer industry which had more
than doubled its capacity over the last five years anticipating huge domestic and overseas demand is
today suffering from overcapacity, notes the analyst of this research service. However, a shift in the
governments focus to strengthen the power T&D system has unleashed abundant opportunities for the
power and distribution transformer market. The Government of India is encouraging investments at the
T&D level to increase access to reliable power supply and reduce technical and commercial losses in
the system through schemes such as Revised Accelerated Power Development and Reform Program (RAPDRP) and Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY). The R-APDRP scheme aims to
bring down the Aggregate Technical and Commercial (AT&C) losses in the T&D network. This entails
huge investments in the T&D sector including use of energy efficient transformers, besides renovation,
modernization, restructuring, and up gradation of the T&D infrastructure. Evidence points to a
conscious effort to upgrade the grid voltages to 765 kV to minimize the transmission losses and the
corridor width. Major participants are gearing up their manufacturing facilities to this changing
paradigm with MNCs bringing technology from their parent companies, while local participants are
obtaining the technology through acquisition and technology transfer. The Bureau of Energy Efficiency
(BEE), Ministry of Power, is actively working to ensure that quality products are procured by the
electricity boards and has accordingly stipulated mandatory star rating for distribution transformers.
Distribution transformer procurement for R-APDRP is likely to be set at a minimum of 3 star rating. A
large number of distribution transformer manufacturers have already applied to BEE for acquiring star
ratings.
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Several transformer companies in the small and unorganized sector are slowly graduating to the
medium-sized category, thus expanding the base of organized participants.
India is on the verge of becoming an emerging power nation among developing economies. The
availability of electricity is directly linked to the Gross Domestic Product (GDP) growth of developing
economies, India being no exception. Growth of the Indian electrical industry and its investment appeal
primarily depends on government policies. Timely capacity additions to electricity generation,
transmission and distribution are necessary to improve and sustain GDP growth and reduce the
electricity demand-supply gap.
According to the Power Ministry, the power sector has tied up Rs 2,240 billion worth of investments
to build power plants with 70,000 MW capacities in the next three years. The Indian government has set
ambitious goals in the 11th plan for power sector owing to which the power sector is poised for
significant expansion. In order to provide availability of over 1000 units of per capita electricity by year
2012, it has been estimated that need-based capacity addition of more than 100,000 MW would be
required. This has resulted in massive addition plans being proposed in the sub-sectors of Generation
Transmission and Distribution. Investment is also expected to flow into different segments of the value
chain, covering the segments of power generation, transmission and distribution and allied sectors such
as equipment, technology and services. The private sector is expected to play a more active role in
investment and capital productivity. The government has undertaken a number of initiatives to facilitate
private sector participation.
With some fast moves at launching fast track projects to augment supplies, the Indian industry needs
to improve its competitiveness. The Indian market is growing and multinationals with newer
technologies are now more active.
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CHAPTER 3
ORGANISATIONAL PROFILE
Cochin University Of Science And Technology, CUSAT
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Electricity Boards and many major industrial firms in India. Besides being the choice of the nations
discerning customers of exacting requirements, TELK Transformers has also won over clients from
countries such as Tanzania, Nepal, Oman, Indonesia, Nigeria and Malaysia. TELK has been exporting
its products right from the 1970s. However, a real boost to TELKs Export Marketing efforts came with
the recent opening up of the Indian Economy and the subsequent globalization measure of the Indian
Government. The first major export of TELK consisted of two 50MVA transformers to Tanzania in
1972.
TELK has bagged and executed many sizable exports contracts to customers like PLN of Indonesia,
TNB of Malaysia, MEW of Oman, NEPA of Nigeria etc. some of the export contracts are still under
execution. TELK had been following a very stringent quality standard laid down by their collaborators
M/s Hitachi, Japan and this has enabled TELK to penetrate new overseas markets against stiff
competition from Multinational Giants. The fruitful collaboration with Hitachi helped TELK to bring
out the latest innovations in power transmission technology. This has enabled the company to become a
prominent one in the manufacturer of power transformers and allied products. TELK has earned a
reputation for outstanding technical expertise; excellent quality and dedicated service back up. Catering
to the deserving requirements of international standards, TELK has gained many first to its credit. Since
the companys quality system fully comply with the requirements of ISO 9001 Certification during
September 1995. This is the first Kerala Government undertaking getting ISO certification. The
machinery and equipment of TELK are up to the international standards. Imported vertical winding
machine, totally air conditioned winding assembly shops that ensure precision humidity controlled and
dust free atmosphere etc. are some of the features that lend structural base for TELK quality. TELK has
a professional and efficient marketing set up and they have a very efficient Project Engineering
Division.
Between 1966 and 1980 the company worked profitably and afterwards it began to show loss trend
mainly due to the substantial dip in the companys products leading to severe in working capital. As a
result the company was declared a sick unit by the Board of Industrial and Financial Reconstruction
(BIFR). On the basis of the recommendations made by BIFR various relief and concessions were
granted by various banks, institutions and the Government of Kerala. As per the rehabilitation packages
the company is taking all efforts to reduce the losses to the minimum by achieving operational
efficiency and cutting down costs in all areas. Now the company has become a profit making unit.
A Business collaboration and shareholders agreement was entered into between the Government of
Kerala, M/s. NTPC Ltd. and the company on 23-06-2007. This is a landmark in the history of TELK.
By joining hands with NTPC, a Navaratna company, TELK will be able to attain the path of high
growth and will be able to beat competition in the industry in the highly changing industrial scenario.
TELK in the Power Transformer field in India as follows:
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In the first stage, initial capacity was 1080 MVA Power Transformer.
Current Transformers (CT), Potential Transformers (PT), Voltage Transformers (VT), On Load
Station at Tarapur.
2009- NTPC Ltd acquired 44.6% stake in TELK from Govt. of Kerala for business
collaboration.
2009-TELK won the awards instituted by Government of Kerala.
Outstanding Achievement in Enterprise performance for the year 2008-09, among the state
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2010-TELK has become the first power equipment manufacturer in India who have conducted
the short circuit test on 315 MVA(400/220/33KV) transformer having 1425 basic kvp insulation
achievement in corporate Leadership award for the best PSU CEO in 2010-2011.
2011-TELK Acquired NABL accreditation (ISO/IEC 17025:2005) for its Electrical Test
Laboratory.
2011-TELK obtained Export House status from Govt of India.
2012-TELK won Kerala safety award for very large factories in engineering category.
2013-TELK became Kerala safety award runner up.
3.2. LEGAL FRAME WORK OF THE ORGANIZATION
TELK Transformers and Electricals Kerala Limited was incorporated in 1963 under an agreement with
Government of Kerala, Kerala state Industrial Development Corporation and M/s. Hitachi Limited,
Japan to set up a full- fledged unit of designing and manufacturing Extra High Voltage Electrical
equipments in India. Now TELK is a joint venture between Government of Kerala and NTPC Ltd.
3.3. CAPITAL OF THE COMPANY
Capital of TELK made up of shareholders Fund & loan funds. Share holders funds include equity share
capital and resource and surplus whereas loan Funds consist of Secure Loans. Also it contains sales tax
dues amounting to 219.54 lakhs which has been differed by the Government of Kerala up to 2002
without interest.
Authorized Capital
Subscribed, issued & paid up
Sales
Net profit for the last year
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CATEGORY
PERCENTAGE OF SHARES
NO. OF SHARES
Govt. of Kerala
54.56
23444102
NTPC ltd
44.60
19163438
Others
0.84
359810
Total
100
Table.3.1: Present Capital Structure of TELK
42967350
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TELK is committed to provide products and services that meet customer and regulatory requirements
and to continually strive for business excellence.
3.4.4. Quality Objective
Continual improvement of business excellence through
All products coming out of TELK are subject to stringent quality check to ensure relevant international
quality standards and have been bestowed with ISO 9001. The company presently is aiming at attaining
total quality management.
TELK has got the position in India as the manufacturer of Best Quality Equipment in Extra
Voltage field. This unique position in respect of Quality was imbibed in TELKs culture right
from the beginning, with cent per cent Japanese technology and manufacturing methods that we
3.4.5. Service
Customer service forms the basis of TELKs strong success. TELK enjoys the patronage of a large
number of valued customers.
3.4.6. Value
Good value for money is the basis for pricing of TELKs products and many of the customers are aware
of the premium price, which TELK is eligible. TELK has successfully served a number of prestigious
projects at fairly differentiated from the reputed companies such as M/s NTPC, TATA etc.
3.4.7. Safety policy of TELK
TELK believe that Safety and Health of its employees and safe working environment are fundamentals
to the companys operation.
Objectives:
Manufacturing of Heavy Electric Equipment such as transformers, turbines and other allied
electrical machinery.
To Manufactures, import, export deal in wholesale or retail radiographs, photographs,
Dictaphones, television sets and sorts of electrical and wireless seta instruments and articles.
To construct, maintain and alter any building, works manufacturing roads, railways, docks and
other convince, necessary for the business of the company.
Cochin University Of Science And Technology, CUSAT
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To undertake and execute any trusts the undertaking where of any seen desirable, either
gratuitously or otherwise.
To acquire and undertake the whole or any part of the business properly and liabilities of any
person or company carrying on any business which he company is authorized to carry on or
possessed to properly suitable for the purpose of the company. To take part in the management,
supervision or control of the business or operation of any company or undertaking and for that
purpose to appoint and remunerate any Directors, Accountants or other Exports or officers.
To invest and deal with the moneys of the company not immediately required in such manner, as
many from time to time be determined.
Reducing business cycle time and achieving lowest manufacturing cost.
Technology up gradation and reducing rework level.
3.4.8. Objectives
Manufacturing of Heavy Electric Equipment such as transformers, turbines and other allied electrical
machinery.To Manufactures, import, export deal in wholesale or retail radiographs, photographs,
Dictaphones, television sets and sorts of electrical and wireless seta instruments and articles.
To construct, maintain and alter any building, works manufacturing roads, railways, docks and
other convince, necessary for the business of the company.
To undertake and execute any trusts the undertaking where of any seen desirable, either
gratuitously or otherwise.
To acquire and undertake the whole or any part of the business properly and liabilities of any
person or company carrying on any business which he company is authorized to carry on or
possessed to properly suitable for the purpose of the company. To take part in the
management, supervision or control of the business or operation of any company or
undertaking and for that purpose to appoint and remunerate any Directors, Accountants or
other Exports or officers.
To invest and deal with the moneys of the company not immediately required in such manner,
as many from time to time be determined.
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3. AROWAY (Canada).
Aroway OR the company is an oil Focused Canadian based exploration, acquisition and
production company with operations on the profile peace River Arch Region of North Alberts
Canada.
4. AE Power System (Japan).
This is one of the International Company. Japan AE Power System was discovered into its separate
parent company.
3.8. ORGANISATIONAL STRUCTURE
An organizational structure consists of activities such as task allocation, coordination and supervision,
which are directed towards the achievement of organizational aims. It can also be considered as the
viewing glass or perspective through which individuals see their organization and its environment.
Organizations are a variant of clustered entities. An organization can be structured in many different
ways, depending on their objectives. The structure of an organization will determine the modes in which
it operates and performs.
Organizational structure allows the expressed allocation of responsibilities for different functions and
processes to different entities such as the branch, department, workgroup and individual. Organizational
structure affects organizational action in two big ways. First, it provides the foundation on which
standard operating procedures and routines rest. Second, it determines which individuals get to
participate in which decision-making processes, and thus to what extent their views shape the
organizations actions.
Communication is an essential part for the success of any organization. In TELK two ways of
communication exist. One is formal and other is informal. Company provides extension phones and
parallel connections to every department. Written order in the form of circular, memos etc. are used for
communication. Common matters of the company are displayed in the notice board.
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2. Responsible for providing resources required for the operations of the company.
(b) General Manager (GM)
Responsible for the following functions:1.
2.
3.
4.
5.
construction work.
6. Overall control over customer supplied products.
(c) Joint General Manager finance and accounting (JGM(F&A)
Responsible for the following functions:1. Overall control of the financial operations of the company and preparation and maintenance
various books of accounts of the company in line with the companys rules and relevant Acts.
(d) Deputy General manager (DGM (C&M))
Responsible for the following functions:1.
2.
3.
4.
Contract review.
Vendor evaluation & approval.
Purchasing.
Stores management.
(e) Company Secretary and Deputy General Manager (Human Resources and New business
Development) (CS and DGM (HR/NBD)
Responsible for the following functions:1.
2.
3.
4.
5.
6.
7.
8.
9.
Secretarial functions.
Corporate affairs.
Company estate & guest house.
Procurement of furniture & inventory control of TELK office building.
Record room, dispatch etc.
Recruitment of Human Resources.
Selection of Human Resources.
Training and development of the different Human Resources.
Welfare activities for the staff.
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Verification/Inspection/Testing of products.
Stage/final inspection of products.
Calibration (electrical), servicing and maintenance of QA equipments.
Control over further processing, delivery or installation of Non conformity product until the
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Chalk out Companys production plans & schedules as per the strategy.
Materials requirement planning for transformers.
Liaison/Co-ordination with marketing, design & production centers.
Control of documents / records and MIS etc.
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will be involved in arranging staff training activities and supporting the continuous professional
development of all staff.
The main functional departments of TELK are,
Production department.
Human resources department.
Purchase and materials department.
Production planning and control department.
Project engineering department.
Marketing department.
Quality assurance and testing department.
Finance department.
GM
AGMP
SMRP2
SMRP1
AGMP1
MGRP1
AMP2
AMP1
Chart No:1
The various shops under this department are:
CT/PT/BUSHING.
OLTC.
MACHINE SHOP.
PLATE WORKSHOP.
CORE SHOP.
COIL INSULATION.
FINAL ASSEMBLY.
OIL AND DRYING.
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men. The selection processes of the employees are taking place through the public service commission
and the work men are selected through employment exchange. After selecting the employees the Human
Resources department gives proper training for the job.
CEO
AMHR1
AO (HR)
AO (HR)
AMHR2
Chart No:2
3.10.2.1. Human Resources planning:
The Human Resources requirement of each department, to achieve the target is determined first.
Manpower requirements of production and administration departments are planned in such a way to
meet the future expansion and development of the company. The department prepares manpower
planning schedule every year. In TELK, future demand is usually accessed based on the number of
people likely to be retired. This year however some additions are also made along with usual
replacement. This is mainly because the management has raised the expected annual output to 6000
MVA, when the installed capacity is only 4500 MVA (assuming only 50% employee
efficiency)annually.
3.10.2.2. Functions of Human Resources Department:
1. Actual promotion of both workmen and officers.
2. Referendum.
3. Recruitment procedure of Contract employees.
4. Labor Welfare.
5. Prepare Officers Rating Report.
6. Issue of Salary to Employees.
7. Retirement Arrangements.
8. Advertisements.
9. Transfer and Posting.
10. Recruitment of apprentices.
11. First Aid Treatment.
12. Disciplinary Action.
3.10.2.3. The Areas Covered Under This Department:
1. Recruitment and Selection.
2. Induction, training and Development.
3. Promotion.
Cochin University Of Science And Technology, CUSAT
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Weidman- Sweden.
Crape Paper
Amotfors Sweden.
Muntso- Sweden.
Press Board
Weidman- Sweden.
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Tetron Ribbon
Nisselon Japan.
Tetron String
Nisselon Japan.
CRGO
KRYFS- Power components Ltd Mumbai.
NEXUS, Pondicherry.
Power core Bangalore.
Transformer oil
Chart No:3
3.10.3.1. The purchase procedure of TELK
design department.
Preparation of product wise production schedule & product budget by production & planning
department.
Calculation of net requirement each items by material planning department.
Preparations of material indent.
Receipt of the order by the purchase department.
Inviting quotations from various sources of supply.
Seller selection.
Internal audit and financial approval.
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Order is placed.
Vender Evaluation.
Implementing corrective action.
Control of Records.
Authorized person for review and approval.
Purchase function as assigned by the Head.
Review of indent.
Releasing enquiries.
File processing.
Review of purchase orders.
Follow up with vendors.
Any other work assigned by Head of materials/ Group In-Charges.
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Chart No:4
3.10.3.4. Production Planning And Control
CEO
GM
AGMNF
MGRP
ENGINEERS
SMRP
Chart No.5: Structure of Planning Department
DUTIES AND RESPONSIBILITIES:
1. Head & Sub Head of Planning Department:Cochin University Of Science And Technology, CUSAT
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2. Engineers in planning
area.
Arrange works contract, issues & receive materials against work contract.
Prepare production schedule & programmers allocate materials & components to the various
3.10.3.5. Functions
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Liaison with Sales, Manufacturing & Quality Department for Customer Inspection/Clearance.
Co-ordination for review of deviations & non conformities observed during production &
inspection.
Co-ordination & control of production activities including periodic review with the concerned
Human Resources & modification of production programmes wherever necessary according to
the customer requirements, availability of materials etc.
Preparation of productivity Earning Report based on the accepted norms on standard man hours
& as per the terms and conditions of production
Agreement mutually agreed up on by the management & unions from time to time.
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I.
II.
III.
IV.
V.
VI.
VII.
Liaison between Head Office & Customers in the concerned region in marketing related works.
Co-ordination of other functions like Purchase, Finance etc. between Head Office & other
organizations.
Administrations of Regional Office.
III.
The role of Marketing Division is to book sufficient orders from domestic and International market
to feed factorys production, proper liaising & interaction with customers directly & through Regional
offices, interfacing customers & various departments in the factory for the execution of contracts
including the related commercial work.
OBJECTIVESThe objectives of marketing department are as follows:Continual Improvement of business through On time delivery of quality products.
Rapid response to customers.
Attend customer complaints within one month.
Analysis of customer perception & appropriation corrective action.
3.10.5.2. MARKETING PRINCIPLES
Prompt delivery-
When the cost of delay is so punishing, you need a supplier like TELK who understands the
importance of timely delivery.
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TELK realizes that customers are their strength and thus services to customer are of highest
priority to TELK.
Value for CustomerGood value for money is the basic priority for pricing of TELK products and many of their
customers are aware of the premium price which TELK is eligible for.
Uncompromising Quality StandardsTELK is a synonym for quality in the EHV power field in India and at TELK quality is way
of life.
In the year, BIFR (Board for Industrial & Finance Reconstruction) declared sick unit & appointed
IDBI as operating agency. So at that time, the TELK is under the control of BIFR.
3.11. CUSTOMERS OF TELK
Major Customers in India:
All large Electrical Power Utilities in India are the Customers of TELK (both Public Sector and Private
Sector Utilities).
Few important customers of TELK are:
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National Competitors:
Peer Group Sharing of Actual Production (MVA)
International Competitors:
Function/ Process:
The various processes that are dealt with the Marketing Department are as follows:
TELK had made record in export turn over by supplying Transformers worth Rs.2633lakhs to Oman
only (125 MVA).TELK had been following a very stringent quality standard laid down by their
collaborators M/S Hitachi, Japan & this has enabled TELK to penetrate new overseas markets against
stiff competition from Multinational giants
Tender processing process chart:
Chart No:6
Customer complaints:
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All the customer complaints received during the guarantee period shall be resolved. All after sales
service of export contracts is processed by Marketing Division. Appropriate offer/ Contract is made &
reviewed separately along with main order.
Customer service division:
For giving better after sales service & customer care TELK has a separate wing Rapid Response
Customer Service Department. They will give quick response / reply for attending the
repair/rectification work for TELK products.
3.12. QUALITY ASSURANCE AND TESTING
Quality assurance (QA) is a process-centered approach to ensuring that a company or organization is
providing the best possible products or services. It is related to quality control, which focuses on the end
result, such as testing a sample of items from a batch after production. Although these terms are
sometimes used interchangeably, quality assurance focuses on enhancing and improving the process that
is used to create the end result, rather than focusing on the result itself. Among the parts of the process
that are considered in QA are planning, design, development, production and service.
For TELK Quality Assurance is the keyword. And TELK is accredited with ISO 9001:2008 by M/s
Dekra certification B.V Netherlands. At TELK quality checks are mandatory at each phase of
production. TELKs testing department is equipped with the multitude of sophisticated testing
equipments apart from NABL accreditation for TELKs transformer testing lab w.e.f 06.06.2011. every
product of telk goes through stringent quality tests before reaching the customer. Being one of the first
Indo- Japanese ventures in the country. TELK has imbibed Total Quality concepts.
Quality control
Quality control is a process that is used to ensure a certain level of quality in a product or service. It
might include whatever actions a business deems necessary to provide for the control and verification of
certain characteristics of a product or service. Most often, it involves thoroughly examining and testing
the quality of products or the results of services. The basic goal of this process is to ensure that the
products or services that are provided meet specific requirements and characteristics, such as being
dependable, satisfactory, safe and fiscally sound. TELK have a team of workers who focus on testing a
certain number of products or observing services being done. The goal of the quality control team is to
identify products that do not meet a company's specified standards of quality. If a problem is identified,
the job of a quality control team or professional might involve stopping production or service until the
problem has been corrected. Depending on the particular service or product as well as the type of
problem identified, production might not cease entirely.
Quality Circles
Quality circle activities are motivated and monitored by QMS department to promote employees
involvement and participation in identifying and solving their problems in their operational areas.
Testing
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3.13.1.4. Threats
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Low capital required to sector a facility which could induce foreign players to enter the market.
Increases number of players leading in price war.
Threat from other smaller players who are into expansions/tie-ups.
High depleting margins.
3.14. FINDINGS
MNC like ABB, Siemens have started their operation in India. However TELK could sustain
their market share as the demand for their products has been live owing to the impeccable
quality of the product and the setting up of more are more power projects within India and
abroad as well. The products are well accepted in the market due to accreditation of the
international quality standards.
Gas circuit breaker has been removed from the manufacturing range which was contributing to
10% of the turnover.
The efforts on the part of the company to fill up the vacancies are found to be not up to the mark.
But it has been observed that the company has recently made strong effort in this ground noting
the above lacunae.
Majority of the machinery are 40 years old and require immediate replacement.
Promotions of the employees are not up to the satisfaction of the staff since the same is not done
in a time bound manner.
Highly qualified employees are not promoted suitably and are found to be disregarded.
Recruitments are not being effected for a long time, both in officer workmen categories.
Company is running profit for the past so many years and is seems to be surpassed the
turnaround situation.
Some of the supervisory cadre posts are yet to be filled. Engineers and Professionals with more
than 20 years of experience are still in the middle Management level.
The signing of Joint venture agreement with one of the Maharatna company called National Thermal
power corporation in 23 June 2009, as per the effort of the Government of Kerala, has been a landmark
to the company for its prospective advancements in the capacity addition as well as for the overall
development of the company in future and the marks in this line are found to be obvious as per the
functioning of the company now.
3.15. SUGGESTIONS AND RECOMMENDATIONS
Timely recruitment of staff and imparting those selected a fresh are found to be vital.
Environmental scanning in the proper level to cope with the changing market scenario and
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The marketing department has to be some more alert enough to collect the full payment in such
a way that there should not be any sort of deductions from the bills, and to collect the due
certificate.
3.16. CONCLUSION
TELK is a leading manufacturer for quality transformers in India & Abroad. TELK meets the huge
competition by way of quality of the products. This company strives towards excellence through the
combined efforts of its management and the dedicated work force. The main positive aspect of the
company is that it maintains a better relationship between the management and employees. The trade
unions are maintaining a better relationship to the company.
To sum up, TELK had adapted to a culture of meeting customer requirements and puts in place the
system and practices aiming customer delight.
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PART II
CHAPTER 4
PROBLEM ANALYSIS
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2. Buddy Punching.
The simplicity of time punching creates a situation where the system can be abused by employees.
Employees can take advantage of the time-punching system by having friends "punch" for them in the
event of absence or late arrival. When this happens, companies are paying for work that is not actually
being done. While there are systems available to discourage buddy punching, they increase the cost
of doing business.
3. Ongoing Cost of Time Cards.
Unlike digital time-keeping systems, time punching requires the constant purchase of time cards.
While the cost of time cards may be insignificant for smaller companies, the cost of time cards can
quickly add up for larger companies with many employees.
4. Data Entry Errors.
After all of the time card data is collected and processed, it still must be entered into some sort
of database in order for employees to receive paychecks. Because of the sheer amount of data being
manually entered into a database, there is a high chance of entry error.
(2) Another big limitation in attendance recording system in Telk is the software used. Telk
presently uses FoxPro, which was an old version.
FOXPRO:
FoxPro is a text-based procedurally oriented programming language and DBMS, originally
published by Fox Software and later by Microsoft, for MS-DOS, Windows, Macintosh, and UNIX. The
final published release of FoxPro was 2.6. Development has continued under the Visual FoxPro label,
which in turn was discontinued in 2007.The Visual FoxPro software development system is used in
designing sophisticated database applications. Visual FoxPro is an optimal software development
platform for many situations and work environments. According to C I Corporation, a Washington DC
based software Development Company; the following are the advantages and disadvantages of using
Visual FoxPro for your software development. Although FoxPro is a Database Management System
(DBMS) and it does support relationships between tables, it is not considered a Relational Database
Management System (RDBMS), lacking transactional processing. Sold and supported by Microsoft,
there is an active worldwide community of FoxPro users and programmers. FoxPro 2.6 for UNIX
(FPU26) has even been successfully installed on Linux and FreeBSD using the Intel Binary
Compatibility Standard (ibcs2) support library.
Why convert from FoxPro:
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As hardware and operating system software continue to advance, the 32-bit architecture of FoxPro is
not guaranteed to work with emerging systems.
1. Over time, companies using FoxPro applications will find changes to their system to be more
difficult and potentially more costly as the skilled resources to do so become drastically
diminished.
2. In addition to the technical aspects of the software and hardware, there is the human element.
Since Microsoft has now retired Visual FoxPro, there are fewer remaining skilled professionals
who really understand and are proficient with this development tool. As time moves on it is safe
to expect that this trend will continue.
3. While the conversion of FoxPro application may not be an immediately pressing problem, it is
still prudent to plan ahead. Making plans sooner means having adequate time for redevelopment,
testing and deployment for your new solution.
4. The important thing to understand here is that a major system which was formerly written in
FoxPro is going to require significant effort to be redeveloped with a new programming tool.
Alternatives to Visual FoxPro
While there is no simple conversion utility to convert your existing FoxPro application to another
platform, the good news is that there are many ways to successfully move your FoxPro data to other
database formats such as Microsoft SQL Server. The programs and user interface, on the other hand,
will have to be redesigned in the new development tool.
i.
individual language. Another plus is that the .NET technologies are the most popular Microsoft
development products which translate to a great resource pool of talented programmers capable of
working within that environment.
With .NET it is possible to create both traditional desktop applications as well as browser-based
applications capable of running on an internet server. Browser-based applications can potentially extend
the reach of your application by providing access to a wider geographic area as opposed to your
traditional internal office network.
ii.
This is available as both a free version (Express) and pay version (SQL Server Enterprise). SQL
Server has quickly become an industry standard being used by companies around the globe. Its
interoperability makes it capable of working with other products and technologies and at the same time
it is highly secure and scalable.
4.2. REMEDIES
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4) Save money.
Implementing a technology based time and attendance solution with biometric devices will
immediately help to reduce your labor costs. Manually collecting, managing, calculating and processing
time data to process payroll can take a lot of time, but with an automated time and attendance solution,
companies are able to increase efficiency and save money.
5) Increase employee satisfaction.
Employees will be happier because time and attendance software guarantees timely and accurate pay.
Further, by eliminating manual preparation of time sheets, or mechanical time cards employers are able
to improve employer-employee relations by giving employee secure access at their discretion to
personal data.
4.2.2. Emerging Systems
1. Smart Card Attendance System.
Smart card attendance system is an important part of almost all large scale organizations that allows
HR people to keep track of attendance of their employees. Because of this, organizations works become
easier as automated attendance system consumes lesser time and least maintenance. Smart card
attendance system is produces accurate results and does not require any salary paid employee for
maintenance. Smart card attendance systems function is based on microcontroller.
Companies that use smart card attendance system provide their employees a special card called
smart card in which employees information along with the access code is stored. What employees need
to do is just to enter the smart card into the smart card attendance system device (also referred to as
Smart Card Reader), where the assigned code is generated to enroll their attendances.
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Possible Disadvantages:
1. Easily Lost.
Like a credit card, smart cards are small, lightweight and can be easily lost if the person is
irresponsible. Unlike credit cards, smart cards can have multiple uses and so the loss may be much more
inconvenient. If you lose a card that doubles as a debit card, bus pass and key to the office, you could be
severely inconvenienced for a number of days.
2. Security.
A second disadvantage of the using smart cards is their level of security. They are more secure than
swipe cards. However, they are not as secure as some in the general public would believe. This creates a
false sense of security and someone might not be as diligent as protecting their card and the details it
holds.
3. Slow Adoption.
If used as a payment card, not every store or restaurant will have the hardware necessary to use these
cards. One of the reasons for this is since the technology is more secure, it is also more expensive to
produce and use. Therefore, some stores may charge a basic minimum fee for using smart cards for
payment, rather than cash.
4. Possible Risk of Identify Theft.
When used correctly for identification purposes, they make the jobs of law enforcement and
healthcare professionals easier. However, for criminals seeking a new identity, they are like gold, based
on the amount of information it can contain on an individual.
2. Timestation.
TimeStation is a quick-to-setup, easy-to-use time and attendance system that runs on iPhone, iPad
and iPod Touch with a front-facing camera.
Using our Fast-Scan technology, employees can punch In & Out in less than a second, and because
TimeStation runs in the cloud, theres no software or servers to maintain. Managers can see whos in
and run time and attendance reports anytime, anywhere.
TimeStation is the perfect solution for small and medium businesses looking to track time and
attendance without the usual costs and overhead of traditional systems.
The versatility of TimeStation allows for a wide variety of applications:
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Fig.4.2: Timestation
3. Biometric Attendance System.
There have never been more accurate technologies as helpful to people in search of a way to keep
track of group activity as biometric time and attendance technology. There have never been more
accurate technologies as helpful to people in search of a way to keep track of group activity as biometric
time and attendance technology. We have been in search of a way to track the way groups and
individuals spend their time in various capacities for ages, and the ability to keep track
of attendance has implications for the business sector, law enforcement and government as well.
So what is biometrics? Biometrics takes your unique physical characteristics and uses them for
identification of your identity and verification that you are doing something youve been authorized to
do. Your vascular patterns, hand print, finger print, iris patterns, and even your voice can be used to
ensure that you are who you say you are, and to let people know that youve been given permission to
do whatever it is youre attempting to do. These technologies allow an employer an unparalleled means
of knowing who was doing what, and when they were doing it, and others in charge of large groups the
ability to know who is in attendance at any given point in time. Tracking of time and
attendance becomes a breeze.
The simplest application in this sense is for an employee to use an iris scan or thumb print to let an
employers system know when s/he enters and leaves the office. There will be an automatic log of the
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hours worked, and when exactly the employee was in attendance. Even if the employee works offsite,
the technology can be used electronically over the internet to ensure that an employees time is tracked.
The employer can have the system tell not only when the employee was working, but also what they
were working on and how long they spent at a given task.
There are also applications for an employer to track an employees activities when in the office. The
employee may be putting in time at work, but through use of physical identifiers, the employer can tell
what the employee was doing at any given point in time, or if the person was accessing business
documents with a biometric marker used to open the file rather than a password. Biometrics can be used
to ensure that a given person is where they are supposed to be, accurately. Whether it be for business or
law enforcement, you can make sure someone is in attendance at any given point in time by having
them use a hand or thumb print to verify their identity every so often. A biometric marker cannot be
forged or faked in some way. It becomes much easier to keep track of a prisoner on parole when they
must check in at given intervals through the use of unique physical markers. For people dealing with
large groups, I.E. teachers with a class of students, biometrics can be used to mark attendance and
ensure that everyone who is supposed to be with the group is accounted for in a fool proof method.
Even the government has found a use for biometric methods of taking attendance. Some governments
are now using physical markers to identify who is voting in elections. This lets the government know
who is attending, and keeps voting fraud to a minimum. This is important in the days when people are
beginning to question the methods of ensuring the validity of election data. Biometrics technology has
advantages for tracking time and attendance not only for the private sector, but also for law enforcement
and government. Whether on or off site, employee activity and attendance can be tracked, as well as
their access to secured data. The task of keeping large groups of people safe and together is made easier
through the use of biometrics for identification of individuals.
Biometrics authenticates and determines an individuals identity by utilizing the uniqueness of his or her
biometrical and behavioral and behavioral characteristics. Other authentication method often used are
PIN method and Token (ID Card) method Biometics is superior to PIN or Token method in the
following ways:
1) Increased security.
2) Increased Conenience.
Biometrics can be classified according to the type of biometric data used, eg., face. Iris, vioce,
signature, or hand geometry identification. However, all these methods take the same authentication
process. The biometric authentication process is as shown below:
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Fig.4.3. Biometric
Keeping time and attendance records have become much easier of late through the advances in the
ability to verify and identify individuals through the use of these biometrics suppliers devices.
Biometric system includes:
a) Facial Recognition
A facial recognition device is one that views an image or video of a person and compares it to
one that is in the database. It does this by comparing structure, shape and proportions of the face;
distance between the eyes, nose, mouth and jaw; upper outlines of the eye sockets; the sides of the
mouth; location of the nose and eyes; and the area surrounding the check bones. Upon enrolment in
a facial recognition program, several pictures are taken of the subject at different angles and with
different facial expressions. At time of verification and identification the subject stands in front of the
camera for a few seconds, and then the image is compared to those that have been previously
recorded. To prevent a subject from using a picture or mask when being scanned in a facial
recognition program, some security measures have been put into place. When the user is being
scanned, they may be asked to blink, smile or nod their head. Another security feature would be the
use of facial thermography to record the heat in the face. The main facial recognition methods are:
feature analysis, neural network, eigenfaces, automatic face processing.
Some facial recognition software algorithms identify faces by extracting features from an image of a
subjects face. Other algorithms normalize a gallery of face images and then compress the face data,
only saving the data in the image that can be used for facial recognition. A probe image is then
compared with the face data. A fairly new method on the market is three-dimensional facial
recognition. This method uses 3-D sensors to capture information about the shape of a face. This
information is then used to identify distinctive features on the face, such as the contour of eye sockets,
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nose and chin. The advantages of 3-D facial recognition are that it is not affected by changes in lighting,
and it can identify a face from a variety of angles, including profile view.
Another new technique in facial recognition uses the visual details of the skin, as captured in
standard digital or scanned images. This technique is called skin texture analysis, turns the unique lines,
patterns, and spots apparent in a persons skin into a mathematical space. Preliminary tests have shown
that using skin texture analysis in facial recognition can increase performance in identification by 20 to
25 percent. The benefits of facial recognition are that it is not intrusive, can be done from a distance
even without the user being aware they are being scanned. (i.e.: bank or government office).
What sets apart facial recognition from other biometric techniques is that it can be used for
surveillance purposes; as in searching for wanted criminals, suspected terrorists, and missing children.
Facial recognition can be done from far away so with no contact with the subject so they are unaware
they are being scanned.
Facial recognition is most beneficial to use for facial authentication than for identification purposes,
as it is too easy for someone to alter their face, features with a disguise or mask, etc. Environment is
also a consideration as well as subject motion and focus on the camera.
Facial Recognition Solution Providers:
FaceFirst provides a fully automated, user friendly, turnkey mobile and live-video surveillance facial
recognition system which generates automated alerts whenever a face match above a user defined
probability is reached. FaceFirst has completely open and scalable, system architecture. FaceFirst
technology excels in low resolution environments enabling real-world performance. Products and
services: Facial recognition, Justice & Law Enforcement, Physical Access, Mobile Biometrics and
Financial Transactional.
ZKTeco is a leading global developer and manufacturer of security and time management solutions
headquartered in Shenzhen. It is subdivided into 5 business segment/divisionsZKSoftware, ZKAccess,
ZKiVision, ZKBiolock and ZKAFIS. Its products range from Multi-biometric and RFTD identification
Time & Attendance solutions to Access Control solutions like IP-based standalone access control,
networked access control panel, readers, and tripod turnstile, from IP Cameras and total surveillance
solutions to consumer products, such as intelligent biometric lock, RFID hotel lock. ZKAFIS is
engaging in providing economic and reliable AFIS solutions. Products and Services: Biometric Sensors
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and Detectors, Fingerprint Readers, Facial Recognition, Middleware / Software, Consumer / Residential
Biometrics, Fingerprint and Biometric Locks, Logical Access Control, Mobile Biometrics , Other Uses
of Biometrics, Physical Access Control, Time and Attendance.
NEC has been at the forefront of defining leading-edge biometric identification solutions for over 40
years. NECs identification technologies include finger/palm print, DNA and face recognition solutions.
NEC has developed some of the worlds largest and most complex identification infrastructure projects
for government and law enforcement. Products & Services: Fingerprint Readers, Mobile Biometrics,
Facial Recognition, Justice/Law Enforcement, Financial and Transactional, Border Control/Airports,
Healthcare Biometrics, Multi-modal Biometrics, Logical Access Control, Physical Access Control.
b) Hand Scanner
Hand scanner works by creating and storing the templates of hand geometry in a biometric device,
which are later used for identification and verification processes. Used mainly as employee attendance
clocks, these devices have completely changed the scene of business organizations. Due to its
association with biometric technology, a hand reader is capable of providing accurate results.
A hand scanner takes into account more than 90 different hand measurements, including
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Hand swipe feature doesnt allow the user to directly contact the hand reader, thereby
Employee attendance is facilitated by a hand reader to evaluate the presence of employee in the
office.
Entry and exit to and from office is maintained by these devices.
The devices can also be used for access control to various sensitive areas in an office.
Keeping track of leaves, lateness, overtime and extended lunch breaks is made easy by a hand
scanner.
Time regulation reports can be generated with the help of data accumulated by these biometric
devices.
Dirty or greasy hands dont hamper the quality of templates recorded by a hand reader.
Buddy punching, the problem faced by most of the organizations, is solved by these biometric
devices.
Employee card systems are completely eliminated, thereby saving the cost of maintaining
c) Iris Scanners
Iris cameras perform recognition detection of a persons identity by mathematical analysis of the
random patterns that are visible within the iris of an eye from some distance. It combines computer
vision, pattern recognition, statistical inference and optics.
Of all the biometric devices and scanners available today, it is generally conceded that iris
recognition is the most accurate. The automated method of iris recognition is relatively young, existing
in patent since only 1994. The iris is the colored ring around the pupil of every human being and like a
snowflake, no two are alike. Each are unique in their own way, exhibiting a distinctive pattern that
forms randomly in utero, n a process called chaotic morphogenesis. The iris is a muscle that regulates
the size of the pupil, controlling the amount of light that enters the eye. Iris recognition is rarely
impeded by glasses or contact lenses and can be scanned from 10cm to a few meters away. The iris
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remains stable over time as long as there are no injuries and a single enrolment scan can last a lifetime.
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pairing in maternity wards; "watch list" screening at border crossings; and it is under consideration
for biometricallyenabled National Identity Cards. Having only become automated and available within
the last decade, the iris recognition concept and industry are still relatively new. Through the
determination and commitment of the iris industry and government evaluations, growth and progress
will continue.
There are mainly two kinds of iris recognition attendance management system on the market. One is
on-line iris recognition attendance management system and the other is off-line iris recognition
attendance management system. On-line system always needs to connect with a PC or workstation and
all the iris recognition templates of people to be verified must stored in the database in the PC or
workstation. Thereby, matching iris recognition needs the support of the background PC. This kind of
attendance management system is easy to paralyses in case of malfunctions of iris recognition
attendance machines, transmission line or PC. Once several systems connect to form a network, burden
of PC and theresponse time of the system will be added. On the contraries, an off-line iris recognition
attendance management system can finish all the process includingcapturing the image of iris
recognition, extracting minutiae, storing and matching. All the operating of matching iris recognition
needs no support of PC and the burden of PC is lightened. The same systems can connect to form a 485
network and finally connect to the center PC of management system. With the development of wireless
techniques such as RFID, GPS, Wi-Fi, Bluetooth etc, many companies manufacture wireless modules.
So we can adopt the wireless techniques to solve the abovementioned questions.
Iris Scanner Solution Providers:
Anviz Global Inc. is a pioneering company in the intelligent-biometric security industry. The U.S.based company specializes in Biometrics, RFID and Surveillance devices. The company has been
providing solutions to a broad range of partners in commercial, industrial, and governmental sectors. In
all, Anvizs network of partners and consumers consists of over 160 million users and spans 100
countries. Products and Services: Logical Access Control, Physical Access Control, Time and
Attendance, Facial Recognition, Fingerprint Readers, Iris Scanners & Recognition.
Smart Sensors continues to innovate in technology for iris biometrics feature extraction, key creation
and matching. We work closely with our customers to build iris recognition engines, both through
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collaborative development and by supplying development tools for various product, camera and
processor platforms. Let us help you realize the benefits of highly competitive solutions. Products &
Services: Iris Scanners & Recognition, Financial and Transactional, HealthCare Biometrics, Mobile
Biometrics.
Iris ID has been the key developer and driver of the commercialization of iris recognition technology
since 1997. IrisAccess, now in a 4th generation, is the worlds leading deployed iris recognition
platform. Found on 6 continents, in thousands of locations, authenticating the identities of millions and
millions of persons, more people in more places authenticate with IrisAccess than with all other iris
recognition products combined. Products & Services: Iris Scanners & Recognition, Physical Access
Control, Time and Attendance, Border Control/Airports, Financial and Transactional.
d) Finger scanning
Finger scanning is extremely efficient and accurate. With the use of a fingerprint time clock, you can
say goodbye to buddy punching which can cause your business to lose a considerable amount of
money. These clocks help to eliminate the mistakes and glitches in any payroll system, no matter the
size of the business. These systems are remarkably efficient at verifying identities even in the case of
dry, wet, cracked, or dirty fingers.
So What Exactly Is Fingerprint Identification?
Quite simply, fingerprint sensors work by taking a photograph, a snapshot of an employees
fingerprint and producing an image. From the image a fingerprint recognition algorithm extracts the
unique features of each fingerprint and saves them as a template. The fingerprints are then compared to
the features of the fingerprint templates in the database. By comparing the similarity between two
feature sets, it is decided whether the two fingerprints match. By using this method no individuals'
fingerprint is stored in the database, eliminating the risk of identity fraud.
What Are The Benefits of Fingerprint Identification for Time and Attendance Purposes?
A staggering 75% of businesses lose money each year as a result of false time and attendance
records. Time and Attendance Software with integrated fingerprint identification removes any chance of
'buddy' clocking, whereby another member of staff clocks in for you, leaving a trail of false attendances.
A growing problem for all organizations regardless of size is the money that false clocking costs the
business. By installing this new type of technology it could save businesses up to 2.5% of gross annual
payroll. Fingerprint identification is also fraud proof as well as user friendly. The need for swipe cards
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or ID cards for clocking is eliminated as the software will require the person being authenticated to be
present at the time and point of authentication. This is beneficial as ID Cards can easily be lost and
forgotten. Password based time management has its disadvantages too. Passwords can be compromised,
forgotten and can cause many lost hours due to passwords having to be reset and reassigned. New staff
can easily be assigned in the system with a simple fingerprint scan. All in all, the system will provide
accurate information on the exact clocking in time of all employees. Traditional methods of clocking
such as time sheets and using a clocking in card system still cause a huge amount of lost time in
administration for businesses using these types of methods. Time and Attendance Fingerprint
identification allows staff to be more accountable, which in turn will lead to a more productive and
efficient work force. Choosing the right fingerprint solution, coupled with a flexible and user-friendly
Time and Attendance software could drastically reduce the amount of time spent on inappropriate work
reducing the overall costs in an organization.
e) Palm print recognition
Palm print recognition inherently implements many of the same matching characteristics that have
allowed fingerprint recognition to be one of the most well-known and best publicized biometrics. Both
palm and finger biometrics is represented by the information presented in a friction ridge impression.
This information combines ridge flow, ridge characteristics, and ridge structure of the raised portion of
the epidermis. The data represented by these friction ridge impressions allows a determination that
corresponding area of friction ridge impressions either originated from the same source or could not
have been made by the same source. Because fingerprint and palms have both uniqueness and
permanence, they have been used for over a century as a trusted form of identification. However, palm
recognition has been slower in becoming automated due to some restraints in computing capabilities
and live-scan technologies.
f) Voice Recognition Identification Technology (VRIT)
Biometric Voice Identification focuses on analyzing who is speaking rather than on what is being
spoken. Before access can be granted, an individual must train the system to recognize their voice
characteristics (i.e., their voice print).
4.3. ADVANTAGES AND DISADVANTAGES OF BIOMETRIC TECHNOLOGIES
4.3.1. Facial recognition:
Advantages:
a. Non intrusive.
b. Cheap technology.
Disadvantages:
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a. 2D recognition is affected by changes in lighting, the persons hair, the age, and if the person wear
glasses.
b. Requires camera equipment for user identification; thus, it is not likely to become popular until most
PCs include cameras as standard equipment.
4.3.2. Voice recognition:
Advantages:
a. Non intrusive. High social acceptability.
b. Verification time is about five seconds.
c. Cheap technology.
Disadvantages:
a. A persons voice can be easily recorded and used for unauthorized PC or network.
b. Low accuracy.
c. An illness such as a cold can change a persons voice, making absolute identification difficult or
impossible.
4.3.3. Iris recognition scanning:
Advantages:
a. Very high accuracy.
b. Verification time is generally less than 5 seconds.
c. The eye from a dead person would deteriorate too fast to be useful, so no extra precautions have to
been taken with retinal scans to be sure the user is a living human being.
Disadvantages:
a. Intrusive.
b. A lot of memory for the data to be stored.
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c. Very expensive.
4.3.4. Fingerprint:
Advantages:
a. Very high accuracy.
b. Is the most economical biometric PC user authentication technique.
c. it is one of the most developed biometrics.
d. Easy to use.
e. Small storage space required for the biometric template, reducing the size of the database memory
required.
f. It is standardized.
Disadvantages:
a. For some people it is very intrusive, because is still related to criminal identification.
b. It can make mistakes with the dryness or dirty of the fingers skin, as well as with the age (is not
appropriate with children, because the size of their fingerprint changes quickly).
c. Image captured at 500 dots per inch (dpi). Resolution: 8 bits per pixel. A 500 dpi fingerprint image at
8 bits per pixel demands a large memory space, 240 Kbytes approximately Compression required (a
factor of 10 approximately).
4.3.5. Hand Geometry:
Advantages:
a. Though it requires special hardware to use, it can be easily integrated into other devices or systems.
b. It has no public attitude problems as it is associated most commonly with authorized access.
c. The amount of data required to uniquely identify a user in a system is the smallest by far, allowing it
to be used with SmartCards easily.
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Disadvantages:
a. Very expensive.
b. Considerable size.
c. It is not valid for arthritic person, since they cannot put the hand on the scanner properly.
Key Benefits of Biometric Time and Attendance:
for another.
Can be used for identity verification - to ensure that the person using the card is the person
the terminals.
4.4. TIME AND ATTENDENCE TRACKING SOFTWARES
Attend HRM Attendance Software has a complete attendance management solution that automates all
your attendance processes. Just configure your attendance, payroll rules, and leave the rest to Attend
HRM. Close integration among payroll, attendance, and leave management allows you to define your
payroll formulae with ease. You can pay your employee for every minute of overtime he does. Also, you
can cut pay for every minute he is late. Attendance Software is the best solution for managing
attendance efficiently.
How much time your employees, your managers and your payroll staff spend on simply managing
time? The costs associated with this one task can stagger. Between punching clocks, setting schedules,
enforcing schedules, absence management, and payroll processing etc, inefficient time attendance
management will turn out to be a black hole that sucks a companys bottom line of earnings. Attend
HRM is the best solution for managing attendance efficiently. It will be a one-time investment for
lifelong usage. Look at the advantages and features of Attendance Software.
Advantages:
Time saving.
Manage critical employee information easily.
Easy work force scheduling.
Monitoring the attendance efficiently.
Monitoring absence, leaves, overtime, late comers, early goers etc.
Monitoring employees performance.
Integrate with payroll for easy and faster payroll processing.
Integrate with biometric/swipe card devices to generate attendance information automatically.
Features:
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Graphical Attendance Views (Day, Work Week, Week, Month, Year views).
Automated Overtime Calculation.
Automated Late-In/Early-Out Calculation.
Grace Periods for Work Start/End Times.
Attendance Data Re-processing.
User defined Attendance Types.
Real-time and Editable Attendance.
Overtime Management.
User-defined Leave Types.
Entitlements.
Late-In, Early-Out Reports.
Overtime Reports.
Sickness Reports.
Actual & Planned Work time Reports.
Daily/Monthly/Yearly Attendance Reports.
Settings for Customization.
Modification History for attendance data.
TimeCheck is web-based attendance tracking software used for tracking employees Time and
Attendance. By installing our biometric time attendance system you can process the time recorded at the
smartcard / biometric terminal across the organization, even remote locations over the intranet or
Internet can be performed. With TimeChecks configuration ability to fit your organizations business
rules you can Track and monitor employee attendance accurately in real-time.
This software reduces labor-intensive works like attendance monitoring, shift time tracking, leave
management, payroll processing and improves workforce productivity. With this employee time
tracking software you can easily view the attendance data compliance with that of their shift timing &
leave approvals. We can integrate this attendance tracking software with that of Payroll software and
make certain that the salary payments are done on-time. It helps to avoid discrepancy and lets
administrator & HR to easily process employee pay. Based on Organization hierarchy you can have
comprehensive security layers to protect data from access of unauthorized personnels.
2. REPLICON TIMEATTEND
Replicon TimeAttend is a cloud-based solution that makes it easy to collect attendance and time off
data to process payroll accurately and ensure labor compliance for all types of employees. Our cloud
solution is so hassle-free; you can get started in minutes. Sign up for a free trial today. More than 7,800
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customers including The Wallstreet Journal, RBC financial Group, HP, Compaq, AT&Twireless, Sony
Music and Hyatt.
3. TIME-OFF MANAGER
Time-Off Manager is a fully automated, 100% web-based solution to easily track and manages
employees' paid time-off, vacation, sick days or other custom time-off types. With 3 types of users
(admins, managers, employees), our solution is suitable for any types of companies. Email notifications
are sent to all designated users upon approvals, rejections and cancellations. All requests must be
submitted through the system, which eliminate manual time-off processes and the risk for errors.
4. MANAGE WITH SUCESS
HRIS System. With Manage with Success, you can fill that void with a 'virtual professional':
Efficiently, Effectively and Affordably.
5. ATTEND HRM
HRM solution with integrated payroll and time attendance module; automates attendance and
payroll/salary processing.
6. THE GREENEST OFFICE
Manage your expenses, absence & timesheets online and via your mobile.
7. TSHEETS
Ready-to-use software for employee time and attendance tracking; add employees, review timesheets
online and streamline payroll.
8. TIMEFLOW ONLINE
9. LABOUR VIEW
10.Etss
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Biometrics makes it almost impossible for employees to defraud a time and attendance system. Other
returns on investment can be gained through the use of the biometric system as a security access
monitor, as well. In this case, the biometric system is used to grant or deny access to restricted areas.
The cost of purchasing and maintaining magnetic or proximity identification cards, which do not
prevent fraudulent access, can be eliminated.
Several factors can help you determine whether to invest in biometric time recorders.
First determine whether there is a need for biometric technology in the workplace. Then consider the
potential return on investment. Finally, make sure that the work environment is physically suitable for
biometric devices, and that employees can accept and use the technology.
1) Evaluate the need for authentication or identification: As mentioned earlier, a workplace with
employee time fraud problems, like buddy punching, can benefit greatly from the use of biometric time
recorders. A need to control security access to portions of a building can be answered with biometrics,
as well. Alternately, a workplace with no security concerns or hourly workers may not need biometrics
to maintain accurate employee time and attendance records.
2) Consider the cost/benefit ratio: If there is a need for biometrics, consider the cost. For a smaller
organization, the cost of biometric equipment may be greater than any gains from the elimination of
time theft. However, the price for biometric technology is dropping as technological advances are made
and adoption becomes more widespread. Economies of scale and sophisticated engineering continue to
lower the cost of biometric devices. Lower cost biometric time clocks have begun to enter the market,
and may be an option for many organizations. Your time and attendance provider can help you weigh
the benefits of installing biometric time clocks.
3) Assess the compatibility of the biometric technology with the work Environment: It is essential
that biometric readings be as accurate as possible. For this reason, the environment in which biometric
sensors are used is crucial to ensure good reads of employee biometric characteristics. An environment
that is too humid or dirty can obscure the fingerprint on a finger reader platen (or reading surface),
making it more difficult to correctly scan the finger. A noisy environment can disrupt the proper
collection of voice data.
4) Be sensitive to the concerns of employees: When considering the purchase of biometric time
recorders it is important to address the privacy concerns of employees. For example, explain to
employees that a finger or hand reader does not store or recognize employee fingerprintsit uses hand
or finger measurements to create a template for the employee. These measurements are used only for incompany authentication and security access. They cannot be used to recreate biometric data such as a
persons actual fingerprint.
4.5. HOW TO OVERCOME EMPLOYEES GRIEVENCE
HOW TO OVERCOME EMPLOYEES RESISTANCE TO TIME TRACKING SOFTWARE:
Effective time management is critical to the success of any company, but employees arent always
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thrilled about having to track their time. Fortunately, advances in time tracking software make it easier,
but there are other ways to get buy-in from your workforce and motivate them to get timesheets
completed consistently and on time. A key tool for eliminating much of the transactional, manual
activities related to payroll is time tracking software. APA estimates that 7 minutes is spent entering
each employee timesheet, and more time is wasted tracking down late submissions and fixing timesheet
errors. But historically, people have been resistant to time tracking, for a number of reasons:
Fortunately, time tracking software is changing, and new cloud-based solutions make access and use
easier than ever. Many time management offerings have mobile apps that can be used to log time over a
Smartphone or other mobile device, while on the road or in the field. And time tracking software
interfaces are getting friendlier, too.
Despite all this progress, overcoming resistance among employees may require additional tactics.
1. Educate employees on why theyre doing it.
If you bill clients for your hours, this ones easy. Without time tracking software, its harder to get
paid for all the time you spend on a project. Many clients will want to see a list of time spent on various
activities before they write a check. If you dont get paid, employees wont stay employed for long.
Explain that the livelihood of the company and all of its employees depends on accurate time tracking
and management. If youre using time tracking software for project costing, youll have to explain to
your employees that its needed to account for time spent completing project activities. Inaccurate time
tracking can lead to unnecessary overtime, bad planning, exceeding the budget, or cancelling the
project.
2. Send Email Reminders.
Many time management software solutions provide automated email reminders to users to fill out,
submit or approve timesheets. This feature virtually eliminates the need to personally contact or chase
down employees regarding late timesheet submissions or delayed approvals. And, it removes worry
from the users mind, since they dont have to remember to do it on their own.
3. Account for time spent on projects and tasks.
Keeping track of how much time people spend on various tasks encourages productivity and is a
great tool for employee reviews. If employees understand that youll be using time tracking software in
their evaluations, theyll be motivated to fill out timesheets with accuracy and consistency.
4. Provide Incentives.
Using bonuses or other perks as incentives, or creating healthy competition among office teams, is a
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positive way to enforce consistent, complete data collection of any kind, and can be used for time
tracking as well. Try offering a free lunch to the team that consistently turns in timesheets on time for a
fiscal quarter, or hand out gift cards to employees that have no errors on their timesheets for a month.
This method doesnt just encourage camaraderie among co-workers; it rewards them for being
conscientious.
4.5.1 KEY FEATURES OF A TIME AND ATTENDANCE SOFTWARE:
The Software should work with all type of access made attendance recorder having all different
Leaves etc.
All types of schedule generation and maintenance capability.
Short Leaves, Half day and Outwork entry provisions through software.
Various type of Leave Application entry forms with balance and other rules checking.
Must generate option to summarize the monthly attendance and generate the output, which can
and processing.
Data Export facility for using it in other payroll system.
Built in Daily, monthly, Yearly and Leave reports.
Facility for users to create reports as per their requirement and then to take output as per their
requirements.
Different types of Graphical Reports are also available for Management decision-making
process.
Data security and easy data management of data in bulk size.
Database can be on any OS like WinNT, Win2000, UNIX, SOLARIS etc.
Processing and Reports printing must be very fast.
Software available on almost all known database: Oracle, SQL Server, MSDE, Visual FoxPro ,
MS Access.
Report can be generated in Rich Text Format, MS Word, MS Excel.
Holiday and Absence Planning & Monitoring.
Personnel Records.
User friendly Windows based System.
ODBC & ASCII Import AND Export Facility.
Links to Payroll, HR, Accounting and Manufacturing Systems
Many shorting parameters and selection parameters are integrated
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considered as a time loss. Details of such employees are obtained through this kind of report.
12. Over Time Register
Generated for Employees who work more than the working hours; the excess working hours is
considered as over time (if allowed in Employee Master) and reflected in this report.
13. Over Time Summary
This report shows the department wise over time status of employees on that day.
14. Shift Change Statement
In case an employee is allowed to work in a shift other than his/her usual shift (through the
authorized shift assignment of the Employee Master) the automatic shift change checks the arrival time
of the employee and allocates the shift nearest to it. This change is notified through the shift change
statement as it indicates the actual shift and changed shift of that employee.
15. Out Work
In case the software is set to calculate two punches, this report shows the punches in between the in
punch and out punch, as our work of the employees on that day.
16. Missing & Revivification
This report shows the details of employees whos in or out punch is missing and of the employees
who have worked more than the permissible maximum working hours etc. Our Software brings to your
notice the abnormalities for correction.
17. Continuous Late Arrival
This report shows the name of the employee who is coming continuous late (after permissible late
arrival time) by more than the specified days.
18. Continuous Early Departure
This report shows the information of employees who are leaving before the permissible early
departure time continuously.
19. Continuous Absenteeism
This report shows the information of employees who have been absent continuously for specified
number of day(s) till the current date.
4.5.2.2. Monthly Reports
These reports are generated monthly:
1. Performance
This report shows the Monthly performance of an employee.
2. Employee Wise Attendance
This report shows the attendance details of employees like total present, absent, leave, weekly off,
OT and OT amount for a month.
3. Department Wise attendance
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This report shows the department wise attendance details of employees like total employees in the
department, number of presents, absent, on leave and on weekly off.
4. Shift Wise Attendance
This report shows the attendance details of employees shift wise. It shows the number of, absent,
weekly off, leave, OT and OT amount.
5. Muster Roll
This report shows the entire months attendance details of all the employees in a single chart. This
report can be generated on 80 columns or 132-column stationery. This specimen is for 80 columns. The
same report in a better manner can be generated in 132 columns.
6. Form No-12
This report provides information of attendance of each and every employee date wise divided into
two parts. This report also shows the total working hours, over time hours and details of all deductions.
7. Over Time Register
Employees who work more than the working hours; the excess working hours is considered as over
time(if allowed in Employee Master) and reflected in this report.
8. Over Time Summary
This report shows the department wise over time status of employees on that day.
9. Shift schedule
This report shows the shift chart of the employees of a month. This report can be generated for all
shifts (fixed, rotational, ignorable) / rotational shifts only / fixed shifts only. This chart shows shift
pattern, weekly off (First and second) and the shift of each day employee wise.
10. Employee Wise
This report shows the attendance details of employees like total present, absent, leave, weekly off,
OT and OT amount for a month.
11. Department Wise
This report shows the department wise attendance details of employees like total employees in the
department, number of presents, absents, leaves and weekly off.
12. Regularity Chart
This report shows the regularity chard of the employee.
13. Early Departure
This report shows total loss hours for the company, employee wise, on account of their early
departure before permissible time limit. It also shows the no of days the employee has left early.
14. Time Loss & Over Stay
Only those employees name will be shown in this report that have come after the permissible late
arrival time and worked more than the working hours. This report consists of the total late hours,
number of days late and total over stay employee wise.
Cochin University Of Science And Technology, CUSAT
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4.6. FINDINGS
Findings obtained by analyzing the problem are:
1. The software used in TELK was an old version, which the Microsoft has stopped dealing.
2. The software used cant catch up with the modern services.
3. Buddy punching is a usual issue in the company.
4. Employees forget to take their swipe cards.
5. They have to provide each new employee with new cards which are costly.
4.7. CONCLUSION
Since swiping card technology is an old method of attendance taking, and due to continence reasons and
security reasons it is better to use Biometric method of attendance taking in TELK. Among the
Biometric technologies it is advisable to use punching method due to harmlessness, convenience etc.
Since TELK is using old version software Foxpro it is advisable to change the software from
Foxpro to some other higher and better software suggested above.
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