CHAPTER NO: 1Introduction

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CHAPTER – 1

INTRODUCTION

The practical training done during the period from 15th June 2011 and 31st July 2011

was the part of the partial fulfillment of the Master Degree in Business Administration. This

practical training work was a great experience to know all about the working of the functional

areas in the Krishnakanth Spinning Mills, Dindigul.

The general objective of Training Programme is to gain practical knowledge on the

overall functioning of the various departments of the organization.

The following are the specific objectives of Training Programme:

To study about the organization and management.

To analyze various functions performed by the various departments in the

company.

To secure practical knowledge regarding the Manufacturing, Finance,

Accounting aspects and Marketing of yarn.

To get an industrial exposure

To be aware of the happening in a particular industry

To achieve knowledge about different sectors in market for making choice  as

to which go for.

To learn functioning and operations of different in an organization

To get knowledge about the working culture of the organization

To have knowledge about the huge management practices and get the practical

knowledge of what we have studied.

This will help me to know about the current scenario of the corporate sector and their

strategies which will be very useful during my future endeavors.

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CHAPTER NO: 2ABOUT TEXTILE INDUSTRY

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CHAPTER – 2

ABOUT TEXTILE INDUSTRY

INTRODUCTION

The Indian Textile industry occupies an important place in the economy of the

country because of its contribution to the industrial output, employment generation and

foreign exchange earnings. At present, the contribution of the textiles Industries to GDP is

about 4 percent. The textile industry provides direct employment to about more then 30

million peoples and is the second largest employment provider in India after agriculture. The

contribution of this Industry to gross export earning is about 37 percent and its ads less then

1.5 percent to the gross import bill of the country.

ORGANIZED TEXTILE INDUSTRY

The organized textile industry consists of three distinct categories viz. spinning mills,

Coarse and medium composite mills, and superfine composite mills are not able to adjust

their cost in the face of rising prices of raw materials and increase in wages. Consequently,

many of them became uneconomic units and ran into difficulties. Fine and superfine

composite mills use foreign cotton; they are not subject to stock restriction and can, therefore,

carry on stable production programmer.

PROBLEM OF COTTON TEXTILE INDUSTRY

In the past, cotton mill industry suffered from incompetent and selfish managing

agents and directors who were more interested in modernization. If management of textile

units had been selfish and exploitative, the role of trade unions in the industry has not been

helpful either. In fact, the closure of many textile mills in the country was forced upon by

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short-sighted union leadership. The Bombay mill industry, for instance, was literally ruined

by one-year long strike organized by Dutta samant controlled unions. Besides these, the two

most important factors which have spelt disaster to the industry in the last three decades are

Government’s textile policy and growth of the power loom sector. The result was that many

textile mills became inefficient and uneconomic-one third of the mills became sick and were

closed down. As many as 132 mills have been closed down.

GOVERNMENT CONTROL AND HEAVY EXCISE DUTIES

The cotton textile industry has suffered badly due to wrong and, often confused policy

of the Government. In the past Government had sought control of price, distribution of yarn,

pattern of production, etc. At one time, price of cloth were fixed by the Government far

below cost. Under the yarn distribution scheme of 1972, the Government made it obligatory

on all mills to supply 50 percent of the production of yarn to the decentralized sector at

reduced rates. The duty on imported cotton was quite high and it not only made import of

cotton. The excise duties on different varieties of cotton cloth were quite heavy and besides,

they were discriminatory.

A serious problem of the mill sector at one time related to production of controlled

cloth. To ensure availability of coarse and medium varieties of cotton cloth to be produced by

mills from 400 million meters to 800 million meters. The industry vainly protested of

controlled cloth. The planning commission openly admitted that the controlled cloth scheme

under which the price of cotton alone was higher then controlled cloth. It was only in October

1978 that the Government exempted the mills from the obligation to produce controlled cloth.

But by that time, cotton mill industry had suffered very badly and many mills forced to shut

shown.

PROBLEM OF RAW MATERIALS

The industry faces the problem of building up a regular supply of its material – cotton

– in adequate quantities. The latter constitutes the largest single element in the cost of yarn

and cloth production. Despite the importance of the industry and the long period of its

growth, the position of raw material has remained unstable. The most disappointing feature of

cotton cultivation is that country accounts for only 10 percent of the particular, fluctuations in

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the prices of raw cotton are two major causes of sickness and consequently closure in the

textile industry. Problem of power. The textile industry in our country had suffered badly for

want of adequate the industry badly. The inadequacy of coal supplies had also southern India.

Load shedding had been one of the serious problems of the industry.

OBSOLETE MACHINERY AND NEED FOR MODERNIZATION

The mill sector has been working with obsolete machinery. According one estimate,

over 80 percent of the machinery in the cotton textile mill industry has to compete with

countries like Taiwan, Hong Kong, South Korea, etc., all of which are using the latest

sophisticated machinery.

The industry, however, has no resources for the huge task of replacement and

modernization. The Government and the public sector financial institutions will have to

provide the necessary funds for this purpose. The Government set up in 1986 the Textile

Modernization Fund pof rs.750 corers and asked the IDBI to operate it.

HIGH COST AND COMPETITION IN FOREIGN MARKETS

The Indian cotton textile industry has been facing increasing competition in world

markets. This is largest due to low production and high cost and consequently high price of

Indian cotton textiles. It is paradoxical that in a country where wages are low and cotton is

internally available, production cost should be high. But the advantage of lower wage is

offset by higher cost of raw materials and inefficiency in production caused by the use of

outmoded machinery. In this context it may be noted that where as wages and salaries

account for only 16 percent and process materials 20 percent of production costs. The

industry badly needs replacement and modernization. While India’s major Indian textile

industry is saddled with obsolete machinery. Modernization and rationalization the industry

cannot improve the quality of its products and also offer them at competitive rates.

It is, however, important to emphasize the new challenges the textile industry has to

face in the sphere of exports. With increasing of textile and cloth industry into the world trade

regime, Indian textile exports will have to cope with the problem rationalizations of trade

between blocks of regions, child labors, and dumping levies, etc.

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COMPETITION FROM THE DECENTRALIZED SECTOR

An important factor for the growing sickness of the mill sector is the growth of the

decentralized sector. Being a small-scale sector, the Government allowed excise concisions

and other privileges, such as exemption from the production of controlled cloth. The worker

in the power loom sector were either not organized or organized loosely, so that the level of

wages in this sector was must lower then that in the mill sector. Often, the decentralized

sector made use of the names of the well-known mills and outsold the latter.

The textile industry exhibits peculiar characteristics – some units like Reliance

Textile, Mafatlals are doing extremely well, while many other faring miserably. The industry

is facing both short-term problems of the industry are high prices and shortage of raw

materials, liquidity problems due to poor sales and large accumulation of stocks as a result of

poor demand. The long-term problems of the industry are the slow pace of modernizations of

age old plant and machinery, outdated technology resulting in low production, high cost of

production, low profitability and increasing sickness.

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CHAPTER NO: 3COMPANY PROFILE

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CHAPTER – 3

COMPANY PROFILE

3.1 INTRODUCTION ABOUT THE COMPANY

Krishnakanth Spinning Mills Limited was incorporated as a private limited company

on April 4, 2005 under the companies Act 1956.

This Mission “Production of cost and effective quality yarn, producing the product to

the International standard and customer satisfaction through flexible and manufacturing,

assured quality shipment”.

Installed capacity of the company was 2940 spindles initially which has been

increased from time to the present level of 10,084 spindles. For doubling the capacity is 1,200

spindles.

Manufacture of polyester \ cotton blended yarn.

3.1.1 KRISHNAKANTH SPINNING MILLS

1. Produces 70% cotton and 30% polyester yarn.

2. Quality classified under 5-10% user international standards.

3. Medium scale industry.

3.1.2 GOALS OF THE COMPANY

Striving for excellence in every sphere of company’s activities.

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3.1.3 QUALITY POLICIES

1. Good Quality

Best, which saves the cost the time for the customers

2. Best service

Customer friendly in fulfilling their requirements.

3. Steady Development

Up-gradation in technology and diversification for value addition.

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3.2 PROFILE OF THE COMPANY

KRISHNAKANTH SPINNING MILLS LTD

1.Name and Address of the company KRISHNAKANTH SPINNING MILLS

Sirumalai salai, rettiyapatti post,

dindigul-624009

2.Registered and Administrative Office Dindigul

3.State in which the company is registered Tamil Nadu

4.Status Private Limited Company

5.Year of the commencement 2005

6.Type of industry 70% Cotton and 30% polyester Yarn

Production

7.Mill Location Sirumalai salai

Dindigul-624005

8.Subsidiary a)Shanmugavel Spinning Mill

vadamadurai,

Dindigul.

9.The Management DIRECTOR

Mr. A.Krishnakanth

10.Company Secretary Sri.K.kannan

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11.Financial Institutions PRIVATE FINANCE INSTITUTION

TATA Institution,

City financial Institution,

GE money Institution,

ICICI….

GOVERNMENT FINANCE

INSTITUTION

Tamil Nadu Industrial Investment

corporation

12.Bankers State Bank Of India , Salem

Allahabad Bank Ltd., Salem

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CHAPTER NO: 4ORGANISATION CHART

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CHAPTER – 4

ORGANISATION CHART

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PROPRIETOR

FACTORY MANAGE

OFFICE MANAGER

PRODUCTION SUPERVISOR

MAINTENANCE SUPERVISOR

ELECTRICAL SUPERVISOR

QUALITY CONTROL

HR

STORES FINANCE

MAISTRY

FITTER

ELECTRICIAN

OBSERVERS

ACCOUNTANT OFFICE CLERK

MAINTENANCE GANGE

HELPER

CHAPTER NO: 5DEPARTMENTS

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TENTERS

PURCHASEDEPARTMENT

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CHAPTER - 5

DEPARTMENTS

5.1. PURCHASE DEPARTMENT

Purchasing refers to a business or organization attempting to acquire goods or services

to accomplish the goals of the enterprise. Purchase department takes care of purchase of raw

materials needed for the production. Purchasing managers and procurement managers guide

the organization’s acquisition procedures and standards.

The purchasing department normally issue Purchase Orders for supplies, services,

equipment, and raw materials. In the recent past the trend away from the daily procurement

function (tactical purchasing) resulted in several changes in the unit. The first was the

reduction of personnel. Purchasing department is now smaller. These professionals are now

not only focusing on the bidding process and negotiating with suppliers, but the entire supply

function. In these roles they were able to add value and maximize savings for organisation.

This value manifest in lower inventories, less personnel, and getting the end product to the

organization’s consumer quicker.

Purchasing manager’s success in these roles resulted in new assignments outside to

the traditional purchasing function – logistics, materials management, distribution, and

warehousing in the stores. Further the Stores department ensures that the materials are rightly

sent when needed.

The main requirement of raw material to input for a spinning mill is raw cotton. This

raw material is purchased and stocked by this department. The purchase department is

otherwise called as raw material department.

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The purchase department is the department, which buys raw materials for production.

It is this department, which keeps always raw material in stock. It should always see that

there is no over stockage or deficit in stockage of raw materials.

Every month mill is sending cotton and polyester requirements to head office, based

on the requirement the cotton division of head office will send intimation showing the details

of procurement like variety of cotton, lot number, quantity and rate. Based on the intimation

from cotton division head office mill will receive the material and check the correctness of

mill receive from supplier with intimations.

At present the mill is procuring raw material for cotton within the state and also from

the up countries. For polyester they are procuring from Reliance Industries Ltd, surat. The

raw materials are purchased in the form of bale (pressed form) and borah (unpressed form).

The mode of purchase of the raw material are through agency and directly from the

supplier. And the mode of payments are cheque, against delivery and immediately after

receipt. The mode of delivery are free on road and spot.

In polyester there are 4 variety based on quality.

1) 1st grade

2) Standard

3) PQ

4) Sub_Standard(SS)

REGISTERS MAINTAINED

1. Weighment book

Each and every bales received will be weighted and recorded in its register.

2. Mixing Instruction book

Variety, lot number, percentage for every count will be recorded in the book.

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3. Mixing Issue’s book

This book shows the details of count, variety, lot number of bales, net weight and

issue of mixing.

4. Lot War book

For each and every lot received will be recorded in this book regarding lot numbers of

bale, quality and quantity in kgs , date of received, date of issues and balance quantity

available.

Stores keeping involves keeping of stocks, identifying and classifying them according

to their nature, type and sizes. It also includes proper maintenance of stock records. Proper

storage of goods is very essential for effective production planning. Just as purchasing

department is responsible for purchase, stores department is responsible for store. The store

department is a service department rendering service mainly to production and accounts

departments. In the organization there is a separate stores department under the control of the

storekeeper and he is assisted by one supervisor.

FUNCTIONS OF STORES DEPARTMENT

1. Providing materials necessary for production.

2. Maintaining stock.

3. Maintaining stock during emergency period.

4. Initiating purchase department at suitable time about the stock of material, quantity

and other particulars.

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Store department is closely connected with all other department. Its important

function is to supply the required materials to the concerned department. The store

department deals with machine, spare parts, oil, electrical items, etc.

FORMS USED

Issue of material are in the Indent form.

MATERIALS STORED

1. Packing materials

2. Belts

3. Fuel

4. Hardware

5. Cotton and polyester.

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FUNCTIONAL CHART OF STORES DEPARTMENT

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BILL OF MATERIALS

STOCK VERIFICATION

COLLECTION OF SAMPLE

LEDGERCOST

CONSUMPTION

PURCHASE BOOK PRICE NEGOTIATION

INTERNAL RECORDS

QUALITY VERIFICATION

RECEIPT OF MATERIALS

PLANING ORDER

PRODUCTIONDEPARTMENT

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5.2. PRODUCTION DEPARTMENT

Production department ensures that the effective and efficient pumps are

manufactured according to the specifications. This department is responsible for the entire

manufacturing process, turning raw materials into finished goods. Under the leadership of a

Production Manager it has to:

1. Identify the engineering or technical aspects of the production process

2. Assess how long it will take to plan production –Time reference

3. Monitor progress, carrying out work studies and quality inspection

Production Engineering ensures and

1. Determines how product will be made

2. Assesses what technical equipment is needed

3. Checks on standard of raw material

Production Planning focuses and

1. Identifies when production will take place

2. Estimates length of production

3. Ensures raw materials are delivered on time

Controlling oversees and

1. Ensures production plan is being followed

2. Maintains quality standards

3. Monitors timescale

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Production planning and Control guidelines of Sharp industries

1. If planning is not carefully co-ordinated production could slow down or even stop. The

company will lose money if workers and equipment are left idle due to raw materials not

arriving on time.

2. Physical resources and labour are the largest costs a manufacturing firm has. If they are

not used efficiently, the firm can lose money.

3. Companies carry out work studies to assess working practices. Wastage can be avoided if

the production process is monitored carefully.

Production is organized activity of transformation raw materials into finished goods

or products. It is a sequence of technical process.

Production department is controlled by factory manger under the authority of

supervisor, shifts in charge and quality control inspectors are under the control of head of the

department.

PRODUCTION PLANNING AND CONTROL

The production planning consists mainly of the evaluation and determination of

production means such as labour, machinery and equipments materials and utilize to achieve

the desired goods over a given period of time.

Production and planning control is the co-ordination of services of functions like

together according to the plan so that the movement of goods from the stage of procurement

of materials of finished stock may be resulted. It includes planning, ranking, scheduling,

dispatching and following of progressing functions.

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FUNCTIONAL CHART OF PRODUCTION DEPARTMENT

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FACTORY MANAGER

PRODUCTION SUPERVISOR

MAISTRY

TENTERS

PRODUCTION PROCESS

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MIXING

BLOW ROOM

CARDING

DRAWING

SIMPLEX

SPINNING

CONE-WINDING

PACKING

MIXING

Cotton is basic raw material used for the manufacture of yarn. The cotton and

polyester are mixing in the type of layer.

1st layer - polyester 50 kg

2nd layer - cotton 14 kg

Wastage - 2 to 5 kg

It is useful and maintains uniformity is length and colour.

BLOW ROOM

The main work of blow room is to clear and open the bale of cotton and polyester. In

this stage, the compressed cotton is opened and removed all the imparities present and made

in the form of sheets. Then it is wound on the spindle rod in the form of roles, which is called

hap.

CARDING

Lap from blow room is fed and pass over through cylinders then it is turned in the

form of web. The web is converted into sliver by means of calendar roles, the trial output is

called sliver.

DRAWING

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It strengthens the fibers in the sliver and arranges in a parallel manner. The main

function of the drawing is to improve the uniformity of the sliver and to remove the hooks in

the sliver.

It is the key point where controlling of yarn count variation is done. The control of

average count can be effectively done by drawing also.

SIMPLEX

The end process of preparatory is simplex. The function is to convert the sliver into

threads that are wound on bobbins.

Here it reduces the diameters of the sliver by drafting through drafting roles. Then it

wound on plastic bobbins.

SPINNING

Yarn is made actually by obtaining roving yarn into required count of yarn passing

through spinning machines. Here it is converted into required count of yarn by the drafting

rollers. Finally it is wound on ring bobbins.

The most important department is textile industry is the spinning. The spinning

department is where the yarn is manufactured by spinning and wound the threads on the

bobbins.

The friction of spinning department is twisting and then winding the twisted fiber into

the bobbins.

CONE WINDING

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The process of transforming the yarns into cones. The yarn being built up in the cops

is being again removed and are wound on cones and the winding of the yarn is called cone

winding.

The main function of cone winding is to wind the yarn into cones from the cops by

strengthening the yarn by the process of winding.

PACKING

The cones are being weighted and labeled and then packed in polythene bags and then

put it into bags or cases. They are arranged in the form of bales and addressed the necessary

details.

MATERIAL HANDLING EQUIPMENTS

1. Bale trolley

2. Cone trolley

3. Bobbin trolley

4. Doff trolley

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TYPES OF MAINTENANCE

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MAINTENANCE

GENERAL CLEANING PERIODICAL MAINTENANCE

MONTHLY QUARTERLY HALFERLY ANNUALY

QUALITY CONTROLDEPARTMENT

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5.3. QUALITY CONTROL DEPARTMENT

Quality control department guarantees that the raw materials thus acquired are of the

required quality and standardized by relevant testing so that finished goods are of intended

quality. The quality control department carries out inspections where random samples are

tested to ensure standards are met.

Sharp focuses on Total Quality Control which is the most important inspection control

of all in cases where, despite statistical quality control techniques or quality improvements

implemented, sales decrease. If the original specification does not reflect the correct quality

requirements, quality cannot be inspected or manufactured into the product. Under traditional

quality control, inspection of products and services (checking to make sure that what's being

produced is meeting the required standard) takes place during and at the end of the operations

process.

There are three main points during the production process when inspection is

performed:

1. When raw materials are received prior to entering production

2. Whilst pumps are going through the production process

3. When pumps are finished - inspection or testing takes place before products are

dispatched to customers

QUALTY CONTROL

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Quality control is the watchword in a modern industry as if affects the user need as

well as portability especially in the competitive industry like textiles. To help efficient

functioning of quality control the methodology and procedure that need to be adopted have

been well formulized and systematized.

Quality holds a key to the marketing success of a mill in the competitive economy

that is fast emerging in our country. It is determined by the cost of raw cotton, and the

amount of yarn relished per kilogram of cotton consumed. By minimizing the cost of cotton

and maximizing the yarn realization it is necessary to ensure that the yarn spun is of desired

quality.

“Quality” refers to conformance to the agreed upon requirements. The company using

following quality control.

Grains Balance

Used to find out the weight of the carding sliver, drawing sliver, simplex sliver

and yarn.

Grams Balance

Used to find out the sliver weight in terms of gram.

Leo Strength Tester

Used to find out the strength of the yarn.

Yarn Wrapper

Used to find the strength per Leo.

Yarn Twist Tester

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Used to find the twist per inch.

Yarn Bound Testing

Used to find the imposes in yarn.

Sliver Roller

Used to find out length of the sliver in terms of yarn.

MAINTENANCE

“Prevention is better than cure” , so the company following preventive

maintenance. System for which they are spending 6 to 8 hours per week for maintenance

purpose. Factory maintenance is under the control of a Factory Manager and Assistant

Factory Manager.

FUNCTIONS DONE BY QUALITY CONTROL DEPARTMENT

1. Preparing daily, monthly, fortnightly reports.

2. Testing and maintaining sample yarn details.

3. Entering the sample details everyday.

4. Maintaining upto date yarn results.

5. Comparing the yarn results.

6. Giving details about mixing particulars.

7. Checking the count, hank for yarn.

8. Checking quality standards.

STANDARD QUALITY NORMS

Lap CV - 1%

Card Sliver CV - 3%

Drawing Sliver CV - 1%

Bobbin CV - 1%

Spinning

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Count CV - 3%

Strength CV - 7%

Cone weight - 1.5 kg

INTERACTION WITH VARIOUS DEPARTMENTS

The quality control acts as the center for all the department. It gives quality assurance

reports and suggestion to various departments. Based on the report given by the quality

assurance the production department will act according to it.

Four types of reports are maintained by the Quality Control Department such as

monthly, fortnightly, daily and weekly reports.

Working process statement about the production stages are given as the monthly

report.

The daily cost, preparatory efficiency report is given to manager.

Yarn list result are given to general manager and general letters are given as daily

reports.

Cotton list result (average parameters for every mixing), cotton remaining stock

balance report, utilization report for HR Department are given as weekly reports.

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INTERACTION OF QCD WITH VARIOUS DEPARTMENTS

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HEAD OFFICE(GM)

HR DEPARTMENT

PRODUCTION DEPARTMENT

STORES DEPARTMENT

SALES DEPARTMENT

QCD

FUNCTIONAL CHART OF QUALITY CONTROL DEPARTMENT

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QUALITY CONTROL CHIEF

QUALITY CONTROL MANAGER

ASSISTANT MANAGER

SUPERVISOR

WORKERS

FINANCEDEPARTMENT

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5.4. FINANCE DEPARTMENT

Finance department takes care of all the monitory transfers of the firm. The three core

functions of the Finance Department are to:

1. Provide strategic financial support for business and operational planning.

2. Provide day-to-day financial services to the University, its departments, students and

staff.

3. Meet external and internal financial reporting requirements.

Further the Finance department plays various roles in the domains of Finance,

accountancy and Economical business transactions. The supplementary functionaries include-

1. Preparation of budget, appropriation of accounts, re-appropriations, surrender and

savings.

2. Control of expenditure and ways & means position.

3. Audit and Treasury administration

4. Administration of Taxes i.e. Sales Tax, Entertainment Tax, Luxury Tax and Entry Tax etc

5. Service Conditions including Freedom Fighters Pensions.

6. Resource mobilization through loans, Institutional Finance, Small Savings, Credit and

Investment and public debt.

7. Safety and investment of funds from consolidated funds, contingency fund and public

account.

8. Contract, recovery and refund of revenue, financial concurrence and advice.

9. Compilation of Codes, Rules and procedures concerning financial transactions and having

bearing on State finance and their implementation.

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VARIOUS SECTIONS OF ACCOUNTS DEPARTMENT

1. Cost and Budget.

2. Export Section.

3. Bill section.

4. Pay section.

5. Tax section.

6. Audit section.

COST AND BUDGET

The Main function of this section to ascertain production cost. Every department has

to prepare its own cost and budget according to their requirement.

EXPORT SECTION

While export the plant maintains three main documents they are bill of loading,

invoice, packing list for getting money from the bank. The exporting product will be

insurance.

EXPORT INCENTIVE GIVEN BY GOVERNMENT

1. Advance license Scheme

The government allows company to import materials without custom duty for same

export of the product. After getting this scheme within 18 months we have to import and 24

months we have to export after getting the license.

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2. Duty Drawback

Duties have been paid while import and showing the proof of paid and getting back

the money.

There are Categories…

One physical export, second one is deemed for both categories no custom duty is paid.

Encourage given by government

1. Loan given by government in foreign currency.

2. Pre-shipment credit will be given in foreign currency through bank.

3. Repay of loan through export bill within 8 months. If not penalty of 2-10.5 within a

year, it will be change the date of loan.

4. Directional general of audit will look after this section scheme.

BILL SECTION

Every bill is paid through State bank of India. Each and every expenditure will settled

by this section. Any miscellaneous settlement will also be settled by this section.

This section will make payment of salary and wages to employee. Every month 7 th the

pay will be credited in employee account. If any delay it has to responsible. After one year of

service employee is eligible for pf. Here 24% is PF and contributed by employee or

employer.

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TAX SECTION

Tax section will take care of tax involved in the plant. In employee tax deducted

source will be credited.

AUDIT

1. Statutory audit

Yearly twice.

Outside auditors will audit.

2. Internal audit

Separate audit department inside the plant.

This for entire plant.

3. Government auditors will audit separately.

DUTIES OF ACCOUNTS DEPARTMENT

The Accounts Department looks after the customers due date and informs it to the

management.

The invoice sent by the Sale Department is being received and it is being entered in

the day book.

It preserves the day book and entered all the transactions that have occurred on the

particular book.

The trial balance is being prepared to check the accuracy of the concern.

It checks the cheque for the bills of exchange. All the payments are made on the basis

of cheque.

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They have to maintain cashbook, bank book, purchase book, sales book and store

purchase book.

MARKETINGDEPARTMENT

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5.5. MARKETING DEPARTMENT

MARKETING

Marketing as a functional area of management is becoming increasingly important as

compared to other field such as production, finance, personnel and research & development.

The increasing significance of marketing is that marketing information has gained the present

pivotal place of importance. All the decision in modern business organization revolve around

the marketing information. It is a human activity directed at satisfying needs and wants

through exchange processor.

IMPORTANCE OF MARKETING

Customer satisfaction depends on a products perceived performance. Outstanding

marketing companies go out of their way to keep their customers satisfied. Satisfied customer

make repeat purchases, and they tell others about their good experiences with the product.

Many companies have adopted total quality management programs, designed constantly

improve the quality their products, services and marketing process.

CUSTOMER SATISFACTION

Customer satisfaction is closely linked to quality. Many companies have adopted total

quality management programs, designed constantly improve the quality their products,

services and marketing processes. Quality has a direct impact on product performance and

hence on customer satisfaction.

Today Companies are facing tough competition. The customers have a wide choice of

brands to select from. In order to survive the competition, the companies have to do a better

job of meeting and satisfying customer needs than their competitors.

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According to Philip Kotler “Satisfaction is a person’s feeling of pleasure or

disappointment resulting from comparing a products perceived performance in relation to his

or her expectation”.

1. IMPORTANCE OF CUSTOMER SATISFACTION

This need to satisfy customer for success in any commercial enterprise is very

obvious. This income or all commercial enterprise is derived from the payments received for

the products and services supplied to its external customers if there are no customer, there is

no income and there is no business. In other words, customers are the sole reason for the

existence of commercial establishment.

Thus the core activity and perhaps one of the most important activities of any

company is to attract and retain customers. The renowned management guru has said “To

satisfy the customer is the mission and purpose of every business”.

2. REQUIREMENT OF CUSTOMER SATISFACTION

Since Customer satisfaction is an important goal of any marketing program. It

becomes necessary to establish factors which help to satisfy the customer, the important

factors are:

Quality

Fair price

Series consideration of customer complaints

QUALITY

Is the totality of features and characteristics of a product (or) service that bears on its

satisfy (or) implied needs, we can that the seller has delivered quality whenever the seller

product or service meets and exceeds the customers expectation. Thus quality must be

perceived by the customer.

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Quality must be reflected in every company activity not just in company products,

quality should be reflected in advertising services, product literature, delivery, after sales

support and so on. Quality is absolutely for customer satisfaction because customers are

becoming more demanding.

FAIR PRICE

It is very important to satisfy a customer, price is actually the cost of a product or service

paid by the customer. Price should therefore commensurate with the offers perceived value. If

it is not, buyers will turn to competitors product.

SERIOUS CONSIDERATION OF CUSTOMER’S COMPLAINTS

Complaints should be considered and resolved promptly at the time the fault may be

entirely with the customer. In such cases a responsible action needs to be taken. The total

fault may also lie with the company and it is this situation there should be no sifting the

blame. Instead the company should leave aside its ego and look into the complaint and

resolve it or compensate for it. This would keep the customer satisfied.

Marketing department make certain that right product reaches right people at the right

time and right place. Marketing Department typically deals with the embracing the tactics of

creating meaningful messages through words, ideas, images, and names that deliver upon the

promises / benefits an organization wishes to make with its end users. Furthermore, the

Marketing Department ensures that messages and images are delivered consistently, by every

member of the organization Marketing and Sales Department is responsible for-

1. Focus on the Customer and agents

2. Monitor the Competition

3. Own the Brand and Goodwill.

4. Create New Ideas.

5. Manage a Budget.

6. Understand the ROI.

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7. Set the brand marketing strategy

8. Plan to manage competition and execute

9. Communicate Internally

The mill believes in quality and is practicing not product marketing but quality

marketing. It helps customers in understanding his quality requirements so as to get benefit of

time and cost savings to both the mill and customers.

Mill is producing cotton yarn and synthetic yarn according to demand existed in the

market. Every week yarn processing committee will decide the rate for each count. Marketing

division will inform the mills about the quality allotted to depot keeper along with counts and

rate. Mill will dispatch the yarn to the depot keeper as per the instruction received from the

market division. The depot keeper will sell the goods to the customer and remit the sales

process to the mills within 7 days from the date of sale made by him. For the belated

remittance for the depot keeper mill will change over due interest from the 8th day upped the

date of actual payment at the rate of 24% per annum.

The depot keeper will raise the invoice for the sales made by him. Mill will account

the sale invoice raised by depot keeper after verification.

The appointment of depot keeper will be reviewed every year based on his last one-

year performance by a committee appointed at head office.

Normally goods are being sold through depot keeper appointed at the centers.

PROMOTION POLICY

New counts are being introduced according to the recommendation given by the depot

keeper.

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AFTER SALES SERVICE

Trained technicians are available at every to rectify any defect of the product.

DOMESTIC AND INTERNATIONAL

Most of the goods have been sold at up country. If any enquiry regarding export will

suitable considered.

DOCUMENTATION

At the time of dispatch of goods mill is preparing central invoice and form 20 to

combine with the lorry.

CREDIT SALES POLICY

There is no credit sales policy.

TAX PROCEDURE

Collection, remittance, filing, return to sales tax authorities is the responsibility of the

depot keepers.

ROLE OF MARKETING

The marketing department places the quotations to the other concerns to

receive orders.

The main purpose of marketing is to advertise the product in the market.

The Confident Engineering is being advertised in newspapers because it

is essential commodity, effective advertisement is necessary.

The promotion of sales is the main goal of the marketing department.

Marketing praises the buyers for a routine service.

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The company collects order from the leading textile manufactures making

use of job cards.

The production department produces impellers as specified in the job

cards. The sales are under distribution channel.

PRICE SETTING PROCEDURE

The steps involved in price setting include:

Development of pricing objectives

Determination of demand

Estimation of costs

Examine competitors, costs, prices and offers.

Selecting a pricing strategy

Selecting a pricing method

Final price decision

The Marketing Department performs all business activities and function to advertise

the products of the company and fetches orders.

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FUNCTIONAL CHART OF MARKETING DEPARTMENT

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MERCHANDISER

MARKETING MANAGER

DEALERS

AGENTS

HUMAN RESOURCE DEPARTMENT

5.6. HUMAN RESOURCE DEPARTMENT

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HR department maintains all the records of the company and the employee for their

recruitment stage to the retirement stage. Human resource management strategy maximizes

return on investment in the organization’s human capital and minimize financial risk. Human

Resources seeks to achieve this by aligning the supply of skilled and qualified individuals and

the capabilities of the current workforce, with the organization's ongoing and future business

plans and requirements to maximize return on investment and secure future survival and

success.

Typically personnel work is concerned with:

1. The recruitment and selection of new employees, e.g. helping to prepare job

advertisements and job descriptions for new posts, and helping to organize the

interview process.

2. The induction of new employees where they are introduced to the company, and

aspects of the job they will be doing as well as essential requirements such as health

and safety training.

3. Training and development. Training focuses on the needs of the organization where as

development is more concerned with identifying and meeting the needs of individual

employees.

4. Organizing the appraisal process to identify development needs of employees.

5. Representing the organization as a go between on disciplinary issues e.g. when a

worker has continuously been late for work. Dismissing and making workers

redundant where necessary.

6. Managing payment systems.

7. Taking responsibility for the motivation of employees by outlining motivational work

practices.

8. Organizing the termination of work and retirement of employees, as well as job

redundancies where appropriate.

Personnel department looks after the welfare of the employees. At present around 200

employees are working here, Which includes both permanent temporary men and women.

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Classification of workers as per standing order of a company.

1. Permanent

2. Probationary

3. Causal

4. Temporary

5. Apprentice

CANTEEN

Canteen facility is also provides to employees. In food subsidy in provided upped

35% to the workers. So every employee are getting food in lower price.

WELFAIRS

It is the duty of the welfare officer to maintain and promote a minimum standard of

life for all workers. Labours act provides for cleanliness, disposal of wastes, ventilation and

lighting of the machinery. The factory is kept clean and free from dust.

VARIOUS WELFARE MEASURES

1. First aid centre

2. Safety

3. Canteen

4. Saving Scheme

5. Rest Room

TRAINING AND DEVELOPMENT

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They give training for the employees if there is any need, recommended by the

HOD’s or their department. If any new thing is updated they give training to the employees

either internally or externally. They also giving training for the employees who appearing for

the executives exams.

The training for the executives is given by corporate office of Management Training

Institute, and for the non- executives given local bodies.

More training given to employees handling the systems.

PERFORMANCE APPRISAL

Based on the performance of the employee the appraisal is given.

For the executives level the performance is monitored through on-line by corporate office and

for non- executives level the performance is monitored locally by their HOD’s. Their

performance is marked in the rating scale as excellent (5), very good (4), good (3), bad (2),

and very bad (1).

Based on the score and their activity the promotion and hike is dependent.

One who excel in his job he was appreciated by giving awards and rewards.

EMPLOYEE BENEFITS

The welfare facility is beyond the Factories Act i.e., they have medical scheme,

settling the dues immediately, housing, advance for the vehicle and building house(by

corporate office) and health care facilities. Apart from this they have sports activities,

gymnastic, school for their children, park, swimming pool, etc.

Compensation system for the employee during the work and paid leaf due to injury.

HUMAN RESOURCE DEPARTMENT

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The department resource department takes care of recruiting , orientation, placement,

training, attendance, payroll of the employees. Time office is also a part of the department. It

is a strict policy of the company not to employ people below the age of 18. The department

manages the employees of all the units is in constant contact with the management. It

communicates the demand of the employees to the management. If there is anything that

equals the sophistication of the production facilities, it is quality of its motivated and

adequately trained managerial and non-managerial cadres of human resource.

HR POLICY

To enhance employee productivity attuned to business goals.

To promote a work culture which encourages the employees to contribute their best.

To Strive for making a meaningful difference in the quality of life of employees.

To develop proactive and customer focused HR team engaged in continual innovation

and change management.

HR CHALLENGES

Continuous right sizing and restricting to meet strategic business objectives.

Development of employee competencies through comprehensive HRD initiatives.

Maintain productive industrial relations through assertive but responsive

management.

Fostering an organizational climate which facilities employee involvement &

motivation.

Develop effective communication channels and platforms.

Nurturing employee creativity and innovation

Operate a wide range of motivational schemes.

Provide facilities and services to employees.

HEALTH AND SAFETY

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1. Identifying occupational health and safety (OH&S) hazard to eliminate/ control

/reduce the risks.

2. Formulating OH&S management programs to improve OH &S performance and

3. Implementing them through involvement of all employees

4. Complying with applicable legal and other requirements. Communicating OH&S

policy to all employees and interested parties.

5. Providing appropriate structured training to employees on OH &S aspects.

6. Reviewing the occupational health and safety management and system periodically

for its effectiveness and continual improvement.

Minimum wages as per the government notification is paid to the workers. Based on

the qualification and experience other wages are paid Hourly wages is being paid to the

employees, hourly wages or minimum wages whichever is higher is paid to the employees.

Each employee is given an identity card with a barcode behind the card. The barcode

is shown against the barcode reader for it to read the code and the code is transferred to the

computer. The time the code is read is monitored on the computer.

At the end of every month or before the payment of wages, attendance is entered in

the muster roll for the calculation of wages. The amount per employee is calculated based on

the number of hours worked by the employee. The wages of all the employees of all the units

is calculated and the total wage amount payable is forwarded to the accounts department on

the 4th to received the required amount to pay the wages. If any leave taken by the employee

i.e. earn leave or medical leave after its been approved the payment of wages for those

particular days is paid.

Training is normally given by the respective supervisor’s to the fresh employees or

the new entrants.

The shift timings of the employees are as follows:

Shift 1-8:00 am - 4:00 pm

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Shift 2-4:00 pm - 12 :00 am

Shift 3-12:00 am - 8:00 am

OBJECTIVES

To regulate the employment of contract labour in certain establishment and to provide

for abolition in certain circumstances.

Contractor is a person who undertakes to produce and give result through contract

labour or who supplies contract labour for work.

Not applicable to establishment in which work is only of an intermittent or casual

nature.

The establishment-engaging contract labour register with the authority; so also the

contractor must get a license from the licensing officer to undertake or execute any

work through contract labour.

Government can prohibit the contract labour in any process or work considering the

conditions of work and other benefits provided in the establishment and taking into

account whether the process is necessary or incidental to the industry; whether it is of

perennial nature, whether it is ordinarily done through regular workmen and whether

it is sufficient to employee considerable number of whole time workmen.

WAGES

1) The payment of Wages Act, 1936

To ensure disbursement of wages to workers within the prescribed time

limit and without deduction not authorized by law.

The wage period shall not exceed one month.

2) The Payment of Bonus Act, 1965

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To provide for payment of bonus on the basis of profit or on the basis

of production.

Guarantees minimum bonus of 8.33% and a maximum of 20% of the

wages/salary.

Employees is entitled to bonus is an accounting year if he has worked

for not less than 30 working days.

3) The Equal Remuneration Act, 1976

Provides for equal remuneration to men and women workers.

No discrimination in recruitment on the ground of sex except for the

employment of women in such work, which is prohibited or restricted

by or under any law.

SOCIAL SECURITY

1) Employees’ State Insurance Act, 1948

Provides for certain benefits to employees in case of sickness maternity

and employment injury.

2) The maternity Benefits Act, 1961

Applies to women who has worked not less than 70 days in the 12th

months immediately proceeding the date of her excepted delivery and entitled

for full wages.

If the factory covered under ESI, but the women not entitled under the

Act, will be entitled t benefit under this Act.

Maximum benefits – 12 weeks – prohibits employment of women

during the period of 6 weeks immediately following the day of

delivery or miscarriage.

CLEANING AND MAINTENANCE

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Implementation of effective cleaning and maintenance programme helps to produce

improved quality of products, longer life for machine parts, better and improved working

conditions, less fly liberation, less breakdown and repairs, low accident, etc.

Rapid changes in technology of latest and most modern machines warrants for

effective cleaning and maintenance programme to attain higher rates of production and good

quality of yarn.

Mills are ways and means for implementing the new cleaning systems and procedures

for improving machines working performance. Introduction of internal cleaning especially

for ring frame drafting zone helps in maintain the cleanliness and improves the utilization.

The cleaning and maintenance is based on the number of machines available in each

department their age, type of cleaning and maintenance schedule followed, and man-hours

allotted for each activity. Mills need more personnel.

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CHAPTER NO: 6CONCLUSION

CHAPTER – 6

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CONCLUSION

The Practical Training Programme at KRISHNAKANTH SPINNING MILLS,

DINDIGUL equipped me to have real life exposure to all the functional areas. It also gave

me a lot of knowledge and new experience of the company. I found this summer training

immensely useful to correlate what has been learnt by me inside the classroom during my 1 st

year MBA programme at the Department of Management Studies of Karpagam College of

Engineering, Coimbatore.

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