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1.1 INTRODUCTION
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1.2 OBJECTIVES OF THE STUDY
The main objective of this study is to understand the overall operations of the
company.
Objectives of the study are:
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1.3 SCOPE OF THE STUDY
This study is mainly of an academic one and the training will throw some light on
some positive and negative aspect of various business enterprise selected for training.
The scope of the study is neither narrow nor wide, only the serious attempt has been
made to understand this firm as a whole has been studied. Further the study is concentrated
on major areas like production, marketing and finance.
In this study, the production aspect also includes the study of raw material
management system. Labour management manufacturing process qualities policies of the
firm. In the areas of marketing include the brief study of marketing activities. It also includes
the channel of distribution, customers. In financial area includes the study about some past
years financial position of the company.
The study also includes some type of limitation. The availability of data is a main
limitation in this study and the time available for the study is limited. They can keep a proper
record of their activity that would help the study. The information for writing this report has
been taken from financial statement prepared by the firm.
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2.1 COMPANY PROFILE
This gives the detail information about the profile of the company. It includes the
registrations and commencement, types of product manufactured, machine used for the
manufacturing process and the organizational structure of the company.
The Southin Polymers is a small scale industrial unit, which produce water tanks and
the company registered with the Government of Kerala in the year 2002. The company begins
its operation or running in the company in the July 2002. This is a partnership firm, the
company was started with four partners. They contribute equal amount at capital for the
establishment of the firm and the company follows the rules and regulations of the Indian
Partnership Act. The company situated at Vilayannur, Thenkurussi Panchayath, Palakkad
district.
The factory manufacturing license is issued by the factory inspector of Kerala
Government under Sales Tax Department issue the license of selling the product.
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2.1.2 HISTORY OF SOUTHIN POLYMERS:
The company began in 15th October 2002 by two enterprising young men with a
daring vision, started with 4 workers in Thenkurussi, Palakkad, Kerala. Their aim was to
manufacture high quality plastic water tank and market them in reasonable price. Within a
short span of time, this company made in roads into Kerala and other Southindian market. It
is an ISO 9000:2000 certified company.
SOUTHIN POLYMERS supports the manufacturer 12 years warranty on fresh water
tanks against any manufacturing defect which are designed and warranted for water use only,
at ambient temperature and are not intended nor warranted for chemical and fuel storage.
Southin Polymers produce water tanks with two colors, black and blue. The tank can
be produced with different capacities ranging from 300 liters to 5000 liters. The company can
produce water tanks according to the demand and order placed by the prime consumer and
agent. The order of the water tank can be increased in the seasonal period, for meeting this
increased demand in the season. The company can purchase required raw material and
consumable and appoint additional workers on the basis of daily wages for increasing the
production of the company.
For meeting the additional order placed by their agent, the company can increase their
productivity by operating the company in two shifts. The company working in two shift only
in the seasonal period, other period the company can working in their normal time.
The Southin Polymers started its operation in July 2002. The machines used for the
production process are:One rock N roll extruder and pulveriser machine, two grinding machine, one cooling
chamber and one generator. These machines are purchased from Gujarat and Tamil Nadu.
At the time of starting, the company has 9 permanent workers and some other workers
are worked on the basis of daily wages. Now the companys total number of permanent
workers is increased to 15 and some workers are worked on the basis of daily wages, the
number of workers is increased in the seasonal period.
The quality manual has been prepared in line with the requirement of the ISO
9001:2000. The quality management system is established, implemented, maintained and
continuously improved by the Southin Polymers according to the guidance provided in the
quality manual.
The quality policies of Southin Polymers are as follows:
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Manager
Administrative in charge
Production supervisor
Finance department
Workers
Production department
Sales department
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management system.
Planning and setting operation goal.
Review and monitor sales performance.
Recruitment of staffs.
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These are the authority and responsibility assigned to the managing partner.
This indicates the detail about the raw materials used for production and clear detail
about the maintenance provided to the machinery and labour management.
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SOUTHIN POLYMERS produces water tanks with different capacities 300 to 5000,
the raw material availability is directly affect the production of the company. Insufficient
availability of raw material of required quality and quantity at required time. It is an
important problem is faced by management. The raw materials used for manufacturing water
tanks are lid, LLDPE, master batch, plastic granular black power and blue power.
The raw materials are purchased through dealers within and outside of Kerala. The
prime dealer of raw material is located in different areas they are from Cochin, Thrissur,
Aluva, Ahemadabad, Uttar Pradesh, Coimbatore and Salem.
And also the raw materials are supplied by the Kerala Small Industrial Development
Corporation Ltd., Kochi.
The order of raw materials are given after considering in the available stock of the
raw materials in the company and required quality for producing sufficient product for
meeting the demand of the product. The company can produce according to the demand is
increased in the seasonal period. As per the seasonal requirement the order placed for raw
material also changed from December to May the demand of water tanks can e increased as
compare with other period. Therefore, meeting the increased demand in the season, the firm
can purchase addition amount of raw material in advance for meeting the increased demand.
The raw materials can be purchased after checking the quality of the material.
SELECTION OF SUPPLIERS
Selection on the basis of past experience with respect to quality and accurate
delivery of material. The quality feedback is received from the production
supervisor.
If there is a need for any new suppliers in the market and send to the managing
partner. Then the managing partner can provide approved suppliers list.
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The raw material and production related consumable are purchased based on
customer order or schedule or day to day stock review by the production
supervisor. If found stock quality is less to meet the consumer order to production
supervisor can inform to the manager for purchasing additional raw material.
Mostly verbal purchases are given to the approved suppliers on the requisition
basis emergency purchases I done from the suppliers other than approved
supplier on the time basis.
RECEIPTS OF MATERIAL
The materials received from the supplier are inspected as per the quality
management policies of the southin polymers and store in the material storage
area. Poor quality material are rejected and immediately sent back to the
suppliers.
The received raw material and consumable quantity are checked and updated in
the material, suitable informed to the suppliers. The accepted materials are stored
in their respective storage location and the stock ledger of raw material and
ISSUE OF MATERIAL
The materials are stored under the control of production supervisor. The materials
required for products is issued and updated in the purchase intend from itself by
the manager and receivers sign is obtained in the same form.
After order given by the manager daily production plan is prepared by the production
manager or supervisor.
The raw material/consumable planning is carried out by production supervisor based
on the order/schedule received from the customers.
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If any additional schedules are received from the customers, production supervisor
process are carried out at all stages as per quality plan is ensured by the manager.
The extraction and pulverizing process which deals in the preparation of raw material
Inspection is an important for achieving the goals of the firm like achieving the
designed quality of the product. The inspection process is completed in three different stages.
INCOMING PROCESS:
On receipt of raw material from suppliers the raw material are inspected as per
quality plan incoming material and the details are recorded in the material
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IN PROCESS STAGE:
The dimensional and visual parameters are checked as per the quality plan and
into consideration.
Since the extraction process plays vital role in the preparation of raw material
the temperature in the three zones are to be maintained properly and so it is
monitored the extraction in process report. It is verified with the respective
work instruction.
Overall moulding, extrusion and pulverization are monitored in given way.
That those processes are undergone as per the work instruction.
FINAL STAGE:
The details of final inspection are recorded in the inspection report, after final
All the dispatch stage after the final inspection is made the leakage testing is
undergone for different position. The testing is done in such a way that the tank is completely
filled with water and kept in a uniform surface.
To ensure the thickness during the initial stage before moulding the raw material mix
ratio, this would be in the correct preparation and it is verified as per the work instruction
given powder mix ratio before moulding.
First in first out method is used in the SOUTHIN POLYMERS for the consumption of
raw material.
In SOUTHIN POLYMERS all the inspection activities are carried out by production
supervisor as per the quality plan. This helps to achieve the better quality product with
minimum cost. Therefore, the proper inspection at the proper time is an important factor for
achieving the goals of the firm.
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Maintenance of plant and machinery is an important factor. Machines are not work
properly for a long period without a proper maintenance so the maintenance is directly linked
to the productivity of the firm.
SOUTHIN POLYMERS follows the preventive maintenance; it means the
maintenance is provided at advance for avoiding breakdown and damages. It is provided at
particular interval like quarterly, annually, weekly or monthly according to the requirement
and type of the machine. This helps to increase the productivity by reducing the breakdown in
the production.
The workers are an important and most valuable asset of the organization. There is a
close connection between workers and profit. Proper selection and management of workers
will help the firm to produce maximum products and avoiding damages.
SOUTHIN POLYMERS gives more importance to workers and providing training to
the required employees this helps the workers too effectively with improved knowledge.
Based on the management reviews decision. New recruitment are selected and
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his/her condition in the area. It needed the training period is extended to another 6
months to review.
Once in a year all the employees skills to be identified in employee history card whole
work effecting quality of the product is recorded.
Normally it is done in the month of May. The following are taken in to consideration
Performance of employees.
Report problem.
Introduction of new technology/system.
New result.
Job transfer.
Based on the identified skill once in a year training is scheduled in the employee
history card. The training program can be conduct internally/arranged external. After
completion of training the detail like topic, date, training friendly and signature of the
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workers are worked on the basis of daily wages. The wages are paid at the last week of the
month and the bonus is provided to the waged paid the management can provide same
allowances. Create a better working condition and a better relationship between worker and
management.
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3. FUNCTIONAL DEPARTMENTS
The main functional departments of SOUTHIN POLYMERS are:o
o
o
o
o
o
Purchase department
Production department
Marketing and sales department
Finance department
Personal department
Research and development department
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The raw materials purchased are brought into the raw materials store. This department
is under the charge of storekeeper and he assists the purchase manager in material purchasing.
This department is the supply centre for production. The important functions of store
department are to inform the material requirements to the purchase manager, storing the
material received and issuing it to various production departments timely and adequately.
The firm maintains two stores they are;
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Production means creating utility for something. It is the process of converting raw
materials into finished products. Production is the centre function of a manufacturing
concern. All the production procedures are carried out by this department according to the
direction of the production manager. He was the technical knowledge of production and
ability to lead the department in a uniform manner. Production department consist of
production manager, supervisor, and different grades of workers. Production manager takes
all the important decisions relating to the production.
The production management plays an important role in an organization. Various
challenges are faced by them on the production of different products. Some of them are;
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US made machines are used for production. The raw materials LLDPS (Linear Low
Density Poly Ethylene) and master batch are mixed in proper ratio and filled in the extruder
and check the water level and maintain the temperature. After meeting granule is taken.
The granule material is filled in funnel for pulverizing. The granule is heated at a
minimum of 180(C and maximum 210(C after pulverization process the powder is collected.
Filter the powder for pure and fine finish. Fill the powder in a bag and check weight.
After heating powder into liquid, it goes to the injection moulding machine. In this
machine, dies are situated and dies help in moulding the product into required shape. After
this process the moulded product is then cooked using cooling machine. After manufacturing
one type of product there is a gap of 5 10 minutes to change the dies. This time will be used
for checking the machine and for maintenance. This helps to reduce the chances of
breakdown of the machine at the time of production.
In production department workers, officers and machine operators are worked very
efficiency and orderly. Dies of the product are changed according to the order of the product.
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The SOUTHIN POLYMERS marketing their product with the help of marketing
agencies and marketing companies there are situated in Kerala and Tamil Nadu. The
marketing agencies help to market their product with low costs. These intermediaries increase
the profit by reducing the marketing expenses.The following books are maintained by the
department;
ORDER REGISTER
This book shows the details of the orders received by the company from each
customer. The company can know the balance of orders in hand at any point of time
using this book.
ITEM REGISTER
This register is used for ascertaining the quantity of goods issued and the balance of
the remaining kept in the store. Whatever and whenever be the dispatch, then such
item will be deducted from the item register.
SALES REGISTER
This register is used for recording quantity of goods sold. The firm can know the
exact sales level at any point of time using this register.
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The southin polymers produced water tanks and marketed in different way. The water
tanks are produced with different capacities 300 to 5000 liters and in two colours black and
blue. The different distribution channel bridges to gap between producer and consumer.
Distribution channel means the part of network through which the product are made
available to consumer. It works as means of moving goods from producer to consumer. It
overcame time, place and possession gaps and provide goods and services to people who
want them the distribution channel or marketing channel performs the following function:
Information gathering
Consumer motivation
Placing order
Bargaining
Risk bearing
Service providing
Marketing research
Demand forecasting
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The following figure illustrates the different distribution channel used by the
company.
MANUFACTURER
CONSUMER
MANUFACTURER
MANUFACTURER
RETAILER
AGENTS
CONSUMER
RETAILER
CONSUMER
These are the different distribution channel used by the company. The company can
produce goods according to the order placed by the retailer and marketing agent. This help to
produce sufficient product and avoiding the over and under production.
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There are a number of big small unit in Kerala and in other state where there products
are manufactured. These are the competitors of the firm. Competition is an important
challenge faced by the company for existing in the market and make more market share and
earning the maximum return.
For achieving more marketing share in the competitive market, the company can
provide more advertisement and sales promotion activities. Thus company can study the
competitors sales promotional activities and their product prices and other services provided
to the consumers. After a careful study about the competitors activities the firm takes action
for marketing their products, through most effective method. The decision regarding pricing
of the product and the channel of distribution depends upon the policies of competitors the
firm cannot able to exist in the market. The price can be fixed only after comparing. The
competitors and market price, this is advantages to the firm for exist and make more profit.
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The prime customers of the southin polymers are:M/s PILCO Enterprises, Ernakulam
M/s Royal Marketing, Thrissur
M/s Thudathil Agencies, Perumbavoor
A better portion of the companys total production can be purchased by these agencies
and these are the prime customers of the southin polymers. The company can make a better
relationship which these prime customers, they provide the important the important market
information is helpful to the firm for producing the product as suitable to compete in the new
market.
These are the prime customers of the company and the company has some other local
customers and some other agencies and dealers, the remaining portion of the companys total
productions are purchased by these consumers. The company can produce more products. If
the consumers are order and purchase in more quantity of products. The price of products are
calculated in almost scientific way before calculating the price of a product the management
consider the lost of each items is taken and utter scheduling these various factor like
availability of raw material labour charges, over heads, expenses, statutory level of other
industries and add on certain percentage of profit.
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The ultimate aim of the business is to make profit and it can be achieved only through
selling its products. Sales are the only element in marketing which generates cash or profit.
All the marketing elements are incurred in various costs and are make upped from the profit
earned by the company through sales. All the marketing strategies and policies are ultimately
aims at proper selling of the companys products. The organizational objectives achieved only
through sales.
The sales department plays an important role in the organization. It is the income
generating department in every organization. In this company the sales department is headed
by a sales manager having relevant experience in this field. He is assisted with a clerk and
with the help of clerk, sales manager undertakes the selling activities. The company receives
sales orders through various agents. On receiving different orders, the sales clerk makes
arrangements for the delivery of goods. He records the details of products delivered in a book
shown as delivery order book. This book act as a future reference for the manager of the
company to know the exact sales levels.
The southin polymers market and sell its products mainly in Kerala the company has
strong distribution headed with a separate manager and then undertake all the transportation
activities through various agents. It ensures timely delivery of its products.
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Finance is the most crucial factor in any organization. The working of the industry
largely depends on finance. It requires proper management. The financial strength of a
company should be sound enough to carry out its operations smoothly without any delay in
its functions. A companys financial strength is reflected in its financial statements. Proper
administration and management is essential for better survival for the current and future
performance. The main functions of this department are the efficient planning, control and
effective utilization of cash inflows and outflows.
It is well known that finance is the life blood of business. Adequate and timely finance
is necessary for effective functioning of any industry. Thus every management of the
company should be much care about its finance arrangements and must ensure that the funds
are properly developed. Each company have separate finance department headed with a
different finance manager and he coordinates and controls all the procedures relating to the
company. Each department of the company needs sufficient finance, thus it is the duty of the
financial manager to control the funds used.
Cash delivered from the sales and other funds raised are managed by the finance
departments. Financial manager is in charge of this department. He gives necessary
instructions and advises to the assistants for the effective control of the fund. The finance
department of this is fully computerized and all transactions are recorded through it. It is done
by qualified persons and records are up to date and correct.
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OWNED FUNDS
The amount contributes by the owner is known as owned fund. This includes initial
capital contribution and accumulated profits. It is beneficial to the company because
it is risk free capital and no interest is needed.
BORROWED FUNDS
Amount borrowed from individual or institutions like bank, finance corporations etc
constitute borrowed capital. Loan may be taken for long term, short term and medium
term. It is a risky capital because the company should be liable to pay interest for it.
The payments are done only if there is profit. So a firm must take and manage the
borrowed funds adequately.
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Human resources are the most valuable asset in any organization. The success and
failure of an organization largely depends upon the employees working in it. Availability of
skilled workers is essential for every manufacturing concern. An organization whether small
or large must ensure themselves that they have adequate skilled and experienced employees
to meet every challenges. The main function of this department is to recruit, select, train and
place the workers in the right job according to their skill and ability. This department is
headed with a human resources manager and administers all the matter relating to various
personnels working in the organization.
The company provides a good working environment to its labours to yield better
result from the work force. The plant structure of the company is in the way that placing
similar and sequential machineries in proper order to improve the speed of working. It is a
great advantage to the workers that heavy movement of material is not takes place. The plant
has enough space for easy movement of workers and materials hence no congestion in the
plant.
The following are the various benefits provided by the company to its workers:
Salary/wages
Bonus
Dearness allowance
Paid leaves
Medical bills
Provident funds
Festival and special allowance
Recreation and other benefits
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3.7.2 QUALIFICATION
The minimum qualification for the office staff is graduation and an experience in the
similar field not less than three years. There is no minimum qualification fixed in case of
workers. If they posses required skill and knowledge and experience in the similar field are
appointed.
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FINDINGS, SUGGESTIONS AND CONCLUSION
4.1 FINDINGS
Finding may helpful for identifying points of weakness and improving efficiency.
From the overall view, it creates a general awareness for the social group of
customers.
The Organizational activities point out the net profit ratio graph. Which shows, a
positive result.
The Human resource system is functioning in a proper channel. Which always look
channel.
Since, from the analysis it is found that the net profit ratio is always in a positive side.
Hence it supports the loans and borrowings are increasing year after year, it will
reduce the profitability.
4.2 SUGGESTIONS
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For improving profitability and liquidity. The company should use long term funds for
evaluation.
The company can improve their profitability by keeping adequate working capital.
Competition is tough so, the company should promote their promotional activities.
To reduce transportation cost, bulk quantity delivery/purchase should be done.
Try to control the borrowings by making of reserve funds.
4.3 CONCLUSION
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The main objective of this project is to analyze the organizational study of SOUTHIN
POLYMERS private Limited Vilayannur,on the basis of findings of this study, several
suggestions are given during the three previous years so the current financial sound ness is
good,The company should also try to increase sales again as to increase its income level. The
company could able to deliver the products at reasonable price and quality to their suppliers
in general the performance of the company has been good.
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