org study

Organization Study

CHAPTER 1 INTRODUCTION

East Point College of Higher Education 1

Organization Study

INTRODUCTION

Cannanore Spinning and Weaving Mill is a labor intensive industry andthey are

giving amble job opportunities. The capacity of the mill has increased to 24000 spindles.

Spinning mill have weaving facilities for manufacturing yarn. But currently no weaving

process s going in the mill.

Spinning mill is using “line shifting” which means the power of the steam engine is

transmitted along rotating shafts(roads)to spinning or weaving.The maintaining of the

quality aspects, as efficient quality control term with the same precision and attention to

detail and quality is functioning in themill.

Many people worked as producers of wosolen and cotton clothes. They

cleaned,combed and wove the raw raw materials into clothes and this work was done in their

own houses. This type of production have become sknown by the general term domestic

industry.The process of weaving was physically hardwork and traditionally it was done by

the men who were responsible for it, generally at regular intervals each handloom weaver

cottage was visited by a cloth merchant. He would bring the raw materials and take away

the finished clothe to sell at the cloth hall.

However with the advent of industrial revolution all the process of manufacturing yarn

and the subsequent production of cloth underwent a dramatic change. The industrial

revolution brought about the wide spread replacing of manual labour by machines. Goods

that had traditionally been made in homes or in the small workshops began to be

manufactured in factories. Productivity and technical efficiency grew dramatically in part

through the systematic and practical knowledge of the manufacturing process.


Organization Study

Spinning is the process creating yarn from various rows of fiber materials, several

fibers are twisted together to bind them into strong, long yarn. The characteristics of yarn

vary based on the material used, fiber length and alignment, quantity of fiber used and

degree of twist.

Another major invention was the power loom. The power loom was a steam powered

mechanically operated version of a regular loom, as invention that combined thread to make

cloth. It was improved by William Horrocky and Frensis Cobot in England.


Organization Study

CHAPTER 2 INDUSTRY PROFILE


Organization Study

INDUSTRY PROFILE

THE TEXTILE MILL INDUSTRY

Cotton / man made fiber textile industry is the single largest organized industry in

the country employing nearly 1lakh workers. Besides this, there is large number of ancillary

industries dependent on this sector such as those manufacturing various machinery,

accessories stores ancillary and chemicals. Even on a modest assumption that a worker’s

family comprises five persons, the direct dependents on the organized mill industry itself

work out to about 60lakhs.

Out of the 1837 cotton/man-made fiber textile mills, 192 mills are in the public

sector, 154 mills in one co-operative sector and 1491 mills are in the private sector.

The Indian Textile Industry-a legacy of its own

The Indian textile industry has a great legacy, which perhaps unmatched in the

history of India’s Industrial Development. India’s textile industry evolved and developed at

a very early stage and in manufacturing technology was amongst the best. India’s manually

operatedmachines were amongst the best in the world and served as a model for production

of the first textile machines in newly industrialized British and Germany. India’s Textile

were sought after for their finesse quality and design and attracted people from across the

globe like Chinese ,Malaysians, Portuguese etc.


Organization Study

Colonization put an end to India’s glorious textile legacy. By 1880,domestic market

had grown to be served solely by the British manufactures. One of the aspect of freedom

struggle led by Mahatma Gandhi was weaken the British textile Industry by weaving

homespun clothes, as he was convinced that the textile sector would be a catalyze in

advancement of the Indian population. Post independence till 1980,the Government of India

put numerous restrictions to ensure mechanization did not occur ,labor intensive textiles

were produced, which in effect led to increase in price and decrease in productivity.

PRESENT SCENARIO

Global trade in textile and apparels is expected to increase from US $ 356 billion in

2003 to US $ 600 billion by 2010. The way forward for the textile mill sector is through

transforming the sector from a resource intensive to knowledge, highly innovative sector

with high added value products and services. This can only ensure sustainable growth and

jobs in the future. It would also help to secure a competitive advantage, which would be

based on the best new products and processes in the world. The industry has made

tremendous efforts in the last years to invest in new productive assets, to streamline

operations and to intensify their innovation activities. To achieve transformation,

investment is needed in technological innovations that would assist industry in its transition

from resources intensive to knowledge intensive sector.

The demand for textile in the world is around $18 billion, which increased by 6.5%

in 2005. China is the leading textile exporter of the world’s total exports of US $ 400 billion

in 2002, followed by India, Hong Kong, Korea etc.


Organization Study

SPINNING MILL

A spinning mill is a labour intensive industry and provides ample job opportunities.

Cannanore spinning and weaving mill is a unit of the subsidiary of NTC. The capacity of

the mill as increased to 24000 spindles. The spinning mill has weaving facilities for

manufacturing yarn. But currently no weaving process is going on in the mill.

The spinning mill used “Line Shafting” which means by which the power of the

steam engine is transmitted along rotating shafts (rods) to the spinning or weaving mills.

Now however electricity is being used which is vastly faster than hand spinning yarn is the

final production of the mill.

To maintain the quality aspects an efficient quality control team that pays attention to

the precisions, detail and quantity is functioning in the mill.

All the measures liberated India from the shackles of regulation that were in place in

the 1980’s and in ensuring that the different segments of the textile industry become

competitive in the wake of globalization.

The Indian textile and apparel industry occupies a significant position in the global

textile map as it is the third largest producer of cotton and cellulose fiber/yarn, the second

largest producer of cotton yarn, the largest producer of silk and fifth largest producer of

synthetic fiber/yarn.


Organization Study

CHAPTER 3

COMPANY PROFILE


Organization Study

Cannanore Spinning & Weaving Mill at a glance

Name of the company : Cannanore Spinning and Weaving Mill. Year of commencement : 1948 Place : Kakkad

District : Kannur

State : Kerala

Name of business : Spinning

Name of products : Yarn

Number of employees : 420 Type of organization : Public ltd.

Nationalized in : 1974


Organization Study

COMPANY PROFILE

Cannanore spinning and weaving mill was originally started by a private owner Shri.

Keyath Damodhar in 1948 with about 20000 spindle capacities. The mill earned profit and

had no problem till 1970. There after, the company incurred heavy losses due to various

reasons and hence the management was taken over by Government of India.

The mill was nationalized with effect from 1st April 1974, and place under National

Textile Corporation (NTC). Since, then the government introduced new machines and the

mill functioned well till 1980. There after, the company again incurred losses for many

years. Being a Government Undertaking, financial support was received from the

Government and hence the mill is running without much problems. Further more the mill

along with some other NTC units was referred to the “Board of Industrial and Financial

Reconstruction (BIFR)” under the Sick Industrial Company’s Act 1986.

Land Area Statement

Total Area : 12.5 Acre

Pump House : 0.02 Acre

Road : 0.04 Acre

Adress

CANNANORE SPINNING AND WEAVING MILL LTD(UNIT OF NTC)

KAKKAD,KANNUR-670005

KERALA.


Organization Study

National Textile Corporation Subsidiary

The mill is a Unit of the subsidiary of the NTC. APKK and M is the subsidiary

under which this mill functions APKK and M is the abbreviations of Andhra Pradesh,

Karnataka, Kerala and Maharashtra. The registered office of the APKK and M is located in

Bangalore (Karnataka). All the mills under APKK and M, including Cannanore Spinning

and Weaving mill have to report to this Head Office regarding all official matters.

Shri.Ramachandra Pillai is the present Chairman and Managing Director of the APKK and

M subsidiary. Sri. K.P. Jayachandran is the General Manager of the Cannanore Spinning

and Weaving mill.

Finance

Financial assessment is the back bone of every industry. The company has a cash

Credit account with SBI, Kannur. They have Curtailed the company credit unit from

Rs.100lakhs to Rs.60Lakh from September 2002 onwards, which has affected the company

badly. Efforts are on to restore the Units by taking up the matters with their Zonal office.

Production

The mill is a Spinning unit and the final product is Yarn on cone in PV/PSF Counts.

The following Counts are produced 45’s PV (55:45) 60’s(65:35), 50’s PV & 30’s PV.

Raw Material

The Company is using Polyester stable fiber and Viscose stable fiber. Their qualities

are checked and supplies are satisfactory. Depending on the consumption, a stock level of

12 to 15 days is maintained.


Organization Study

Sales

The market for yarn is a highly competitive one and therefore the prices keep

fluctuating that in turn affects the quantity demanded. The main consumers of yarn are

Weaving merchants and Looms.

Products Range

The Yarn is the final product of the spinning mill. The yarns from the copes are

wound a paper cones called cone yarn. Each one Yarn contains 1.50kg of yarn. Usually

handloom weavers need Hank yarn and the well organized sector cone yarn.

Machinery

Most of the machine installed are old some of them are new. The old machines are

reconditioned after a period of 10 years. According to the BIFR, the company is planning to

install new highly technical and modern machines as the machines now used is a weaving

machine and gives less productivity.

Building

The condition of the factory building is depleted and some roof strengthening work

has been attended to which it is only temporary in nature. Urgent attention has to be paid

towards this matter.


Organization Study

Number of workers

There are around 276 workers and 34 administrative staff working the mill. Both

female and male workers are employed in all sections of the mill. Different categories of

workers are employed in all sections of the mill and different categories of workers include

permanent, temporary and gate bade lies. Trade Unions are functioning in the mill and they

educate the workers and safeguard their interest. Further they have a very cordial

relationship with the management. Recently female gate bad lies are working in IInd shift

also.

Three shifts are functioning in the Cnnanore Spinning And Weaving Mill. They are

7am to 3.30pm

3.30pm 12am

12am to 7am.

Quality Control

Routine Quality control check up is done in each department on a regular basis in

order to ensure quality norms of the yarn. To monitor this quality aspects an efficient

quality team is functioning in the mill. Apart from the regular samples of input of each

department is being sent periodically to research institute like SITRA, Coimbatore and

Textile Committee testing Laboratory in Kannur. As per the study report obtained from

such research the necessary changes are being done in the processing in order to maintain

standard quality notes.

Present Position of the mill

The revival package scheme was introduced and the process is now going on.

Introduction of new machines and new work load are included in the revival scheme with an

objective to make the mill self-sustaining without taking any financial help from the

government. The whole plan is currently slowed down and the management is helpful that


Organization Study

the plan would be implemented as soon as possible. It is planning to become computerized

in forth coming future. After revival this will be automated and the work force will be

reduced.

VISION & MISSION

VISION

The vision of the company is to maintain leadership in textile industry and develop

better quality products and services to strengthen the business.

MISSION

To create better qualified employees.

Growth of the industry and to increase the wealth of the nation.

OBJECTIVES

It is a labour intensive organization. So by these the company can give amble job

opportunities.

India is the largest exporter of cotton yarn. So these companies are working in

order to be a part of that and to increase the export of cotton yarns.


Organization Study

ORGANIZATION STRUCTURE

East Point College of Higher Education

Sales Manager & Engineer Accounts Manager Personnel Manager

Deputy Manager Deputy Manager

AssistantSales Manager LWO

Accountant

Senior Assistant

Time Keeping

Cost Clerk

Technical Assistant

Assistant clerk

Establishment Clerk

ESI / PF

Assistant Security Officer

Watchman

Senior Typist

Storekeeper

SOC

Deputy Sales Manager

15

General Manager

Organization Study

PRODUCT PROFILE

In Cannanore Spinning And Weaving Mill yarn is the final product.

Yarn is the long continuous length of inter located fiber, suitable for production of textiles,

weaving and rope making. Very thin yarn is referred to as thread. Yarn used for fabric

manufacturing that is made from spinning short length of various types of fibers. Yarn is

usually measured by weights. Synthetic fibers which have high strength and fiber retardant

qualities sare blended with natural fibers which have good water absorbents and skin

comforting qualities in different proportions to manufacture yarn for fabrics. The most

widely used blends are cotton polyesters and wool acrylic fiber bends. Mainly there are two

types of yarn. They are cone yarn and hank yarn.

Cone yarn After all the work required for producing yarn,we will get the final yarn as the

output. The cone yarn is bit different from actual yarn. The yarn from the copes are wound

on a paper called cone yarn.

Hank yarn

For different usage different kinds of yarns are required. Likewise usually

handloom weavers need another kind of yarn. That is known as hank yarn.


Organization Study

CHAPTER 4

FUNCTIONAL DEPARTMENTS

1. PRODUCTION DEPARTMENT 2. STORES DEPARTMENT

3. QUALITY CONTROL DEPARTMENT 4. FINANCE DEPARTMENT 5. PERSONNEL DEPARTMENT

6. SALES & MARKETING DEPARTMENT 7. TIME KEEPING DEPARTMENT


Organization Study

PRODUCTION DEPARTMENT


Organization Study

PRODUCTION DEPARTMENT

The most important task of production department is to deal with decision making

related to the production process. So that the goods manufactured are according to the

specification in the required quantity at minimum loss as per schedule.

In the production system we have materials, parts etc as input. The inputs are

processed in a series of operation. The sequence and type of operations are specified for

each input. The output of the system will be complete parts products, chemicals etc.

Production functions shows the relationship between the input and output by a firm.

By the study of production function the maximum output which can be achieved with a

given input with a given state of technology is determined.

Output is the result of combined input of numbers f factors such as men, material,

money, land and production methods etc. Productivity is the reduction in wastage of

resources. The ratio between output of these factors is known as productivity of the factors

concerned.


Organization Study

PROUCTION DEPARTMENT-HIERARCHY


SPINNIG MANAGER

ASSISTANT SPINNING MANAGER (MAINTANANCE)

ASSISTANT SPINNING MANAGER (PRODUCTION & SQC)

SENIOR TECHNICAL ASSISTANT

20

Organization Study

PRODUCTION PROCESS


MIXING PROCESS

BLOW ROOM

CARDING

DRAWING

SIMPLEX

RING FRAME

CONE WINDING

PACKING

DESPATCH

21

Organization Study

Mixing Process

The first step in the production process is called Mixing. In this process, Polyester

staple fiber is mixed with VSF in a pre-determined proportion according to the requirements

of yarn to be manufactured. In that particular count, there are three varieties of mixing in

the mill. They are as follows.

1. 60 PSR (100%)

2. 45 pv (65:35) blend

3. 50 pv slub

4. 30 pv slub.

In order to identify the count and mixing proportion Polyester Staple Fiber is given a

tint. Tinting helps in easy identification of counts. Different food colors, light green, yellow

and pink which can be washed easily is used for tinting and this is maintained until it is

given to the weaving merchants. Mixing is done by mixing coolies or mixing attendant as

per requirements.

Blow Room

The loose mix collected from mixing department is charged to the blow room where

they are toppled manually in order to get a homogenous blend of various ingredients of the

mix, polyester and viscose. The toppled mix is then passed through the condenser into the

tanker and through the pipes it is fed to the second blow room machines. The objective of

this process is to open out thick masses of the new materials of finish pieces and to give a

thorough blending of polyesters and viscose. Certain amount of impurities of foreign matter

and metal particles, if any has to be extracted. The raw materials is


Organization Study

converted into a sheet form and wound on a rod. This is called a lap, the length and weight

of each lap is determined. The length of lap is 30 yards and standard weight is 13kg. A

tolerance of plus or minus 300 gm is permitted. The duration for forming one lap is

approximately 6 minutes.

Carding Process

Carding is the heart of the Spinning Process. The lap is collected from the blow

room is fed to the carding machines of the carding department. In this machines, Sheet form

of laps are converted into silver form. Each lap is drafted 90 to 100 times and parallelization

of fiber takes place.

Here short fibers, if any are extracted and the fibers are straightened and parallelized

into uniform size to eliminate un-evenness in the yarn thickness and to ensure uniform

weight. Cords are allocated to each count, according to the spin plan and the silver is

collected from the Cording machines Count wise. each silver has a length of about 3000

meters and time for producing I can silver is 2 to 2.30 hours. There are about 42 carding

machines running in this mill. Conventional cards have an average life 50 years.

Drawing Process

In the drawing process card silver produced I the carding department is passed on to

this department. Here homogenous blending takes place. There are of two types:-

1. Breaker Head

2. Finisher Head

Breaker Head drawing:- In this process 8 can of silver is fed to one delivery of drawing

machines and each of these 8 silvers are converted into a single silver by bending and

drafting and is collected in one can, 8 doubling is taking place to form a single silver.


Organization Study

Each drawing machines can deliver 16 cans in total, with 8 cabs placed on each side

and collected in 2 cans. A maximum of 3000 yards cab be collected in a single Can be

collected in a single can after doubling. The product of breaker head is breaker drawing

silver.

Finisher head drawing

Here 8 cans collected from the breaker head of drawing machines is again processed,

in another head of drawing machines. After this processing, about 4000 yards are collected

in a can. The silver collected from finisher drawing silver. This is the end product of

drawing department. The Capacity of the Drawing department is 16 deliveries. A drawing

tender has to look after 6 deliveries.

Simplex (Speed Frame)

In this department the finisher drawing silver produced in the drawing department is

fed to the Simplex Machines. 132 cans are fed to each Simplex Machine (120 cans LF 1400

Speed frames).

The silver is passed through the drafting zone 12 to 13 times. A certain amount of

twist is imparted on the body of drafted material, which is called Rove. This rove is wound

on plastic bobbins having a package weight 7500 gm to 1 kg. Speed frame department has

simplex machines having 12020 spindles.


Organization Study

Spinning (Ring Frame)

In the Spinning Department bobbins that are brought from the simplex department are

related on the ring frame feel and rove is drawn through the drafting, twisting and winding.

Rove is drafted to a thinner form of yarn.It is drafted to 20 to 27 times according to the

count to be spun. Different counts can have different twist, which blinds the fiber with one

another. This is called TPI (Twist Per Inch). A normal yarn has 25 TPI. Yarn is wound on

plastic tubes that are called ‘Cops’. Average content on a Cop is about 70 grams. These

Cops are taken into the next department that is Cone Winding.

Cone Winding

In this department yarn on Cops is convserted into Cone form. In the Cone

Department all types of defects in yarn is rectified and also yarn on cone will be defect free.

According to the requirement of the market bigger Cone of yarn is packed weighting 1.50 kg

each. A winder has to look after 15.30 runs according to the count of the yarn. The full

built Cone of 1.5 kg is removed and collected by the winder and then it is stacked in the bins

count wise in the packing department. The Cone winding machinery has 120 Spindles that

are it winds 120 Cones at a time and it takes about 2.30 hours. This department has 7 cone

winding machines and thereby each machine requires 2 persons.

Cone Packing

In this department the final product of yarn on cones are packed in polythene bags.

One such bag contains 60 Cones and net weight of 1 bag is 42 kg. They put necessary

details like count, gross weight, month, year of packing bag number in lot numbers, then

these bags are ready for dispatch to the market. There are 6 workers in this department.


Organization Study

Raw Materials

Raw Materials used for the production of yarn. In Cannanore Spinning and Weaving

mills are:

1. Polyester staple Fiber(PSF)

2. Viscose staple Fiber (VSF)

Polyester is a synthetic fiber and also a petroleum product. It is a coal tar derivative. The

physical property of PSF is 120x 38 mm. Viscose staple fiber is natural polymer made from

wood pulp it is regenerated cellulose fiber, which is similar to natural cotton fiber with respect

of its property. The physical property of VSF is 1.50x44mm denier.

Supplier of raw materials

The main suppliers of raw materials of polyester Staple Fiber for Cannanore

Spinning and weaving mill is Indorama PSF, which it supplies in units of bales. The weight of

one bail is about 400kg landed cost of one bale is Rs 75/kg. Cost of one bale of polyester is Rs

28316.25/-.

Grasim Industries Limited is only Suppliers of Viscose in India, Viscose Staple Fiber

is supplied in the unit of bale and one bale is about 250kg. Landed cost of one bale is about

Rs. 116/kg.


Organization Study

STORES DEPARTMENT


Organization Study

STORES DEPARTMENT

In Cannanore Spinning and Weaving Mill, the Stores Department is a separate

building built for preserving materials, spares and finished goods. In functions under the

control of Spinning Manager. The Departments main task is to store spare and stationary

items needed by undertaking and issue it at the time of need.

One of the main functions of stores department is to purchase the spares and

stationary as per the requirement of the undertaking. For this the stores department must get

the Purchase Indent which is a Journal requisition letter sent by the required department with

the sign of the Factory Manager to the Store Keeper.

If the required spares are of low cost, the spares are purchased from the local

market and then it is passed to the respective department. In case of high cost of spares,

Purchase Committee that consist of Chairman, GM, Factory Manager, Account Manager,

Engineer and Store Keeper will take the decision regarding the purchase. Inviting

Quotations, purchases the high value Spares and Quotations from at least three suppliers are

must. The following are the procedures followed in of selection of Quotation.

1. Inviting the Quotation

2. Receipt of Quotation

3. Opening of Quotation

4. Tabulation

5. Verification

6. Placing Order


Organization Study

In the Stores Department racks and cup boards are being maintained for storing of spares. In

order to Control and Record different transactions of material, Bin card is used and it is

tagged with each stock.

Following are the register maintained in stores department

1.Purchase Register2.Issue Register3.Purchase order Register4.Quatation register5.Stock Register


Organization Study

QUALITY CONTROL DEPARTMENT


Organization Study

QUALITY CONTROL DEPARTMENT

One of the achievements of the industrial revolution has been the ability of

Mass-producing goods of uniform quality. In recent years, poor quality has been causing

problem and an embarrassment to the industry owners. Quality Control has there fore

become highly relevant.

Quality refers to the sum of the attributes or properties that affect a product.

These are generally expressed in terms of Specific product characteristics such as length,

width, gravity etc. To be meaningful in an Industrial sense, these characteristics must be

qualitatively expressed in terms that can be objectively measured or observed. Systematic

control of these factors is the quality control. One benefit of quality is increased

productivity. Increased Productivity results in better profit and builds customer loyalty.

Quality is the only weapon to fight competition.

In Cannanore Spinning and Weaving Mill routine quality control is done in each

department on regular basis in order to ensure quality norms of the yarn. Quality of yarn is

checked at different stages of production. Samples are taken from roving and spinning

departments. The Standard measure for calculating the quality of yarn is grains.

1 gram=15.7 grains at the end of the production


Organization Study

FINANCE DEPARTMENT


Organization Study

FINANCE DEPARTMENT

All the financial revenues and expenditures of the mill come under the

control of NTC. The main source of revenues for the mill is the sale of yarn and the main

expenditure incurred are for the procurements of raw materials, payment of wages and

salaries and payment of electric charges. In Cannanore Spinning and Weaving Mill Account

Manager is the Head of Financial Department. He is in charge of all the matters related to

financing in Cannanore Spinning and Weaving Mill.

Hierarchy

Accounts Manager

Deputy Manager Accounts

Senior Assistant

Junior Assistant

Significant accounting policies

1) Accounting convention The accounts are prepared under the historical cost connection on the basis of

going concern concept.


Organization Study

2) Fixed asset and depreciation.

a) In the case of fixed asset acquired as a result of nationalization, the life

of the asset for depreciation purpose has been considered as if these

were new. These assets have been taken at the values as then approved

by the Board Of Directors of the corporation. The assets acquired

Subsequently are stated at cost.

b) Depreciation on fixed assets is provided on straight line method as per

205(2)(b) of the companies Act,1956.

c) Depreciation on the amounts capitalized subsequently on account of

foreign exchange fluctuations is provided prospectively over the

residual useful life of the asset.

3) Investments

a) Long term investments are stated at the cost of depreciation were

applicable, provision is made for permanent dimension in the value

long term investments.

b) Current investments at the lower cost or fair market value.

4) Debit / Receivables

a) Debit/receivables from private parties which are doubtful of recovery

or adjustments and outstanding for more than 3 years.

b) Debits /Receivables from sister concerns, inter subsidiaries/employees

of the mill/Government departments is nil.

5) Prior period expenses & income

Expenses & income of prior year less than Rs.10,000 in each case has been

charged/accounted in the current year itself.


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6) Repairs & Maintenance

Store consumption, salaries & wages incurred on maintenance are charged to

primary head of accounts.

7) Carrying charges

Carrying charges on cotton purchases has been accounted under administrative

expenses.

8) Insurance claims

Insurance clime arising out of the fair accident, machinery break down, transit loss

& other miscellaneous loses will be accounted only when the claim is admitted by the

insurers and the claim vouchers discharged by the company.

9) Foreign currency transaction

The transactions in the foreign exchange are accounted at exchange rate prevailing on

the date of transaction. Any exchange gains or losses arising out of the subsequent

fluctuations are accounted in the profit & loss account except loss relating to acquisition of

assets, which are accounted in the cost of the assets as the above.

10) Leave with wages / salary provisions

Provision for leave salary/wage is made for the number of days of leave to the credit

of employees on date of Balance sheet.

11) Expenditure on voluntary retirement scheme

Expenditure incurred for implementation of voluntary retirement scheme is changed

to profit & loss account in the year in which the employees are relieved & the same treated

as on extra ordinary expense.


Organization Study

PERSONNEL DEPARTMENT


Organization Study

PERSONNEL DEPARTMENT

Labor is the most important ingredient in the process of production. This

process imposes some adverse effects on physical and mental health of the workers. They

need to be guarded. Here state, society, employer, trade unions and other voluntary

organizations can come forward to help them. First and foremost duty is of the government

which protects Labor force by enacting welfare laws.

On the other hand, welfare is a broader concept referring to a state of living of

an individual or a group, in a desirable relationship with the total environment-ecological,

economical and social. Labor welfare includes both social and economic contents of

welfare. India being a welfare state, the Government has enacted many welfare laws.

Personnel Management at Cannanore Spinning & Weaving Mill

In Cannanore Spinning & Weaving Mill the personnel department has the task of

keeping the organization together as an entity in the force of external and internal stress and

is of considerable importance.

Hence currently no recruitment is taking place and bad workers are deployed to

meet any shortage in it’s day to day working. There are 36 officers and staffs 306 permanent

workers,74 trainees,200 gate badalies,5 open gate badalies. Construction works currently

change workers needed for the mill is 340.

The personnel manager is the head of the personnel department. He is in change of

administrative functions. Time to time training programmed is conducted. Apprentice

training is held as per the apprentice act. Clerical staff is decided by the NTC. Promotion for

the workers or staff is based on Seniority and Merit.

Two types of wage payment system are followed in this mill. For mixing blow room

and carding wages are paid on the basis of piece rate system and for all other production

process time rate system is adopted.


Organization Study

OFFICERS ON ROLL IN CANNANORE SPINNING AND WEAVING MILL.

T.V.JAYAKRISHNAN - GENERAL MANAGER

N.K.BABULAL - SPIINNING MANAGER

BHASKER - MANAGER OF ACCOUNT

K.JAYADEVAN - ASSISTANT ENGENEER

M.NAZAR - LABOUR WELFARE OFFICER

R.HARIHARAN - ASST.SPINNING MANAGER

Following are the main areas of administration

1.RECRUITMENT,TRAINING AND PROMOTION

Currently no recruitment is taking place in Cannanore Spinning and

Weaving Mill. From time to time training program is conducted. Apprentice training is held

as per the Apprentice Act. Clerical staffs is decided by the NTC.A promotion for the

workers or staff is on security over merit.

2.PROVIDENT FUND CONTRIBUTION

All the employees are covered under PF and ESI Act, the employees

contribute 10% from their wages to EPF or Salary with 10% contribution by the employer.

The employees are eligible for EP services with a ceiling of Rs.6500 per month.

3.ESI CONTRIBUTION

Medical benefit, accidental benefit, sick benefit leave are provided if

necessary, funeral benefits are also provided if any one dies during the period of his service.


Organization Study

4.WAGE ADMINISTRATION

There are two types of wage payment followed in Cannanore Spinning

And Weaving Mill according to the production stages. For mixing blow room and carding

wages are paid on the basis of piece rate system and for all other production process time

rate system is obtained.

5.RETIREMENT BENEFITS

At the time of retirement these benefits are provided at Cannanore

Spinning and Weaving Mill.

a) Gratuity

b) Pension

c) Leave with wages

d) Provident fund

6.ADMINISTRATIVE ACTIONS

If a worker takes long leave the management is not going to terminate him

suddenly, there is a procedure in Cannanore Spinning and Weaving Mill. First the absence is

admitted for counseling, there after a notice will send and then warning notice will send,

then even after the continuous show call notice is send, then the management may suspend

him and after further enquiries termination is held as per standing orders.

Number of Workers.

There are 400 workers and 20 administrative staffs working in the mill.3 shift

is functioning from 7am to 3.30pm,3.30pm to 12am and from 12am to 7 am. Both male and

female workers are employed in al sections of the mill. Different categories of workers

include permanent, temporary and gate bade lies.


Organization Study

SALES AND MARKETING DEPARTMENT


Organization Study

SALES AND MARKETING DEPARTMENTS

The final product of Cannanore Spinning and Weaving mill is yarn The market for

yarn is highly competitive one and therefore the prices keep fluctuating, which in turn

affects the quantity demanded. He main consumers of yarn are the weaving merchants and

looms. Yarn is their raw material with which they produce fabrics. Most of the fabric that

is thus produce is exported to different countries and also used for domestic purposes within

the country. Hence it is absolutely a must that the yarn is of very good quality. Otherwise

they will be immediately rejected and returned to the mill itself.

In case of Cannanore Spinning and Weaving mill, the manufactures have direct

contact with the depot keepers. Depot keepers are traders who purchase the yarn from

various wills and sell it to different consumers. There are various depot keepers who

purchase the yarn from NTC mills, and some of the main ones are located in Maharashtra

(Bhiwandi), Gujarat (Surat) (Ahmedabad), Delhi etc. Cannanore Spinning and weaving

mills sell most of their yarn to depot keeper of Bhiwandi (Maharashtra). Various counts of

yarn will be produced according to the quantity demanded by the depot keepers. They

inform the mill about the changing demand conditions.

Fixing of rates for the yarn

The price of yarn produced in various NTC mills located all over India fixed by

yarn pricing committee. The price fixed by the committee is sent to the various mills along

with minutes of meeting. The yarn pricing committee constitute 2 types of members, they

are first the Director of finance, finance manager of head office, two technical manager and

one marketing manager.

Remaining members are temporary and changed every Wednesday through rotation.

So all together yarn pricing committee consist of 12 more members(both permanent and

temporary).If the majority of the permanent members are not present, the meeting will be

postponed to another day within that week.


Organization Study

This committee fixes the rates for the various counts of yarn produced in the group of

mill. The rates are effective for that particular week. The price is fixed after evaluating many

information that is weekly market report of sales, market trends etc…received from various

centers of depot keepers. Depot keepers sent notes to the yarn pricing committee relating to

the problems and general hands of the market. Some of the points they communicate in the

committee which effects the demand for the yarn are,

The markets for various counts are dull or good.

Rates are quoted by weaving merchants at a lower rates.

Buying of yarn is restricted due to money tightness.

Loom working may be low due to power shortage.

A higher demand of yarn is reported in festival season.

PACKING OF YARN

Each bag contains about 40 core yarns weighting 1.25kg each. Gross weight of a

pack is 51.4kg and the net weight is 50kg.There about 5 workers in each shift in ten

packing department, who are paid on price rate system. they have to pack 19 bags within

8 hours. If they pack lesser number bags a certain percentage calculated on each bag is

deducted from their wages. The plastic bag are used for packing the yarn. On each bag

the following information will be provided.

1. Name of the mill.

2. Count.

3. Ingrediants.

Polyester

Viscose

Cotton

4.Gross weight.

5.Net weight.

6.Lot number.


Organization Study

7.Tex mark.

TIME KEEPING DEPARTMENT


Organization Study

TIME KEEPING DEPARTMENT

In Cannanore Spinning and Weaving Mill, a time keeping department functions,

this is a subsidiary department of Human Resource Department. The main task of the time

keeping department is to record the employees Entrance time, attendance and payroll

preparation. This Department works in three shifts. In each shifts three persons are

employed, from which two belong to the general category and the other one is a clerk.

For checking the time of entrance an attendance card is provided in which the

Department Name, Name of the employee, Employee ticket number etc are given, which

must be shown to the Time Keeper at the time of entrance. In this attendance card the time

keeper marks the attendance and entrance time is also entered in the register. Through this

attendance card the Time Keeper marks the attendance and entrance time is also entered in

the register. Through this attendance card the time keeper calculates the wage of workers

who are paid twice a month. At the time of Wage payment, the Time Keeping Department

gives each employee a slip called ‘Pay Slip’ in which the Department, Name of Worker,

Ticket number, Earnings and deductions are

shown. This Pay Slip is passed to the cashier for payment.


Organization Study

CHAPTER 5

SWOT ANALYSIS


Organization Study

SWOT ANALYSIS

STRENGTHS-

Experience and expertise of workforce

Superior quality products

On time delivery

Reputation of the organization

High end infrastructure

WEAKNESSES-

Presents of more than 2 trade unions in the compony

The company website has only few information regarding various functional

areas

The company is not exploit in the foreign market

OPPORTUNITIES-

The textile industries have a very good future in the world market.

Export potential of the company

Expand the business by opening new branches

Regular demand


Organization Study

THREATS-

Increasing price of raw material

Sometimes the existing manpower cannot be able to meet the demand

Labour cost is increasing

Accidents

Strikes may happen between employees & employer


Organization Study

LEARNING EXPERIANCE


Organization Study

LEARNING EXPERIENCE

Learning Non availability of modern sophisticated machines.

There is an excellent relationship between employer and employer.

Company gives protection against financial risk.

Medical benefits are provided.

About 50% of the workers have 30-40 years experience.

At the company majority of the bright sparks employed were males rather than

females.

By this organization study I have understood that the main weakness of the

company in the related things. In order to overcome these weaknesses they have to do the

following things.

Improve the working condition of the employees.

Introduce latest technologies to innovate the production process.

Give more importance to the social welfare of the employees.

Give proper training to the employees in time.


Organization Study

CONCLUSION

With the de-regulation of the multi-fiber Agreement and the boom in the retail

market, the textile mill industry has a great potential for growth. However, in order to ensure

sustainable growth, and secure competitive advantages it is essential to innovate the

production process and to produce using with latest technologies. The mills are producing

innovative products like high twist and super high twist fiber which are of high demand in the

current market. It is essential for the organization to introduce latest technologies to innovate

the production process. the study shows that the mill is in a moderate position and proceeding

in a desirable direction. the firm is moving forward in a positive direction throughout the

period of study. this is can be taken as a cue by the government to encourage such unit in the

rural and semi urban areas. They Show able provision for the public sector to employer and

work in the business of the large scale disinvestments plans of the government.


Organization Study

BIBLIOGRAPHY

BOOKS

Research methodology (Second revised edition)

K Aswathappa – Personal & Human resource Management

Philip Cotler- Marketing Management

WEBSITES

1.www,textile.net

2.www.cswm.com

3.wwssw,google.com


org study

Documents

Transcript of org study